Rev. Rul. 54-508

Advice is requested whether tank cars used exclusively for the transfer of alcohol in bond must have route boards attached thereto.

Section 182.511(b) of Regulations 3 provides in part that railroad tank cars used for the transportation of alcohol, whether in bond, tax-free, or tax-paid, must be equipped with a route board to which the prescribed stamp or certificate can be attached.

Regulations 3, prior to amendment by Treasury Decision 5538, C.B. 1946-2, 208, required that an industrial alcohol transfer stamp be attached to each container of alcohol transferred in bond from one bonded warehouse to another such warehouse, or to a denaturing plant not on the same premises with the bonded warehouse. However, since pursuant to such Treasury Decision transfer stamps are no longer required in connection with transfers of alcohol in bond, there is now no need for having route boards on railroad tank cars used for the transfer of alcohol in bond. Accordingly, a railroad tank car used exclusive for the transportation of alcohol in bond need not be equipped with a route board. However, in the event any such railroad tank car is diverted to use for transporting tax-paid or tax-free alcohol, exclusively or alternately, it must first be equipped with a route board as provided in section 182.511(b) of Regulations 3.