modified, in duplicate, to a collector of customs, who will note approval on the copy of Form 1627 and return it with the stamps to the importer, who will acknowledge receipt thereof. The collector of customs will retain the original Form 1627. Where the distilled spirits are to be imported through more than one port, Form 1627-A shall be submitted by the importer to such collector for each such port for certification and transmittal of a copy to the collector of customs at each of the ports at which consumption entries will be filed. The importer shall make appropriate entries on his monthly report, Form 96, of the receipt and disposition of unused stamps covered by this section. (53 Stat. 303; 26 U.S.C. 2803)

RED STRIP STAMPS TO BE AFFIXED AT THE PORT OF ENTRY UNDER CUSTOMS SUPERVISION

§ 180.129 Conditions. Distilled spirits in containers coming into the United States from the Virgin Islands without having red strip stamps attached may not be released from customs custody until a stamp has been affixed to each container under the supervision of a customs officer. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.130 Requisition, Form 428. Requisition for red strip stamps shall be made by the importer, or his duly authorized agent, in the manner prescribed in § 180.119. Subsequent procedure shall conform to the applicable provisions of §§ 180.121, 180.122, and 180.123. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.131 Expense of affixing red strip stamps. Expenses of cartage, storage, repacking, handling, or other labor connected with the opening of cases and affixing of red strip stamps to the containers, shall be borne by the importer. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.132 Marking of cases. There shall be indelibly stamped upon each case by the customs officer supervising the affixing of red strip stamps to containers the following legend:

Stencils or other devices now in use may be utilized until replaced, when they must conform to the above wording. (53 Stat. 303; 26 U.S.C. 2803)

PROCEDURE AT PORT OF ENTRY

§ 180.133 Conditions. The importer shall file the report of gauge provided for in § 180.98 and the certificate provided for in § 180.99 with the collector of customs at the port of entry in the United States.

§ 180.134 Action by collector of customs. The collector of customs will direct the proper customs gauger to determine the taxable quantity of liquors contained in the consignment by regauge or inspection and report the result thereof to the collector of customs. Upon receipt of such report the collector of customs will refer to the approved formula covering the product to determine the rate of internal revenue tax applicable thereto. When the rate of tax applicable to the product has been ascertained, the tax due on the consignment will be determined in the following

manner:

(a) Distilled spirits. If the certificate is accompanied by a report of gauge made by an insular gauger and bears the insular gauger's certification, as prescribed in § 180.99, showing that the spirits covered thereby were 100 degrees or more in proof at the time of withdrawal from the insular bonded warehouse, the internal revenue tax at the distilled spirits rate will be collected on the proof-gallon contents of the packages, or cases, regardless of the proof of the spirits at the time of their entry into the United States. If the certification of the insular gauger and the accompanying report of gauge show that the spirits were less than 100 degrees in proof at the time of withdrawal thereof from the insular bonded warehouse, the internal revenue tax at the distilled spirits rate will be collected on the wine-gallon contents of the

packages or cases as determined by the customs gauger. If the certificate does not bear the certification of the insular gauger and is not accompanied by a report of gauge made by an insular gauger showing the proof of the spirits at the time of their withdrawal from the insular bonded warehouse, the proof of the spirits at the time of regauge or inspection at the port of entry in the United States will be the basis for determining the internal revenue tax due thereon, i. e., if the spirits are less than 100 degrees in proof, the distilled spirits tax will be collected on the wine gallons, whereas if the spirits are 100 degrees or more in proof, the distilled spirits tax will be collected on the proof gallons. The rectification tax on taxable rectified spirits will be collected on the proof gallons contained in the consignment regardless of the proof of the spirits at the time of their withdrawal from the insular bonded warehouse or at the time of their entry into the United States.

(b) Fermented liquor-(1) Beer. If the certificate covers beer, the fermented malt liquor tax will be collected on the basis of the number of barrels of 31 gallons each, or fractional parts thereof, contained in the shipment.

(2) Wine. If the certificate covers wine, the wine tax will be collected at the rates imposed by section 3030, Internal Revenue Code, as amended.

(c) Articles. Where articles contain liquors, the tax will be collected at the rates prescribed by law on the liquor contained therein as shown by the certificate. (53 Stat. 298, 347, 365; 26 U.S.C. 2800 (a) (1), 2800 (a) (4) (A), 2800 (a) (5), 3030, 3150 (a))

180.135 Tax-payment. The internal revenue tax on liquors and articles coming into the United States from the Virgin Islands shall be paid to the collector of customs at the port of entry, as provided by customs regulations. (19 CFR, Part 16)

RECORDS AND REPORTS

§ 180.136 Monthly record, Part I, Form 96. Every person who purchases red strip stamps for bottled liquors coming into the United States from the Virgin Islands shall keep a record of red strip stamps purchased and used on Part

I of Form 96. A separate page in single copy is required for each denomination of stamps. Entries shall be made on Form 96 daily, as indicated by the headings of the various columns and lines, and in accordance with the instructions on the form. The record shall be kept in bound form for a period of four years, and during such period shall be available during business hours for inspection by Government officers. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.137 Monthly report, Parts II and III, Form 96. At the close of the month, Parts II and III of Form 96 shall be prepared in triplicate. The red strip stamps purchased, used, and sent to the Virgin Islands during the month will be reported on Part II, and the stamps sent to the Virgin Islands and used on liquors coming into the United States therefrom will be reported on Part III. Two copies shall be forwarded, on or before the 5th day of the succeeding month, to the district supervisor, Alcohol Tax Unit, in charge of the district in which the purchaser's place of business is located. One copy shall be retained in bound form with the copies of Part I, Form 96, for the same month, available for inspection by Government officers. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.138 Monthly report, Form 1593. Each district supervisor will, after audit of Forms 96, prepare Form 1593, giving all the information required by the form. The report will be prepared in duplicate and one copy accompanied by Form 96 will be forwarded by the district supervisor to the Commissioner not later than the last day of the month succeeding that for which the report is rendered. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.139 Semiannual reports of collectors of customs. Collectors of customs will furnish the district supervisor as of June 30 and December 31 of each year a consolidated report showing the name of the importer, number and denomination of red strip stamps purchased on requisitions, Form 428, approved by them, and not credited against such requisitions. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.140 Record and report, Form 52E. Every person, except a tourist,

bringing distilled spirits into the United States from the Virgin Islands in bulk and in bottles shall keep Form 52E. The distilled spirits shall be entered on Part 1 of Form 52E as of the time of notice of arrival of the liquors in customs custody. The disposition of such distilled spirits shall be entered on Part 2 of Form 52E as of the time of their sale or their tax-payment and release from customs custody. However, if desired, such person may keep Form 52E for bulk spirits only, and Record 52 for bottled spirits. § 180.141 Record 52. Every person bringing distilled spirits into the United States from the Virgin Islands, who maintains wholesale liquor dealer premises where bottled distilled spirits are received and stored, shall keep Record 52 of all bottled distilled spirits received and disposed of thereat (including bottled spirits transferred from customs custody) in accordance with Part 194 of this chapter, in addition to a record on Form 52E or Record 52, as the case may be, as prescribed by § 180.140. (53 Stat. 327, 328, 373, 391; 26 U.S.C. 2857, 2858, 3171, 3254)

§ 180.142 Time of making entries. Daily entries shall be made on Record 52 and Form 52E as indicated by the headings of the various columns, and in accordance with instructions printed thereon, not later than the close of business of the day on which the transactions occur: Provided, That, where a separate record is kept, such as invoices of the removals of distilled spirits, showing the removal data required to be entered on Record 52 and Form 52E, daily entries of the removal of goods from his premises may be made on the respective record not later than the close of business of the following business day, provided such separate record is approved by the district supervisor. (53 Stat. 327, 328, 373, 391; 26 U.S.C. 2857, 2858, 3171, 3254)

§ 180.143 Separate record of serial numbers of cases. Serial numbers of cases of distilled spirits disposed of need not be entered on Form 52E, provided the respective proprietor keeps in his place of business a separate record, approved by the district supervisor, showing such serial numbers, with necessary identifying data, including the date of removal and the name and address of the con

signee. Such separate record may be kept in book form (including loose-leaf books) or may consist of commercial papers, such as invoices or bills. Such books, invoices, and bills shall be preserved for a period of four years and in such a manner that the required information may be ascertained readily therefrom, and, during such period, shall be available during business hours for inspection and the taking of abstracts therefrom by internal revenue officers. Entries shall be made on such separate approved record not later than the close of business of the day on which the transactions occur. Where a separate record

has been approved by the district supervisor, notation shall be made in the column for reporting serial numbers that "Serial numbers shown on commercial records per authority, dated

full

§ 180.144 Monthly reports. A and complete transcript of the required records shall be rendered on the monthly report, Form 52E or Forms 52A and 52B with a summary on Form 338, as the case may be, and forwarded to the district supervisor, Alcohol Tax Unit, on or before the 10th day of the succeeding month. Records kept on Form 52E and Record 52 shall be preserved for a period of four years, and, during such period, shall be available during business hours for inspection and the taking of abstracts therefrom by the Commissioner or any internal revenue officer. (53 Stat. 327, 328, 373, 391; 26 U.S.C. 2857, 2858, 3171, 3254)

§ 180.145 Forms to be provided by users at own expense. Form 52E, Record 52, and Forms 52A, 52B, and 338 shall be purchased by users from commercial printers and must be in the form prescribed by the Commissioner: Provided, That, with the approval of the Commissioner, they may be modified to adapt their use to tabulating or other mechanical equipment: Provided further, That where the form is printed in book form (including loose-leaf books), the instructions may be printed on the cover or the fly leaf of the book instead of on the individual form. (53 Stat. 327, 328, 373, 391; 26 U.S.C. 2857, 2858, 3171, 3254)

Subpart C-Products Coming Into the United States From the Philippine Islands

AUTHORITY: §§ 180.146 to 180.179, inclusive, issued under 53 Stat. 403; 26 U.S.C. 3340. Statutes giving special authority are listed in parentheses at the end of specific sections.

GENERAL

§ 180.146 Taxable status. Liquors coming into the United States from the Philippine Islands are subject to a tax equal to the internal revenue tax imposed upon the production in the United States of like liquors. The provisions of sections 3100 to 3124, inclusive, Internal Revenue Code, relating to industrial alcohol are not applicable to alcohol, whether denatured or not, and articles made therewith, coming into the United States from the Philippine Islands. Therefore, articles are subject to tax on the liquors contained therein at the rates imposed upon the production in the United States of like liquors. (53 Stat. 298, 347, 365; 26 U.S.C. 2800 (a) (1), 2800 (a) (4) (A), 2800 (a) (5), 3030, 3150 (a))

§ 180.147 Requirements of the Federal Alcohol Administration Act. Every person, except a tourist and an agency of a State or a political subdivision thereof, or any officer or employee of any such agency, bringing liquor into the United States from the Philippine Islands for non-industrial use must obtain importer's permit and file label approval and release with the collector of customs at the port of entry, in accordance with the requirements of the Federal Alcohol Administration Act and regulations issued pursuant thereto (27 CFR, Parts 1, 4, 5, 7). (Secs. 3,505, 49 Stat. 978, 1965, as amended; 27 U.S.C. and Sup., 203, 205)

§ 180.148 Containers for distilled spirits. Containers for distilled spirits brought into the United States from the Philippine Islands, having a capacity of not less than one-half pint or more than 1 gallon, shall conform to the requirements of Part 175 of this chapter. (53 Stat. 331, 373, as amended; 26 U.S.C. and Sup., 2871, 3170)

§ 180.149 Marking packages and cases. The manufacturer shall plainly print, stamp, or stencil on the head of each barrel or similar container and on one side of each case with black, durable coloring material, in letters and figures

not less than one-half inch in height, the name of the manufacturer, the brand name and kind of liquor, and the serial number of the approved formula.

§ 180.150 Destruction of marks and brands. The marks, brands, and serial numbers required by the regulations in this part to be placed on barrels, casks, or similar containers, or cases, shall not be removed, or obscured or obliterated, before the contents thereof have been removed; but when barrels, casks, or similar containers (except containers for fermented malt liquors) are emptied, all such marks, brands, and serial numbers shall be effaced and obliterated by the person removing the contents. (53 Stat. 330; 26 U.S.C. 2866)

§ 180.151 Destruction of stamps. All stamps must remain on packages and cases until the contents are emptied. When a package of distilled spirits is emptied, all stamps thereon must be completely effaced and obliterated. A dealer who empties any receptacle of wine shall destroy the wine stamps thereon by scraping or obliterating the same immediately the receptacle is emptied. Fermented malt liquor stamps must be destroyed by driving through the stamp the faucet through which the liquor is to be withdrawn, or an air-faucet of equal size, at the time the hogshead, barrel, or keg is tapped. The stamp thus destroyed must remain on the hogshead, barrel, or keg until it is emptied. (53 Stat. 303; 26 U.S.C. 2866)

§ 180.152 Certificate. Every person bringing liquors or articles under the regulations in this part into the United States from the Philippine Islands, except tourists, shall obtain a certificate in the English language from the manufacturer for each shipment showing (a) the name and address of the consignee; (b) the kind and brand name; (c) the quantity thereof as follows:

(1) If distilled spirits, the wine and proof gallons.

(2) If fermented liquors, the gallons, liquid measure, and the per centum of alcohol by volume.

(3) If articles, the kind, quantity and proof of the liquors used therein.

(d) The number and date of the approved formula; (e) a declaration that

it has been manufactured in accordance with the formula; and (f) the name and address of the person filing such formula. The certificate shall be filed by the consignee with the collector of customs at the port of entry as provided in §§ 180.160, 180.165, or 180.168, as the case may be.

§ 180.153 Samples. The Commissioner may require samples of liquors and articles to be submitted whenever desired for laboratory analyses to determine the rates of tax applicable thereto.

FORMULAE AND PROCESSES

§ 180.154 Form 27-B Supplemental. Every person who ships liquors and articles to the United States from the Philippine Islands shall submit to the Commissioner, in advance of shipment, a formula and process on Form 27-B Supplemental, in quadruplicate. If the product is to be entered at more than one port in the United States, two additional copies of each formula and process shall be submitted for each such port. The port or ports of entry must be shown on the form. Each formula shall be given a serial number, beginning with number 1 for the first, and continuing in series thereafter: Provided, That the series in current use by persons who have filed formulae heretofore shall be continued. All of the information required by the regulations in this part and called for by the form shall be furnished.

§ 180.155 Description of formula—(a) Liquors. Formulae for liquors must show the kind of liquor, brand name of the product, the proof thereof, and all ingredients composing the product. If wine only or wine and distilled spirits are used in any product, the quantity or percentage by volume of each and the per centum of alcohol by volume of the wine used must be shown. Where coloring, flavoring, sweetening, or blending materials are used, the percentage by volume shall be shown. If any of the liquors named in the formulae are made outside of the Philippine Islands, the country of origin must be stated.

(b) Articles. Formulae for articles made with distilled spirits must show the quantity and proof of the distilled spirits used, or the percentage of absolute alcohol by volume contained in the finished

product. Formulae for articles made with fermented liquors must show the kind and quantity thereof (liquid measure), and the per centum of absolute alcohol by volume of such fermented liquor.

§ 180.156 Description of process. The statement of process must set out in sequence each step used in the manufacture of the finished product. The statement of process must also show whether liquors distilled from different materials, or by different distillers, or from different combinations of the same materials at less than 190 degrees proof, or of different ages, or which differ in kind according to the standards of identity established under the Federal Alcohol Administration Act, or differ more than 10 degrees in proof, are to be blended together in the manufacture of the finished product. Likewise the statement of process must show whether spirits stored in charred new oak containers are to be mingled with spirits stored in plain, reused, or metal cooperage, or whether spirits which have been quick-aged or treated with wood chips are to be mingled with spirits not so processed, or whether spirits that have been subjected to any treatment which changes their character are to be mixed with spirits not so treated.

§ 180.157 Disposition of Form 27-B Supplemental. If the form is properly prepared and the process is approved, the Commissioner will indicate the rate of tax due on the finished product, note his approval on the form, retain one copy, send one copy to the collector of customs at each designated port of entry, one copy to the district supervisor of the district in which the port is located and return one copy to the manufacturer.

§ 180.158 Changes of formulae and processes. Any change in the ingredients composing a product covered by an approved formula or any change in the process of manufacture will necessitate the submission of a new Form 27-B Supplemental. Such formulae will be serially numbered and disposed of in the same manner as new formulae.

PROCEDURE AT PORT OF ENTRY

§ 180.159 Tax to be paid at port of entry. The internal revenue tax due on