(a) Tax-free alcohol. Tax-free alcohol on hand at the time of discontinuance of use, may be disposed of by
(1) Returning the spirits to a distilled spirits plant, as provided in § 22.151,
(2) Destruction, as provided in § 22.142, or
(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) Shipment to a distilled spirits plant, as provided in § 22.133,
(2) Destruction, as provided in § 22.142, or
(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)