Rev. Rul. 54-288

Advice is requested whether empty indicia bottles may be exported to Mexico.

Section 2871 of the Internal Revenue Code authorizes the Secretary by regulations prescribed by him to regulate the size, branding, marking, sale, resale, possession, use, and reuse of containers (of a capacity of less than 5 wine gallons) designed or intended for use for the sale at retail of distilled spirits.

Section 175.96 of Regulations 13 issued thereunder provides in part that the exportation of empty indicia bottles to foreign countries for packaging distilled spirits for sale at retail in the United States may be authorized under permit. The Internal Revenue Service does not permit the exportation of empty bottles bearing indicia for use abroad. Hence, it is held that bottles to be exported for use abroad may not bear the indicia prescribed for domestic purposes since it is possible that indicia bottles so exported may find their way into illicit channels for improper entry into this country. However, permission may be granted for the exportation of empty liquor bottles for rebottling spirits previously exported in indicia bottles (such exportation being for the explicit purpose of replacing similar bottles which were to be destroyed).