In general, chapter 51 of the Internal Revenue Code (IRC; 26 U.S.C.) sets forth Federal excise tax rates and application, permit, and other requirements related to alcohol products produced in or imported into the United States. However, while volatile fruit-flavor concentrates contain alcohol when they are manufactured from the mash or juice of a fruit by an evaporative process, under the IRC at 26 U.S.C. 5511, alcohol excise tax and most other provisions of chapter 51 do not apply to such concentrates if their manufacturers file applications, keep records, and meet certain other requirements prescribed by regulation for the protection of the revenue. Under the TTB regulations in 27 CFR part 18, respondents apply to register volatile fruit-flavor plants using form TTB F 5520.3. The TTB regulations also require the filing of an amended TTB F 5520.3 to report any change affecting the accuracy of the original application, as well as the filing of letterhead applications regarding certain volatile fruit-flavor concentrate plant matters not covered by TTB F 5520.3. In addition, volatile fruit-flavor concentrate manufacturers are required to maintain an ongoing record file of all approved applications forms and letters and any related supporting documents on or convenient to their plant premises. TTB uses the application information and record file to identify the persons responsible for, the location of, the distilling equipment in, and operations conducted at a concentrate plant in order to protect the revenue since volatile fruit-flavors could be diverted for use as taxable alcohol beverages.
There are no program changes associated with this information collection. As for adjustments, due to a decrease in the number of volatile fruit-flavor concentrate plants, TTB is decreasing the estimated number of annual respondents and responses for this information collection from 80 to 55, and is decreasing the estimated total annual burden hours from 160 to 110. In addition, for clarity and consistency, TTB is revising the title of this information collection request from âApplicationsâVolatile Fruit-Flavor Concentrate Plants, TTB REC 5520/2â to âVolatile Fruit-Flavor Concentrate PlantsâApplications and Related Records (TTB REC 5520/2).â
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Form TTB F 5520.3 Volatile Fruit-Flavor Concentrate Plants--Applications and Related Records (TTB REC 5520/2)
1513-0006 Supporting Statement (03-2018).docx
Volatile Fruit-Flavor Concentrate Plants--Applications and Related Records (TTB REC 5520/2)