Sec. 182.663 Laboratories.—Any laboratory withdrawing alcohol free of tax must use such alcohol exclusively in scientific research, and the use thereof and of any resulting products shall be confined strictly to the premises covered by the basic permit, Form 1447, except that where any such resulting product does not contain alcohol and is to be used in further research, it may be removed, without sale, for that purpose only, such research to be conducted at any scientific university or college of learning, laboratory engaged in scientific research, or hospital or clinic. (*; Secs. 3108, 3114 (a), I. R. C.) Sec. 182.700 (a) Losses.-No allowance can be made for losses of such distillates occurring during transportation to the denaturing plant or while stored in such plant prior to denaturation. The tax will be collected on all such losses. The losses of such distillates in transit to the denaturing plant and while stored thereat shall be shown as a separate entry in the same columns in which losses of alcohol are shown on Form 1468-A. (*; Sec. 2916, I. R. C.) Sec. 182.847 (b) Labels.-Where proprietary solvents and lacquer thinners are packaged by producers or their agents in containers of 5 wine gallons or less, such containers must be labeled to show the producer's name, address, and permit number: Provided, That where the products are packaged for a dealer, the name and address of the dealer may be shown in lieu of the name and address of the producer, but the basic permit number of the producer must be placed on the labels. Where dealers repackage proprietary solvents or lacquer thinners in containers of not over 5 wine gallons capacity, as authorized in paragraph (d), the name, address, and basic permit number of the producer, or the name and address of the dealer and the basic permit number of the producer, shall likewise be placed on the labels of all containers of one-half gallon or more capacity. Sec. 182.860 (c) Repackaging. The district supervisor may authorize the manufacturer to ship products in containers of 1 gallon or more capacity to persons legitimately engaged in a bona fide bottling and distributing business, such as beauty and barber supply dealers, wholesale drug stores, and general wholesale stores, for repackaging in containers conforming to the requirements of paragraph (b), for sale to the persons enumerated in paragraphs (a) and (d) hereof. Application for such permission must be made by the bottler and distributor to the district supervisor of the district in which the bottler and distributor is located. The district supervisor will determine the legitimacy of the business of the applicant and the bona fides of his reasons for desiring to repackage the products. If the district supervisor determines that the applicant may be properly permitted to repackage the products and the manufacturer is located in his district, he will authorize the manufacturer to so ship the products to the applicant; if the manufacturer is located in another district, the district supervisor will forward the application with his findings and recommendation to the supervisor of such district, who, if he sees no objection to the proposed shipment, will authorize the manufacturer to so ship the products. Sec. 182.863 General.-Except as provided in paragraph (a), a permittee manufacturing tincture of iodine, U. S. P., half strength tincture of iodine, U. S. P., mild tincture of iodine, U. S. P., and other tinctures of iodine, with specially denatured alcohol may not sell in excess of one 50-gallon barrel or the equivalent thereof in containers of more than 1-gallon capacity in one month to any one customer. Sales may be made by permittees in any desired quantities in containers having a capacity of 1 gallon or less. Section 182.653 (b) is amended by adding at the end thereof a new paragraph, reading as follows: (3) Exception.-The district supervisor, may, in his discretion, by appropriate modification or amendment of the withdrawal permit, pursuant to application on Part I of Form 1450, (1) where the quantity that may be withdrawn during a calendar month under paragraph (b) amounts to less than 1 drum (110 proof gallons), authorize the withdrawal during a calendar month of a quantity not exceeding 1 drum (110 proof gallons), if the bond of the applicant is in a sufficient penal sum to cover such increased withdrawal, or (2) where the applicant does not have on file a bond and the quantity that may be withdrawn during a calendar month under paragraph (b) amounts to less than 10 proof gallons, authorize the withdrawal during a calendar month of a quantity not exceeding 10 proof gallons: Provided, That the total quantity authorized under (1) and (2) shall not exceed the quantity specified in the applicant's basic permit, Form 1447, that may be withdrawn during the period for which it is issued. Section 182.829 (b) (2) is amended, and a new paragraph is added at the end thereof, to read as follows: (2) Excessive withdrawals.—Withdrawals must be so regulated by the permittee that he will not have on hand, in transit, and unaccounted for during any calendar month more than the quantity of specially denatured alcohol, plus the quantity of recovered or restored denatured alcohol, and recovered or restored articles (which are in the form of denatured alcohol) so authorized by his basic permit, Form 1481. (3) Exception.—The district supervisor may, in his discretion, by appropriate modification or amendment of the withdrawal permit, pursuant to application on Part I of Form 1485, and, in the case of (1) and (2), upon proper showing of necessity therefor, (1) in the case of a seasonal business, authorize withdrawal during any calendar month of not to exceed a two months' allowance, or (2) issue to the permittee, in lieu of an annual permit, Form 1485, one or more withdrawal permits for a specified quantity or period, subject to the restrictions in this section as to the maximum quantity that may be withdrawn during any one month, or (3) where the quantity that may be withdrawn during a calendar month under paragraph (b) amounts to less than 1 drum (55 wine gallons), authorize the withdrawal during a calendar month of a quantity not exceeding 1 drum (55 wine gallons), or (4) where the applicant does not have on file a bond and the quantity that may be withdrawn during a calendar month under paragraph (b) amounts to less than 5 wine gallons, authorize the withdrawal during a calendar month of a quantity not exceeding 5 wine gallons: Provided, That the total quantity authorized under (1), (2), (3), or (4) shall not exceed the quantity specified in the applicant's basic permit, Form 1481, that may be withdrawn during the period for which it is issued: Provided further, That such additional withdrawals shall not be authorized under (1), (2), or (3), unless the bond of the permittee is in a sufficient penal sum to cover the increased quantity in addition to the regular withdrawal allowance. Approved June 29, 1942: JOHN L. SULLIVAN, GUY T. HELVERING, Commissioner of Internal Revenue. Acting Secretary of the Treasury. [Filed with the Division of the Federal Register June 30, 1942, 3:03 p. m.] INDEX A Accounting period, change in, regulations amended_ Admissions and dues. (See Miscellaneous taxes.) Advertising expenditures, capitalization of amounts deducted in prior years, excess profits tax election, regulations amended__ Alcohol: Appendix (1938), Regulations 3, amended- Formulas Nos. 12, 13, 14.. Formulas Nos. 27-B, 40-A. Basic permits, procedure, amendments_ Regulations 3 (1931), amended- Marking packages of _____ T. D. No. 5055 5045 5095, 5133 5118 5039, 5152 5065, 5075 Sections 182.164, 182.171, 182.173, 182.598, 182.600, 182.601, 5159 Sections 183.47, 183.155, 183.214, 183.362, 183.376 to 183.378, 183.381, 183.383.. 5085 Section 183.3(d) revoked.. 5144 Sections 183.243, 183.324, 183.325, 183.341 to 183.344, 183.346, Sections 184.3(b), 184.229, 184.325, 184.326, 184.357 to 184.361, 5142 Paragraphs 48, 76, 80, 81, 93, 100, 227, 240, 242, 245, 310_- 5148 Sections 185.3(d), 185.192, 185.193, 185.226 to 185.230, 185. Sections 185.150 to 185.153, 185.194, 185.200, 185.206 to 185.214, 5143 5143 |