178.58 Two or more corporate sureties. A bond executed by two or more corporate sureties shall be the joint and several liability of the principal and the sureties: Provided, That each corporate surety may limit its liability, in terms, upon the face of the bond, in a definite specified amount, which amount shall not exceed the limitations prescribed for such corporate surety by the Secretary of the Treasury, as set forth in Form 356, Commissioner of Accounts and Deposits, Section of Surety Bonds.*t

CROSS REFERENCES: For customs regulations relating to corporate sureties, see 19 CFR 23.12. For regulations of Treasury Department relating to two or more companies as sureties, see 31 CFR 223.11.

178.59 Application of surety for relief from bond. A surety on any bond may at any time in writing notify the principal and the district supervisor in whose office the bond is on file that he desires after a date named, which shall be at least 60 days after the date of the notification, to be relieved of liability under said bond. Said notice shall be executed in triplicate by the surety, who shall deliver one copy to the principal and the other two to the district supervisor, who will retain one copy and transmit the remaining copy to the Commissioner. If such notice is not thereafter in writing withdrawn, the rights of the principal as supported by said bond shall be terminated on the date named in the notice and the surety shall be relieved under said bond for any acts done wholly subsequent to said date: Provided, That if the principal fails to execute a new and satisfactory bond, said bond shall remain effective until there shall have been proper accounting and tax payment for all wines and brandy as of the date when the surety is relieved, as named in such notice. This notice may not be given by an agent of the surety unless it is accompanied by a power of attorney duly executed by the surety authorizing him to give such notice or by a verified statement that such power of attorney is on file with the Department.**

178.60 Name legibly written. The full name of each person signing applications, notices, bonds, powers of attorney, consents of surety, and other written instruments, or papers required of proprietors of bonded wineries or storerooms, shall be legibly written (preferably typed) in the heading or body of each such instrument or paper.*f

178.61 Firm or corporate name. In the case of a copartnership, the trade name of the firm, followed by the names of all the members thereof, shall be shown. In the case of a corporation, there shall be shown the corporate name, the name of the State under the laws of which it is incorporated, and the location of the principal office or place of business.*†

178.62 Execution of instrument. An individual proprietor of a bonded winery or storeroom executing such instruments shall sign his full name thereto, or an attorney-in-fact, duly empowered by him, may sign in his behalf. In the case of a copartnership, the firm name shall be typed or written, followed by the word "By" and the signatures of all partners or the signature of any partner or other person holding a power of attorney authorizing him to execute bonds or other instruments on behalf of the partnership. Where an in

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*For statutory citation, see note to § 178.48.

strument is signed by an attorney-in-fact, a copy of the power of attorney shall be attached thereto, except that no copy need be attached to instruments other than bonds or consents of surety in cases where the power of attorney has been filed in duplicate with the district supervisor. In the case of a corporation, the corporate name shall be typed or written, followed by the word "By" and the signature and title of each officer executing the document for the corporation, who must be duly authorized to act for the corporation. The instrument shall bear the impression of the corporate seal, and, if a bond or consent of surety, shall be supported by an authenticated copy of the document conferring authority upon each officer to execute the instrument. The signature of each person executing a bond or consent of surety shall be witnessed by two persons, who shall affix their signatures as such, except where execution of the instrument is acknowledged before an officer duly authorized to administer oaths, or, in the case of a corporate instrument, where the seal of the corporation is affixed and attested by its proper officer.*t

178.63 Superseding bond. Where a new bond, Form 700-A, in a sufficient penal sum computed as prescribed in § 178.48, is filed to supersede a bond or bonds of the same or a prior series and there is no record of violations of law or regulations by the principal or outstanding liability against the bond, the district supervisor shall, after approval of the superseding bond, prepare Form 1490, "Notice of Bond Termination," in quadruplicate (in quintuplicate if there are two sureties), and forward the original to the Commissioner, one copy to each obligor on the bond, and retain one copy to be filed with the bond to which it relates. Where assessments have been made against the principal, the district supervisor will not issue Form 1490 until a statement has been obtained from the collector of internal revenue that such assessments have been paid.*t

178.64 Collateral as security on superseding bond. The bonds, notes, or other obligations of the United States deposited as collateral security with an outstanding bond of the proprietor of a bonded winery or storeroom, and with respect to which no violation has been charged, may be used to secure a new superseding bond on Form 700-A by appropriate description of such collateral in the new bond.t (Sec. 1126, 44 Stat. 122; 6 U.S.C. 15)

CROSS REFERENCE: For regulations under Department of Treasury relating to acceptance of bonds, notes, or other obligations as security, see 31 CFR Part 225.

178.65 Release of bond. Upon receipt of an application for the release of a bond, Form 700-A, or of a bond of a prior series, the district supervisor will examine his records to ascertain whether there is any outstanding liability against the bond. If and when the district supervisor is satisfied that there is no outstanding liability against a bond the release of which has been applied for, he will prepare Form 1491, "Notification of Release of Bond," in quadruplicate (in quintuplicate if there are two sureties), and forward the original copy to the Commissioner, one copy to each obligor on the bond, and retain one copy to be filed with the bond to which it relates.

*For statutory citation, see note to § 178.48.

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Where an offer in compromise of civil liability or an application for remission, or claim for abatement of taxes, has been sent to the Commissioner, and notice of final action has not been received, the district supervisor will not take any action toward the release of the bond until such notice has been received and a statement has been obtained from the collector of internal revenue that the tax involved and all outstanding assessments, if any, have been paid.*†

178.66 Release of collateral. The provisions of 31 CFR Part 225 and the regulations in this part shall apply to bonds to be superseded or released where obligations of the United States have been deposited with the Government by proprietors of bonded wineries or storerooms as collateral security in lieu of surety or sureties, and to the disposition of such obligations so deposited.t (Sec. 1126, 44 Stat. 122; 6 U.S.C. 15)

SWEETENING MATERIALS

178.67 Storage room. Where sugar or condensed grape must for use in the manufacture or treatment of wine is stored on the winery premises, a room for the storage of such materials must be provided, as required by § 178.18. All sweetening agents received at the winery must be stored in such room.t (Sec. 1309, 40 Stat. 1143; 26 U.S.C. 1350. Sec. 610, 40 Stat. 1109, sec. 330, 49 Stat. 1957; 26 U.S.C. 1310 and Sup. II. Sec. 617, 40 Stat. 1111; 26 U.S.C. 1302 (d))

178.68 Form 261. All sweetening agents received, used, and on hand at the winery must be reported by the winemaker on Form 261, Winemaker's Monthly Report of Materials for Fortification and Amelioration of Wines.t (Sec. 1305, 40 Stat. 1142; 26 U.S.C. 1345. Sec. 617, 40 Stat. 1111, 1112, sec. 14, 49 Stat 988, sec. 332, 49 Stat. 1958; 26 U.S.C. 1301 (e), 1302 (a), and Sup. III)

178.69 Grape must. Pure boiled or condensed grape must may, if desired, be stored in closed, locked containers properly marked and identified as "Condensed must tanks" on the winery premises, outside the storage room for the sweetening agents. Such tanks will be regarded as a part of the storage room for sweetening agents, so far as the storage of condensed must is concerned.† (Sec. 1309, 40 Stat. 1143; 26 U.S.C. 1350. Sec. 610, 40 Stat. 1109, sec. 330, 49 Stat. 1957; 26 U.S.C. 1310 and Sup. III. Sec. 617, 40 Stat. 1111; 26 U.S.C. 1302 (d))

NATURAL WINE

178.70 Production. Natural wine is produced by the normal alcoholic fermentation of the juice of sound, ripe grapes, without addition or abstraction, other than such as may occur in the usual cellar treatment of clarifying and aging, except that in the event the must or wine has natural deficiencies, it may be ameliorated with a solution of water and pure cane, beet, or dextrose sugar, containing, respectively, not less than 95 percent of actual sugar, calculated on a dry basis, the quantities of water and sugar composing the solution being in the proportion necessary to correct natural deficiencies in the must or wine. If so ameliorated, the resulting product (a) must

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*For statutory citation, see note to § 178.48.

contain not less than 5 parts per thousand of acid before fermentation, (b) may not contain more than 13 percent of alcohol after complete fermentation, and (c) may not be increased more than 35 percent in volume.t (Sec. 1309, 40 Stat. 1143; 26 U.S.C. 1350. Sec. 610, 40 Stat. 1109; 26 U.S.C. 1310 (a), (b))

178.71 Sweetening for fortification. Natural wine, ameliorated in accordance with § 178.70, may, prior to fortification, be sweetened with cane sugar or beet sugar or pure condensed grape must. Natural wine, to which no sweetening agents have been added, may, prior to fortification, be sweetened with cane sugar or beet sugar or pure condensed grape must. The cane sugar or beet sugar added shall not be in excess of 11 percent of the weight of the wine.t (Sec. 1309, 40 Stat. 1143; 26 U.S.C. 1350. Sec. 610, 40 Stat. 1109; 26 U.S.C. 1310 (c))

PURE SWEET WINE

178.72 Production. Pure sweet wine is produced by the fermentation or partial fermentation of grape juice only, with the usual cellar treatment, and shall contain no other substance whatever, introduced before, at the time of, or after fermentation, except that the juice or wine, or both, may be ameliorated as follows:

(a) With pure boiled or condensed grape must or pure crystallized cane or beet sugar or pure dextrose sugar, containing, respectively, not less than 95 percent of actual sugar, calculated on a dry basis, or water, or any or all of them, in quantities necessary to perfect the wine according to commercial standards, or for mechanical purposes;

(b) The cane or beet or pure dextrose sugar added shall not be in excess of 11 percent of the weight of the wine;

(c) Water shall not be used in excess of 10 percent of the weight of the juice or wine, or both, to which added, and the wine to which water is added shall not after fermentation have an alcoholic content of less than 5 percent.† (Sec. 1309, 40 Stat. 1143; 26 U.S.C. 1350. Sec. 617, 40 Stat. 1111; 26 U.S.C. 1302 (d))

178.73 Water used at crusher. Water may be used at the crusher only when absolutely necessary for the proper operation of the mechanical devices used in crushing and conveying the material to the fermenting tanks, and only in such quantities as is necessary. Where the machinery becomes so clogged that it is evident a greater amount of water than the maximum quantity allowed will be necessary for flushing purposes, or the winemaker desires to flush the machinery without running the water into the sweet wine material, the pipes and conveyors leading to the fermenting tanks containing the sweet wine material will be disconnected or closed before flushing the crushing and conveying machinery. If the winemaker so desires, the water may be run into fermenting tanks for producing distilling material. In such cases where the water is not run into the juice (sweet wine material), it will not be included in the 10 percent addition permitted by § 178.72.t (Sec. 1309, 40 Stat. 1143; 26 U.S.C. 1350. Sec. 617, 40 Stat. 1111; 26 U.S.C. 1302 (d))

†For source citation, see note to § 178.1.

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178.74 Water for ameliorating and mechanical purposes. Water may be used for ameliorating purposes at the time of crushing and immediately prior to fortification. But, except as prescribed in § 178.73, the total quantity of water used for both mechanical and ameliorating purposes, either at the time of crushing or fortification, or both, shall not exceed 10 percent of the weight of the juice or wine.t (Sec. 617, 40 Stat. 1111; 26 U.S.C. 1302 (d))

178.75 Fortification. Pure sweet wine, produced in accordance with 178.72, whether ameliorated or not, may be fortified as prescribed in 88 178.227-178.316.† (Sec. 617, 40 Stat. 1111, 1112; 26 U.S.C. 1302 (a), (b))

FRUIT AND BERRY WINES

178.76 Production. Citrus-fruit wines, peach wines, cherry wines, berry wines, apricot wines, and apple wines will be produced by the normal alcoholic fermentation of the juice of sound ripe citrus fruit (except lemons and limes), peaches, cherries, berries, apricots, and apples, respectively, with or without the addition of dry cane, beet, or dextrose sugar (containing, respectively, not less than 95 percent of actual sugar calculated on a dry basis), for the purpose of perfecting the product according to standards, but without the addition or abstraction of other substances, other than such as may occur in the usual cellar treatment of clarifying and aging, except that in the event the must or wine has natural deficiencies, it may be ameliorated with a solution of water and pure cane, beet, or dextrose sugar, containing, respectively, not less than 95 percent of actual sugar, calculated on a dry basis, for the purpose of correcting natural deficiencies in the must or wine. If so ameliorated, the resulting product (a) must contain not less than 5 parts per thousand of acid before fermentation, (b) may not contain more than 13 percent of alcohol after complete fermentation, and (c) may not be increased more than 35 percent in volume.† (Sec. 1309, 40 Stat. 1143; 26 U.S.C. 1350. Sec. 610, 40 Stat. 1109, sec. 330, 49 Stat. 1957; 26 U.S.C. 1310 and Sup. III)

178.77 Sweetening for fortification. Fruit and berry wine, ameliorated in accordance with 8 178.76 may, prior to fortification, be sweetened with cane sugar or beet sugar or pure condensed must of the fruit or berry used in manufacturing the wine. Fruit and berry wine which has not been ameliorated may, prior to fortification, be sweetened with cane sugar or beet sugar, or pure condensed must of the fruit or berry used in manufacturing the wine. The cane sugar or beet sugar added shall not be in excess of 11 percent of the weight of the wine. (Sec. 1309, 40 Stat. 1143; 26 U.S.C. 1350. Sec. 610, 40 Stat. 1109, sec. 330, 49 Stat. 1957; 26 U.S.C. 1310 and Sup. III)

SUPERVISION OF AMELIORATION BY GOVERNMENT OFFICERS WAIVED

178.78 Amelioration without Government supervision. Proprietors of bonded wineries are authorized to ameliorate wine without supervision by Government officers. However, when Government of

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†For source citation, see note to § 178.1.