Rev. Rul. 54-562

Advice is requested with respect to circumstances under which bottle stamps need not be attached to containers of alcohol.

The regulations contemplate that each package of alcohol shall bear a stamp of one of the prescribed classes, except when withdrawn for tax-free purposes other than exportation. See section 182.532 of Regulations 3. Section 182.539 of Regulations 3 provides that the proprietor must affix over the mouth of each bottle of alcohol filled in his warehouse, except when alcohol is bottled for export, an engraved bottle stamp, with the serial number printed thereon. This section applies to bottles of alcohol placed in cases from which the bottles may be removed.

Section 182.507 of Regulations 3 provides in part that alcohol may be packaged in containers of tin, glass, or similar substance, but such containers, in order to better insure safe transportation, must be completely encased in wood, fiberboard, or other approved material. The case must be so constructed as to insure that the portion of the case containing the marks and stamps will remain securely attached to the inner container until all of the alcohol has been removed therefrom. The inner container is not required to bear a bottle stamp.

In the latter case, the inner and outer containers are securely affixed to each other and are considered as one container, as distinguished from loose bottles placed in cases from which they may be readily removed and which are required to bear bottle stamps to evidence their legal status when removed from the case to which the tax-paid stamp is affixed. The stamping of bottles placed in non-removable cases, in addition to the stamping of the outer container, would serve no useful purpose and would result in duplicate stamping.

It is held that containers packaged in nonremovable cases, in accordance with section 182.507, are not required to bear bottle stamps. Bottles placed in cases from which they may be readily removed must bear bottle stamps.