---
kind: "section"
citation: "27 C.F.R. § 26.36"
title: "27"
number: "26.36"
heading: "Products exempt from tax."
url: "https://uscodex.org/cfr/27/26.36"
---

# §26.36. Products exempt from tax.

- (a) **General.** Industrial spirits, denatured spirits, and products made with denatured spirits in Puerto Rico may be brought into the United States without incurring tax liability imposed by 26 U.S.C. [5001](/usc/26/5001.md) or [7652](/usc/26/7652.md).
- (b) **Industrial spirits.** A distiller of industrial spirits who registers and files a bond as a distilled spirits plant in accordance with [part 19](/cfr/27/part19.md) of this chapter may ship industrial spirits to a tax-free alcohol user in the United States who holds a permit issued under [part 22](/cfr/27/part22.md) of this chapter.. These shipments shall be made in accordance with the requirements of parts [19](/cfr/27/part19.md) and [22](/cfr/27/part22.md) of this chapter.
- (c) **Denatured spirits.** A distiller who registers and files a bond as a distilled spirits plant in accordance with [part 19](/cfr/27/part19.md) of this chapter and who denatures spirits in accordance with parts [19](/cfr/27/part19.md) and [21](/cfr/27/part21.md) of this chapter may ship completely denatured alcohol to anyone in the United States, and may ship specially denatured spirits to a dealer or user of specially denatured spirits in the United States or Puerto Rico who holds a permit issued under [part 20](/cfr/27/part20.md) of this chapter. These shipments shall be made in accordance with the requirements of parts [19](/cfr/27/part19.md) and [20](/cfr/27/part20.md) of this chapter, and [subpart Ia](/cfr/27/subpartIa.md) of this part.
- (d) **Products made with denatured spirits.**
  - (1) A person in Puerto Rico who manufactures products with completely denatured alcohol in accordance with the requirements of [part 20](/cfr/27/part20.md) of this chapter may ship those products to the United States in accordance with the requirements of [part 20](/cfr/27/part20.md) of this chapter, and [subpart Ia](/cfr/27/subpartIa.md) of this part.
  - (2) A person in Puerto Rico who manufactures products with specially denatured spirits may ship those products to the United States if that person (i) obtains a permit to use specially denatured spirits under [part 20](/cfr/27/part20.md) of this chapter, and (ii) complies with the requirements of [part 20](/cfr/27/part20.md) of this chapter and [subpart Ia](/cfr/27/subpartIa.md) of this part relating to the manufacture and shipment of those products.

## Notes

### Amendments

[T.D. ATF-199, 50 FR 9198, Mar. 6, 1985; T.D. ATF-199, 50 FR 20099, May 14, 1985, as amended by T.D. ATF-271, 53 FR 17559, May 17, 1988]

### Authority

Authority: 19 U.S.C. 81c; 26 U.S.C. 5001, 5007, 5008, 5010, 5041, 5051, 5061, 5111-5114, 5121, 5122-5124, 5131-5132, 5207, 5232, 5271, 5275, 5301, 5314, 5555, 6001, 6038E, 6065, 6109, 6301, 6302, 6804, 7101, 7102, 7651, 7652, 7805; 27 U.S.C. 203, 205; 31 U.S.C. 9301, 9303, 9304, 9306.

### Source

Source: 20 FR 6077, Aug. 20, 1955, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by T.D. ATF-459, 66 FR 38550, July 25, 2001.

### Amendments

[T.D. ATF-199, 50 FR 9198, Mar. 6, 1985; T.D. ATF-199, 50 FR 20099, May 14, 1985, as amended by T.D. ATF-271, 53 FR 17559, May 17, 1988]