---
kind: "range"
citation: "27 C.F.R. §§ 26.107–26.110"
title: "27"
from: "26.107"
to: "26.110"
count: 4
url: "https://uscodex.org/cfr/27/26.107..26.110"
---

# §26.107. Taxable status.


Articles of Puerto Rican manufacture which are to be shipped to the United States and which are not exempt fom tax under the provisions of [§ 26.36](/cfr/27/26.36.md) are subject, under [section 7652(a)](/cfr/27/7652.md?p=a) to a tax equal to the tax imposed by the internal revenue laws of the United States. If such articles contain distilled spirits, the tax will be collected at the rate prescribed by [26 U.S.C. 5001(a)(1)](/usc/26/5001.md?p=a-1) on all alcohol contained therein, regardless of the source. Such articles containing only wine and/or beer will be taxed at the rates prescribed by [26 U.S.C. 5041](/usc/26/5041.md) and/or 5051, respectively. A formula covering the manufacture of each article shall be filed by the manufacturer in accordance with [subpart D](/cfr/27/subpartD.md) of this part.


# §26.108. Application for permit, TTB Form 5110.51 and/or 5100.21.

- (a) **Distilled spirits.** Where distilled spirits of Puerto Rican manufacture are to be used in the manufacture of the articles to be shipped to the United States, the manufacturer shall make application on Form 5110.51, in accordance with the applicable provisions of [§ 26.78](/cfr/27/26.78.md).
- (b) **Wine and/or beer.** Where wine and/or beer of Puerto Rican manufacture is to be used in the manufacture of the articles to be shipped to the United States, the manufacturer shall make application on TTB Form 5100.21, in accordance with the applicable provisions of [§§ 26.93](/cfr/27/26.93.md) and/or 26.102. Wine and beer may be included in the same application.
- (c) **Approval of applications.** The Secretary, or their delegate, shall approve and dispose of the applications in the manner prescribed in §§ [26.78](/cfr/27/26.78.md), [26.93](/cfr/27/26.93.md), and/or [§ 26.102](/cfr/27/26.102.md), as the case may be.

# §26.109. Taxpayment.

- (a) **Distilled spirits.** The tax on distilled spirits contained in articles to be shipped to the United States, equal to the tax imposed in the United States by [26 U.S.C. 5001(a)(1)](/usc/26/5001.md?p=a-1), shall be computed in accordance with [§ 26.79](/cfr/27/26.79.md) and paid in accordance with the applicable provisions of §§ [26.80](/cfr/27/26.80.md), [26.81](/cfr/27/26.81.md), and [26.111 through 26.113](/cfr/27/26.111..26.113.md).
- (b) **Wine.** The tax on wine used in the manufacture of articles to be shipped to the United States, equal to the tax imposed in the United States by [26 U.S.C. 5041](/usc/26/5041.md), shall be computed in accordance with [§ 26.94](/cfr/27/26.94.md) and paid in accordance with the applicable provisions of §§ [26.95](/cfr/27/26.95.md), [26.96](/cfr/27/26.96.md), and [26.111 through 26.113](/cfr/27/26.111..26.113.md).
- (c) **Beer.** The tax on beer used in the manufacture of articles to be shipped to the United States, equal to the tax imposed in the United States by [26 U.S.C. 5051](/usc/26/5051.md), shall be computed in accordance with [§ 26.103](/cfr/27/26.103.md) and paid in accordance with the applicable provisions of §§ [26.104](/cfr/27/26.104.md), [26.105](/cfr/27/26.105.md), and [26.111 through 26.113](/cfr/27/26.111..26.113.md).

# §26.110. Release of articles or liquors.


After determining that the proprietor has good and sufficient bond coverage, or, in the case of prepayment, on receipt of TTB Form 5110.51 or TTB Form 5100.21 executed by the appropriate TTB officer to show receipt of TTB Form 5000.25, and remittance, the revenue agent shall execute his report of release on TTB Form 5110.51 or TTB Form 5100.21 and release the articles containing distilled spirits, or release the wine and/or beer for use in the manufacture of articles. He shall forward one copy of TTB Form 5110.51 or TTB Form 5100.21, and any package gauge record as provided in [§ 26.164a](/cfr/27/26.164a.md), to the Bureau of Alcoholic Beverage Taxes and one copy of each to the District Revenue Agent (Commonwealth of Puerto Rico), deliver one copy of each to the applicant, and retain one copy. A permit shall be obtained as provided in [§§ 26.114 through 26.116](/cfr/27/26.114..26.116.md) before the articles manufactured from such liquors may be shipped to the United States.