Rev. Proc. 65-1

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to establish uniform methods of reporting volatile fruit-flavor concentrates transferred from concentrate plants to bonded wine cellars.

SEC. 2. BACKGROUND.

Public Law 88-653, C.B. 1964-2, 658, and Treasury Decision 6769, C.B. 1964-2, 576, both effective December 1, 1964, provide for the transfer to, and use in, bonded wine cellars of volatile fruit-flavor concentrate produced at concentrate plants. It is necessary for such product to be reported uniformly by both the volatile fruit-flavor concentrate plant from which the volatile fruit flavor is shipped, and the bonded wine cellar receiving the product.

SEC. 3. REPORTING ON FORM 1695, MONTHLY REPORT OF CONCENTRATE MANUFACTURER.

The transfer of volatile fruit-flavor concentrate to bonded wine cellars shall be reflected by appropriate entries on Form 1965, in the applicable columns and at the line immediately below the line entitled `Removed (without treatment).' The line on which these entries are made shall be identified as `Removed to B.W.C.'.

SEC. 4. REPORTING ON FORM 702, MONTHLY REPORT OF WINE CELLAR OPERATIONS.

The receipt and use of volatile fruit-flavor concentrate shall be reported by the winemaker in Part IV of Form 702, in an otherwise unused column, and an entry shall be made at the heading of the column to appropriately identify the volatile fruit-flavor concentrate. A separate column shall be used for concentrate from each kind of fruit or berry. Other blank columns shall also be used, as needed, for entries for fruit juice from which the volatile fruit flavor was removed, but not restored, prior to receipt on the bonded wine cellar premises. Juice from which the volatile fruit flavor had been removed, but to which it was restored prior to receipt, shall not be reported separately from other juices in Part IV of Form 702. Concentrate to which the volatile fruit flavor has been restored prior to receipt shall not be reported separately from concentrates which have not had the volatile fruit flavor removed therefrom.

SEC. 5. INQUIRIES.

Any inquiries concerning this Revenue Procedure should refer to its number and be addressed to the office of the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax.