Code of Federal Regulations Title 27. Alcohol, Tobacco Products and Firearms § 27.24.265 Losses by theft

The proprietor shall be liable for and pay the tax on wine unlawfully removed while on bonded wine premises, or while in transit thereto or therefrom in bond, unless the proprietor or other person responsible for the tax, establishes to the satisfaction of the appropriate TTB officer that the theft did not occur as the result of connivance, collusion, fraud or negligence on the part of the proprietor or other person responsible for the tax or the owner, consignor, consignee, bailee, or carrier, or their agents or employees.

(Authority:  Sec. 201, Pub.L. 85–859, 72 Stat. 1381, as amended (26 U.S.C. 5370))