Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 57-86

1957-1 C.B. 606

Full Text

Rev. Rul. 57-86

Section 182.860 of the Industrial Alcohol Regulations provides, in part, for the reprocessing, bottling, and repackaging of products such as bay rum, lilac vegetal, hair lotions, dry shampoos, deodorant sprays, skin lotions, perfumes, etc., and requires that persons who desire to reprocess, bottle, or repackage such products must procure permission therefor from the Assistant Regional Commissioner, Alcohol and Tobacco Tax. Held , the requirement that permission be obtained applies regardless of the size of the containers in which the products are procured. Certain transactions not considered commercial bottling operations are, however, excepted. Examples of such transactions not requiring permission to bottle are (1) general retail stores purchasing perfumes in containers of one gallon or less for dispensing in small ( e.g. 1 ounce or less) bottles over the counter, and (2) barber shops or beauty parlors furnishing small quantities of beauty preparations to customers for use by them in their homes. Such transactions of a limited character are not the commercial bottling operations restricted by the regulations. On the other hand, any concern which makes a business of rebottling products under its own name as a distributor and carries such repackaged products in stock or sells them to other retailers is a commercial bottler and is required to obtain permission to purchase and rebottle such products, regardless of the size of container in which obtained.