[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of April 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR26.11]

[Page 689-691]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 26_LIQUORS AND ARTICLES FROM PUERTO RICO AND THE VIRGIN ISLANDS
--Table of Contents
 
                          Subpart B_Definitions
 
Sec. 26.11  Meaning of terms.


    When used in this part and in forms prescribed under this part, 
where not otherwise distinctly expressed or manifestly incompatible with 
the intent thereof, terms shall have the meaning ascribed in this 
section. Words in the plural form shall include the singular and vice 
versa, and words importing the masculine gender shall include the 
feminine. The terms ``includes'' and ``including'' do not exclude things 
not enumerated which are in the same general class.
    Appropriate ATF Officer. An officer or employee of the Bureau of 
Alcohol, Tobacco and Firearms (ATF) authorized to perform any functions 
relating to the administration or enforcement of this part by ATF Order 
1130.29, Delegation Order--Delegation of the Director's Authorities in 
27 CFR Part 26, Liquors and Articles from Puerto Rico and the Virgin 
Islands.
    Article. Any preparation unfit for beverage use, made with or 
containing:
    (1) Wine or beer;
    (2) Distilled spirits or industrial spirits; or
    (3) Denatured spirits when such preparation is not manufactured 
under the provisions of this chapter.
    Bank. Any commercial bank.
    Banking day. Any day during which a bank is open to the public for 
carrying on substantially all its banking functions.
    Beer. Beer, ale, porter, stout, and other similar fermented 
beverages (including sake or similar products) of any name or 
description containing one-half of 1 percent or more of alcohol by 
volume, brewed, or produced from malt, wholly or in part, or from any 
substitute therefor.
    Bottler. Any person required to hold a basic permit as a bottler 
under 27 U.S.C. 203(b)(1).
    Bulk container. Any container having a capacity of more than 1 
gallon.
    Bulk distilled spirits. The term ``bulk distilled spirits'' means 
distilled spirits in a container having a capacity in excess of 1 
gallon.
    Bureau of Alcoholic Beverage Taxes. Bureau of Alcoholic Beverage 
Taxes of the Commonwealth of Puerto Rico.
    Business day. Any day, other than a Saturday, Sunday, or a legal 
holiday. (The term legal holiday includes all holidays in the District 
of Columbia and all legal holidays in the Commonwealth of Puerto Rico.)
    Commercial bank. A bank, whether or not a member of the Federal 
Reserve System, which has access to the Federal Reserve Communications 
System (FRCS) or Fedwire. The ``FRCS'' or ``Fedwire'' is a 
communications network that allows Federal Reserve System member banks 
to effect a transfer of funds for their customers (or other commercial 
banks) to the Treasury Account at the Federal Reserve Bank of New York.
    Customs officer. Any officer of the Customs Service or any 
commissioned, warrant, or petty officer of the Coast Guard, or any agent 
or other person authorized by law or designated by the Secretary of the 
Treasury to perform any duties of an officer of the Customs Service.
    Denatured spirits. Industrial spirits denatured in accordance with 
approved

[[Page 690]]

formulas in distilled spirits plants established and operated under the 
provisions of this chapter relating to the establishment and operation 
of plants qualified to denature spirits in the United States or, in 
respect of a product of the Virgin Islands, shall also mean spirits 
denatured in accordance with approved formulas in plants established 
under the provisions of the Virgin Islands regulations and shall 
include, unless otherwise limited, both completely and specially 
denatured spirits.
    Director. The Director, Bureau of Alcohol, Tobacco and Firearms, the 
Department of the Treasury, Washington, D.C.
    Director of the service center. A director of an internal revenue 
service center.
    Distilled spirits or spirits. That substance known as ethyl alcohol, 
ethanol, or spirits of wine, in any form (including all dilutions and 
mixtures thereof, from whatever source or by whatever process produced), 
but shall not include industrial spirits as defined in this part except 
when used in reference to such spirits which would be subject to tax if 
brought into the United States.
    District director. A district director of internal revenue.
    District director of customs. The district director of customs at a 
headquarters port of the district (except the district of New York, 
N.Y.); the area directors of customs in the district of New York, N.Y.; 
and the port director at a port not designated as a headquarters port.
    Effective tax rate. The net tax rate after reduction for any credit 
allowable under 26 U.S.C. 5010 for wine and flavor content at which the 
tax imposed on distilled spirits by 26 U.S.C. 7652 is paid or 
determined.
    Electronic fund transfer or EFT. Any transfer of funds effected by a 
proprietor's commercial bank, either directly or through a correspondent 
banking relationship, via the Federal Reserve Communications System 
(FRCS) or Fedwire to the Treasury Account at the Federal Reserve Bank of 
New York.
    Eligible article. Any medicine, medicinal preparation, food product, 
flavor, flavoring extract or perfume which contains distilled spirits, 
is unfit for beverage purposes, and has been or will be brought into the 
United States from Puerto Rico or the Virgin Islands under the 
provisions of 26 U.S.C. 7652(g).
    Eligible flavor. A flavor which:
    (1) Is of a type that is eligible for drawback of tax under 26 
U.S.C. 5134,
    (2) Was not manufactured on the premises of a distilled spirits 
plant, and
    (3) Was not subjected to distillation on distilled spirits plant 
premises such that the flavor does not remain in the finished product.
    Eligible wine. Wine on which tax would be imposed by paragraph (1), 
(2), or (3) of 26 U.S.C. 5041(b) but for its removal to distilled 
spirits plant premises and which has not been subject to distillation at 
a distilled spirits plant after receipt in bond.
    Executed under penalties of perjury. Signed with the prescribed 
declaration under the penalties of perjury as provided on or with 
respect to the return, claim, form, or other document, or where no form 
of declaration is prescribed, with the declaration: ``I declare under 
the penalties of perjury that this -------- (insert type of document, 
such as statement, report, certificate, application, claim, or other 
document), including the documents submitted in support thereof, has 
been examined by me and, to the best of my knowledge and belief, is 
true, correct, and complete.''
    Fiscal year. The period which begins October 1 and ends on the 
following September 30.
    Gallon or wine gallon. The liquid measure equivalent to the volume 
of 231 cubic inches.
    Importer. Any person who imports distilled spirits, wines, or beer 
into the United States.
    Industrial spirits. As to products of Puerto Rico, distilled spirits 
produced and warehoused at and withdrawn from distilled spirits plants 
established and operated under the provisions of this chapter relating 
to the establishment of such plants and the production, bonded 
warehousing, and withdrawal from bond of distilled spirits in the United 
States, or as to products of the

[[Page 691]]

Virgin Islands, distilled spirits produced, warehoused, and withdrawn 
under Virgin Islands regulations.
    Kind. As applied to spirits, kind shall mean class and type as 
prescribed in 27 CFR part 5. As applied to wines, kind shall mean the 
classes and types of wines as prescribed in 27 CFR part 4.
    Liquor bottle. A bottle made of glass or earthenware, or of other 
suitable material approved by the Food and Drug Administration, which 
has been designed or is intended for use as a container for distilled 
spirits for sale for beverage purposes and which has been determined by 
the appropriate ATF officer to adequately protect the revenue.
    Liquors. Industrial spirits, distilled spirits, liqueurs, cordials 
and similar compounds, wines, and beer or any alcoholic preparation fit 
for beverage use.
    Permit. A formal written authorization of the Secretary of the 
Treasury of Puerto Rico.
    Person. An individual, a trust, an estate, a partnership, an 
association, a company, or a corporation.
    Proof gallon. A gallon of liquid at 60 degrees Fahrenheit which 
contains 50 percent by volume of ethyl alcohol having a specific gravity 
of 0.7939 at 60 degrees Fahrenheit referred to water at 60 degrees 
Fahrenheit as unity or the alcoholic equivalent thereof.
    Rectifier. Any person required to hold a rectifier's basic permit 
under 27 U.S.C. 203(b)(1).
    Revenue Agent. Any duly authorized Commonwealth Internal Revenue 
Agent of the Department of the Treasury of Puerto Rico.
    Secretary. The Secretary of the Treasury of Puerto Rico.
    Secretary or his delegate. The Secretary or any officer or employee 
of the Department of the Treasury of Puerto Rico duly authorized by the 
Secretary to perform the function mentioned or described in this part.
    Taxpaid. As used in this part with respect to liquors or articles of 
Puerto Rican manufacture, includes liquors or articles on which the tax 
was computed but with respect to which payment was deferred under the 
provisions of subpart E of this part.
    Treasury Account. The Department of the Treasury's General Account 
at the Federal Reserve Bank of New York.
    United States. The States and the District of Columbia.
    U.S.C. The United States Code.
    Virgin Islands regulations. Regulations issued or adopted by the 
Governor of the Virgin Islands, or his duly authorized agents, with the 
concurrence of the Secretary of the Treasury of the United States, or 
his delegate, under the provisions of 26 U.S.C. 5314, as amended, and 
Sec. 26.201a.
    Wine. Still wine, vermouth, or other aperitif wine, imitation, 
substandard, or artificial wine, compounds designated as wine, flavored, 
rectified, or sweetened wine, champagne or sparkling wine, and 
artificially carbonated wine, containing not over 24 percent of alcohol 
by volume. Wines containing more than 24 percent of alcohol by volume 
are classed and taxed as distilled spirits.

(68A Stat. 917, as amended (26 U.S.C. 7805); 49 Stat. 981, as amended 
(27 U.S.C. 205) Aug. 16, 1954, ch. 736, 68A Stat. 775 (26 U.S.C. 6301); 
June 29, 1956, ch. 462, 70 Stat. 391 (26 U.S.C. 6301))

[T.D. ATF-48, 43 FR 13551, Mar. 31, 1978]

    Editorial Note: For Federal Register citations affecting Sec. 
26.11, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.

Subpart C [Reserved]