How long does an AFP permit last, and can an AFP permit be revoked or suspended?
The regulation at 27 CFR 19.679 provides that an AFP permit is continuing unless automatically terminated under 27 CFR 19.684, suspended or revoked as provided in 27 CFR 19.697, or voluntarily surrendered.
In accordance with § 19.684, automatic termination of an AFP permit occurs when the lease, sale, or other transfer of business operations occurs. In the case of a corporation holding an AFP permit, if actual or legal control of the permittee corporation changes, directly or indirectly, whether by reason of change in stock ownership or control (in the permittee corporation or in any other corporation), by operation of law, or in any other manner, the permit may remain in effect until the expiration of 30 days after the change, whereupon the permit will automatically terminate. However, if operations are to be continued after the change in control, and an application for a new permit is filed within 30 days of the change, then the outstanding permit may remain in effect until final action is taken on the new application. When final action is taken on the application, the outstanding permit automatically terminates.
In accordance with § 19.697, the TTB may revoke or suspend an AFP permit if the appropriate TTB officer has reason to believe that the proprietor:
- Has not in good faith complied with the applicable provisions of 26 U.S.C. Chapter 51, or 27 CFR, part 19, subpart X; or
- Has violated conditions of the permit; or
- Has made any false statements as to any material fact in the application thereof; or
- Has failed to disclose any material information required to be furnished; or
- Has violated or conspired to violate any law of the U.S. relating to intoxicating liquor or has been convicted of any offense under Title 26, U.S.C. punishable as a felony or of any conspiracy to commit such offense.
The Director of the TTB National Revenue Center has the authority to revoke or suspend an AFP permit if he/she has reason to believe that the proprietor has not engaged in any of the operations authorized by the permit for a period of more than 2 years.
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