(a) Tax-free alcohol. Tax-free alcohol on hand at the time of discontinuance of use, may be disposed of by
(1) Returning the spirits to a distilled spirits plant, as provided in Sec. 22.151,
(2) Destruction, as provided in Sec. 22.142, or
(3) Shipping to another permittee, in accordance with Sec. 22.155.
(b) Recovered tax-free alcohol. Upon permanent discontinuance of use, a permittee may dispose of recovered tax-free alcohol by
(1) Shipment to a distilled spirits plant, as provided in Sec. 22.133,
(2) Destruction, as provided in Sec. 22.142, or
(3) Upon the filing of an application with the appropriate TTB officer, any other approved method. (Approved by the Office of Management and Budget under control number 1512-0335)