CFR > Title 27 - Alcohol, Tobacco Products and Firearms > CHAPTER I—ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE TREASURY > SUBCHAPTER A—LIQUORS (parts 1 to 31) > PART 20—DISTRIBUTION AND USE OF DENATURED ALCOHOL AND RUM > SUBPART J—Losses (§20.201 to §20.205) > 20.203—Losses on premises.

20.203—Losses on premises.

(a) Recording of losses. A permittee shall determine and record, in the records prescribed by subpart P of this part, the quantity of specially denatured spirits or recovered alcohol lost on premises:
(1) When an inventory is taken,
(2) At the time a container is emptied, or
(3) Immediately upon the discovery of any loss due to casualty, theft or other unusual causes.
(b) Claims. A claim for allowance of specially denatured spirits will be filed as prescribed in § 20.205, in the following circumstances:
(1) If the quantity lost during the annual accounting period ( § 20.263(c)) exceeds one percent of the quantity to be accounted for during that period, and is more than 50 gallons; or,
(2) If the loss was due to theft or unlawful use or removal, the permittee shall file a claim for allowance of losses regardless of the quantity involved.
(Approved by the Office of Management and Budget under control number 1512-0337)