(a) Tax-free alcohol. Tax-free alcohol on hand at the time of discontinuance of use, may be disposed of by

1. (1) Returning the spirits to a distilled spirits plant, as provided in § 22.151,
2. (2) Destruction, as provided in § 22.142, or
3. (3) Shipping to another permittee, in accordance with § 22.155.

(b) Recovered tax-free alcohol. Upon permanent discontinuance of use, a permittee may dispose of recovered tax-free alcohol by

1. (1) Shipment to a distilled spirits plant, as provided in § 22.133,
2. (2) Destruction, as provided in § 22.142, or

3. (3) Upon the filing of an application with the appropriate TTB officer, any other approved method.

   (Approved by the Office of Management and Budget under control number 1512-0335)