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Federal Register / Vol. 86, No. 230 / Friday, December 3, 2021 / Proposed Rules
27 CFR part 20, recordkeeping requirements, and reporting of business changes, for denatured spirits dealers and users;
27 CFR part 22, recordkeeping requirements, and reporting of business changes, for tax-free alcohol users;
27 CFR part 26, recordkeeping requirements concerning liquors and articles brought in from Puerto Rico and the Virgin Islands;
27 CFR part 27, recordkeeping requirements for importers of distilled spirits, wine, and beer;
27 CFR part 28, recordkeeping requirements concerning exportation of distilled spirits, wine, and beer; and 27 CFR part 31, recordkeeping requirements and reporting of business changes for alcohol beverage dealers including wholesalers.
The electronic equivalent of each application form set forth above is available through the TTB Permits Online system. The Permits Online system eliminates redundancy by allowing the filer to input information only once, instead of repeating information on multiple paper application forms. Similarly, with respect to the reporting requirements described above, in instances where TTBs regulations refer to submitting a letterhead notice as defined in 27
CFR 19.1, industry members may provide such notices electronically in Permits Online. Unlike applications, these types of notices do not require TTB approval.

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C. Relationship to Other Notices of Proposed Rulemaking TTB plans to publish notices of proposed rulemaking to propose generally similar amendments to regulations governing wine, beer, tobacco products, and processed tobacco-related applications and operations, set forth in 27 CFR parts 24, 25, 40, 41, and 44. Liberalizing amendments related to FAA Act basic permits as importers and wholesalers including as importers or wholesalers of wine and/or malt beverages and as wine producers are included in this document and will not be included in the notices of proposed rulemaking relating to wine or beer.
II. Proposed Changes to the Regulations The amendments proposed in this document are intended to modernize and streamline the applications and application processes for distilled spirits-related permits and registrations under the IRC and FAA Act, and for FAA Act basic permits required for importers and wholesalers of alcohol beverages. As noted above, TTBs
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general approach was to identify information currently being collected that TTB no longer needs in order to evaluate an applicants qualifications and to provide more clarity and specificity in the application questions and instructions. The proposed amendments also relax reporting requirements on certain changes to the business.
A. Operational Information Required for Distilled Spirits Plant Application TTB is proposing to eliminate requirements to provide certain operational information when applying for a DSP registration. The TTB
regulations at 27 CFR 19.73 prescribe, in general, information that must be included in an application for registration under the IRC as a DSP.
Paragraphs a13 through 15 of 19.73 prescribe the operational information that must be submitted if the DSP applicant intends to operate as a distiller, warehouseman, or processor, respectively. A warehouseman is a proprietor of a DSP who stores bulk distilled spirits. TTB has determined that much of the information currently required by 19.73a13 through 15
is no longer needed for TTB to evaluate whether an applicant qualifies for a registration. As a result, TTB proposes to eliminate the following regulatory sections:
a. 27 CFR 19.73a13ii, 19.77a, and 19.121, requiring that an applicant intending to operate as a distiller submit a statement of production procedures, setting forth the contents of the statement, and requiring that a DSP
proprietor report changes to its production procedures.
b. 27 CFR 19.73a13iii and 19.77b, requiring that an applicant intending to operate as a distiller submit a statement as to whether spirits will be redistilled and referencing formula requirements associated with such redistillation.1
c. 27 CFR 19.73a14i, requiring that an applicant intending to operate as a warehouseman submit a narrative description of its storage system.
d. 27 CFR 19.73a14ii, requiring that an applicant intending to operate as a warehouseman submit a statement of the total amount of bulk wine gallons that can be stored.
e. 27 CFR 19.73a15ii, requiring that an applicant intending to operate as a processor submit a narrative description of the storage system for 1 Generally, applicable formula requirements prescribed under 27 CFR part 5 require DSPs to obtain formulas in connection with certain redistillation operations.

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spirits bottled and cased or otherwise packaged and placed in approved containers for removal from the bonded premises.
TTB is also proposing to amend 27
CFR 19.75 to eliminate the requirement to provide in the application for registration the serial number of each tank, still, and condenser to be used by the DSP. While such equipment must continue to be physically marked with a serial number on the DSP premises pursuant to 27 CFR 19.189, removing the requirement to provide serial numbers in the application will provide applicants greater flexibility to report their equipment in the aggregate. For instance, ten 10 of the same type of tank will not need to be listed separately to account for the different serial numbers. Additionally, allowing equipment to be reported on the application without serial numbers allows applicants to submit an application before equipment that has been ordered is physically received.
TTB proposes similar amendments at 27
CFR 20.42 and 22.42 to remove requirements to provide serial numbers of equipment to be used by applicants for permits as users of denatured alcohol and of tax-free alcohol.
B. Premises Description and Security TTB is proposing to relax or eliminate requirements to submit certain information describing the DSP
premises and its security with an application for registration. As stated above, the TTB regulations at 27 CFR
19.73 prescribe, in general, information that must be included in an application for registration as a DSP. Among the information required to be submitted with such application are descriptions of the DSP premises and the security measures to be employed at the DSP.
Much of this information is currently collected in an open-ended narrative format. TTB believes that, in general, more direct questions and certifications would enable applicants to better understand what information must be submitted, reduce the need for additional submissions and follow-up communication between TTB and applicants, and speed up the application review process. Further, TTB has determined that some of the information currently required in these areas is unnecessary or overly specific for the purpose of evaluating a registration application. As a result, TTB also proposes to relax or eliminate certain requirements to submit such information.
Therefore, TTB proposes to amend the following regulatory sections:

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