Rev. Rul. 57-479

Advice has been requested whether a domestic bottler of blended Scotch whiskey imported in bulk may bottle and label such products on the basis of true proof.

Bureau of Customs Circular No. 2458, Supplement No. 3, dated April 30, 1957, provides that the true proof of distilled spirits containing more than 0.200 gram of nonvolatile matter per 100 milliliters shall be determined and used in lieu of the gauger's proof. In such cases the tax must be paid on the basis of the true proof. Accordingly, in cases where the nonvolatile matter contained in the imported distilled spirits exceeds 0.200 gram per 100 milliliters and the tax has been paid on the basis of true proof, a domestic bottler may determine the true proof of such spirits for bottling and labeling purposes in the manner set forth in section 230.244 of the Regulations relating to the Bottling of Taxpaid Spirits and section 235.570 of the Regulations relating to the Rectification of Spirits and Wines.

If the nonvolatile matter contained in the imported distilled spirits does not exceed 0.200 gram per 100 milliliters, the Bureau of Customs uses the gauger's proof (apparent proof) for each package for tax purposes, and consequently the domestic bottler may not bottle such spirits on the basis of true proof but must determine the proof by the hydrometer method as provided in section 230.243 of the Regulations relating to the Bottling of Taxpaid Spirits and section 235.569 of the Regulations relating to the Rectification of Spirits and Wines.

Where the domestic bottler desires to bottle and label on a true proof basis, a copy of the Customs chemist's report covering an 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 in respect to such proof determination before the storekeeper-gauger releases the spirits for bottling.