Policies & Procedures


Section 1

Physical Environment and Properties

Transportation and Distribution Services

Sec. 904-20: Guidelines on Conditions of Use of Tax-Free Alcohol

Responsible Office: Transportation and Distribution Services
Revised: November 2013 (Reviewed September 2021)

References / Resources

Contact: Transportation & Distribution Services at (949) 824-5981 or (949) 824-4735

Each University of California campus has the individual and direct responsibility for insuring that all activities concerned with acquiring, safeguarding, using, reporting, and controlling tax-free alcohol are conducted in strict compliance with applicable Federal regulations.

A. Authorization

Chancellors have been delegated authority by the President to sign all documents necessary in connection with the use of tax-free alcohol. At UCI this authority has been redelegated to specific individuals on the campus (IDA 550 [superseded by IDA 585]) and at the UC Irvine Medical Center (IDA 561 [superseded by IDA 586]).

Before an individual may withdraw alcohol from UCI Distribution Services, Signature Authorization, Form U242A, approved by the department chair solely for the withdrawal of tax-free alcohol, must be on file in UCI Distribution Services for that individual. When a person's authorized status ends, the departmental authorizing officer is responsible for cancelling the status using the same form.

B. Ordering

Tax-free alcohol can be purchased ONLY from UCI Distribution Services. Ethyl alcohol must be ordered separately from all other items on a Tax-Free Alcohol Order Form  |  HOW TO: Order Tax-Free Alcohol

C. Conditions of Use

UC Business and Finance Bulletin BUS-2 (III.C.2)

D. Recordkeeping

UC Business and Finance Bulletin BUS-2 (V.C.4)

E. Federal Regulations

Excerpts from the Code of Federal Regulations:

  • Sec. 22.102 Prohibited Uses
    • "(a) Usage. Under no circumstances may tax-free alcohol withdrawn under this part be used for beverage purposes, food products, or in any preparation used in preparing beverage or food products.
      (b) Selling. Persons qualified under this part are prohibited from selling tax-free alcohol, using tax-free alcohol in the manufacture of any product for sale, or selling any products resulting from the use of tax-free alcohol. . .
      (c) Removal from premises. Persons qualified under this part may not remove tax-free alcohol or products resulting from the use of tax-free alcohol from the permit premises unless specifically authorized by the terms of their permit, or permission is obtained from the regional director (compliance) . . ."
  • Sec. 22.104 Educational organizations, colleges of learning, and scientific universities
    • "(d) Tax-free alcohol withdrawn by educational organizations, scientific universities, and colleges of learning shall be used only for scientific, medicinal, and mechanical purposes. Use of tax-free alcohol and resulting products are limited by the provisions of Sec. 22.102."

F. Effacing and Disposing of Alcohol Containers

Effacing of all alcohol containers immediately after emptying is required by Section 22.33 of the Code of Federal Regulations. Individuals responsible for the control of alcohol within the department will assure that each bottle, can, drum, and carton is effaced in such a manner as to remove all traces of information pertaining to the contents. Spray paint is to be used to obliterate all markings shown on the drum. Felt markers or paint may be used on the smaller containers. Individuals desiring to return all containers to UCI Distribution Services for effacing are encouraged to do so. Noncompliance with the foregoing may result in the loss of the campus Tax-Free Alcohol Permit.