Alcohol & Tobacco Tax & Trade Bureau said it was withdrawing temporary guidance allowing distilled spirits permittees to produce tax-free alcohol for use in hand sanitizer. The guidance was originally issued on March 18, 2020, was amended several times, and was intended to alleviate a shortage of hand santizer in the wake of the eruption of the Covid vaccine.
Now, in the wake of Food & Drug Administration’s decision to withdraw guidance that was the basis for TTB’s action. TTB said that effective Dec. 31, bev/al industry members must stop making hand sanitizer under temporary guidance issued in March 2020 (TTB G 2020-1D) and distilled spirits plants must remove from their bonded premises any alcohol intended for industrial use. In addition alcohol fuel plants must remove from their bonded premises any alcohol intended for non-fuel use, TTB said.
TTB said industry members can continue to distribute hand sanitizer produced under the earlier guidance through March 31.