Rev. Rul. 65-122

Advice has been requested whether alcohol or neutral spirits, at 190 degrees of proof or more, produced on bonded premises of a distilled spirits plant by extractive distillation, under an approved statement of process, may, as an economy measure, be withdrawn upon tax determination as vodka designate for subsequent reduction to vodka proof by the addition of pure water, and for bottling.

Advice has also been requested (1) whether alcohol as well as neutral spirits at not less than 190 degrees of proof, may be used to produce vodka under Revenue Ruling 58-336, C.B. 1958-1, 588, by treating the spirits with one ounce of activated carbon for each 100 gallons of reduced spirits processed, and (2) as to the length of time the activated carbon must be in contact with the reduced spirits.

Revenue Ruling 58-336, provides that under certain conditions extractive distillation is considered a suitable process for producing vodka under 27 CFR 5.21(a)(1)(iii).

Such Ruling also provides that distillers and rectifiers may use neutral spirits, of not less than 190 degrees of proof, meeting certain specifications, in the production of vodka by treatment of the spirits after reduction to vodka proof with one ounce of activated carbon for each 100 gallons of reduced spirits processed. Under such Ruling, a sample of the neutral spirits should be submitted to the Director, Alcohol and Tobacco Tax Division, Attention: Laboratory, for testing for compliance with the specifications contained in the Ruling.

Alcohol or neutral spirits, at 190 degrees of proof or more, produced on bonded premises by extractive distillation under an approved statement of process, may, prior to reduction to vodka proof, be packaged, transferred in bond, and warehoused, as `Vodka Designate,' provided a representative 1/5 -gallon sample of the finished distillate, at 190 degrees of proof or more, taken by the assigned officer, is submitted to the National Office Laboratory for analysis and the spirits represented by the sample are found by the Laboratory to be of an extremely high degree of purity and acceptable for use in the production of vodka. The pertinent records and papers, and the marking on the containers, must show the spirits to be `Vodka Designate.' Such spirits must be reduced to not more than 110 degrees of proof and not less than 80 degrees of proof, prior to tax determination and removal from bond, to conform with the standards for vodka established by 27 CFR 5.21(a)(1).

Where alcohol or neutral spirits which meet the specifications of Revenue Ruling 58-336 are treated with one ounce of activated carbon to produce vodka, the length of time the activated carbon will be in contact with the spirits reduced to vodka proof will be left to the discretion of the producer.

Revenue Ruling 58-336, C.B. 1958-1, 588, is hereby amplified; and Revenue Ruling 59-23, C.B. 1959-1, 718, is hereby superseded.