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 d - ADMINISTRATIVE AND MISCELLANEOUS PROVISIONS

19.71 - Experimental or research operations by scientific institutions and colleges of learning.

  (a) General. The Director may authorize any scientific university, college of learning, or institution of scientific research to produce, receive, blend, treat, test, and store spirits, without payment of tax, for experimental or research use but not for consumption (other than organoleptic tests) or sale, in quantities as may be reasonably necessary for such purposes. The Director may waive any provision of 26 U.S.C. Chapter 51 (other than 26 U.S.C. 5312), or this part (other than this section) to the extent necessary to effect the purposes of 26 U.S.C. 5312(a), except he may not waive the payment of any tax on distilled spirits removed from any university, college, or institution.

A person conducting experimental or research operations authorized under this section is subject to special (occupational) tax under subpart Ca of this part and shall hold a special tax stamp to cover the experimental or research operations.

  (b) Qualification. Any university, college, or institution desiring to conduct any of the experimental or research operations listed in the preceding paragraphs shall make written application, to the Director, through the regional director (compliance), and obtain the Director's approval of the proposed operations. The applicant shall file with the application a bond in a form and penal sum as required by the Director.

The application shall state the nature, extent, and purpose of the operations to be conducted and describe the operations and equipment, the location at which operations will be conducted (including identification of the building or buildings, or the portions thereof to be used), and the security measures to be provided. The Director may require any additional information. Operations shall not be commenced until authorized by the Director.

  (c) Records. Reports concerning the operations need not be submitted unless required by the Director, but records of the quantities of spirits produced, received, and used each day shall be made and retained for inspection by ATF officers.

  (d) Discontinuance of operations. When operations authorized by the Director are discontinued, all remaining spirits shall be disposed of by destruction. When these spirits have been destroyed, notice of the discontinuance of operations shall be given to the regional director (compliance).

(Sec. 201, Pub. L. 85859, 72 Stat. 1375, as amended (26 U.S.C. 5312)) [T.D. ATF198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF271, 53 FR 17543, May 17, 1988]