TITLE 27 - ALCOHOL, TOBACCO PRODUCTS AND FIREARMS

CHAPTER I - ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE TREASURY

SUBCHAPTER A - LIQUORS

PART 19 - DISTILLED SPIRITS PLANTS

subpart q - LOSSES AND SHORTAGES

19.563 - Loss of spirits from packages.

  (a) Original quantity. Where there is evidence satisfactory to the regional director (compliance) that any loss of spirits (including denatured spirits) from any package deposited on bonded premises is due to theft (except where the regional director (compliance) has made the finding provided for in 19.561(b)) or is due to unauthorized voluntary destruction, the regional director (compliance) may require the immediate tax payment of the quantity of spirits so lost, except where the extent of any loss from causes other than theft or unauthorized voluntary destruction can be established by the proprietor to the satisfaction of the regional director (compliance), the regional director (compliance) may credit the tax on the loss so established against the tax on the original quantity.

  (b) Alternative method. Where there is evidence satisfactory to the regional director (compliance) that there has been access, other than as authorized by law, to the contents of packages entered for deposit on bonded premises, and the extent of such access is such as to evidence a lack of due diligence or a failure to employ necessary and effective controls on the part of the proprietor, the regional director (compliance) may (in lieu of the procedure prescribed in paragraph (a) of this section) assess an amount equal to the tax on 5 proof gallons of spirits on each of the total number of such packages as determined by him.

  (c) Applicability to packages filled after entry. The provisions of this section apply to spirits (including denatured spirits) which are filled into casks or packages as authorized by law, after entry and deposit on bonded premises, whether by recasking, filling from tanks, mingling, or otherwise. The quantity filled into those casks or packages is considered to be the original quantity for the purpose of this section in the case of loss from those casks or packages.

(Sec. 201, Pub. L. 85859, 72 Stat. 1320, as amended (26 U.S.C. 5006))