Can a Brewery Receive Bulk Cider in Bond for Their Tap Room?Breweries frequently ask us whether they may receive bulk cider for use in their tap room. Cider products containing between 0.5% and 24% alcohol by volume are regulated by TTB as wine under federal regulations, so the question is whether bulk wine may be received in bond at a brewery premises. No, a proprietor of a bonded wine premises may not transfer, and a brewery may not receive, bulk wine to a brewery premises. Federal law and TTB regulations restrict the use of a brewery to specific purposes and operations and receiving bulk wine is not listed among the authorized operations. See FAQ W27 and also 26 U.S.C. § 5411 and 27 CFR § 25.23. However, a brewery may receive tax-paid wine in kegs or other allowable standards of fill into a tax-paid on-premises retail establishment. Trade Practices Video Series
Do you have questions about trade practices? As part of our ongoing effort to provide on-demand educational information, we offer a TTB Trade Practices video series for the alcohol beverage industry that explains the history leading up to the trade practice rules, defines the related terms, and walks through the 4 prohibited trade practices. Trade Practice VideosView these videos to gain a better understanding of the federal trade practice rules that apply to the alcohol beverage industry. |