Airlines Withdrawing Stock from Customs Custody (TTB REC 5620/2)

In general, under chapter 51 of the Internal Revenue Code (IRC), distilled spirits and wine produced in or imported into the United States are subject to Federal excise tax, but those taxes are subject to drawback (refund) when such products are subsequently exported from the United States, which, under 26 U.S.C. 5214 and 5362 includes the lading of such products as supplies on aircraft engaged in foreign flights. Also, under 19 U.S.C. 1309, those products may be withdrawn from customs custody without payment of tax for use as supplies on such aircraft. Additionally, those statutes authorize the Secretary of the Treasury to issue regulations regarding such withdrawals. Under its delegated authorities, the Alcohol and Tobacco Tax and Trade Bureau (TTB) alcohol export regulations in 27 CFR part 28 require airlines to keep certain records to account for distilled spirits and wine withdrawn from their stocks held in customs custody at airports for use as supplies on aircraft engaged in foreign flights. Accounting for such withdrawals, whether made subject to drawback or without payment of tax, is necessary to protect the revenue as the collected information allows TTB to verify export drawback claims and detect diversion of untaxed distilled spirits and wine into the domestic market.

The latest form for Airlines Withdrawing Stock from Customs Custody (TTB REC 5620/2) expires 2028-11-30 and can be found here.