1. (a) Purchase and sale.

   1. (1) Holders of industrial permits may purchase or otherwise acquire wine and vinous liquor in containers of not less than one gallon without payment of state tax from the holders of permits in Texas, authorizing the manufacture or importation of wines, subject to restrictions herein provided and conditioned that such wine and vinous liquor shall be used for no purpose other than the compounding or manufacture of medicines and food products.
   2. (2) Holders of Class A winery permits, Class B winery permits, wholesaler's permits, Class B wholesaler's permits and wine bottler's permits may sell to the holders of industrial permits wine and vinous liquor in containers of not less than one gallon without payment of state tax and subject to restrictions herein provided.

2. (b) Report--receiving.

   1. (1) Each holder of an industrial permit shall make a monthly report to the commission on a form prescribed by the administrator (Industrial Receiving Record Wine).

   2. (2) The report shall be made and filed by the permittee with the commission at its office in Austin on or before the 15th day of the month following the calendar month for which the report is made and shall show the following:

      1. (A) a full and complete record of all wine and vinous liquors received or possessed;
      2. (B) the date received;
      3. (C) from whom received;
      4. (D) point of origin of the shipment;
      5. (E) date of invoice;
      6. (F) seller's invoice number;
      7. (G) total number and size of containers received;
      8. (H) the total amount in wine gallons of wine containing not more than 14% alcohol by volume;
      9. (I) the same information in regard to wine received containing over 14% alcohol by volume and not more than 24% of alcohol by volume; and
      10. (J) the name of the carrier making delivery.
   3. (3) Entries shall be made on this report within 24 hours after the date any wine is received or becomes the property of the permittee at any point within the State of Texas.
   4. (4) The permittee shall give all information required to be reported on the prescribed form and the report shall be signed and sworn to by the permittee or his duly authorized representative before a notary public or other officer authorized to administer oaths.

3. (c) Report--manufacturing.

   1. (1) Each holder of an industrial permit shall make a monthly report to the commission on a form prescribed by the administrator (Industrial Manufacturing Report).

   2. (2) The report shall be made and filed by the permittee with the commission at its offices in Austin on or before the 15th day of the month following the calendar month for which the report is made and shall show:

      1. (A) a full and complete record of all wine and vinous liquor received and used in the compounding or manufacture of medicines or food products during the month for which such report is made;
      2. (B) the date of each day's operation;
      3. (C) the opening inventory in wine gallons;
      4. (D) receipts in wine gallons;
      5. (E) wine gallons used in the compounding or manufacture of medicines or food products;
      6. (F) closing inventory in wine gallons;
      7. (G) total packages of resultant products, stating number and size of packages, that is, in case of bottles, fluid content; in case of packages, ounces or pounds and ounces;
      8. (H) name of product manufactured; and
      9. (I) the same information to be reported separately on wines in each tax classification.
   3. (3) On the closing day of the month for which the report is made an actual physical inventory shall be made of all wine on hand and results posted on the form directly below the figures shown on the closing day of the month, all wine to be considered as wine on hand until the product is packaged.
   4. (4) Entries shall be made on this report within 48 hours after the date that any such wines are received or packaged.
   5. (5) The permittee shall give all information required to be reported on the form and the report shall be signed and sworn to by the permittee or his duly authorized representative before a notary public or other officer authorized to administer oaths.
4. (d) Report not required. Holders of industrial permits who do not purchase or handle wine or vinous liquors in any way shall not be required to make the reports herein required.

Source Note:The provisions of this §41.21 adopted to be effective January 1, 1976.