Navigating the regulatory landscape when purchasing ethanol can be complex. Whether you're buying high-purity ethanol, denatured alcohol, or other industrial alcohols, there are several key steps to take to ensure compliance with federal regulations. At Specialty Alcohols, we guide our customers through every step of the process to make sure they have the right permits and documents in place for a smooth and compliant transaction.
In this blog post, we’ll break down the essentials of what you need to know when purchasing ethanol, including the required permits, documentation, and how we can help.
Understanding the Types of Alcohol and Their Uses
Before diving into the regulatory requirements, it’s essential to understand the different types of alcohol and their specific uses:
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Undenatured Ethanol: Pure ethanol, often used in pharmaceuticals, cosmetics, and beverages. It's subject to strict regulatory control because of its potential use in spirits and other consumable products.
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Denatured Alcohol: Ethanol mixed with additives to make it unfit for human consumption. It’s widely used in industrial applications, from solvents to cleaning agents, and generally doesn’t require the same permits as undenatured ethanol.
The type of alcohol you're purchasing will determine the permits and documentation you'll need.
Key Permits and Documents Required
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Distilled Spirits Plant (DSP) Permit If you're purchasing undenatured ethanol, having a Distilled Spirits Plant (DSP) permit is a must. Issued by the Alcohol and Tobacco Tax and Trade Bureau (TTB), this permit allows you to legally purchase and handle ethanol. The DSP permit is required for manufacturers, distributors, and processors who handle pure ethanol.
How We Help: We work closely with our customers to ensure that they have the proper DSP permit in place. If you're unsure how to obtain this permit or need assistance with the application process, we guide you through the required steps, making the process as smooth as possible.
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Transfer-In-Bond (TIB) for Ethanol For customers with a DSP permit, a Transfer-In-Bond (TIB) is required to transfer ethanol between different locations while deferring the excise tax. This document ensures compliance when moving alcohol between bonded facilities. You can submit your TIB application online through the TTB Permits Online Portal.
How We Help: We provide all necessary details, including our DSP number, to help you complete the TIB paperwork. If you're unfamiliar with the process, we can walk you through the submission and qualification process.
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Industrial User or Dealer Permit For those purchasing specially denatured alcohol or ethanol, you'll need an Industrial User or Dealer Permit issued by the TTB. This permit ensures that you can legally purchase, store, and use denatured alcohol for non-consumable purposes. The ship-to address on this permit must match the actual delivery location.
How We Help: We help you confirm that your industrial user or dealer permit is valid and compliant. We also assist with document submissions and keep your permits on file for future orders.
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Bond and Financial Guarantees In some cases, you may need to file a bond with the TTB, especially when large quantities of ethanol are involved, to ensure payment of federal excise taxes. This step applies mostly to companies involved in the storage and processing of ethanol.
How We Help: If you're required to file a bond, we can guide you through the bonding process and help ensure that you meet all financial guarantee requirements.
Submitting Purchase Orders
At Specialty Alcohols, we make it easy for you to submit purchase orders and track your shipments. You can:
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Submit via Email: Simply send your purchase orders to orders@specialtyalcohols.com with all relevant details.
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Submit via Our Online Portal: Log in to your Specialty Alcohols account to manage orders, shipments, and more.
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Submit via EDI: We offer Electronic Data Interchange (EDI) capabilities for those looking to automate and streamline the ordering process. To set up an EDI link, please contact our IT department at it@volusol.com.
Our Commitment to Compliance and Support
At Specialty Alcohols, we understand that navigating alcohol regulations can be daunting. That's why we’re committed to helping our customers get the right permits and documents in place. Our team works closely with you to ensure compliance, and we are always available to assist with any questions or concerns.
Ready to get started?
Contact us today for personalized assistance with your ethanol procurement process, and let’s make sure you have everything you need for a compliant and efficient purchasing experience.