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 Rev. Rul. 58-84

1958-1 C.B. 581

IRS Headnote

Imported pure fruit brandies distilled from the same kind of fruit, aged in wood for a period of not less than two years and without the addition of coloring or flavoring material or any other substance except pure water and otherwise meeting the requirements of the regulations, may be blended at a rectifying plant exempt from the rectification tax.

Full Text

Rev. Rul. 58-84

Advice has been requested whether imported brandies may be blended exempt from the rectification tax under section 5025(e) of the Internal Revenue Code of 1954 and section 235.541 of the Regulations relating to the Rectification of Spirits and Wines.

Section 5025(e) of the Code provides, in part, that the rectification tax shall not apply to blends made exclusively of two or more pure fruit brandies distilled from the same kind of fruit, aged in wood for a period not less than two years and without the addition of coloring or flavoring materials (other than caramel) or any other substance than pure water, and if not reduced below 80 proof. It further provides that such blended fruit brandies shall be exempt from the rectification tax only when compounded under the immediate supervision of a revenue officer, in such tanks and under such conditions as are prescribed. The procedure and requirements for such blending are contained in sections 235.466 through 235.475, inclusive, of the Regulations relating to the Rectification of Spirits and Wines.

It is held that such blends of pure fruit brandies may be composed either of domestic or imported brandies, or both. Revenue Ruling 54-595, C.B. 1954-2, 460, holds that brandies produced by different distillers may be so blended. The rectifier so blending imported brandies must furnish the Internal Revenue officer assigned to the rectifying plant a certificate, issued by a duly authorized official of the government of the foreign country in which the brandies were produced, certifying that such brandies were distilled from the same kind of fruit, aged in wood for a period of not less than two years, without the addition of coloring or flavoring material, (other than caramel) or any other substance than pure water, and not reduced below 80 proof. The term `pure fruit brandies' as used in section 5025(e) of the Code is construed to mean brandies distilled from the same kind of fruit, conforming to the limitations stated in section 5.21, Class 4, of the Regulations relating to the Labeling and Advertising of Distilled Spirits.