27 CFR §22.154

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