---
kind: "section"
citation: "27 C.F.R. § 22.102"
title: "27"
number: "22.102"
heading: "Prohibited uses."
url: "https://uscodex.org/cfr/27/22.102"
---

# §22.102. Prohibited uses.

- (a) **Usage.** Under no circumstances may tax-free alcohol withdrawn under this part be used for beverage purposes, food products, or in any preparation used in preparing beverage or food products.
- (b) **Selling.** Persons qualified under this part are prohibited from selling tax-free alcohol, using tax-free alcohol in the manufacture of any product for sale, or selling any products resulting from the use of tax-free alcohol. A separate charge may be made by a hospital, sanitarium or clinic for medicines compounded with tax-free alcohol and dispensed to patients for use on the premises, as provided in §§ [22.105](/cfr/27/22.105.md) and [22.106](/cfr/27/22.106.md). Hospitals may not furnish tax-free alcohol for use of physicians in their private practice.
- (c) **Removal from premises.** Persons qualified under this part may not remove tax-free alcohol or products resulting from the use of tax-free alcohol from the permit premises unless specifically authorized by the terms of their permit, or permission is obtained from the appropriate TTB officer, except that:
  - (1) Products made through the use of tax-free alcohol which contain no alcohol may be removed to other premises for the sole purpose of further research; or
  - (2) Under the provisions of §§ [22.105](/cfr/27/22.105.md) and [22.106](/cfr/27/22.106.md), clinics operated for charity and not for profit may compound bona fide medicines with tax-free alcohol, and dispense the medicine from the premises for use by its patients outside of the clinic, if the furnishing of the medicine is not conditioned upon payment.
- (d) **Liability for tax.** Permittees who use tax-free alcohol in any manner prohibited by this section become liable for the tax on the alcohol. Any permittee who sells tax-free alcohol becomes subject to the provisions of [part 31](/cfr/27/part31.md) of this chapter.

## Notes

### Amendments

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. TTB-79, 74 FR 37404, July 28, 2009]

### Authority

Authority: 26 U.S.C. 5001, 5121, 5123, 5206, 5214, 5271-5275, 5311, 5552, 5555, 6056, 6061, 6065, 6109, 6151, 6806, 7805; 31 U.S.C. 9304, 9306.

### Source

Source: T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, unless otherwise noted.

### Amendments

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. TTB-79, 74 FR 37404, July 28, 2009]