Rev. Rul. 58-258

Advice has been requested whether a bottler may bottle imported spirits immediately and before receipt of the Customs report of the alcohol content of the spirits.

Revenue Ruling 57-479, C.B. 1957-2, 977, held that the proof of imported bulk distilled spirits, the solid content of which does not exceed 0.200 gram per 100 milliliters, will be determined by the hydrometer method, for bottling and labeling purposes, by the domestic bottler. Where the solids content of such spirits exceeds 0.200 gram per 100 milliliters, and the tax has been paid on a true proof basis, the true proof of the spirits may be used for bottling and labeling purposes. If the true proof is to be used, a copy of the Customs Chemist's report covering the analysis of the imported bulk spirits must be obtained by the importer from the appropriate Collector of Customs and made available, through the bottler, to the storekeeper-gauger for verification purposes prior to release of the spirits for bottling.

In order to avoid delays in bottling pending receipt of the Customs report, proprietors of bottling plants may determine the solids content of each lot of imported bulk spirits for the purpose of ascertaining the proof of the spirits for bottling and labeling purposes within the limitations of Revenue Ruling 57-479, supra , subject to the conditions hereinafter outlined.

Where the bottler desires to bottle the imported spirits immediately and before receipt of the Customs report of the alcohol content of the spirits, he may proceed with such bottling provided the apparent proof and obscuration due to solids content are obtained. Should the distilled spirits have a solids content of more than 0.200 gram per 100 milliliters, representing an obscuration of more than .8%A1 proof, the true proof may be used for labeling purposes. In such instances, obscuration, that is, solids content, shall be determined both before and after reduction of the spirits. The method described in section 230.243 of the Regulations Relating to the Bottling of Taxpaid Spirits and section 235.570 of the Regulations Relating to Rectification of Spirits and Wines in respect of determining the solids content of blended spirits, will be employed for this purpose insofar as applicable. When the solids content is greater than 0.600 gram per 100 milliliters, the true proof will be determined by the distillation method. Where the solids content is 0.200 gram per 100 milliliters or less, representing an obscuration of .8%A1 or less, the apparent proof shall be the proof shown on the label.

The Customs Chemist's report furnished under Revenue Ruling 57-479, supra , will be used for verification of the proof determination made by the bottler. In addition samples will be taken by the storekeeper-gauger from time to time prior to reduction of the spirits and furnished to the regional laboratory for comparative purposes in respect to the obscuration and proof determined by the bottler as to particular lots of imported spirits bottled prior to receipt of the Customs report. The determination of the solids content under the conditions outlined need not be conducted under supervision of storekeeper-gaugers.

Revenue Ruling 57-479, supra , is modified to the extent of the procedures permitted hereby.