(a) In general. If any person willfully alters, or attempts to alter, the strength or composition of any dye or marking done pursuant to Sec. 48.4082-1 in any dyed fuel, then section 6715(a)(3) provides that such person shall pay a penalty in addition to any tax. The penalty imposed by section 6715(a)(3) will not apply in the following cases:
(1) Diesel fuel or kerosene that satisfies the dyeing and marking requirements of Sec. 48.4082-1 (b) and (c) is blended with any undyed liquid and the resulting product satisfies the dyeing and marking requirements of Sec. 48.4082-1 (b) and (c).
(2) Diesel fuel or kerosene that satisfies the dyeing and marking requirements of Sec. 48.4082-1 (b) and (c) is blended with any other liquid (other than diesel fuel or kerosene) that contains the type and amount of dye and marker required for diesel fuel or kerosene dyed and marked in accordance with Sec. 48.4082-1 (b) and (c).
(3) The alteration or attempted alteration occurs in an exempt area of Alaska after September 30, 1996.
(4) Diesel fuel or kerosene that does not satisfy the dyeing and marking requirements of Sec. 48.4082-1 (b) and (c) is blended with diesel fuel or kerosene that satisfies the dyeing and marking requirements of Sec. 48.4082-1 (b) and (c) and the blending occurs as part of a use described in Sec. 48.4082-4(c) or Sec. 48.6427-8(b)(1)(vii)(C) or (D).
(b) Effective date. This section is effective January 1, 1994. [T.D. 8659, 61 FR 10465, Mar. 14, 1996, as amended by T.D. 8685, 61 FR 58007, Nov. 12, 1996; T.D. 8748, 63 FR 26, Jan. 2, 1998; T.D. 8879, 65 FR 17163, Mar. 31, 2000]