NOTICE: The Finance Policies and Procedures Manual, along with the previous manual, is undergoing changes. These sites are continually updated to reflect changes in business processes. If you cannot find the information you are seeking in these policies, email for more information.
Policies and Procedures

Policy 1265 – Ethyl Alcohol Regulations

July 1, 1992
Last Updated
August 2, 2010
Responsible University Officer
Director of Logistics
Responsible Unit
Procurement Services

Policy Statement

The procurement and use of tax-free ethyl alcohol is authorized by a special permit granted to the University by the US Department of the Treasury. The following controls are placed on the handling of tax-free ethyl alcohol:

  • Tax-free ethyl alcohol must never be sold.
  • Tax-free ethyl alcohol must never be used in the manufacture of food flavors, flavoring extract, food products, or beverages.
  • Tax-free ethyl alcohol must not be used as a cleaning agent in repair work and machine shops. Denatured alcohol is used for these purposes.
  • Tax-free ethyl alcohol cannot be loaned to another person or institution, even if such person or institution is also authorized to use tax-free alcohol.
  • Tax-free ethyl alcohol cannot be sold or issued to doctors for use in private practice, even if these services are performed in the hospital.
  • Tax-free ethyl alcohol must be used on the premises named in the permit (The University of North Carolina at Chapel Hill).
  • Research laboratories authorized to use Tax-free ethyl alcohol in pure research must discontinue using tax-free ethyl alcohol when the research program is completed or discontinued.

All alcohol releases are checked at least annually by Federal auditors for strict compliance to the permit as well as for quantities used. The auditors not only check the issue records but may also check the supplies for the using departments.

Reason for Policy

The policy is to ensure compliance with the tax-free ethyl alcohol permit which recognizes the following authorized uses:

  • Preserving specimens of anatomy, biology, and natural history.
  • General reagent work in chemical laboratories.
  • Research and laboratory work in the School of Medicine, School of Dentistry, and School of Pharmacy, as well as other research laboratories.
  • Patient care and laboratory uses incidental to the care of patients both at Campus Health Services and in hospitals.



Special Situations



  • 1265.1 - Requisitioning Ethyl Alcohol

Additional Information

Frequently Asked Questions

Q: Our lab is an open space. How should we secure our ethyl alcohol?
A: Requisition appropriate quantities that can be used over a short period of time. Unused ethyl alcohol should be secured in a locked area to which only authorized persons will have access.

Q: Our lab wishes to loan some ethyl alcohol to another institution that requires a small amount for a short time. Are we allowed to do this?
A: The terms of the ethyl alcohol permit strictly forbid any sale or lending of tax-free ethyl alcohol to other persons or institutions under any circumstances.

Related Data

The control of tax-free ethyl alcohol is governed under Title 27, part 22, Chapter I - Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury.


Ethyl Alcohol Regulations Logistics 919-962-6267 919-962-6271


August 2, 2010
November 19, 2003