Rev. Rul. 62-69

Reconsideration has been given to Revenue Ruling 56-428, C.B. 1956-2, 1039, in view of the general revision of the distilled spirits provisions of chapter 51 of the Internal Revenue Code of 1954 by the Excise Tax Technical Changes Act of 1958, Public Law 85-859, C.B. 1958-3, 92.

Revenue Ruling 56-428 holds that shipments of specially denatured alcohol and proprietary solvents may be made simultaneously in separate compartments of the same tank truck.

Section 211.147(a) of the Distribution and Use of Denatured Alcohol and Rum Regulations provides, in part, that bonded dealers may ship specially denatured spirits in bulk conveyances; that specially denatured alcohol or specially denatured rum from only one consignor may be placed in any one compartment of a bulk conveyance; and that not less than the entire contents of any one compartment may be delivered to any one consignee at any one premises.

Based on the provisions of the above regulations, it is held that specially denatured alcohol, proprietary solvents, and chemicals may be shipped simultaneously in separate compartments of the same tank car or tank truck. This holding is not applicable to the shipment of distilled spirits which have not been denatured.

The bulk conveyances to be used for the shipment of specially denatured alcohol from the distilled spirits plant must conform to the requirements of section 201.510 of the Distilled Spirits Plants Regulations and must be marked as provided by section 201.525 of the regulations. Customers must have suitable facilities for receiving specially denatured alcohol in compartment tank cars. The compartments of the bulk conveyances containing proprietary solvents must bear the markings prescribed by section 211.177 of the Distribution and Use of Denatured Alcohol and Rum Regulations. The compartments containing chemicals must be appropriately marked to identify the contents, quantities and the producer's name and address.

Accordingly, Revenue Ruling 56-428 is hereby amplified to the extent that chemicals, as well as specially denatured alcohol and proprietary solvents, may be shipped simultaneously in separate compartments of the same tank truck or tank car.