2005 California Revenue and Taxation Code Sections 32211-32214 Article 2. Presumptions and Exemptions

32211.  It shall be presumed that all distilled spirits acquired by
any taxpayer have been sold in this State by him unless one of the
following is proved to the satisfaction of the board, in reports on
forms prescribed by the board:
   (a) That the distilled spirits are still in the possession of the
licensee.
   (b) That the distilled spirits have been sold or delivered to
another licensed distilled spirits manufacturer, rectifier, importer,
or wholesaler.
   (c) That the distilled spirits have been exported without this
State or sold for export by the licensee making the report and
actually exported from this State within 90 days from the date of the
sale.
   (d) That prior to the termination of possession the distilled
spirits have been lost through unintentional destruction.
   (e) That prior to the termination of possession there has been an
unaccounted for loss, but the unaccounted for loss shall not exceed a
tolerance to be fixed by the board.
   (f) That the distilled spirits are otherwise exempt from taxation
under this part.
32212.  The tax is not imposed upon any distilled spirits
specifically mentioned in subdivisions (a) to (f), inclusive, of
Section 32211.
   The tax is not imposed upon the sale of brandy to a licensee of
another state pursuant to the provisions of Section 23108 of the
Business and Professions Code.
   Any claim for exemption from taxes under Section 32211 shall be
made to the board in such manner as the board shall prescribe.
32213.  Whenever distilled spirits are sold by manufacturers,
rectifiers, importers, or wholesalers to common carriers engaged in
interstate or foreign passenger service for use or sale by the
carriers partly within the State and partly without the State on
board boats, trains, or airplanes, or to persons licensed to sell
distilled spirits on board such boats, trains, or airplanes, the tax
shall not be levied on the sales made by manufacturers, rectifiers,
importers, or wholesalers.
32214.  If taxes have been paid on distilled spirits sold to a
person who holds a permit and identification number authorizing the
filing of a claim for drawback of federal distilled spirits excise
taxes under the Federal Non-Beverage Drawback Regulations and the
distilled spirits have been used in the manufacture of food products,
the taxpayer may claim and shall be allowed credit with respect to
the taxes in any report or return made under this part.