Basic information
Outline of the system
The Internal Revenue Code of 1986 requires that producers of distilled spirits or alcohol for industrial purposes have permits. If distributors or users want to obtain industrial spirits or alcohol without paying the excise tax under 26 U.S.C. 5001 (http://www.gpo.gov/fdsys/granule/USCODE- 2011-title26/USCODE-2011-title26-subtitleE-chap51-subchapA-partI-subpartA-sec5001/content- detail.html), then they must apply for a permit. Industrial alcohol is exempt from taxation if used as authorized by law. The permit system is a means to control these authorized uses.
Product coverage
A permit for the importation of alcohol for industrial use may be required. Alcohol or distilled spirits as defined in 26 U.S.C. 5002(a) (http://www.gpo.gov/fdsys/granule/USCODE-2011-title26/USCODE-2011-title26...) includes denatured spirits. Such alcohol may only be received into this country by an authorized distilled spirits plant (under a registration or operating permit) that holds a sufficient bond under the Internal Revenue Code unless the spirits are tax-paid upon importation.
Nature of licensing
Automatic
If Automatic, administrative purpose
Not applicable.
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Permit Application
Products under restriction as to the quantity or value of imports
No. The purpose is to prevent tax fraud.
Questions for products under restriction as to the quantity or value of imports
Not applicable.
The system applies to products originating from which country?
All countries.
Expected duration of licensing procedure
Continuing, unless revoked, suspended or surrendered. Permits are subject to revocation if not used for more than two years.
Legal requirements
Is the licensing statutorily required?
Please see: 26 U.S.C. 5171 (http://www.gpo.gov/fdsys/granule/USCODE-2011-title26/USCODE-2011-title26...),
26 U.S.C. 5181 (http://www.gpo.gov/fdsys/granule/USCODE-2011-title26/USCODE-2011-title26...),
27CFR Part 19
(http://www.gpo.gov/fdsys/granule/CFR-2002-title27-vol1/CFR-2002-title27-...).
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
The designation of products requiring a license is not subject to administrative discretion.
Is it possible for the government to abolish the system without legislative approval?
The licensing system was created by statute and may not be abolished without legislative action.
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
What persons or firms are eligible to apply for a licence?
Any person, firm, or institution may apply for a license. Individuals must be citizens or legal residents of the United States; firms or institutions must be incorporated in the United States and have the appropriate tax ID with the IRS.
Is there a registration fee?
There are no registration fees.
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Alcohol and Tobacco Tax and Trade Bureau, U.S. Department of the Treasury
Address
1310 G St NW, Washington, DC 20005
Telephone
1-877-882-3277
Fax
Not applicable.
Contact officer
Not applicable.
Submission of an application
Administrative body(ies) for submission of an application
Alcohol and Tobacco Tax and Trade Bureau, U.S. Department of the Treasury
Documentation requirements
What information is required in applications?
Application for Operating Permit - TTB Form 5110.25 (https://www.ttb.gov/images/pdfs/forms/f511025.pdf); Alcohol for fuel use - TTB Form 5110.74 (https://www.ttb.gov/images/pdfs/forms/f511074.pdf), as appropriate, along with such supporting documentation as required.
What documents is the importer required to supply with the application?
Application for Operating Permit - TTB Form 5110.25 (https://www.ttb.gov/images/pdfs/forms/f511025.pdf); Alcohol for fuel use - TTB Form 5110.74 (https://www.ttb.gov/images/pdfs/forms/f511074.pdf), as appropriate, along with such supporting documentation as required.
Window of submission of an application
How far in advance of importation must application for a licence be made?
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
No.
Issuing the license
Can a licence be granted immediately on request?
Under certain circumstances, a permit can be obtained within a shorter time frame.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Registrations or operating permits under the Internal Revenue Code are usually issued within six to eight months after the application has been filed. Under certain circumstances, a permit can be obtained within a shorter time frame.
Which administrative body is responsible for approving application of licences?
Yes. TTB is the only agency with whom an importer of distilled spirits or alcohol for industrial use (including alcohol for fuel use) must deal to secure this permit.
Must the applications be passed on to other organs for visa, note or approval?
No.
Are there any other conditions attached to the issue of a licence?
No.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
No.
What is the amount of the fee or charge?
Is there any deposit or advance payment required associated with the issue of licences?
No.
Amount or rate?
Is it refundable?
What is the period of retention?
What is the purpose of this requirement?
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
The circumstances for denying an application for a permit are stated in 26 U.S.C. 5271 (http://www.gpo.gov/fdsys/granule/USCODE-2010-title26/USCODE-2010-title26...
chap51-subchapD-sec5271/content-detail.html).
Are the reasons for any refusal given to applicants?
The reasons for any refusal are given to the applicant in writing.
Have applicants a right of appeal in the event of refusal to issue a licence?
In the event of refusal to issue an operating permit, administrative appeals may be made to TTB’s Administrator, and then to a Federal court.
If so, to what bodies and under what procedures?
In the event of refusal to issue an operating permit, administrative appeals may be made to TTB’s Administrator, and then to a Federal court.
Importation
Are there any limitations as to the period of year during which importation may be made?
No.
What documents are required upon actual importation?
Ordinary commercial papers.
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
No.
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
Continuing, unless revoked, suspended or surrendered.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
Permits are subject to revocation if not used for more than two years.
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
No.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Not applicable.
Is a licence required as a condition to obtaining foreign exchange?
Not applicable.
Is foreign exchange always available to cover licences issued?
Not applicable.
What formalities must be fulfilled for obtaining the foreign exchange?
Not applicable.