Rev. Proc. 56-5

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to provide interim instructions for the issuance of export stamps to proprietors by storekeeper-gaugers rather than by District Directors of Internal Revenue. The regulations will be revised to adopt such interim procedure.

SEC. 2. BACKGROUND.

Under the provisions of the regulations, export stamps are required to be placed on distilled spirits and alcohol withdrawn without payment of tax for (a) exportation, (b) use as supplies on vessels and aircraft, (c) transfer to customs manufacturing bonded warehouses, or (d) deposit in foreign-trade zones. Such stamps are prescribed for packages and other bulk containers of distilled spirits and for all containers of alcohol (including cases of bottled alcohol) so withdrawn. Effective January 1, 1955, no charge is made for such stamps on issuance to proprietors under section 5009 of the Internal Revenue Code of 1954. Therefore, it is now considered feasible to provide for the more convenient issuance of such stamps by the storekeeper-gauger, as in the case of wholesale liquor dealer's stamps, rather than by the District Cirectors. Further, continuing the requirement that such stamps be procured from the District Directors would in large measure nullify any advantage to the proprietor in cases where the storekeeper-gauger is authorized to execute the permit for withdrawal.

SEC. 3. ISSUANCE TO PROPRIETORS.

Accordingly, where export stamps are required to be used, proprietors will no longer submit the withdrawal application and report of gauge to the District Directors for issuance of such stamps. Instead, the storekeeper-gauger will issue the export stamps to the proprietor when the permit for removal has been executed.

SEC. 4. EFFECTIVE DATE.

This Revenue Procedure shall be effective March 1, 1956.