Transfer in Bond can only be done in bulk???

[Thatch]

I got this response from the TTB today.  I cannot find anything that says why.  I know that others on the forum have stated that TIB of bottled spirits is allowed.  Can anyone come up with the TTB text that explicitly says the transfer of bottled spirits is allowed.  This may have only been a temporary measure based on

Thanks in advance

[Kindred Spirits]

The TTB cited the discussion on this forum?

According to the TTB's own TIB sheet f510016, there is nothing that states only bulk spirits can be transferred.  Even section 27 CFR § 19.405 talks about shipments in "packages" 

However looking a 27 CFR 19.402 The following is stated.

"27 CFR § 19.402 Authorized transfers in bond.

The IRC allows a proprietor to transfer and receive spirits, wines, and industrial alcohol as provided in paragraphs (a) through (c) of this section.

(a) Spirits. Bulk spirits or denatured spirits may be transferred in bond between the bonded premises of plants qualified under 26 U.S.C. 5171 or 26 U.S.C. 5181 in accordance with §§ 19.403 and 19.733. However, spirits or denatured spirits produced from petroleum, natural gas, or coal may not be transferred to alcohol fuel plants.

(b) Wine. Wines may be transferred:

(1) From a bonded wine cellar to the bonded premises of a distilled spirits plant;

(2) From the bonded premises of a distilled spirits plant to a bonded wine cellar; and

(3) Between the bonded premises of distilled spirits plants.

(c) Alcohol for industrial purposes. Alcohol bottled for industrial purposes in accordance with § 19.366 and subpart S of this part, may be transferred between the bonded premises of distilled spirits plants in the same manner as provided in §§ 19.403 through 19.407 for bulk distilled spirits."

 

Where bulk spirits is defined as "Bulk distilled spirits. The term “bulk distilled spirits” means distilled spirits in a container having a capacity in excess of 1 gallon."

 

 

 

[FIVE x 5 Consulting]

Temporary CBMA provisions from 2017 allowed unlimited/unrestricted transfers of bottled spirits in bond from 2018-2020.

As of Jan 1, 2021, you may only transfer in bond Bulk Spirits (i.e. 1 gallon or larger). This was also the case prior to 2018.

The citations for this mess are not in CFR, they are in US Code: https://www.law.cornell.edu/uscode/text/26/5212 (see the history section at bottom)

I prefer to rely on dhdunbar's old adage: it is this way because TTB says it is this way.  Their guidance is pretty clear:

Transfers of non-bulk beverage distilled spirits are limited

Beginning January 1, 2021, the law prohibits the transfer of bottled spirits in bond except:

• between bonded premises belonging to the same person or members of the same controlled group, or
• if the distilled spirits are transferred in bond from the DSP who distilled or processed the spirits to another DSP for bottling or storage and returned to the transferor for removal, but only if the transferor retained title during the entire period between such distillation, or processing, and removal.

I will only add that I have seen TTB authorize, as a one-off, the transfer of bottled spirits in bond when a DSP is closing or opening. 

[Thatch]

Thanks for the quick response @FIVE x 5 Consulting and @Kindred Spirits, no, the TTB did not cite the forum discussion.  That was me trying to get things headed in the right direction.

If it is no longer allowed, so be it!