Sections 9 and 10 of the regulations deal with the examination and approval of the de-naturing warehouse and plant by the Internal Revenue officers.
De-naturing Warehouse Bond to be Given.
“Sec. 11. After receipt of notice of the approval of said warehouse the distiller may withdraw from his distillery warehouse, free of tax, alcohol of not less than 180 degrees proof or strength, and may de-nature same in said de-naturing warehouse in the manner hereinafter indicated, provided he shall first execute a bond in the form prescribed by the Commissioner of Internal Revenue, with at least two sureties, Unless, under the authority contained in an act approved August 13, 1894, a corporation, duly authorized by the Attorney-General of the United States to become a surety on such bond, shall be offered as a sole surety thereon. The bond shall be for a penal sum of not less than double the tax on the alcohol it is estimated the distiller will de-nature during a period of 30 days, and in no case is the distiller to withdraw from bond for de-naturing purposes and have in his denaturing warehouse in process of de-naturation a quantity of alcohol the tax upon which is in excess of the penal sum of the bond.
Sec. 12. If at any time, it should develop that the de-naturing warehouse bond is insufficient the distiller must give additional bond.
Sec. 13. The bond herein provided for must be executed before the distiller can withdraw from distillery bonded warehouse, free of tax, alcohol to be de-natured, and if he desires to continue in the business of de-naturing alcohol, said bond must be renewed on the first day of May of each year or before any alcohol is withdrawn from bond for de-naturing purposes. It must be executed in duplicate in accordance with instructions printed thereon. One copy is to be retained by the collector and one copy is to be transmitted to the Commissioner of Internal Revenue.”
Conditions under which Alcohol is Withdrawn.
“Sec. 15. Not less than three hundred (300) wine gallons of alcohol can be withdrawn at one time for de-naturing purposes.
When a distiller, who is a producer of alcohol of not less than 180 degrees proof and who has given the de-naturing warehouse bond as aforesaid desires to remove alcohol from the distillery bonded warehouse for the purpose of de-naturing, he will himself, or by his duly authorized agent, file with the collector of internal revenue of the district in which the distillery is located, notice to that effect.”
Upon the receipt of this notice (the form for which is given in the Regulations) the collector for the district will order a gauger to inspect the alcohol so withdrawn, and to gauge the same, and to make report; and directions are given to the official “storekeeper” to permit the transferral of the spirits to the de-naturing warehouse.