Subpart A-Scope

§ 231.1 Bottling or packaging of taxpaid wine.

The regulations in this part relate to the bottling and packaging of taxpaid United States and foreign wines, at premises other than the bottling premises of a distilled spirits plant operated under Part 201 of this chapter. [T.D. 6387, 24 FR 4820, June 12, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 231.2 Forms prescribed.

The Director is authorized to prescribe all forms required by this part, including applications, notices, reports, returns and records. Information called for shall be furnished in accordance with the instructions on the forms or issued in respect thereto.

Subpart B-Definitions

§ 231.10 Meaning of terms.

As used in this part, except as otherwise indicated in the context, terms shall have the meanings ascribed in this subpart.

Director. The Director, the Department of the Treasury, Washington, D.C.

Exception. The definitions in this subpart are prescribed pursuant to the internal revenue laws governing the bottling, packaging and removal of taxpaid wine and shall not supersede or affect the requirements set forth in 27 CFR Part 4 relative to the labeling of wine under the provisions of the Federal Alcohol Administration Act.

Foreign wine. "Foreign wine" shall mean wine produced outside the continental United States, Alaska and Hawaii.

Gallon or wine gallon. “Gallon" or "wine gallon" shall mean the liquid measure equivalent to the volume of 231 cubic inches.

Including. "Including" shall not be deemed to exclude things other than those enumerated which are in the same general class.

Inclusive language. Words in the plural form shall include the singular and vice versa, and words in the masculine gender shall include the femi

nine, a trust, estate, partnership, association, company, or corporation. I.R.C. "I.R.C." shall mean the Internal Revenue Code of 1954.

Package. "Package" shall mean any barrel, cask, keg, or similar container, or any demijohn (or bottle) of two gallons or more capacity, used to remove wine from taxpaid wine bottling houses.

Proprietor. "Proprietor" shall mean the operator of a taxpaid wine bottling house.

Regional regulatory administrator. The principal ATF regional official responsible for administering regulations in this part.

Standard wine. "Standard wine" shall mean natural wine, specially sweetened natural wine, special natural wine and standard agricultural wine produced in accordance with the provisions of Part 240 of this chapter.

Taxpaid wine. “Taxpaid wine" shall mean wine on which the tax imposed by section 5041, I.R.C., has been determined, regardless of whether the tax has actually been paid or the payment of tax has been deferred under section 5061, I.R.C.

U.S.C. "U.S.C." shall mean the United States Code.

United States wine. "United States wine” shall mean wine produced on bonded wine cellar premises in the United States.

Wine. "Wine," when used without qualification, means all still wine and includes vermouth and other special (flavored) natural wine.

(26 U.S.C. 7805 (68A Stat. 917), 27 U.S.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. ATF-48, 43 FR 13548, Mar. 31, 1978]

Subpart C-Establishment of Premises § 231.30 General.

Every person desiring to bottle or package taxpaid wine (at premises other than the bottling premises of a distilled spirits plant) shall provide premises, make application on Form 2975, and receive approval from the regional regulatory administrator, as required in § 231.50, to operate a taxpaid wine bottling house for that purpose.

Wine which does not meet the requirements for standard wine may not be received on taxpaid wine bottling house premises used for the bottling or packaging of standard wine. Every person desiring to bottle or package taxpaid wine other than standard wine shall make application on Form 2975, and receive approval from the regional regulatory administrator, as required in § 231.50, to establish a taxpaid wine bottling house for that purpose. Notwithstanding the provisions of this section and of § 231.50, any proprietor of a taxpaid wine bottling house who has qualified as such under an application which was not made on Form 2975 shall not be required to make a new application on Form 2975, solely by reason of such form being prescribed herein.

(72 Stat. 1378, 1379, 1381; 26 U.S.C. 5352, 5356, 5364)

[T.D. 6562, 26 FR 4049, May 11, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 231.31 Use of taxpaid wine bottling house.

The premises of a taxpaid wine bottling house shall be used exclusively, except as provided in this section, for the business of bottling, rebottling, packaging, or repackaging of taxpaid wine, including the mixing of wines of the same kind and taxable grade and country of origin to facilitate handling, and the preserving, filtering, or clarifying of wine. Upon approval by the regional regulatory administrator, the premises may also be used to conduct other operations, not involving alcoholic beverages, where such operations will not jeopardize the revenue or conflict with wine bottling or packaging operations.

(68A Stat. 665; 26 U.S.C. 5363)

Subpart D-Construction and Equipment

§ 231.40 Buildings and rooms of taxpaid wine bottling houses.

Taxpaid wine bottling houses must be so constructed and equipped as to be suitable for the storage and bottling or packaging of taxpaid wine. The buildings, rooms, or designated

areas of the premises must be separated from adjacent buildings, rooms, or areas. Doors or other openings may be provided leading into other buildings, rooms, or areas under control of the bottling house proprietor. An entrance door of the premises must lead into a public street or yard, or into an elevator shaft or common passageway: Provided, That where it is impracticable to have such outside entrance directly to the premises, the proprietor may provide and maintain, subject to the approval of the regional regulatory administrator, access to the taxpaid wine bottling house through other commercial premises under the control of the proprietor.

(68A Stat. 663; 26 U.S.C. 5352)

§ 231.41 [Reserved]

§ 231.42 Tanks and equipment.

Suitable tanks or other containers so arranged and located as to permit ready examination and determination of their contents shall be provided at taxpaid wine bottling houses, unless all wine is to be bottled directly from the bulk containers in which received. The capacities of tanks and other containers will be determined by calculation or measurement and the capacity of the tank and the purpose or purposes for which it will be used will be marked on each tank. If more than one tank is used for the same purpose, they shall be serially numbered. Suitable equipment for measuring and testing wine shall be provided by the proprietor unless such equipment has been provided for use at adjacent premises operated by the proprietor.

§ 231.43 Pipelines for receipt of taxpaid wine.

If taxpaid wine is to be received by pipeline from contiguous or adjacent premises, the pipeline must be a fixed, unbroken line of permanent character, securely constructed and connected, and so arranged as to be exposed to view throughout its entire length.

Subpart E-Qualifying Documents

§ 231.50 Application.

Every person desiring to establish a taxpaid wine bottling house shall file an application on Form 2975, in triplicate, with the regional regulatory administrator of the region in which the taxpaid wine bottling house is located. Except as provided in § 231.53, in the case of amended applications, all the information required by this part and by the instructions on the form or issued in respect thereto shall be furnished and shall include the following: (a) The name and address of the proprietor;

(b) Type of business organization of the proprietor (such as individual owner, partnership, association, or corporation);

(c) A statement whether the taxpaid wine bottling house will be used for bottling standard wine or wine other than standard wine;

(d) The approximate quantity in gallons of wine to be bottled each month; (e) A statement whether any other business, or operation not involving wine, is to be conducted on the taxpaid wine bottling house premises, and if so, a statement of the nature of the business or operation;

(f) If a partnership, association, or corporation, a statement whether permits are held or other premises operated in the same region, and if so, the permit or premises (identified by class, number, and address) in connection with which the documents required by §§ 231.54 to 231.56 have been filed;

(g) A description of the taxpaid wine bottling house premises in sufficient detail to show the location of the premises and to distinguish such premises from other portions, if any, of the building;

(h) A statement whether the entrance door of the taxpaid wine bottling house leads directly to the outside of the building, to a common passageway or elevator shaft, or into other premises under the control of the proprietor, and if the entrance is into other premises, a statement of the nature of the business conducted on such premises; and

(i) Each trade name to be used in bottling or packaging wine. Each application shall be executed under the penalties of perjury in the manner prescribed on Form 2975 and all written statements, affidavits, and other documents submitted in support of the application or incorporated by reference shall be deemed to be a part thereof.

(68A Stat. 749, 72 Stat. 1379; 26 U.S.C. 6065, 5356)

[T.D. 6562, 26 FR 4049, May 11, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 231.51 Permit.

The Federal Alcohol Administration Act (49 Stat. 978; 27 U.S.C. Sup. 203) and regulations issued pursuant thereto in 27 CFR Part 1 require that any person, intending to engage in the business of purchasing wine for resale at wholesale, obtain a permit therefor. A state, a political subdivision of a state, or an officer or employee of a state or political subdivision thereof acting in his official capacity, is exempted from this requirement. Application for the permit shall be filed with the regional regulatory administrator at the time of filing the original application for establishment.

§ 231.52 Occupational taxes.

Proprietors of taxpaid wine bottling houses who sell wine must file special tax returns on Form 11, and pay special (occupational) tax as wholesale dealer in wines, or retail dealer in wines, as the case may be, as provided in Part 194 of this chapter.

(68A Stat. 846, 72 Stat. 1340, 1343, 1344, 1346; 26 U.S.C. 7011, 5111, 5112, 5121, 5122, 5142)

[T.D. 6387, 24 FR 4820, June 12, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 231.53 Amended application.

If the proprietor desires to change the location or extent of the premises, or to use a trade name not previously approved, or if there is a change in any information shown in the approved application to establish and operate a taxpaid wine bottling house, an amended application on Form 2975 shall be filed with the regional regulatory administrator and permission to

operate obtained prior to commencing the proposed operation. Amended applications on Form 2975 may be executed in skeleton form. Items which are correctly set forth in prior applications and remain unchanged may be incorporated in the amended application by reference to the respective application previously filed in which the item is fully and correctly set forth. Such incorporation by reference shall be made by entering for such item in the space provided therefor the statement "No change since filing application dated " (the date being inserted), followed, if applicable, by "Form 2975, Serial No.-," (the serial number being inserted). The regional regulatory administrator may require the proprietor to furnish additional information concerning the taxpaid wine bottling house at any time. (72 Stat. 1379; 26 U.S.C. 5356)

[T.D. 6562, 26 FR 4049, May 11, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 231.54 Individual owners, partnerships or associations.

Where the application is filed by an individual owner, partnership or association, the name and address of every person interested in the taxpaid wine bottling house, whether active, passive, or silent, must be given in the application. If there are articles of partnership or association, copies thereof, in triplicate, must be submitted with the application, unless such documents have been previously filed, and a statement to that effect is included in the application.

(68A Stat. 664; 26 U.S.C. 5356)

§ 231.55 Corporate documents.

Where the application is filed by a corporation there shall be filed with the initial application a certificate of incorporation; properly certified copies, in triplicate, of the extracts of the minutes of meetings of the board of directors authorizing certain officers or other persons to sign for the corporation and specifying what documents may be signed; and a list of the names and addresses (business and residence) of the officers and directors, and of the stockholders as re

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quired by § 231.56. If such documents have previously been filed in the same region, and statement to that effect is included in the application, additional copies are not required.

(72 Stat. 1379; 26 U.S.C. 5356)

['T.D. 6562, 26 FR 4049, May 11, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 231.56 List of stockholders.

In case of corporations and similar entities, there must be submitted with the application a list, in triplicate, giving the names and addresses (business and residence) of all stockholders and persons interested in the corporation, or other legal entity, and the amount and nature of the stockholding or other interests of each, whether such interest appears in the name of the interested party or in the name of another for him: Provided, That the information need be furnished only as to the persons holding or controlling 10 percent or more of any class of stock or other interest.

§ 231.57 Power of attorney, Form 1534.

If the application is signed by an attorney in fact for an individual, partnership, association, or a corporation, or by one of the members of a partnership or an association, or, in the case of a corporation, by an officer or other person not authorized to sign by the documents described in corporate § 231.55, such application must be supported by a duly authenticated copy of power of attorney conferring authority on the person signing the application to execute the same. Powers of attorney shall be executed on Form 1534, in accordance with the instructions on the form, and submitted to the regional regulatory administrator.

[20 FR 2928, Apr. 30, 1955, as amended by T.D. 6562, 26 FR 4050, May 11, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975)

§ 231.58 Plat.

Every person filing application to establish a taxpaid wine bottling house shall file with the regional regulatory administrator a plat of the proposed premises, in triplicate. The plat shall show, in sufficient detail to definitely determine what premises are to be

used as a taxpaid wine bottling house, the outer boundaries and doors of the premises. The plat may be a sketch to approximate scale on letter size white paper and shall be signed by the applicant. If paper larger than letter size is used, the plat shall be no larger than 15 x 20 inches in size with a clear margin of not less than one inch.

§ 231.59 Change in proprietorship.

If there is any change in proprietorship of the business, except through a change in stock ownership of a corporation, the successor shall qualify in the same manner as for original establishment of a taxpaid wine bottling house, except he may adopt the plat of his predecessor. The adoption by a successor of the plat of his predecessor shall be in the form of a certificate, in triplicate, in which shall be set forth the name of the predecessor, the registry number of the taxpaid wine bottling house, the date of preparation and the date of approval of the plat, and shall include a statement that the plat is accurate. If there is a change in the control of a corporation, whether by a change in stock ownership or otherwise, the regional regulatory administrator shall be notified of the change.

[T.D. 562, 26 FR 4050, May 11, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 231.60 Authority to approve.

The regional regulatory administrator is authorized to approve all applications and other qualifying documents required by this subpart. Upon approval the regional regulatory administrator will assign a registry number to the premises and will return one copy of each such document to the proprietor. The registry number shall be used in all correspondence or subsequent documents filed in connection with the operation of the premises, and shall be shown where required on labels or markings of packages or cases filled at the premises.

§ 231.61 Retention of documents.

The proprietor shall keep in a secure place and filed in an orderly fashion at the taxpaid wine bottling house prem