Section 9.97. Allowances

(a) Leaker allowances. Malt or brewed beverages contained in cooperage that becomes unfit for consumption due to a head leaker, bung leaker, stave leaker, loose pitch, bushing leaker or spoilage, shall be handled as follows:

(1) A tag shall be furnished by the manufacturer to the importing distributors and distributors showing information covering the type of leaker or spoilage, the name of the retailer or distributor and the license number of the licensee making the claim. The tag shall have a perforated portion, to be retained by the claimant, showing the reason for the return of the leaker, the claim number and the date of the claim. The top portion of the tag shall be fastened to the cooperage and returned to the manufacturer through the distributor from whom originally purchased.

(2) When the manufacturer has approved the claim, he shall issue a credit memorandum in triplicate. Three copies of the credit memorandum shall be signed by the retailer who retains the triplicate copy. The duplicate copy shall be retained by the distributor. The original credit memorandum and the stub of the tag shall be returned to the manufacturer for his file. Credit replacement may then be made in kind or in value.

(3) If credit is disallowed by the manufacturer, the retailer shall be so notified through the distributor, giving the reasons.

(4) The manufacturer shall attach to his monthly report, on Forms RCB-47, RCB-48 and RCB-49, a statement showing claims allowed, indicating names, addresses and dates involved in such allowances.

(5) Importing distributors shall be governed by the same procedure covering returns to foreign manufacturers.

(b) Breakage allowance. A manufacturer, distributor or importing distributor of malt or brewed beverages is not required to give breakage allowance. If an allowance is given, however, it shall be based upon a fixed percentage of gross sales to any one licensee customer of glass containers and contents, not to exceed .1% of gross sales of glass containers and contents to any one licensee customer.

The provisions of this § 9.97 adopted June 26, 1952; amended through August 29, 1966; amended July 20, 1970, effective July 21, 1970, 1 Pa.B. 137.