Industry Circular

Number: 80-9

Date: October 29, 1980

Department of the Treasury

Bureau of Alcohol, Tobacco, and Firearms

Washington, D.C. 20226

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PREPARATION AND SUBMISSION OF ATF FORM 5110.28, MONTHLY REPORT OF PROCESSING OPERATIONS

Proprietors of Distilled Spirits Plants and Others Concerned:

Purpose. This circular requests DSP proprietors to submit one additional ATF F 5110.28 (10-80 edition), Monthly Report of Processing Operations, covering the bottling of imported spirits (including spirits brought into the United States from Puerto Rico and the Virgin Islands) for the months of January through September 1980. An ATF Procedure has established this one-time reporting request. Also, this circular informs DSP proprietors about the new (10-80) edition of ATF F 5110.28.

Background. The Bureau has decided to compile more statistics about beverage (nonindustrial use) imported spirits bottled, including spirits brought into the United States from Puerto Rico and the Virgin Islands. Similar import statistics have been previously reported by DSP proprietors before January 1980. The entries on the 1-80 edition of ATF F 5110.28 do not provide sufficient data for compiling import bottling statistics. To secure these statistics, ATF F 5110.28 has been revised.

ATF F 5110.28 has also been revised to minimize the report burden on DSP proprietors and to provide statistical data in a more concise and understandable format. The revision will make it easier for DSP pro- prietors to fill out ATF F 5110.28 and will decrease the possibility of errors in calculating and transposing data.

Significant changes have been made to Part IV of ATF F 5110.28 which is used to report statistics about processing operations including bottling. Part IV on the new (10-80) edition will be separated by kind of spirits and will be divided into five categories: bulk spirits dumped into processing (proof gallons); bottled-imported (proof gallons); bottled (wine gallons); bottled in bond (wine gallons); and bottled for export (wine gallons). Proprietors shall only report beverage (nonindustrial use) spirits in Part IV; therefore, proprietors who only denature and/or package or bottle nonbeverage (industrial use) spirits will not complete Part IV of ATF F 5110.28.

The new category, bulk spirits dumped into pro- cessing, does not include spirits that have been previously reported as dumped on dump/batch records and retained in processing at the same DSP. For example, a proprietor during one month blends in the processing account 1,000 proof gallons of whisky received from the storage account, 500 gallons received from another DSP and 750 proof gallons of whisky from a tank recorded on a batch record in his processing account. The proprietor would record only 1,500 gallons of whisky in the category - bulk spirits dumped for processing.

After processing, mixing or blending operations at a DSP, some imported spirits and some Puerto Rican or Virgin Islands spirits, may not be allowed to be labeled as a product of a foreign country, or as Puerto Rican or Virgin Islands spirits under, 27 CFR Part 5. Such spirits shall be reported as domestic spirits when preparing the new (10-80) edition of ATF F 5110.28.

Reporting Procedure for Bottling of Imported Spirits. DSP proprietors are requested to submit one additional ATF F 5110.28 with only column (c) (bottled-imported), Part IV--Processing of Beverage (Nonindustrial Use) Spirits, completed to cover the months of January through September 1980. The proprietor should identify the report on the top margin with the word "IMPORTED." All other entries for spirits on this one-time report need not be completed. Proprietors should note that column (c) for imports is reported in proof (not wine) gallons.

DSP proprietors are requested to submit the additional ATF F 5110.28 (10-80 edition) not later than November 15, 1980, to report the bottled import statistics. Negative reports on beverage imports bottled are not needed.

10-80 Edition of ATF F 5110.28, Monthly Report of Processing Operations. In addition to the changes described above, the 10-80 edition of ATF F 5110.28 has been revised as follows.

(1) In Part I--Bulk Ingredients and Part II--Finished Products, separate entries for withdrawn free of tax for use of United States and for hospital, scientific or educational use have been combined.

(2) In Parts I and II, the entry for samples removed has been replaced with an entry for withdrawn for research, development or testing (includes Government samples).

(3) In Part I, the separate entries for withdrawn without payment of tax for exportation and transfer to Customs bonded warehouse have been combined. The line for withdrawn without payment of tax for vessels and aircraft is deleted since withdrawals in bulk conveyances are not allowed.

(4) In Part II, the separate entries for withdrawn without payment of tax for exportation, for vessels and aircraft, and transfer to Customs bonded warehouse have been combined. (5) In Part I a new entry has been added to report separately alcohol for fuel use received from Customs custody.

(6) In Part IV--Processing of Beverage (Nonindustrial Use) Spirits, the category for kinds of spirits has three changes. Alcohol and spirits has been changed to alcohol and neutral spirits (other than vodka). Blended whisky has been broken down into two subcategories: with neutral spirits and with light whisky. Brandy has been divided into two categories: distilled at over 170 proof and distilled at 170 proof and under.

(7) Part IV has been appropriately footnoted to explain the kinds of spirits and categories. When to Use New Edition (10-80) of ATF F 5110.28. Use the 10-80 edition of Form 5110.28 for filing the monthly reports for October 1980 and subsequent months and for filing the special one-time report of imports bottled.

Distribution of New Edition (10-80) of ATF F 5110.28. Each distilled spirits plant will receive an initial distribution of the new edition (10-80) of ATF F 5110.28 from the ATF Distribution Center. Addi- tional copies should be ordered from the ATF Distri- bution Center, 3800 S. Four Mile Run Drive, Arlington, Virginia 22206.

Inquiries. Inquiries regarding this ATF circular should refer to its number and be addressed to the Assistant Director (Regulatory Enforcement), Bureau of Alcohol, Tobacco and Firearms, 1200 Pennsylvania Avenue, NW, Washington, DC 20226.

Director