-CITE-
    26 USC CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER      01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER

-HEAD-
              CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER          

-MISC1-
    Subchapter                                                  Sec.(!1)
    A.      Gallonage and occupational taxes                        5001 
    B.      Qualification requirements for distilled spirits
             plants                                                 5171
    C.      Operation of distilled spirits plants                   5201
    D.      Industrial use of distilled spirits                     5271
    E.      General provisions relating to distilled spirits        5291
    F.      Bonded and taxpaid wine premises                        5351
    G.      Breweries                                               5401
    H.      Miscellaneous plants and warehouses                     5501
    I.      Miscellaneous general provisions                        5551
    J.      Penalties, seizures, and forfeitures relating to
             liquors                                                5601

                             PRIOR PROVISIONS                         
      The provisions of a prior chapter 51, Distilled Spirits, Wines,
    and Beer, were set out as:
        Subchapter A, Gallonage and occupational taxes, comprising
         sections 5001 to 5012, 5021 to 5028, 5041 to 5045, 5051 to
         5057, 5061 to 5065, 5081 to 5084, 5091 to 5093, 5101 to 5106,
         5111 to 5116, 5121 to 5124, 5131 to 5134, and 5141 to 5149.
        Subchapter B, Distilleries, comprising sections 5171 to 5180,
         5191 to 5197, and 5211 to 5217.
        Subchapter C, Internal Revenue bonded warehouses, comprising
         sections 5231 to 5233 and 5241 to 5252.
        Subchapter D, Rectifying plants, comprising sections 5271 to
         5275 and 5281 to 5285.
        Subchapter E, Industrial alcohol plants, bonded warehouses,
         denaturing plants, and denaturation, comprising sections 5301
         to 5320 and 5331 to 5334.
        Subchapter F, Bonded and taxpaid wine premises, comprising
         sections 5351 to 5357, 5361 to 5373, 5381 to 5388, 5391, and
         5392.
        Subchapter G, Breweries, comprising sections 5401 to 5403 and
         5411 to 5416.
        Subchapter H, Miscellaneous plants and warehouses, comprising
         sections 5501, 5502, 5511, 5512, and 5521 to 5523.
        Subchapter I, Miscellaneous general provisions, comprising
         sections 5551 to 5557.
        Subchapter J, Penalties, seizures, and forfeitures relating to
         liquors, comprising sections 5601 to 5650, 5661 to 5663, 5671
         to 5676, 5681 to 5690, and 5691 to 5693.

-FOOTNOTE-
    (!1) Section numbers editorially supplied.


-End-


-CITE-
    26 USC Subchapter A - Gallonage and Occupational Taxes      01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes

-HEAD-
              SUBCHAPTER A - GALLONAGE AND OCCUPATIONAL TAXES          

-MISC1-
    Part                                                     
    I.          Gallonage taxes.                                      
    II.         Occupational tax.                                     


-STATAMEND-
                           AMENDMENT OF ANALYSIS                       
      Pub. L. 109-59, title XI, Sec. 11125(b)(1)(B), (c), Aug. 10,
    2005, 119 Stat. 1953, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date, the
    table of parts is amended by substituting "Miscellaneous
    provisions" for "Occupational tax" in item for part II.

-End-


-CITE-
    26 USC PART I - GALLONAGE TAXES                             01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES

-HEAD-
                         PART I - GALLONAGE TAXES                     

-MISC1-
    Subpart                                                  
    A.          Distilled spirits.                                    
    [B.         Repealed.]                                            
    C.          Wines.                                                
    D.          Beer.                                                 
    E.          General provisions.                                   

                                AMENDMENTS                            
      1979 - Pub. L. 96-39, title VIII, Sec. 807(b)(1), July 26, 1979,
    93 Stat. 290, struck out item relating to subpart B
    "Rectification".

-End-


-CITE-
    26 USC Subpart A - Distilled Spirits                        01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart A - Distilled Spirits

-HEAD-
                       SUBPART A - DISTILLED SPIRITS                   

-MISC1-
    Sec.                                                     
    5001.       Imposition, rate, and attachment of tax.              
    5002.       Definitions.                                          
    5003.       Cross references to exemptions, etc.                  
    5004.       Lien for tax.                                         
    5005.       Persons liable for tax.                               
    5006.       Determination of tax.                                 
    5007.       Collection of tax on distilled spirits.               
    5008.       Abatement, remission, refund, and allowance for loss
                 or destruction of distilled spirits.                 
    [5009.      Repealed.]                                            
    5010.       Credit for wine content and for flavors content.      
    5011.       Income tax credit for average cost of carrying excise
                 tax.                                                 

                             PRIOR PROVISIONS                         
      A prior subpart A, comprising sections 5001 to 5012, related to
    tax on distilled spirits, prior to the general revision of this
    chapter by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat.
    1313.

                                AMENDMENTS                            
      2005 - Pub. L. 109-59, title XI, Sec. 11126(c), Aug. 10, 2005,
    119 Stat. 1958, added item 5011.
      1980 - Pub. L. 96-598, Sec. 6(b), Dec. 24, 1980, 94 Stat. 3489,
    added item 5010.
      1979 - Pub. L. 96-39, title VIII, Sec. 807(b)(2), July 26, 1979,
    93 Stat. 290, struck out item 5009 "Drawback".

-End-



-CITE-
    26 USC Sec. 5001                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart A - Distilled Spirits

-HEAD-
    Sec. 5001. Imposition, rate, and attachment of tax

-STATUTE-
    (a) Rate of tax
      (1) General
        There is hereby imposed on all distilled spirits produced in or
      imported into the United States a tax at the rate of $13.50 on
      each proof gallon and a proportionate tax at the like rate on all
      fractional parts of a proof gallon.
      (2) Products containing distilled spirits
        All products of distillation, by whatever name known, which
      contain distilled spirits, on which the tax imposed by law has
      not been paid, and any alcoholic ingredient added to such
      products, shall be considered and taxed as distilled spirits.
      (3) Wines containing more than 24 percent alcohol by volume
        Wines containing more than 24 percent of alcohol by volume
      shall be taxed as distilled spirits.
      (4) Distilled spirits withdrawn free of tax
        Any person who removes, sells, transports, or uses distilled
      spirits, withdrawn free of tax under section 5214(a) or section
      7510, in violation of laws or regulations now or hereafter in
      force pertaining thereto, and all such distilled spirits shall be
      subject to all provisions of law relating to distilled spirits
      subject to tax, including those requiring payment of the tax
      thereon; and the person so removing, selling, transporting, or
      using the distilled spirits shall be required to pay such tax.
      (5) Denatured distilled spirits or articles
        Any person who produces, withdraws, sells, transports, or uses
      denatured distilled spirits or articles in violation of laws or
      regulations now or hereafter in force pertaining thereto, and all
      such denatured distilled spirits or articles shall be subject to
      all provisions of law pertaining to distilled spirits that are
      not denatured, including those requiring the payment of tax
      thereon; and the person so producing, withdrawing, selling,
      transporting, or using the denatured distilled spirits or
      articles shall be required to pay such tax.
      (6) Fruit-flavor concentrates
        If any volatile fruit-flavor concentrate (or any fruit mash or
      juice from which such concentrate is produced) containing one-
      half of 1 percent or more of alcohol by volume, which is
      manufactured free from tax under section 5511, is sold,
      transported, or used by any person in violation of the provisions
      of this chapter or regulations promulgated thereunder, such
      person and such concentrate, mash, or juice shall be subject to
      all provisions of this chapter pertaining to distilled spirits
      and wines, including those requiring the payment of tax thereon;
      and the person so selling, transporting, or using such
      concentrate, mash, or juice shall be required to pay such tax.
      (7) Imported liqueurs and cordials
        Imported liqueurs and cordials, or similar compounds,
      containing distilled spirits, shall be taxed as distilled
      spirits.
      (8) Imported distilled spirits withdrawn for beverage purposes
        There is hereby imposed on all imported distilled spirits
      withdrawn from customs custody under section 5232 without payment
      of the internal revenue tax, and thereafter withdrawn from bonded
      premises for beverage purposes, an additional tax equal to the
      duty which would have been paid had such spirits been imported
      for beverage purposes, less the duty previously paid thereon.
      (9) Alcoholic compounds from Puerto Rico
        Except as provided in section 5314, upon bay rum, or any
      article containing distilled spirits, brought from Puerto Rico
      into the United States for consumption or sale there is hereby
      imposed a tax on the spirits contained therein at the rate
      imposed on distilled spirits produced in the United States.
    (b) Time of attachment on distilled spirits
      The tax shall attach to distilled spirits as soon as this
    substance is in existence as such, whether it be subsequently
    separated as pure or impure spirits, or be immediately, or at any
    subsequent time, transferred into any other substance, either in
    the process of original production or by any subsequent process.
    (c) Cross reference
          For provisions relating to the tax on shipments to the United
        States of taxable articles from Puerto Rico and the Virgin
        Islands, see section 7652.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1314; amended Pub. L. 86-75, Sec. 3(a)(2), (3), June 30, 1959, 73
    Stat. 157; Pub. L. 86-564, title II, Sec. 202(a)(4), (5), June 30,
    1960, 74 Stat. 290; Pub. L. 87-72, Sec. 3(a)(4), (5), June 30,
    1961, 75 Stat. 193; Pub. L. 87-508, Sec. 3(a)(3), (4), June 28,
    1962, 76 Stat. 114; Pub. L. 88-52, Sec. 3(a)(4), (5), June 29,
    1963, 77 Stat. 72; Pub. L. 88-348, Sec. 2(a)(4), (5), June 30,
    1964, 78 Stat. 237; Pub. L. 89-44, title V, Sec. 501(a), June 21,
    1965, 79 Stat. 150; Pub. L. 96-39, title VIII, Secs. 802, 805(d),
    July 26, 1979, 93 Stat. 273, 278; Pub. L. 98-369, div. A, title I,
    Sec. 27(a)(1), July 18, 1984, 98 Stat. 507; Pub. L. 101-508, title
    XI, Sec. 11201(a)(1), Nov. 5, 1990, 104 Stat. 1388-415; Pub. L. 103-
    465, title I, Sec. 136(a), Dec. 8, 1994, 108 Stat. 4841.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5001, acts Aug. 16, 1954, ch. 736, 68A Stat. 595;
    Mar. 30, 1955, ch. 18, Sec. 3(a)(4), (5), 69 Stat. 14; Mar. 29,
    1956, ch. 115, Sec. 3(a)(4), (5), 70 Stat. 66; Mar. 29, 1957, Pub.
    L. 85-12, Sec. 3(a)(2), (3), 71 Stat. 9; June 30, 1958, Pub. L. 85-
    475, Sec. 3(a)(2), (3), 72 Stat. 259, consisted of provisions
    similar to those comprising this section, prior to the general
    revision of this chapter by Pub. L. 85-859. See section 5061(d) of
    this title.

                                AMENDMENTS                            
      1994 - Subsec. (a)(3) to (10). Pub. L. 103-465 redesignated pars.
    (4) to (10) as (3) to (9), respectively, and struck out former par.
    (3), "Imported perfumes containing distilled spirits", which read
    as follows: "There is hereby imposed on all perfumes imported into
    the United States containing distilled spirits a tax of $13.50 per
    wine gallon, and a proportionate tax at a like rate on all
    fractional parts of such wine gallon."
      1990 - Subsec. (a)(1), (3). Pub. L. 101-508 substituted "$13.50"
    for "$12.50".
      1984 - Subsec. (a)(1), (3). Pub. L. 98-369 substituted "$12.50"
    for "$10.50".
      1979 - Subsec. (a)(1). Pub. L. 96-39, Sec. 802, struck out "in
    bond or" after "distilled spirits" and "or wine gallon when below
    proof" after "each proof gallon" and substituted "a tax" for "an
    internal revenue tax" and "proof gallon" for "such proof or wine
    gallon".
      Subsec. (a)(2). Pub. L. 96-39, Sec. 805(d), inserted ", and any
    alcoholic ingredient added to such products" after "has not been
    paid".
      1965 - Subsec. (a)(1). Pub. L. 89-44 struck out last sentence
    which provided that the rate of tax imposed by par. (1) would be $9
    on and after July 1, 1965.
      Subsec. (a)(3). Pub. L. 89-44 struck out last sentence which
    provided that the rate of tax imposed by par. (3) would be $9 on
    and after July 1, 1965.
      1964 - Subsec. (a)(1). Pub. L. 88-348 substituted "July 1, 1965"
    for "July 1, 1964".
      Subsec. (a)(3). Pub. L. 88-348 substituted "July 1, 1965" for
    "July 1, 1964".
      1963 - Subsec. (a)(1). Pub. L. 88-52, Sec. 3(a)(4), substituted
    "July 1, 1964" for "July 1, 1963".
      Subsec. (a)(3). Pub. L. 88-52, Sec. 3(a)(5), substituted "July 1,
    1964" for "July 1, 1963".
      1962 - Subsec. (a)(1). Pub. L. 87-508, Sec. 3(a)(3), substituted
    "July 1, 1963" for "July 1, 1962".
      Subsec. (a)(3). Pub. L. 87-508, Sec. 3(a)(4), substituted "July
    1, 1963" for "July 1, 1962".
      1961 - Subsec. (a)(1). Pub. L. 87-72, Sec. 3(a)(4), substituted
    "July 1, 1962" for "July 1, 1961".
      Subsec. (a)(3). Pub. L. 87-72, Sec. 3(a)(5), substituted "July 1,
    1962" for "July 1, 1961".
      1960 - Subsec. (a)(1). Pub. L. 86-564, Sec. 202(a)(4),
    substituted "July 1, 1961" for "July 1, 1960".
      Subsec. (a)(3). Pub. L. 86-564, Sec. 202(a)(5), substituted "July
    1, 1961" for "July 1, 1960".
      1959 - Subsec. (a)(1). Pub. L. 86-75, Sec. 3(a)(2), substituted
    "July 1, 1960" for "July 1, 1959".
      Subsec. (a)(3). Pub. L. 86-75, Sec. 3(a)(3), substituted "July 1,
    1960" for "July 1, 1959".

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Section 136(d) of Pub. L. 103-465 provided that: "The amendments
    made by this section [amending this section and sections 5002,
    5005, 5007, 5061, 5131, 5132, 5134, and 7652 of this title] shall
    take effect on January 1, 1995."

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Section 11201(d) of Pub. L. 101-508 provided that: "The
    amendments made by this section [amending this section and sections
    5010, 5041, 5051, and 5061 of this title] shall take effect on
    January 1, 1991."

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Section 27(d) of Pub. L. 98-369 provided that:
      "(1) In general. - Except as provided in paragraph (2), the
    amendments made by this section [amending this section and section
    5010 of this title and enacting provisions set out as a note under
    this section] shall take effect on October 1, 1985.
      "(2) Electronic transfer provisions. - The amendments made by
    subsection (c) [amending sections 5061 and 5703 of this title]
    shall apply to taxes required to be paid on or after September 30,
    1984."

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Section 810 of title VIII of Pub. L. 96-39 provided that: "The
    amendments made by this title [amending this section and sections
    5002 to 5008, 5043, 5061, 5064, 5066, 5116, 5171 to 5173, 5175 to
    5178, 5180, 5181, 5201 to 5205, 5207, 5211 to 5215, 5221 to 5223,
    5231, 5232, 5235, 5241, 5273, 5291, 5301, 5352, 5361 to 5363, 5365,
    5381, 5391, 5551, 5601, 5604, 5610, 5612, 5615, 5663, 5681, 5682,
    and 5691 of this title, repealing sections 5009, 5021 to 5026, 5081
    to 5084, 5174, 5233, 5234, 5251, 5252, 5364, and 5521 to 5523 of
    this title, and enacting provisions set out as notes under sections
    1, 5061, 5171, and 5173 of this title] shall take effect on January
    1, 1980."

                     EFFECTIVE DATE OF 1965 AMENDMENT                 
      Amendment by Pub. L. 89-44 applicable on and after July 1, 1965,
    see section 701(d) of Pub. L. 89-44, set out as a note under
    section 5701 of this title.

                              EFFECTIVE DATE                          
      Section 210(a)(1) of Pub. L. 85-859 provided that: "The
    amendments made by sections 201 and 205 [amending this chapter and
    repealing acts Mar. 3, 1877, 114, 19 Stat. 393, and Oct. 18, 1888,
    ch. 1194, 25 Stat. 560] shall take effect on July 1, 1959, except
    that any provision having the effect of a provision contained in
    such amendments may be made effective at an earlier date by the
    promulgation of regulations by the Secretary or his delegate to
    effectuate such provision, in which case the effective date shall
    be that prescribed in such regulations. The amendments made by
    paragraphs (17) and (18) of section 204 [amending section 7652 of
    this title] shall take effect on July 1, 1959. Except as provided
    in section 206(f), all other provisions of this title [enacting
    sections 5849, 5854, 5855, and 7608 of this title, amending chapter
    52 of this title and sections 5801, 5811, 5814, 5821, 5843, 5848,
    5851, 6071, 6207, 6422, 7214, 7272, 7301, 7324 to 7326, 7609, and
    7655 of this title, and repealing former section 5854 of this
    title] shall take effect on the day following the date of the
    enactment of this Act [Sept. 2, 1958]."

                                SHORT TITLE                            
      Section 1(a) of Pub. L. 85-859 provided that: "This Act [see
    Tables for classification] may be cited as the 'Excise Tax
    Technical Changes Act of 1958'."

                             SAVINGS PROVISION                         
      Section 210(b) of title II of Pub. L. 85-859, as amended by Pub.
    L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
    "The amendment of any provision of the Internal Revenue Code of
    1986 [formerly I.R.C. 1954] by this title [enacting sections 5849,
    5854, 5855, and 7608 of this title, amending this chapter, chapter
    52 of this title and sections 5801, 5811, 5814, 5821, 5843, 5848,
    5851, 6071, 6207, 6422, 7214, 7272, 7301, 7324 to 7326, 7609, 7652,
    and 7655 of this title, and enacting provisions set out as notes
    under this section and sections 5006, 5025, 5064, 5175, 5304, and
    5601 of this title] shall not affect any act done or any right
    accruing or accrued, or any suit or proceeding had or commenced in
    any civil cause before such amendment; but all rights and
    liabilities under such code prior to such amendment shall continue,
    and may be enforced in the same manner, as if such amendment had
    not been made."

                   REFERENCES TO OTHER PROVISIONS OF LAW               
      Section 210(d) of title II of Pub. L. 85-859 provided that: "For
    the purpose of applying any provision of this title [see Savings
    Provision note above] to any occurrence on or after the effective
    date of such provision, any reference in this title to another
    provision thereof shall also be deemed to be a reference to the
    corresponding provision of prior law, when consistent with the
    purpose of the provision to be applied."

               REPEAL OF ACTS MAR. 3, 1877 AND OCT. 18, 1888           
      Section 205 of Pub. L. 85-859 repealed acts March 3, 1877, ch.
    114, 19 Stat. 393 and Oct. 18, 1888, ch. 1194, 25 Stat. 560, which
    related to production and warehousing of fruit brandy, and are
    covered by this chapter. For effective date of repeal, see section
    210(a)(1) of Pub. L. 85-859, set out as an Effective Date note
    above.

          FLOOR STOCKS TAXES ON DISTILLED SPIRITS, WINE, AND BEER      
      Section 11201(e) of Pub. L. 101-508 provided that:
      "(1) Imposition of tax. - 
        "(A) In general. - In the case of any tax-increased article - 
          "(i) on which tax was determined under part I of subchapter A
        of chapter 51 of the Internal Revenue Code of 1986 or section
        7652 of such Code before January 1, 1991, and
          "(ii) which is held on such date for sale by any person,
      there shall be imposed a tax at the applicable rate on each such
      article.
        "(B) Applicable rate. - For purposes of subparagraph (A), the
      applicable rate is - 
          "(i) $1 per proof gallon in the case of distilled spirits,
          "(ii) $0.90 per wine gallon in the case of wine described in
        paragraph (1), (2), (3), or (5) of section 5041(b) of such
        Code, and
          "(iii) $9 per barrel in the case of beer.
      In the case of a fraction of a gallon or barrel, the tax imposed
      by subparagraph (A) shall be the same fraction as the amount of
      such tax imposed on a whole gallon or barrel.
        "(C) Tax-increased article. - For purposes of this subsection,
      the term 'tax-increased article' means distilled spirits, wine
      described in paragraph (1), (2), (3), or (5) of section 5041(b)
      of such Code, and beer.
      "(2) Exception for small domestic producers. - 
        "(A) In the case of wine held by the producer thereof on
      January 1, 1991, if a credit would have been allowable under
      section 5041(c) of such Code (as added by this section) on such
      wine had the amendments made by subsection (b) [amending sections
      5041 and 5061 of this title] applied to all wine removed during
      1990 and had the wine so held been removed for consumption on
      December 31, 1990, the tax imposed by paragraph (1) on such wine
      shall be reduced by the credit which would have been so
      allowable.
        "(B) In the case of beer held by the producer thereof on
      January 1, 1991, if the rate of the tax imposed by section 5051
      of such Code would have been determined under subsection (a)(2)
      thereof had the beer so held been removed for consumption on
      December 31, 1990, the tax imposed by paragraph (1) on such beer
      shall not apply.
        "(C) For purposes of this paragraph, an article shall not be
      treated as held by the producer if title thereto had at any time
      been transferred to any other person.
      "(3) Exception for certain small wholesale or retail dealers. -
    No tax shall be imposed by paragraph (1) on tax- increased articles
    held on January 1, 1991, by any dealer if - 
        "(A) the aggregate liquid volume of tax-increased articles held
      by such dealer on such date does not exceed 500 wine gallons, and
        "(B) such dealer submits to the Secretary (at the time and in
      the manner required by the Secretary) such information as the
      Secretary shall require for purposes of this paragraph.
      "(4) Credit against tax. - Each dealer shall be allowed as a
    credit against the taxes imposed by paragraph (1) an amount equal
    to - 
        "(A) $240 to the extent such taxes are attributable to
      distilled spirits,
        "(B) $270 to the extent such taxes are attributable to wine,
      and
        "(C) $87 to the extent such taxes are attributable to beer.
    Such credit shall not exceed the amount of taxes imposed by
    paragraph (1) with respect to distilled spirits, wine, or beer, as
    the case may be, for which the dealer is liable.
      "(5) Liability for tax and method of payment. - 
        "(A) Liability for tax. - A person holding any tax-increased
      article on January 1, 1991, to which the tax imposed by paragraph
      (1) applies shall be liable for such tax.
        "(B) Method of payment. - The tax imposed by paragraph (1)
      shall be paid in such manner as the Secretary shall prescribe by
      regulations.
        "(C) Time for payment. - The tax imposed by paragraph (1) shall
      be paid on or before June 30, 1991.
      "(6) Controlled groups. - 
        "(A) Corporations. - In the case of a controlled group - 
          "(i) the 500 wine gallon amount specified in paragraph (3),
        and
          "(ii) the $240, $270, and $87 amounts specified in paragraph
        (4),
      shall be apportioned among the dealers who are component members
      of such group in such manner as the Secretary shall by
      regulations prescribe. For purposes of the preceding sentence,
      the term 'controlled group' has the meaning given to such term by
      subsection (a) of section 1563 of such Code; except that for such
      purposes the phrase 'more than 50 percent' shall be substituted
      for the phrase 'at least 80 percent' each place it appears in
      such subsection.
        "(B) Nonincorporated dealers under common control. - Under
      regulations prescribed by the Secretary, principles similar to
      the principles of subparagraph (A) shall apply to a group of
      dealers under common control where 1 or more of such dealers is
      not a corporation.
      "(7) Other laws applicable. - 
        "(A) In general. - All provisions of law, including penalties,
      applicable to the comparable excise tax with respect to any tax-
      increased article shall, insofar as applicable and not
      inconsistent with the provisions of this subsection, apply to the
      floor stocks taxes imposed by paragraph (1) to the same extent as
      if such taxes were imposed by the comparable excise tax.
        "(B) Comparable excise tax. - For purposes of subparagraph (A),
      the term 'comparable excise tax' means - 
          "(i) the tax imposed by section 5001 of such Code in the case
        of distilled spirits,
          "(ii) the tax imposed by section 5041 of such Code in the
        case of wine, and
          "(iii) the tax imposed by section 5051 of such Code in the
        case of beer.
      "(8) Definitions. - For purposes of this subsection - 
        "(A) In general. - Terms used in this subsection which are also
      used in subchapter A of chapter 51 of such Code shall have the
      respective meanings such terms have in such part.
        "(B) Person. - The term 'person' includes any State or
      political subdivision thereof, or any agency or instrumentality
      of a State or political subdivision thereof.
        "(C) Secretary. - The term 'Secretary' means the Secretary of
      the Treasury or his delegate.
      "(9) Treatment of imported perfumes containing distilled spirits.
    - For purposes of this subsection, any article described in section
    5001(a)(3) of such Code shall be treated as distilled spirits;
    except that the tax imposed by paragraph (1) shall be imposed on a
    wine gallon basis in lieu of a proof gallon basis. To the extent
    provided by regulations prescribed by the Secretary, the preceding
    sentence shall not apply to any article held on January 1, 1991, on
    the premises of a retail establishment."

       FLOOR STOCKS TAX TREATMENT OF ARTICLES IN FOREIGN TRADE ZONES   
      Section 11218 of Pub. L. 101-508 provided that: "Notwithstanding
    the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) or any other
    provision of law, any article which is located in a foreign trade
    zone on the effective date of any increase in tax under the
    amendments made by this part or part I [part I (Secs. 11201-11203)
    or part II (Secs. 11211-11218) of subtitle B of title XI of Pub. L.
    101-508, see Tables for classification] shall be subject to floor
    stocks taxes imposed by such parts if - 
        "(1) internal revenue taxes have been determined, or customs
      duties liquidated, with respect to such article before such date
      pursuant to a request made under the 1st proviso of section 3(a)
      of such Act [19 U.S.C. 81c(a)], or
        "(2) such article is held on such date under the supervision of
      a customs officer pursuant to the 2d proviso of such section
      3(a)."

                  FLOOR STOCKS TAXES ON DISTILLED SPIRITS              
      Section 27(b) of Pub. L. 98-369, as amended by Pub. L. 99-514,
    Sec. 2, title XVIII, Sec. 1801(c)(3), Oct. 22, 1986, 100 Stat.
    2095, 2786, provided that:
      "(1) Imposition of tax. - On distilled spirits on which tax was
    imposed under section 5001 or 7652 of the Internal Revenue Code of
    1986 [formerly I.R.C. 1954] before October 1, 1985, and which were
    held on such date for sale by any person, there shall be imposed a
    tax at the rate of $2.00 for each proof gallon and a proportionate
    tax at the like rate on all fractional parts of a proof gallon.
      "(2) Exception for certain small wholesale or retail dealers. -
    No tax shall be imposed by paragraph (1) on distilled spirits held
    on October 1, 1985, by any dealer if - 
        "(A) the aggregate liquid volume of distilled spirits held by
      such dealer on such date does not exceed 500 wine gallons, and
        "(B) such dealer submits to the Secretary (at the time and in
      the manner required by the Secretary) such information as the
      Secretary shall require for purposes of this paragraph.
      "(3) Credit against tax. - Each dealer shall be allowed as a
    credit against the taxes imposed by paragraph (1) an amount equal
    to $800. Such credit shall not exceed the amount of taxes imposed
    by paragraph (1) for which the dealer is liable.
      "(4) Liability for tax and method of payment. - 
        "(A) Liability for tax. - A person holding distilled spirits on
      October 1, 1985, to which the tax imposed by paragraph (1)
      applies shall be liable for such tax.
        "(B) Method of payment. - The tax imposed by paragraph (1)
      shall be paid in such manner as the Secretary shall by
      regulations prescribe.
        "(C) Time for payment. - 
          "(i) In general. - Except as provided in clause (ii), the tax
        imposed by paragraph (1) shall be paid on or before April 1,
        1986.
          "(ii) Installment payment of tax in case of small or middle-
        sized dealers. - In the case of any small or middle-sized
        dealer, the tax imposed by paragraph (1) may be paid in 3 equal
        installments due as follows:
            "(I) The first installment shall be paid on or before April
          1, 1986.
            "(II) The second installment shall be paid on or before
          July 1, 1986.
            "(III) The third installment shall be paid on or before
          October 1, 1986.
      If the taxpayer does not pay any installment under this clause on
      or before the date prescribed for its payment, the whole of the
      unpaid tax shall be paid upon notice and demand from the
      Secretary.
          "(iii) Small or middle-sized dealer. - For purposes of clause
        (ii), the term 'small or middle-sized dealer' means any dealer
        if the aggregate gross sales receipts of such dealer for its
        most recent taxable year ending before October 1, 1985, does
        not exceed $500,000.
      "(5) Controlled groups. - 
        "(A) Controlled groups of corporations. - In the case of a
      controlled group - 
          "(i) the 500 wine gallon amount specified in paragraph (2),
          "(ii) the $800 amount specified in paragraph (3), and
          "(iii) the $500,000 amount specified in paragraph
        (4)(C)(iii),
      shall be apportioned among the dealers who are component members
      of such group in such manner as the Secretary shall by
      regulations prescribe. For purposes of the preceding sentence,
      the term 'controlled group' has the meaning given to such term by
      subsection (a) of section 1563 of the Internal Revenue Code of
      1986; except that for such purposes the phrase 'more than 50
      percent' shall be substituted for the phrase 'at least 80
      percent' each place it appears in such subsection.
        "(B) Nonincorporated dealers under common control. - Under
      regulations prescribed by the Secretary, principles similar to
      the principles of subparagraph (A) shall apply to a group of
      dealers under common control where 1 or more of such dealers is
      not a corporation.
      "(6) Other laws applicable. - All provisions of law, including
    penalties, applicable with respect to the taxes imposed by section
    5001 of the Internal Revenue Code of 1986 shall, insofar as
    applicable and not inconsistent with the provisions of this
    subsection, apply in respect of the taxes imposed by paragraph (1)
    to the same extent as if such taxes were imposed by such section
    5001.
      "(7) Definitions and special rules. - For purposes of this
    subsection - 
        "(A) Dealer. - The term 'dealer' means - 
          "(i) any wholesale dealer in liquors (as defined in section
        5112(b) of the Internal Revenue Code of 1986), and
          "(ii) any retail dealer in liquors (as defined in section
        5122(a) of such Code).
        "(B) Distilled spirits. - The term 'distilled spirits' has the
      meaning given such term by section 5002(a)(8) of the Internal
      Revenue Code of 1986.
        "(C) Person. - The term 'person' includes any State or
      political subdivision thereof, or any agency or instrumentality
      of a State or political subdivision thereof.
        "(D) Secretary. - The term 'Secretary' means the Secretary of
      the Treasury or his delegate.
        "(E) Treatment of imported perfumes containing distilled
      spirits. - Any article described in section 5001(a)(3) of such
      Code shall be treated as distilled spirits; except that the tax
      imposed by paragraph (1) shall be imposed on a wine gallon basis
      in lieu of a proof gallon basis. To the extent provided in
      regulations prescribed by the Secretary, the preceding sentence
      shall not apply to any article held on October 1, 1985, on the
      premises of a retail establishment.
        "(F) Treatment of distilled spirits in foreign trade zones. -
      Notwithstanding the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C.
      81a) or any other provision of law, distilled spirits which are
      located in a foreign trade zone on October 1, 1985, shall be
      subject to the tax imposed by paragraph (1) and shall be treated
      for purposes of this subsection as held on such date for sale if -
       
          "(i) internal revenue taxes have been determined, or customs
        duties liquidated, with respect to such distilled spirits
        before such date pursuant to a request made under the first
        proviso of section 3(a) of such Act [19 U.S.C. 81c(a)], or
          "(ii) such distilled spirits are held on such date under the
        supervision of customs pursuant to the second proviso of such
        section 3(a).
      Under regulations prescribed by the Secretary, provisions similar
      to sections 5062 and 5064 of such Code shall apply to distilled
      spirits with respect to which tax is imposed by paragraph (1) by
      reason of this subparagraph."

-End-



-CITE-
    26 USC Sec. 5002                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart A - Distilled Spirits

-HEAD-
    Sec. 5002. Definitions

-STATUTE-
    (a) In general
      For purposes of this chapter - 
      (1) Distilled spirits plant
        The term "distilled spirits plant" means an establishment which
      is qualified under subchapter B to perform any distilled spirits
      operation.
      (2) Distilled spirits operation
        The term "distilled spirits operation" means any operation for
      which qualification is required under subchapter B.
      (3) Bonded premises
        The term "bonded premises", when used with respect to distilled
      spirits, means the premises of a distilled spirits plant, or part
      thereof, on which distilled spirits operations are authorized to
      be conducted.
      (4) Distiller
        The term "distiller" includes any person who - 
          (A) produces distilled spirits from any source or substance,
          (B) brews or makes mash, wort, or wash fit for distillation
        or for the production of distilled spirits (other than the
        making or using of mash, wort, or wash in the authorized
        production of wine or beer, or the production of vinegar by
        fermentation),
          (C) by any process separates alcoholic spirits from any
        fermented substance, or
          (D) making or keeping mash, wort, or wash, has a still in his
        possession or use.
      (5) Processor
        (A) In general
          The term "processor", when used with respect to distilled
        spirits, means any person who - 
            (i) manufactures, mixes, or otherwise processes distilled
          spirits, or
            (ii) manufactures any article.
        (B) Rectifier, bottler, etc., included
          The term "processor" includes (but is not limited to) a
        rectifier, bottler, and denaturer.
      (6) Certain operations not treated as processing
        In applying paragraph (5), there shall not be taken into
      account - 
        (A) Operations as distiller
          Any process which is the operation of a distiller.
        (B) Mixing of taxpaid spirits for immediate consumption
          Any mixing (after determination of tax) of distilled spirits
        for immediate consumption.
        (C) Use by apothecaries
          Any process performed by an apothecary with respect to
        distilled spirits which such apothecary uses exclusively in the
        preparation or making up of medicines unfit for use for
        beverage purposes.
      (7) Warehouseman
        The term "warehouseman", when used with respect to distilled
      spirits, means any person who stores bulk distilled spirits.
      (8) Distilled spirits
        The terms "distilled spirits", "alcoholic spirits", and
      "spirits" mean that substance known as ethyl alcohol, ethanol, or
      spirits of wine in any form (including all dilutions and mixtures
      thereof from whatever source or by whatever process produced).
      (9) Bulk distilled spirits
        The term "bulk distilled spirits" means distilled spirits in a
      container having a capacity in excess of 1 wine gallon.
      (10) Proof spirits
        The term "proof spirits" means that liquid which contains one-
      half its volume of ethyl alcohol of a specific gravity of 0.7939
      at 60 degrees Fahrenheit (referring to water at 60 degrees
      Fahrenheit as unity).
      (11) Proof gallon
        The term "proof gallon" means a United States gallon of proof
      spirits, or the alcoholic equivalent thereof.
      (12) Container
        The term "container", when used with respect to distilled
      spirits, means any receptacle, vessel, or form of package,
      bottle, tank, or pipeline used, or capable of use, for holding,
      storing, transferring, or conveying distilled spirits.
      (13) Approved container
        The term "approved container", when used with respect to
      distilled spirits, means a container the use of which is
      authorized by regulations prescribed by the Secretary.
      (14) Article
        Unless another meaning is distinctly expressed or manifestly
      intended, the term "article" means any substance in the
      manufacture of which denatured distilled spirits are used.
      (15) Export
        The terms "export", "exported", and "exportation" include
      shipments to a possession of the United States.
    (b) Cross references
          (1) For definition of manufacturer of stills, see section
        5102.
          (2) For definition of dealer, see section 5112(a).
          (3) For definitions of wholesale dealers, see section 5112.
          (4) For definitions of retail dealers, see section 5122.
          (5) For definitions of general application to this title, see
        chapter 79.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1315; amended Pub. L. 89-44, title VIII, Sec. 807(a), June 21,
    1965, 79 Stat. 164; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A),
    Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec.
    805(e), July 26, 1979, 93 Stat. 278; Pub. L. 103-465, title I, Sec.
    136(c)(1), Dec. 8, 1994, 108 Stat. 4841; Pub. L. 109-59, title XI,
    Sec. 11125(b)(13), Aug. 10, 2005, 119 Stat. 1956.)


-STATAMEND-
                        AMENDMENT OF SUBSECTION (B)                    
      Pub. L. 109-59, title XI, Sec. 11125(b)(13), (c), Aug. 10, 2005,
    119 Stat. 1956, 1957, provided that, effective July 1, 2008, but
    inapplicable to taxes imposed for periods before such date,
    subsection (b) of this section is amended by substituting "section
    5121(c)(3)" for "section 5112(a)", "section 5121(c)" for "section
    5112", and "section 5122(c)" for "section 5122".


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5002, act Aug. 16, 1954, ch. 736, 68A Stat. 597,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      Provisions similar to those comprising subsec. (a)(6), (9), and
    (11) of this section were contained in prior sections 5213(a)(1)
    and 5319(1), (2), and (7), act Aug. 16, 1954, ch. 736, 68A Stat.
    639, 661, prior to the general revision of this chapter by Pub. L.
    85-859.

                                AMENDMENTS                            
      1994 - Subsec. (b)(1) to (6). Pub. L. 103-465 redesignated pars.
    (2) to (6) as (1) to (5), respectively, and struck out former par.
    (1) which provided a cross reference to section 5041(c) of this
    title for definition of "wine gallon".
      1979 - Subsec. (a)(1). Pub. L. 96-39 substituted "distilled
    spirits operation" for "operation, or any combination of
    operations, for which qualification is required under such
    subchapter".
      Subsec. (a)(2), (3). Pub. L. 96-39 added par. (2) and
    redesignated former par. (2) as (3). Former par. (3), defining
    "bottling premises", was struck out.
      Subsec. (a)(4). Pub. L. 96-39 redesignated par. (5) as (4).
    Former par. (4), defining "bonded warehouseman", was struck out.
      Subsec. (a)(5) to (7). Pub. L. 96-39 added pars. (5) to (7) and
    redesignated former pars. (5) to (7) as (4), (8), and (10),
    respectively.
      Subsec. (a)(8). Pub. L. 96-39 redesignated former par. (6) as
    (8). Former par. (8) redesignated (11).
      Subsec. (a)(9). Pub. L. 96-39 added par. (9) and redesignated
    par. (9) as (12).
      Subsec. (a)(10) to (15). Pub. L. 96-39 redesignated former pars.
    (7) to (12) as (10) to (15), respectively.
      Subsec. (b). Pub. L. 95-39 struck out par. (2) which provided for
    a cross reference to section 5082 for a definition of rectifier and
    redesignated pars. (3) to (7) as (2) to (6), respectively.
      1976 - Subsec. (a)(10). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary".
      1965 - Subsec. (a). Pub. L. 89-44 added par. (12).

                     EFFECTIVE DATE OF 2005 AMENDMENT                 
      Pub. L. 109-59, title XI, Sec. 11125(c), Aug. 10, 2005, 119 Stat.
    1957, provided that: "The amendments made by this section [see
    Tables for classification] shall take effect on July 1, 2008, but
    shall not apply to taxes imposed for periods before such date."

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-465 effective Jan. 1, 1995, see section
    136(d) of Pub. L. 103-465, set out as a note under section 5001 of
    this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1965 AMENDMENT                 
      Section 807(c) of Pub. L. 89-44 provided that: "The amendments
    made by subsections (a) and (b) [amending this section and section
    5053 of this title] shall take effect on July 1, 1965."

-End-



-CITE-
    26 USC Sec. 5003                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart A - Distilled Spirits

-HEAD-
    Sec. 5003. Cross references to exemptions, etc.

-STATUTE-
          (1) For provisions authorizing the withdrawal of distilled
        spirits free of tax for use by Federal or State agencies, see
        sections 5214(a)(2) and 5313.
          (2) For provisions authorizing the withdrawal of distilled
        spirits free of tax by nonprofit educational organizations,
        scientific universities or colleges of learning, laboratories,
        hospitals, blood banks, sanitariums, and charitable clinics,
        see section 5214(a)(3).
          (3) For provisions authorizing the withdrawal of certain
        imported distilled spirits from customs custody without payment
        of tax, see section 5232.
          (4) For provisions authorizing the withdrawal of denatured
        distilled spirits free of tax, see section 5214(a)(1).
          (5) For provisions exempting from tax distilled spirits for
        use in production of vinegar by the vaporizing process, see
        section 5505(j).
          (6) For provisions relating to the withdrawal of wine spirits
        without payment of tax for use in the production of wine, see
        section 5373.
          (7) For provisions exempting from tax volatile fruit-flavor
        concentrates, see section 5511.
          (8) For provisions authorizing the withdrawal of distilled
        spirits from bonded premises without payment of tax for export,
        see section 5214(a)(4).
          (9) For provisions authorizing withdrawal of distilled
        spirits without payment of tax to customs bonded warehouses for
        export, see section 5214(a)(9).
          (10) For provisions relating to withdrawal of distilled
        spirits without payment of tax as supplies for certain vessels
        and aircraft, see 19 U.S.C. 1309.
          (11) For provisions authorizing regulations for withdrawal of
        distilled spirits for use of United States free of tax, see
        section 7510.
          (12) For provisions relating to withdrawal of distilled
        spirits without payment of tax to foreign-trade zones, see 19
        U.S.C. 81c.
          (13) For provisions relating to exemption from tax of taxable
        articles going into the possessions of the United States, see
        section 7653(b).
          (14) For provisions authorizing the withdrawal of distilled
        spirits without payment of tax for use in certain research,
        development, or testing, see section 5214(a)(10).
          (15) For provisions authorizing the withdrawal of distilled
        spirits without payment of tax for transfer to manufacturing
        bonded warehouses for manufacturing for export, see section
        5214(a)(6).
          (16) For provisions authorizing the withdrawal of articles
        from the bonded premises of a distilled spirits plant free of
        tax when contained in an article, see section 5214(a)(11).
          (17) For provisions relating to allowance for certain losses
        in bond, see section 5008(a).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1316; amended Pub. L. 95-176, Secs. 3(c), 4(f), Nov. 14, 1977, 91
    Stat. 1365, 1366; Pub. L. 96-39, title VIII, Sec. 807(a)(1), July
    26, 1979, 93 Stat. 280.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5003, act Aug. 16, 1954, ch. 736, 68A Stat. 597,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1979 - Par. (9). Pub. L. 96-39, Sec. 807(a)(1)(A), struck out
    "section 5522(a) and" before "section 5214(a)(9)".
      Pars. (15) to (17). Pub. L. 96-39, Sec. 807(a)(1)(B), added pars.
    (15) and (16) and redesignated former par. (15) as (17).
      1977 - Par. (9). Pub. L. 95-176, Sec. 3(c), struck out
    "manufacturing" after "customs" and inserted reference to section
    5214(a)(9).
      Par. (14). Pub. L. 95-176, Sec. 4(f), substituted "withdrawal of
    distilled spirits without payment of tax for use in certain
    research, development, or testing, see section 5214(a)(10)" for
    "removal of samples free of tax for making tests or laboratory
    analyses, see section 5214(a)(9)".

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1977 AMENDMENT                 
      Section 7 of Pub. L. 95-176 provided that: "The amendments made
    by this Act [amending this section and sections 5004, 5005, 5008,
    5025, 5062, 5066, 5175, 5178, 5205, 5207, 5214, 5215, and 5234 of
    this title] shall take effect on the first day of the first
    calendar month which begins more than 90 days after the date of the
    enactment of this Act [Nov. 14, 1977]."

-End-



-CITE-
    26 USC Sec. 5004                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart A - Distilled Spirits

-HEAD-
    Sec. 5004. Lien for tax

-STATUTE-
    (a) Distilled spirits subject to lien
      (1) General
        The tax imposed by section 5001(a)(1) shall be a first lien on
      the distilled spirits from the time the spirits are in existence
      as such until the tax is paid.
      (2) Exceptions
        The lien imposed by paragraph (1), or any similar lien imposed
      on the spirits under prior provisions of internal revenue law,
      shall terminate in the case of distilled spirits produced on
      premises qualified under internal revenue law for the production
      of distilled spirits when such distilled spirits are - 
          (A) withdrawn from bonded premises on determination of tax;
        or
          (B) withdrawn from bonded premises free of tax under
        provisions of section 5214(a)(1), (2), (3), (11), or (12), or
        section 7510; or
          (C) exported, deposited in a foreign-trade zone, used in the
        production of wine, laden as supplies upon, or used in the
        maintenance or repair of, certain vessels or aircraft,
        deposited in a customs bonded warehouse, or used in certain
        research, development, or testing, as provided by law.
    (b) Cross reference
          For provisions relating to extinguishing of lien in case of
        redistillation, see section 5223(e).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1317; amended Pub. L. 89-44, title VIII, Sec. 805(f)(1), June 21,
    1965, 79 Stat. 161; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A),
    Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-176, Sec. 4(c), Nov. 14,
    1977, 91 Stat. 1366; Pub. L. 96-39, title VIII, Sec. 807(a)(2),
    July 26, 1979, 93 Stat. 280; Pub. L. 96-223, title II, Sec.
    232(e)(2)(C), Apr. 2, 1980, 94 Stat. 280.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5004, act Aug. 16, 1954, ch. 736, 68A Stat. 598,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      Provisions similar to those comprising subsec. (b)(1) of this
    section were contained in prior section 5007(e)(1), act Aug. 16,
    1954, ch. 736, 68A Stat. 600, prior to the general revision of this
    chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1980 - Subsec. (a)(2)(B). Pub. L. 96-223 substituted "(11), or
    (12)," for "or (11),".
      1979 - Subsec. (a)(2)(B). Pub. L. 96-39, Sec. 807(a)(2)(C),
    substituted "(3), or (11)" for "or (3)".
      Subsecs. (b), (c). Pub. L. 96-39, Sec. 807(a)(2)(A), (B),
    redesignated subsec. (c) as (b). Former subsec. (b), relating to
    other property subject to lien, was repealed.
      1977 - Subsec. (a)(2). Pub. L. 95-176 struck out reference to
    par. (9) of section 5214(a) in subpar. (B), and in subpar. (C)
    substituted "a customs bonded warehouse" for "customs manufacturing
    bonded warehouses" and provided for termination of the lien for tax
    when the distilled spirits are used in certain research,
    development, or testing.
      1976 - Subsec. (b)(3)(B), (4). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary", wherever appearing.
      1965 - Subsec. (c). Pub. L. 89-44 substituted "5223(e)" for
    "5223(d)".

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-223 effective on the first day of the
    first calendar month beginning more than 60 days after Apr. 2,
    1980, see section 232(h)(3) of Pub. L. 96-223, set out as an
    Effective Date note under section 5181 of this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1977 AMENDMENT                 
      Amendment by Pub. L. 95-176 effective on first day of first
    calendar month beginning more than 90 days after Nov. 14, 1977, see
    section 7 of Pub. L. 95-176, set out as a note under section 5003
    of this title.

                     EFFECTIVE DATE OF 1965 AMENDMENT                 
      Section 805(g)(2) of Pub. L. 89-44 provided that: "The amendments
    made by subsections (b), (d), and (f) (other than paragraph (6))
    [amending this section and sections 5025, 5083, 5223, and 5234 of
    this title], shall take effect on October 1, 1965."

-End-



-CITE-
    26 USC Sec. 5005                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart A - Distilled Spirits

-HEAD-
    Sec. 5005. Persons liable for tax

-STATUTE-
    (a) General
      The distiller or importer of distilled spirits shall be liable
    for the taxes imposed thereon by section 5001(a)(1).
    (b) Domestic distilled spirits
      (1) Liability of persons interested in distilling
        Every proprietor or possessor of, and every person in any
      manner interested in the use of, any still, distilling apparatus,
      or distillery, shall be jointly and severally liable for the
      taxes imposed by law on the distilled spirits produced therefrom.
      (2) Exception
        A person owning or having the right of control of not more than
      10 percent of any class of stock of a corporate proprietor of a
      distilled spirits plant shall not be deemed to be a person liable
      for the tax for which such proprietor is liable under the
      provisions of paragraph (1). This exception shall not apply to an
      officer or director of such corporate proprietor.
    (c) Proprietors of distilled spirits plants
      (1) Bonded storage
        Every person operating bonded premises of a distilled spirits
      plant shall be liable for the internal revenue tax on all
      distilled spirits while the distilled spirits are stored on such
      premises, and on all distilled spirits which are in transit to
      such premises (from the time of removal from the transferor's
      bonded premises) pursuant to application made by him. Such
      liability for the tax on distilled spirits shall continue until
      the distilled spirits are transferred or withdrawn from bonded
      premises as authorized by law, or until such liability for tax is
      relieved by reason of the provisions of section 5008(a). Nothing
      in this paragraph shall relieve any person from any liability
      imposed by subsection (a) or (b).
      (2) Transfers in bond
        When distilled spirits are transferred in bond in accordance
      with the provisions of section 5212, persons liable for the tax
      on such spirits under subsection (a) or (b), or under any similar
      prior provisions of internal revenue law, shall be relieved of
      such liability, if proprietors of transferring and receiving
      premises are independent of each other and neither has a
      proprietary interest, directly or indirectly, in the business of
      the other, and all persons liable for the tax under subsection
      (a) or (b), or under any similar prior provisions of internal
      revenue law, have divested themselves of all interest in the
      spirits so transferred. Such relief from liability shall be
      effective from the time of removal from the transferor's bonded
      premises, or from the time of divestment of interest, whichever
      is later.
    (d) Withdrawals free of tax
      All persons liable for the tax under subsection (a) or (b), or
    under any similar prior provisions of internal revenue law, shall
    be relieved of such liability as to distilled spirits withdrawn
    free of tax under the provisions of section 5214(a)(1), (2), (3),
    (11), or (12), or under section 7510, at the time such spirits are
    so withdrawn from bonded premises.
    (e) Withdrawals without payment of tax
      (1) Liability for tax
        Any person who withdraws distilled spirits from the bonded
      premises of a distilled spirits plant without payment of tax, as
      provided in section 5214(a)(4), (5), (6), (7), (8), (9), (10), or
      (13), shall be liable for the internal revenue tax on such
      distilled spirits, from the time of such withdrawal; and all
      persons liable for the tax on such distilled spirits under
      subsection (a) or (b), or under any similar prior provisions of
      internal revenue law, shall, at the time of such withdrawal, be
      relieved of any such liability on the distilled spirits so
      withdrawn if the person withdrawing such spirits and the person,
      or persons, liable for the tax under subsection (a) or (b), or
      under any similar prior provisions of internal revenue law, are
      independent of each other and neither has a proprietary interest,
      directly or indirectly, in the business of the other, and all
      persons liable for the tax under subsection (a) or (b), or under
      any similar prior provisions of internal revenue law, have
      divested themselves of all interest in the spirits so withdrawn.
      (2) Relief from liability
        All persons liable for the tax on distilled spirits under
      paragraph (1) of this subsection, or under subsection (a) or (b),
      or under any similar prior provisions of internal revenue law,
      shall be relieved of any such liability at the time, as the case
      may be, the distilled spirits are exported, deposited in a
      foreign-trade zone, used in the production of wine, used in the
      production of nonbeverage wine or wine products, deposited in
      customs bonded warehouses, laden as supplies upon, or used in the
      maintenance or repair of, certain vessels or aircraft, or used in
      certain research, development, or testing, as provided by law.
    (f) Cross references
          (1) For provisions requiring bond covering operations at, and
        withdrawals from, distilled spirits plants, see section 5173.
          (2) For provisions relating to transfer of tax liability to
        redistiller in case of redistillation, see section 5223.
          (3) For liability for tax on denatured distilled spirits,
        articles, and volatile fruit-flavor concentrates, see section
        5001(a)(5) and (6).
          (4) For liability for tax on distilled spirits withdrawn free
        of tax, see section 5001(a)(4).
          (5) For liability of wine producer for unlawfully using wine
        spirits withdrawn for the production of wine, see section 5391.
          (6) For provisions relating to transfer of tax liability for
        wine, see section 5043(a)(1)(A).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1318; amended Pub. L. 94-455, title XIX, Sec. 1905(a)(1), Oct. 4,
    1976, 90 Stat. 1818; Pub. L. 95-176, Sec. 4(b), (d), Nov. 14, 1977,
    91 Stat. 1366; Pub. L. 96-39, title VIII, Sec. 807(a)(3), July 26,
    1979, 93 Stat. 280; Pub. L. 96-223, title II, Sec. 232(e)(2)(D),
    Apr. 2, 1980, 94 Stat. 280; Pub. L. 98-369, div. A, title IV, Sec.
    455(b), July 18, 1984, 98 Stat. 823; Pub. L. 103-465, title I, Sec.
    136(c)(2), Dec. 8, 1994, 108 Stat. 4841.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5005, acts Aug. 16, 1954, ch. 736, 68A Stat. 599;
    Sept. 2, 1958, Pub. L. 85-859, title II, Sec. 206(d), 72 Stat.
    1431, consisted of provisions similar to those comprising this
    section, prior to the general revision of this chapter by Pub. L.
    85-859.
      Provisions similar to those comprising subsec. (c)(1), (2) of
    this section were contained in prior sections 5194(f), 5217(a), and
    5232(a), act Aug. 16, 1954, ch. 736, 68A Stat. 634, 641, 643, prior
    to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1994 - Subsec. (f)(3). Pub. L. 103-465, Sec. 136(c)(2)(A),
    substituted "section 5001(a)(5) and (6)" for "section 5001(a)(6)
    and (7)".
      Subsec. (f)(4). Pub. L. 103-465, Sec. 136(c)(2)(B), substituted
    "section 5001(a)(4)" for "section 5001(a)(5)".
      1984 - Subsec. (e)(1). Pub. L. 98-369, Sec. 455(b)(1),
    substituted "(10), or (13)" for "or (10)".
      Subsec. (e)(2). Pub. L. 98-369, Sec. 455(b)(2), inserted "used in
    the production of nonbeverage wine or wine products,".
      1980 - Subsec. (d). Pub. L. 96-223 substituted "(11), or (12),"
    for "or (11),".
      1979 - Subsec. (c)(3). Pub. L. 96-39, Sec. 807(a)(3)(A), struck
    out par. (3) which related to liability for taxes with regard to
    withdrawals of distilled spirits from the bonded premises of a
    distilled spirits plant.
      Subsec. (d). Pub. L. 96-39, Sec. 807(a)(3)(B), substituted "(3),
    or (11)" for "or (3)".
      Subsec. (f)(1). Pub. L. 96-39, Sec. 807(a)(3)(C), substituted
    "requiring bond covering operations at, and withdrawals from,
    distilled spirits plants" for "conditioning warehousing bonds on
    the payment of the tax" and "5173" for "5173(c)".
      Subsec. (f)(6). Pub. L. 96-39, Sec. 807(a)(3)(D), added par. (6).
      1977 - Subsec. (d). Pub. L. 95-176, Sec. 4(d)(1), struck out
    reference to par. (9) of section 5214(a).
      Subsec. (e)(1). Pub. L. 95-176, Sec. 4(d)(2), inserted reference
    to pars. (9) and (10) of section 5214(a).
      Subsec. (e)(2). Pub. L. 95-176, Sec. 4(b), substituted "customs
    bonded warehouses" for "customs manufacturing bonded warehouses"
    and provided for relief from liability for tax on distilled spirits
    used in certain research, development, or testing.
      1976 - Subsec. (c)(2). Pub. L. 94-455 substituted "Such relief
    from liability shall be effective from the time of removal from the
    transferor's bonded premises, or from the time of divestment of
    interest, whichever is later." for "Such liability for the tax on
    distilled spirits shall continue until the distilled spirits are
    transferred or withdrawn from bonded premises as authorized by law,
    or until such liability for tax is relieved by reason of the
    provisions of section 5008(a). Nothing in this paragraph shall
    relieve any person from any liability imposed by subsection (a) or
    (b).".

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-465 effective Jan. 1, 1995, see section
    136(d) of Pub. L. 103-465, set out as a note under section 5001 of
    this title.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective July 18, 1984, see section
    456(c) of Pub. L. 98-369, set out as an Effective Date note under
    section 5101 of this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-223 effective on first day of first
    calendar month beginning more than 60 days after Apr. 2, 1980, see
    section 232(h)(3) of Pub. L. 96-223, set out as an Effective Date
    note under section 5181 of this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1977 AMENDMENT                 
      Amendment by Pub. L. 95-176 effective on first day of first
    calendar month beginning more than 90 days after Nov. 14, 1977, see
    section 7 of Pub. L. 95-176, set out as a note under section 5003
    of this title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Section 1905(d) of Pub. L. 94-455 provided that: "The amendments
    made by this section [amending this section and sections 5007 to
    5009, 5025, 5026, 5043, 5054, 5061, 5105, 5111, 5113, 5114, 5117,
    5121, 5122, 5131, 5142, 5148, 5171, 5174, 5177, 5179, 5214, 5222,
    5232 to 5234, 5272, 5314, 5362, 5368, 5392, 5505, 5551, 5601, 5662,
    5685, 5701, 5703, 5704, 5712, 5723, 5751, 5752, 5762, and 5763 of
    this title and repealing sections 5104, 5144, 5315, 5676, and 5689
    of this title] shall take effect on the first day of the first
    month which begins more than 90 days after the date of the
    enactment of this Act [Oct. 4, 1976]."

-End-



-CITE-
    26 USC Sec. 5006                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart A - Distilled Spirits

-HEAD-
    Sec. 5006. Determination of tax

-STATUTE-
    (a) Requirements
      (1) In general
        Except as otherwise provided in this section, the tax on
      distilled spirits shall be determined when the spirits are
      withdrawn from bond. Such tax shall be determined by such means
      as the Secretary shall by regulations prescribe, and with the use
      of such devices and apparatus (including but not limited to tanks
      and pipelines) as the Secretary may require. The tax on distilled
      spirits withdrawn from the bonded premises of a distilled spirits
      plant shall be determined upon completion of the gauge for
      determination of tax and before withdrawal from bonded premises,
      under such regulations as the Secretary shall prescribe.
      (2) Distilled spirits not accounted for
        If the Secretary finds that the distiller has not accounted for
      all the distilled spirits produced by him, he shall, from all the
      evidence he can obtain, determine what quantity of distilled
      spirits was actually produced by such distiller, and an
      assessment shall be made for the difference between the quantity
      reported and the quantity shown to have been actually produced at
      the rate of tax imposed by law for every proof gallon.
    (b) Taxable loss
      (1) On original quantity
        Where there is evidence satisfactory to the Secretary that
      there has been any loss of distilled spirits from any cask or
      other package deposited on bonded premises, other than a loss
      which by reason of section 5008(a) is not taxable, the Secretary
      may require the withdrawal from bonded premises of such distilled
      spirits, and direct the officer designated by him to collect the
      tax accrued on the original quantity of distilled spirits entered
      for deposit on bonded premises in such cask or package; except
      that, under regulations prescribed by the Secretary, when the
      extent of any loss from causes other than theft or unauthorized
      voluntary destruction can be established by the proprietor to the
      satisfaction of the Secretary an allowance of the tax on the loss
      so established may be credited against the tax on the original
      quantity. If such tax is not paid on demand it shall be assessed
      and collected as other taxes are assessed and collected.
      (2) Alternative method
        Where there is evidence satisfactory to the Secretary that
      there has been access, other than is authorized by law, to the
      contents of casks or packages stored on bonded premises, and the
      extent of such access is such as to evidence a lack of due
      diligence or a failure to employ necessary and effective controls
      on the part of the proprietor, the Secretary (in lieu of
      requiring the casks or packages to which such access has been had
      to be withdrawn and tax paid on the original quantity of
      distilled spirits entered for deposit on bonded premises in such
      casks or packages as provided in paragraph (1)) may assess an
      amount equal to the tax on 5 proof gallons of distilled spirits
      at the prevailing rate on each of the total number of such casks
      or packages as determined by him.
      (3) Application of subsection
        The provisions of this subsection shall apply to distilled
      spirits which are filled into casks or packages, as authorized by
      law, after entry and deposit on bonded premises, whether by
      recasking, filling from storage tanks, consolidation of packages,
      or otherwise; and the quantity filled into such casks or packages
      shall be deemed to be the original quantity for the purpose of
      this subsection, in the case of loss from such casks or packages.
    (c) Distilled spirits not bonded
      (1) General
        The tax on any distilled spirits, removed from the place where
      they were distilled and (except as otherwise provided by law) not
      deposited in storage on bonded premises of a distilled spirits
      plant, shall, at any time within the period of limitation
      provided in section 6501, when knowledge of such fact is obtained
      by the Secretary, be assessed on the distiller of such distilled
      spirits (or other person liable for the tax) and payment of such
      tax immediately demanded and, on the neglect or refusal of
      payment, the Secretary shall proceed to collect the same by
      distraint. This paragraph shall not exclude any other remedy or
      proceeding provided by law.
      (2) Production at other than qualified plants
        Except as otherwise provided by law, the tax on any distilled
      spirits produced in the United States at any place other than a
      qualified distilled spirits plant shall be due and payable
      immediately upon production.
    (d) Unlawfully imported distilled spirits
      Distilled spirits smuggled or brought into the United States
    unlawfully shall, for purposes of this chapter, be held to be
    imported into the United States, and the internal revenue tax shall
    be due and payable at the time of such importation.
    (e) Cross reference
          For provisions relating to removal of distilled spirits from
        bonded premises on determination of tax, see section 5213.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1320; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Secs. 804(a),
    807(a)(4), July 26, 1979, 93 Stat. 274, 280.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5006, acts Aug. 16, 1954, ch. 736, 68A Stat. 599;
    Sept. 2, 1958, Pub. L. 85-859, title II, Sec. 206(a), 72 Stat.
    1431, consisted of provisions similar to those comprising this
    section, prior to the general revision of this chapter by Pub. L.
    85-859.
      Provisions similar to those comprising subsecs. (a)(2)(A), (3) of
    this section were contained in prior sections 5007(e)(1) and
    5232(a), act Aug. 16, 1954, ch. 736, 68A Stat. 600, 643, prior to
    the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1979 - Subsec. (a)(1). Pub. L. 96-39, Sec. 804(a), struck out
    "internal revenue" after "provided in this section, the" and
    "storage, gauging, and bottling" after "but not limited to".
      Subsec. (a)(2), (3). Pub. L. 96-39, Sec. 804(a), redesignated
    par. (3) as (2). Former par. (2), relating to distilled spirits
    entered for storage, was struck out.
      Subsec. (b)(1). Pub. L. 96-39, Sec. 807(a)(4)(A), (B),
    substituted "on bonded premises" for "in storage in internal
    revenue bond" in two places and "; except" for ", notwithstanding
    that the time specified in any bond given for the withdrawal of the
    spirits entered in storage in such cask or package has not expired,
    except".
      Subsec. (b)(2), (3). Pub. L. 96-39, Sec. 807(a)(4)(B),
    substituted "on bonded premises" for "in storage in internal
    revenue bond".
      1976 - Subsecs. (a) to (c). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary".

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

             APPLICATION OF 1972 AMENDMENTS TO PRIOR SECTIONS         
      Section 206(f) of Pub. L. 85-859, as amended by Pub. L. 99-514,
    Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided:
      "(1) The amendments made by this section [amending this section
    and sections 5005, 5232, 5242, and 5243 of this title] shall apply
    with respect to:
        "(A) distilled spirits which on the date of the enactment of
      this Act [Sept. 2, 1958] are in internal revenue bonded
      warehouses or are in transit to or between such warehouses, and
      in respect of which the 8-year bonding period has not expired
      before the date of enactment of this Act; and
        "(B) distilled spirits which after the date of the enactment of
      this Act [Sept. 2, 1958] are entered for deposit in an internal
      revenue bonded warehouse.
      "(2) If the 8 years from the date of original entry of any
    distilled spirits for deposit in internal revenue bonded warehouses
    expires at any time during the 10-day period which begins on the
    date of the enactment of this Act [Sept. 2, 1958], the amendments
    made by this section shall apply with respect to such spirits if
    (and only if) before the close of such 10-day period there is filed
    with the Secretary of the Treasury or his delegate either - 
        "(A) a consent of surety which changes (for periods on and
      after the date of the enactment of this Act) the condition based
      on the withdrawal of spirits from the internal revenue bonded
      warehouse within 8 years from the date of original entry for
      deposit to a condition based on the withdrawal of spirits from
      the internal revenue bonded warehouse within 20 years from the
      date of original entry for deposit, or
        "(B) a bond which applies to periods on and after the date of
      the enactment of this Act and which satisfies the requirements of
      the Internal Revenue Code of 1986 [formerly I.R.C. 1954], as
      amended by this section, and is conditioned on the withdrawal of
      spirits from the internal revenue bonded warehouse within 20
      years from the date of original entry for deposit."

-End-



-CITE-
    26 USC Sec. 5007                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart A - Distilled Spirits

-HEAD-
    Sec. 5007. Collection of tax on distilled spirits

-STATUTE-
    (a) Tax on distilled spirits removed from bonded premises
      The tax on domestic distilled spirits and on distilled spirits
    removed from customs custody under section 5232 shall be paid in
    accordance with section 5061.
    (b) Collection of tax on imported distilled spirits
      The internal revenue tax imposed by section 5001(a)(1) and (2)
    upon imported distilled spirits shall be collected by the Secretary
    and deposited as internal revenue collections, under such
    regulations as the Secretary may prescribe. Section 5688 shall be
    applicable to the disposition of imported spirits.
    (c) Cross references
          (1) For authority of the Secretary to make determinations and
        assessments of internal revenue taxes and penalties, see
        section 6201(a).
          (2) For authority to assess tax on distilled spirits not
        bonded, see section 5006(c).
          (3) For provisions relating to payment of tax, under certain
        conditions, on distilled spirits withdrawn free of tax,
        denatured distilled spirits, articles, and volatile fruit-
        flavor concentrates, see section 5001(a)(4), (5), and (6).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1322; amended Pub. L. 94-455, title XIX, Secs. 1905(b)(2)(A),
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1822, 1834; Pub. L. 96-39,
    title VIII, Sec. 807(a)(5), July 26, 1979, 93 Stat. 280; Pub. L.
    103-465, title I, Sec. 136(c)(3), (4), Dec. 8, 1994, 108 Stat.
    4841, 4842.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5007, act Aug. 16, 1954, ch. 736, 68A Stat. 600,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      Prior section 5007(c) related to "payment of tax on alcoholic
    compounds from Puerto Rico and Virgin Islands". See section 7652 of
    this title.
      Prior section 5007(e)(1) related to "assessment for deficiencies
    in production and excess of materials used" and "requirement". See
    sections 5004(b)(1) and 5006(a)(3) of this title.
      Prior section 5007(e)(2) related to "relief from assessment for
    deficiencies in production and excess of materials used" and is
    obsolete.

                                AMENDMENTS                            
      1994 - Subsec. (b). Pub. L. 103-465, Sec. 136(c)(3), amended
    subsec. (b) generally, striking out provisions relating to
    collection and deposit as internal revenue collections of taxes on
    imported perfumes containing distilled spirits.
      Subsec. (c)(3). Pub. L. 103-465, Sec. 136(c)(4), substituted
    "section 5001(a)(4), (5), and (6)" for "section 5001(a)(5), (6),
    and (7)".
      1979 - Subsec. (a). Pub. L. 96-39 struck out "(1) General" before
    "The tax on domestic" and par. (2) which related to distilled
    spirits withdrawn to bottling premises under withdrawal bond.
      1976 - Subsec. (a)(2). Pub. L. 94-455, Sec. 1906(b)(13)(A),
    struck out "or his delegate" after "Secretary".
      Subsec. (b)(1). Pub. L. 94-455, Secs. 1905(b)(2)(A),
    1906(b)(13)(A), struck out second sentence "Such tax shall be in
    addition to any customs duty imposed under the Tariff Act of 1930
    (46 Stat. 590; 19 U.S.C., chapter 4), or any subsequent act." and
    "or his delegate" after "Secretary" wherever appearing.
      Subsecs. (b)(2), (c)(1). Pub. L. 94-455, Sec. 1906(b)(13)(A),
    struck out "or his delegate" after "Secretary" wherever appearing.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-465 effective Jan. 1, 1995, see section
    136(d) of Pub. L. 103-465, set out as a note under section 5001 of
    this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by section 1905(b)(2)(A) of Pub. L. 94-455 effective on
    first day of first month which begins more than 90 days after Oct.
    4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note
    under section 5005 of this title.

-End-



-CITE-
    26 USC Sec. 5008                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart A - Distilled Spirits

-HEAD-
    Sec. 5008. Abatement, remission, refund, and allowance for loss or
      destruction of distilled spirits

-STATUTE-
    (a) Distilled spirits lost or destroyed in bond
      (1) Extent of loss allowance
        No tax shall be collected in respect of distilled spirits lost
      or destroyed while in bond, except that such tax shall be
      collected - 
        (A) Theft
          In the case of loss by theft, unless the Secretary finds that
        the theft occurred without connivance, collusion, fraud, or
        negligence on the part of the proprietor of the distilled
        spirits plant, owner, consignor, consignee, bailee, or carrier,
        or the employees or agents of any of them;
        (B) Voluntary destruction
          In the case of voluntary destruction, unless such destruction
        is carried out as provided in subsection (b); and
        (C) Unexplained shortage
          In the case of an unexplained shortage of bottled distilled
        spirits.
      (2) Proof of loss
        In any case in which distilled spirits are lost or destroyed,
      whether by theft or otherwise, the Secretary may require the
      proprietor of the distilled spirits plant or other person liable
      for the tax to file a claim for relief from the tax and submit
      proof as to the cause of such loss. In every case where it
      appears that the loss was by theft, the burden shall be upon the
      proprietor of the distilled spirits plant or other person
      responsible for the distilled spirits tax to establish to the
      satisfaction of the Secretary that such loss did not occur as the
      result of connivance, collusion, fraud, or negligence on the part
      of the proprietor of the distilled spirits plant, owner,
      consignor, consignee, bailee, or carrier, or the employees or
      agents of any of them.
      (3) Refund of tax
        In any case where the tax would not be collectible by virtue of
      paragraph (1), but such tax has been paid, the Secretary shall
      refund such tax.
      (4) Limitations
        Except as provided in paragraph (5), no tax shall be abated,
      remitted, credited, or refunded under this subsection where the
      loss occurred after the tax was determined (as provided in
      section 5006(a)). The abatement, remission, credit, or refund of
      taxes provided for by paragraphs (1) and (3) in the case of loss
      of distilled spirits by theft shall only be allowed to the extent
      that the claimant is not indemnified against or recompensed in
      respect of the tax for such loss.
      (5) Applicability
        The provisions of this subsection shall extend to and apply in
      respect of distilled spirits lost after the tax was determined
      and before completion of the physical removal of the distilled
      spirits from the bonded premises.
    (b) Voluntary destruction
      The proprietor of the distilled spirits plant or other persons
    liable for the tax imposed by this chapter or by section 7652 with
    respect to any distilled spirits in bond may voluntarily destroy
    such spirits, but only if such destruction is under such
    supervision and under such regulations as the Secretary may
    prescribe.
    (c) Distilled spirits returned to bonded premises
      (1) In general
        Whenever any distilled spirits on which tax has been determined
      or paid are returned to the bonded premises of a distilled
      spirits plant under section 5215(a), the Secretary shall abate or
      (without interest) credit or refund the tax imposed under section
      5001(a)(1) (or the tax equal to such tax imposed under section
      7652) on the spirits so returned.
      (2) Claim must be filed within 6 months of return of spirits
        No allowance under paragraph (1) may be made unless claim
      therefor is filed within 6 months of the date of the return of
      the spirits. Such claim may be filed only by the proprietor of
      the distilled spirits plant to which the spirits were returned,
      and shall be filed in such form as the Secretary may by
      regulations prescribe.
    (d) Distilled spirits withdrawn without payment of tax
      The provisions of subsection (a) shall be applicable to loss of
    distilled spirits occurring during transportation from bonded
    premises of a distilled spirits plant to - 
        (1) the port of export, in case of withdrawal under section
      5214(a)(4);
        (2) the customs manufacturing bonded warehouse, in case of
      withdrawal under section 5214(a)(6);
        (3) the vessel or aircraft, in case of withdrawal under section
      5214(a)(7);
        (4) the foreign-trade zone, in case of withdrawal under section
      5214(a)(8); and
        (5) the customs bonded warehouse in the case of withdrawal
      under sections 5066 and 5214(a)(9).

    The provisions of subsection (a) shall be applicable to loss of
    distilled spirits withdrawn from bonded premises without payment of
    tax under section 5214(a)(10) for certain research, development, or
    testing, until such distilled spirits are used as provided by law.
    (e) Other laws applicable
      All provisions of law, including penalties, applicable in respect
    of the internal revenue tax on distilled spirits, shall, insofar as
    applicable and not inconsistent with subsection (c), be applicable
    to the credits or refunds provided for under such subsection to the
    same extent as if such credits or refunds constituted credits or
    refunds of such tax.
    (f) Cross reference
          For provisions relating to allowance for loss in case of wine
        spirits withdrawn for use in wine production, see section
        5373(b)(3).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1323; amended Pub. L. 89-44, title VIII, Sec. 805(a), June 21,
    1965, 79 Stat. 160; Pub. L. 90-630, Sec. 1, Oct. 22, 1968, 82 Stat.
    1328; Pub. L. 91-659, Secs. 1, 2(a), (b), Jan. 8, 1971, 84 Stat.
    1964; Pub. L. 94-273, Sec. 47, Apr. 21, 1976, 90 Stat. 382; Pub. L.
    94-455, title XIX, Secs. 1905(a)(2), 1906(b)(13)(A), Oct. 4, 1976,
    90 Stat. 1818, 1834; Pub. L. 95-176, Secs. 2(f), 4(e), Nov. 14,
    1977, 91 Stat. 1364, 1366; Pub. L. 96-39, title VIII, Sec.
    807(a)(6), July 26, 1979, 93 Stat. 281; Pub. L. 105-34, title XIV,
    Sec. 1411(a), Aug. 5, 1997, 111 Stat. 1046.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5008, act Aug. 16, 1954, ch. 736, 68A Stat. 602,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
    See sections 5205(a), (g) and 5604(a)(1) of this title.
      Provisions similar to those comprising subsecs. (a)(1) to (4) and
    (f)(1), (2) of this section were contained in prior sections
    5011(a)(1) to (4), 5023, 5247(e) and 5522(b), act Aug. 16, 1954,
    ch. 736, 68A Stat. 604, 606, 648, 679, prior to the general
    revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1997 - Subsec. (c)(1). Pub. L. 105-34 substituted "on which tax
    has been determined or paid" for "withdrawn from bonded premises on
    payment or determination of tax".
      1979 - Subsec. (a)(1)(C). Pub. L. 96-39, Sec. 807(a)(6)(A), added
    subpar. (C).
      Subsec. (a)(5). Pub. L. 96-39, Sec. 807(a)(6)(B), substituted
    "before" for "prior to the completion" and struck out provisions
    relating to the applicability of this subsection where the loss
    occurred after the time prescribed for the withdrawal of the
    distilled spirits from the bonded premises under section 5006(a)(2)
    and relating to the applicability of this paragraph to any loss of
    distilled spirits for which abatement, remission, credit, or refund
    of tax is allowed under subsec. (c).
      Subsec. (b). Pub. L. 96-39, Sec. 807(a)(6)(C), struck out "(1)
    Distilled spirits in bond" before "The proprietor of" and
    provisions relating to distilled spirits withdrawn for
    rectification or bottling.
      Subsec. (c). Pub. L. 96-39, Sec. 807(a)(6)(C), added subsec. (c).
    Former subsec. (c), which related to loss of distilled spirits
    withdrawn from bond for rectification or bottling, was struck out.
      Subsec. (d). Pub. L. 96-39, Sec. 807(a)(6)(D), redesignated
    subsec. (f) as (d). Former subsec. (d), which related to distilled
    spirits returned to bonded premises, was struck out.
      Subsec. (e). Pub. L. 96-39, Sec. 807(a)(6)(D), (E), redesignated
    subsec. (g) as (e) and substituted "subsection (c)" for
    "subsections (b)(2), (c), and (d)" and "under such subsection" for
    "under such subsections". Former subsec. (e), which related to
    samples of distilled spirits used for analysis or testing by United
    States, was struck out.
      Subsec. (f). Pub. L. 96-39, Sec. 807(a)(6)(D), redesignated
    subsec. (h) as (f). Former subsec. (f) redesignated (d).
      Subsecs. (g), (h). Pub. L. 96-39, Sec. 807(a)(6)(D), redesignated
    subsecs. (g) and (h) as (e) and (f), respectively.
      1977 - Subsec. (d). Pub. L. 95-176, Sec. 2(f), reenacted par. (1)
    and substituted heading "General" for "Allowance of tax" and "(or
    the tax equal to such tax imposed under section 7652)" for "or
    under section 7652"; added pars. (2) and (3); and redesignated as
    par. (4) provisions of former par. (2) and inserted reference to
    allowance of claims under par. (2) or (3).
      Subsec. (f)(5). Pub. L. 95-176, Sec. 4(e), added par. (5).
      1976 - Subsec. (b)(1). Pub. L. 94-455, Secs. 1905(a)(2)(A),
    1906(b)(13)(A), inserted "or by section 7652" after "tax imposed by
    this chapter" and struck out "or his delegate" after "Secretary".
      Subsec. (b)(2). Pub. L. 94-455, Secs. 1905(a)(2)(B),
    1906(b)(13)(A), struck out "or his delegate" after "Secretary" and
    inserted ", or under section 7652" after "under subpart B of this
    part".
      Subsec. (c)(1). Pub. L. 94-455, Secs. 1905(a)(2)(C),
    1906(b)(13)(A), struck out "or his delegate" after "Secretary"
    wherever appearing and inserted "or under section 7652" after
    "under section 5001(a)(1)".
      Subsec. (c)(2), (3). Pub. L. 94-273 substituted "computation
    year" for "fiscal year" wherever appearing.
      Subsec. (c)(5). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out
    "or his delegate" after "Secretary".
      Subsec. (d)(1). Pub. L. 94-455, Secs. 1905(a)(2)(C), (D),
    1906(b)(13)(A), struck out "on or after July 1, 1959," after "from
    bonded premises," and "or his delegate" after "Secretary" and
    inserted "or under section 7652" after "under section 5001(a)(1)".
      1971 - Subsec. (b)(2). Pub. L. 91-659, Sec. 2(a), struck out
    condition that the distilled spirits can be destroyed only before
    bottling and permitted destruction after completion of bottling so
    long as the distilled spirits are on the bottling premises and
    added taxes imposed under subpart B of this Part as additional
    taxes which can be claimed for abatement, remission, credit or
    refund.
      Subsec. (c)(1)(A). Pub. L. 91-659, Sec. 1, added cl. (iii).
      Subsec. (c)(5). Pub. L. 91-659, Sec. 2(b), permits distilled
    spirits returned to bottling premises to be treated for purposes of
    the various loss provisions as though they had not been removed
    from the bottling premises.
      1968 - Subsec. (c)(1). Pub. L. 90-630 inserted provisions
    allowing abatement, remission, and refund if the casualty loss
    occurs after completion of the packaging but before the spirits
    have been removed from the premises of the distilled spirits plant
    to which the spirits were removed from bond.
      1965 - Subsec. (d)(2). Pub. L. 89-44 struck out final clause
    prohibiting the allowance of a claim in respect to any distilled
    spirits withdrawn from bonded premises of a distilled spirits plant
    more than 6 months prior to the date of such return.

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Section 1411(b) of Pub. L. 105-34 provided that: "The amendment
    made by subsection (a) [amending this section] shall take effect on
    the 1st day of the 1st calendar quarter that begins at least 180
    days after the date of the enactment of this Act [Aug. 5, 1997]."

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1977 AMENDMENT                 
      Amendment by Pub. L. 95-176 effective on first day of first
    calendar month beginning more than 90 days after Nov. 14, 1977, see
    section 7 of Pub. L. 95-176, set out as a note under section 5003
    of this title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by section 1905(a)(2) of Pub. L. 94-455 effective on
    first day of first month which begins more than 90 days after Oct.
    4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note
    under section 5005 of this title.

                     EFFECTIVE DATE OF 1971 AMENDMENT                 
      Amendment by Pub. L. 91-659 effective on first day of first
    calendar month which begins more than 90 days after Jan. 8, 1971,
    see section 6 of Pub. L. 91-659, set out as an Effective Date note
    under section 5066 of this title.

                     EFFECTIVE DATE OF 1968 AMENDMENT                 
      Section 4 of Pub. L. 90-630 provided that:
      "(a) For purposes of subsection (b), the effective date of this
    Act is the first day of the first calendar month which begins more
    than 90 days after the date of the enactment of this Act [Oct. 22,
    1968].
      "(b) The amendments made by the first section of this Act
    [amending this section] shall apply only to losses sustained on or
    after such effective date. The amendments made by section 2
    [amending section 5062 of this title and section 1313 of Title 19,
    Customs Duties] shall apply only to articles exported on or after
    such effective date. The amendments made by section 3 [amending
    section 5232 of this title] shall apply only to withdrawals from
    customs custody on or after such effective date."

                     EFFECTIVE DATE OF 1965 AMENDMENT                 
      Section 805(g)(1) of Pub. L. 89-44 provided that: "The amendments
    made by subsections (a), (c), (e), and (f)(6) [amending this
    section and sections 5062, 5215, and 5608 of this title] shall take
    effect on July 1, 1965."

    DISTILLED SPIRITS RETURNED TO BONDED PREMISES OF DISTILLED SPIRITS
                             PLANT DURING 1980
      Subsec. (c)(1) of this section to be treated as including a
    reference to section 5041 of this title with respect to distilled
    spirits returned to the bonded premises of distilled spirits plants
    during 1980, see section 808(d) of Pub. L. 96-39, set out as a note
    under section 5061 of this title.

-End-



-CITE-
    26 USC Sec. 5009                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart A - Distilled Spirits

-HEAD-
    Sec. 5009. Repealed.

-MISC1-
    [Sec. 5009. Repealed. Pub. L. 96-39, title VIII, Sec. 807(a)(7),
      July 26, 1979, 93 Stat. 281].
      Section, added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958,
    72 Stat. 1327; amended Pub. L. 94-455, title XIX, Secs. 1905(a)(3),
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1818, 1834, related to
    drawback on exportation of distilled spirits in casks or packages.
      A prior section 5009, act Aug. 16, 1954, ch. 736, 68A Stat. 603,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
    See sections 5205(c)(1), (f), (i)(4) and 5206(c) of this title.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective Jan. 1, 1980, see section 810 of Pub. L. 96-39,
    set out as an Effective Date of 1979 Amendment note under section
    5001 of this title.

-End-



-CITE-
    26 USC Sec. 5010                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart A - Distilled Spirits

-HEAD-
    Sec. 5010. Credit for wine content and for flavors content

-STATUTE-
    (a) Allowance of credit
      (1) Wine content
        On each proof gallon of the wine content of distilled spirits,
      there shall be allowed a credit against the tax imposed by
      section 5001 (or 7652) equal to the excess of - 
          (A) $13.50, over
          (B) the rate of tax which would be imposed on the wine under
        section 5041(b) but for its removal to bonded premises.
      (2) Flavors content
        On each proof gallon of the flavors content of distilled
      spirits, there shall be allowed a credit against the tax imposed
      by section 5001 (or 7652) equal to $13.50.
      (3) Fractional part of proof gallon
        In the case of any fractional part of a proof gallon of the
      wine content, or of the flavors content, of distilled spirits, a
      proportionate credit shall be allowed.
    (b) Time for determining and allowing credit
      (1) In general
        The credit allowable by subsection (a) - 
          (A) shall be determined at the same time the tax is
        determined under section 5006 (or 7652) on the distilled
        spirits containing the wine or flavors, and
          (B) shall be allowable at the time the tax imposed by section
        5001 (or 7652) on such distilled spirits is payable as if the
        credit allowable by this section constituted a reduction in the
        rate of tax.
      (2) Determination of content in the case of imports
        For purposes of this section, the wine content, and the flavors
      content, of imported distilled spirits shall be established by
      such chemical analysis, certification, or other methods as may be
      set forth in regulations prescribed by the Secretary.
    (c) Definitions
      For purposes of this section - 
      (1) Wine content
        (A) In general
          The term "wine content" means alcohol derived from wine.
        (B) Wine
          The term "wine" - 
            (i) means wine on which tax would be imposed by paragraph
          (1), (2), or (3) of section 5041(b) but for its removal to
          bonded premises, and
            (ii) does not include any substance which has been subject
          to distillation at a distilled spirits plant after receipt in
          bond.
      (2) Flavors content
        (A) In general
          Except as provided in subparagraph (B), the term "flavors
        content" means alcohol derived from flavors of a type for which
        drawback is allowable under section 5134.
        (B) Exceptions
          The term "flavors content" does not include - 
            (i) alcohol derived from flavors made at a distilled
          spirits plant,
            (ii) alcohol derived from flavors distilled at a distilled
          spirits plant, and
            (iii) in the case of any distilled spirits product, alcohol
          derived from flavors to the extent such alcohol exceeds (on a
          proof gallon basis) 2 1/2  percent of the finished product.

-SOURCE-
    (Added Pub. L. 96-598, Sec. 6(a), Dec. 24, 1980, 94 Stat. 3488;
    amended Pub. L. 98-369, div. A, title I, Sec. 27(a)(2), July 18,
    1984, 98 Stat. 507; Pub. L. 100-647, title V, Sec. 5063(a), Nov.
    10, 1988, 102 Stat. 3681; Pub. L. 101-508, title XI, Sec.
    11201(a)(2), Nov. 5, 1990, 104 Stat. 1388-415; Pub. L. 109-59,
    title XI, Sec. 11125(b)(14), Aug. 10, 2005, 119 Stat. 1956.)


-STATAMEND-
                     AMENDMENT OF SUBSECTION (C)(2)(A)                 
      Pub. L. 109-59, title XI, Sec. 11125(b)(14), (c), Aug. 10, 2005,
    119 Stat. 1956, 1957, provided that, effective July 1, 2008, but
    inapplicable to taxes imposed for periods before such date,
    subsection (c)(2)(A) of this section is amended by substituting
    "section 5114" for "section 5134".


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5010, act Aug. 16, 1954, ch. 736, 68A Stat. 603,
    related to miscellaneous stamp provisions, prior to the general
    revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1990 - Subsec. (a)(1), (2). Pub. L. 101-508 substituted "$13.50"
    for "$12.50".
      1988 - Subsec. (c)(2)(B). Pub. L. 100-647 added cl. (ii) and
    redesignated former cl. (ii) as (iii).
      1984 - Subsec. (a)(1), (2). Pub. L. 98-369 substituted "$12.50"
    for "$10.50".

                     EFFECTIVE DATE OF 2005 AMENDMENT                 
      Amendment by Pub. L. 109-59 effective July 1, 2008, but
    inapplicable to taxes imposed for periods before such date, see
    section 11125(c) of Pub. L. 109-59, set out as a note under section
    5002 of this title.

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Amendment by Pub. L. 101-508 effective Jan. 1, 1991, see section
    11201(d) of Pub. L. 101-508, set out as a note under section 5001
    of this title.

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Section 5063(b) of Pub. L. 100-647 provided that: "The amendments
    made by this section [amending this section] shall apply with
    respect to distilled spirits withdrawn from bond after the date of
    the enactment of this Act [Nov. 10, 1988]."

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective Oct. 1, 1985, see section
    27(d)(1) of Pub. L. 98-369, set out as a note under section 5001 of
    this title.

                              EFFECTIVE DATE                          
      Section 6(c) of Pub. L. 96-598 provided that: "The amendments
    made by subsections (a) and (b) [enacting this section] shall take
    effect on January 1, 1980."

-End-



-CITE-
    26 USC Sec. 5011                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart A - Distilled Spirits

-HEAD-
    Sec. 5011. Income tax credit for average cost of carrying excise
      tax

-STATUTE-
    (a) In general
      For purposes of section 38, the amount of the distilled spirits
    credit for any taxable year is the amount equal to the product of -
    
        (1) in the case of - 
          (A) any eligible wholesaler, the number of cases of bottled
        distilled spirits - 
            (i) which were bottled in the United States, and
            (ii) which are purchased by such wholesaler during the
          taxable year directly from the bottler of such spirits, or

          (B) any person which is subject to section 5005 and which is
        not an eligible wholesaler, the number of cases of bottled
        distilled spirits which are stored in a warehouse operated by,
        or on behalf of, a State or political subdivision thereof, or
        an agency of either, on which title has not passed on an
        unconditional sale basis, and

        (2) the average tax-financing cost per case for the most recent
      calendar year ending before the beginning of such taxable year.
    (b) Eligible wholesaler
      For purposes of this section, the term "eligible wholesaler"
    means any person which holds a permit under the Federal Alcohol
    Administration Act as a wholesaler of distilled spirits which is
    not a State or political subdivision thereof, or an agency of
    either.
    (c) Average tax-financing cost
      (1) In general
        For purposes of this section, the average tax-financing cost
      per case for any calendar year is the amount of interest which
      would accrue at the deemed financing rate during a 60-day period
      on an amount equal to the deemed Federal excise tax per case.
      (2) Deemed financing rate
        For purposes of paragraph (1), the deemed financing rate for
      any calendar year is the average of the corporate overpayment
      rates under paragraph (1) of section 6621(a) (determined without
      regard to the last sentence of such paragraph) for calendar
      quarters of such year.
      (3) Deemed Federal excise tax per case
        For purposes of paragraph (1), the deemed Federal excise tax
      per case is $25.68.
    (d) Other definitions and special rules
      For purposes of this section - 
      (1) Case
        The term "case" means 12 80-proof 750-milliliter bottles.
      (2) Number of cases in lot
        The number of cases in any lot of distilled spirits shall be
      determined by dividing the number of liters in such lot by 9.

-SOURCE-
    (Added Pub. L. 109-59, title XI, Sec. 11126(a), Aug. 10, 2005, 119
    Stat. 1957.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Federal Alcohol Administration Act, referred to in subsec.
    (b), is act Aug. 29, 1935, ch. 814, 49 Stat. 977, as amended, which
    is classified generally to subchapter I (Sec. 201 et seq.) of
    chapter 8 of Title 27, Intoxicating Liquors. For complete
    classification of this Act to the Code, see section 201 of Title 27
    and Tables.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5011, act Aug. 16, 1954, ch. 736, 68A Stat. 604,
    related to abatement, remission, refund and allowance for loss or
    destruction of distilled spirits, prior to the general revision of
    this chapter by Pub. L. 85-859.
      A prior section 5012, act Aug. 16, 1954, ch. 736, 68A Stat. 605,
    related to drawback on exportation of distilled spirits, prior to
    the general revision of this chapter by Pub. L. 85-859.

                              EFFECTIVE DATE                          
      Section applicable to taxable years beginning after Sept. 30,
    2005, see section 11126(d) of Pub. L. 109-59, set out as an
    Effective Date of 2005 Amendments note under section 38 of this
    title.

-End-


-CITE-
    26 USC [Subpart B - Repealed]                               01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    [Subpart B - Repealed]

-HEAD-
                          [SUBPART B - REPEALED]                      

-End-



-CITE-
    26 USC Secs. 5021 to 5026                                   01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    [Subpart B - Repealed]

-HEAD-
    Secs. 5021 to 5026. Repealed.

-MISC1-
    [Secs. 5021 to 5026. Repealed. Pub. L. 96-39, title VIII, Sec.
      803(a), July 26, 1979, 93 Stat. 274].
      Section 5021, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
    1958, 72 Stat. 1328, provided for imposition of a tax on rectified
    distilled spirits or wines.
      A prior section 5021, act Aug. 16, 1954, ch. 736, 68A Stat. 606,
    related to imposition and rate of tax, prior to the general
    revision of this chapter by Pub. L. 85-859.
      Section 5022, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
    1958, 72 Stat. 1328; amended Pub. L. 86-75, Sec. 3(a)(4), June 30,
    1959, 73 Stat. 157; Pub. L. 86-564, title II, Sec. 202(a)(6), June
    30, 1960, 74 Stat. 290; Pub. L. 87-72, Sec. 3(a)(6), June 30, 1961,
    75 Stat. 193; Pub. L. 87-508, Sec. 3(a)(5), June 28, 1962, 76 Stat.
    114; Pub. L. 88-52, Sec. 3(a)(6), June 29, 1963, 77 Stat. 72; Pub.
    L. 88-348, Sec. 2(a)(6), June 30, 1964, 78 Stat. 237; Pub. L. 89-
    44, title V, Sec. 501(b), June 21, 1965, 79 Stat. 150, imposed a
    tax on cordials and liqueurs containing wine.
      A prior section 5022, acts Aug. 16, 1954, ch. 736, 68A Stat. 606;
    Mar. 30, 1955, ch. 18, Sec. 3(a)(6), 69 Stat. 14; Mar. 29, 1956,
    ch. 115, Sec. 3(a)(6), 70 Stat. 66; Mar. 29, 1957, Pub. L. 85-12,
    Sec. 3(a)(4), 71 Stat. 9; June 30, 1958, Pub. L. 85-475, Sec.
    3(a)(4), 72 Stat. 259, imposed a tax on cordials and liqueurs
    containing wine, prior to the general revision of this chapter by
    Pub. L. 85-859.
      Section 5023, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
    1958, 72 Stat. 1328, imposed a tax on the blending of beverage rums
    and brandies.
      A prior section 5023, act Aug. 16, 1954, ch. 736, 68A Stat. 606,
    imposed a tax on blending of beverage brandies, prior to the
    general revision of this chapter by Pub. L. 85-859.
      Section 5024, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
    1958, 72 Stat. 1328, indicated the sources for the definitions of
    "rectifier", "products of rectification", and "distilled spirits"
    and referred to other definitions relating to distilled spirits as
    well as other definitions of general application to this title.
      A prior section 5024, act Aug. 16, 1954, ch. 736, 68A Stat. 607,
    defined "rectifier" and "products of rectification", prior to the
    general revision of this chapter by Pub. L. 85-859.
      Section 5025, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
    1958, 72 Stat. 1328; amended Pub. L. 89-44, title VIII, Sec.
    805(b), (f)(2)-(5), June 21, 1965, 79 Stat. 161; Pub. L. 94-455,
    title XIX, Secs. 1905(a)(4), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat.
    1818, 1834; Pub. L. 95-176, Secs. 5(b), 6, Nov. 14, 1977, 91 Stat.
    1366, 1367, enumerated 12 exemptions from the rectification tax.
      A prior section 5025, act Aug. 16, 1954, ch. 736, 68A Stat. 607,
    related to exemption from rectification tax, prior to the general
    revision of this chapter by Pub. L. 85-859.
      Provisions similar to those comprising section 5025(e)(1), (2),
    (4) of this title were contained in former sections 5023, 5217(a),
    and 5306 of this title, act Aug. 16, 1954, ch. 736, 68A Stat. 606,
    641, 657, prior to the general revision of this chapter by Pub. L.
    85-859.
      Section 5026, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
    1958, 72 Stat. 1330; Pub. L. 94-455, title XIX, Secs.
    1905(b)(2)(B), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1822, 1834,
    related to the determination and collection of the rectification
    tax.
      A prior section 5026, act Aug. 16, 1954, ch. 736, 68A Stat. 608,
    related to determination and collection of rectification tax, prior
    to the general revision of this chapter by Pub. L. 85-859.
      A prior section 5027, act Aug. 16, 1954, ch. 736, 68A Stat. 609,
    related to stamp provisions applicable to rectifiers, prior to the
    general revision of this chapter by Pub. L. 85-859.
      A prior section 5028, act Aug. 16, 1954, ch. 736, 68A Stat. 609,
    related to cross references for penalty provisions, prior to the
    general revision of this chapter by Pub. L. 85-859.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective Jan. 1, 1980, see section 810 of Pub. L. 96-39,
    set out as an Effective Date of 1979 Amendment note under section
    5001 of this title.

-End-


-CITE-
    26 USC Subpart C - Wines                                    01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart C - Wines

-HEAD-
                             SUBPART C - WINES                         

-MISC1-
    Sec.                                                     
    5041.       Imposition and rate of tax.                           
    5042.       Exemption from tax.                                   
    5043.       Collection of taxes on wines.                         
    5044.       Refund of tax on wine.                                
    5045.       Cross references.                                     

                             PRIOR PROVISIONS                         
      A prior subpart C, comprising sections 5041 to 5045, related to
    wines, prior to the general revision of this chapter by Pub. L. 85-
    859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.

                                AMENDMENTS                            
      1997 - Pub. L. 105-34, title XIV, Sec. 1416(b)(3), Aug. 5, 1997,
    111 Stat. 1048, struck out "unmerchantable" before "wine" in item
    5044.

-End-



-CITE-
    26 USC Sec. 5041                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart C - Wines

-HEAD-
    Sec. 5041. Imposition and rate of tax

-STATUTE-
    (a) Imposition
      There is hereby imposed on all wines (including imitation,
    substandard, or artificial wine, and compounds sold as wine) having
    not in excess of 24 percent of alcohol by volume, in bond in,
    produced in, or imported into, the United States, taxes at the
    rates shown in subsection (b), such taxes to be determined as of
    the time of removal for consumption or sale. All wines containing
    more than 24 percent of alcohol by volume shall be classed as
    distilled spirits and taxed accordingly. Still wines shall include
    those wines containing not more than 0.392 gram of carbon dioxide
    per hundred milliliters of wine; except that the Secretary may by
    regulations prescribe such tolerances to this maximum limitation as
    may be reasonably necessary in good commercial practice.
    (b) Rates of tax
      (1) On still wines containing not more than 14 percent of alcohol
    by volume, $1.07 per wine gallon;
      (2) On still wines containing more than 14 percent and not
    exceeding 21 percent of alcohol by volume, $1.57 per wine gallon;
      (3) On still wines containing more than 21 percent and not
    exceeding 24 percent of alcohol by volume, $3.15 per wine gallon;
      (4) On champagne and other sparkling wines, $3.40 per wine
    gallon;
      (5) On artificially carbonated wines, $3.30 per wine gallon; and
      (6) On hard cider which is a still wine derived primarily from
    apples or apple concentrate and water, containing no other fruit
    product, and containing at least one-half of 1 percent and less
    than 7 percent alcohol by volume, 22.6 cents per wine gallon.
    (c) Credit for small domestic producers
      (1) Allowance of credit
        Except as provided in paragraph (2), in the case of a person
      who produces not more than 250,000 wine gallons of wine during
      the calendar year, there shall be allowed as a credit against any
      tax imposed by this title (other than chapters 2, 21, and 22) of
      90 cents per wine gallon on the 1st 100,000 wine gallons of wine
      (other than wine described in subsection (b)(4)) which are
      removed during such year for consumption or sale and which have
      been produced at qualified facilities in the United States. In
      the case of wine described in subsection (b)(6), the preceding
      sentence shall be applied by substituting "5.6 cents" for "90
      cents".
      (2) Reduction in credit
        The credit allowable by paragraph (1) shall be reduced (but not
      below zero) by 1 percent for each 1,000 wine gallons of wine
      produced in excess of 150,000 wine gallons of wine during the
      calendar year.
      (3) Time for determining and allowing credit
        The credit allowable by paragraph (1) - 
          (A) shall be determined at the same time the tax is
        determined under subsection (a) of this section, and
          (B) shall be allowable at the time any tax described in
        paragraph (1) is payable as if the credit allowable by this
        subsection constituted a reduction in the rate of such tax.
      (4) Controlled groups
        Rules similar to rules of section 5051(a)(2)(B) shall apply for
      purposes of this subsection.
      (5) Denial of deduction
        Any deduction under subtitle A with respect to any tax against
      which a credit is allowed under this subsection shall only be for
      the amount of such tax as reduced by such credit.
      (6) Credit for transferee in bond
        If - 
          (A) wine produced by any person would be eligible for any
        credit under paragraph (1) if removed by such person during the
        calendar year,
          (B) wine produced by such person is removed during such
        calendar year by any other person (hereafter in this paragraph
        referred to as the "transferee") to whom such wine was
        transferred in bond and who is liable for the tax imposed by
        this section with respect to such wine, and
          (C) such producer holds title to such wine at the time of its
        removal and provides to the transferee such information as is
        necessary to properly determine the transferee's credit under
        this paragraph,

      then, the transferee (and not the producer) shall be allowed the
      credit under paragraph (1) which would be allowed to the producer
      if the wine removed by the transferee had been removed by the
      producer on that date.
      (7) Regulations
        The Secretary may prescribe such regulations as may be
      necessary to carry out the purposes of this subsection, including
      regulations - 
          (A) to prevent the credit provided in this subsection from
        benefiting any person who produces more than 250,000 wine
        gallons of wine during a calendar year, and
          (B) to assure proper reduction of such credit for persons
        producing more than 150,000 wine gallons of wine during a
        calendar year.
    (d) Wine gallon
      For the purpose of this chapter, the term "wine gallon" means a
    United States gallon of liquid measure equivalent to the volume of
    231 cubic inches. On lesser quantities the tax shall be paid
    proportionately (fractions of less than one-tenth gallon being
    converted to the nearest one-tenth gallon, and five-hundredths
    gallon being converted to the next full one-tenth gallon).
    (e) Tolerances
      Where the Secretary finds that the revenue will not be endangered
    thereby, he may by regulation prescribe tolerances (but not greater
    than  1/2  of 1 percent) for bottles and other containers, and, if
    such tolerances are prescribed, no assessment shall be made and no
    tax shall be collected for any excess in any case where the
    contents of a bottle or other container are within the limit of the
    applicable tolerance prescribed.
    (f) Illegally produced wine
      Notwithstanding subsection (a), any wine produced in the United
    States at any place other than the bonded premises provided for in
    this chapter shall (except as provided in section 5042 in the case
    of tax-free production) be subject to tax at the rate prescribed in
    subsection (b) at the time of production and whether or not removed
    for consumption or sale.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1331; amended Pub. L. 86-75, Sec. 3(a)(5), June 30, 1959, 73 Stat.
    157; Pub. L. 86-564, title II, Sec. 202(a)(7), June 30, 1960, 74
    Stat. 290; Pub. L. 87-72, Sec. 3(a)(7), June 30, 1961, 75 Stat.
    193; Pub. L. 87-508, Sec. 3(a)(6), June 28, 1962, 76 Stat. 114;
    Pub. L. 88-52, Sec. 3(a)(7), June 29, 1963, 77 Stat. 72; Pub. L. 88-
    348, Sec. 2(a)(7), June 30, 1964, 78 Stat. 237; Pub. L. 89-44,
    title V, Sec. 501(c), title VIII, Sec. 806(a), June 21, 1965, 79
    Stat. 150, 162; Pub. L. 93-490, Sec. 6(a), Oct. 26, 1974, 88 Stat.
    1468; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
    90 Stat. 1834; Pub. L. 100-647, title VI, Sec. 6101(a), Nov. 10,
    1988, 102 Stat. 3710; Pub. L. 101-508, title XI, Sec. 11201(b)(1),
    (2), Nov. 5, 1990, 104 Stat. 1388-415, 1388-416; Pub. L. 104-188,
    title I, Sec. 1702(b)(5), Aug. 20, 1996, 110 Stat. 1868; Pub. L.
    105-34, title IX, Sec. 908(a), (b), Aug. 5, 1997, 111 Stat. 876;
    Pub. L. 105-206, title VI, Sec. 6009(a), July 22, 1998, 112 Stat.
    812.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5041, acts Aug. 16, 1954, ch. 736, 68A Stat. 609;
    Mar. 30, 1955, ch. 18, Sec. 3(a)(7), 69 Stat. 14; Mar. 29, 1956,
    ch. 115, Sec. 3(a)(7), 70 Stat. 66; Mar. 29, 1957, Pub. L. 85-12,
    Sec. 3(a)(5), 71 Stat. 9; June 30, 1958, Pub. L. 85-475, Sec.
    3(a)(5), 72 Stat. 259, consisted of provisions similar to those
    comprising this section, prior to the general revision of this
    chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1998 - Subsec. (b)(6). Pub. L. 105-206 inserted "which is a still
    wine" after "hard cider".
      1997 - Subsec. (b)(6). Pub. L. 105-34, Sec. 908(a), added par.
    (6).
      Subsec. (c)(1). Pub. L. 105-34, Sec. 908(b), inserted at end "In
    the case of wine described in subsection (b)(6), the preceding
    sentence shall be applied by substituting '5.6 cents' for '90
    cents'."
      1996 - Subsec. (c)(6), (7). Pub. L. 104-188 added pars. (6) and
    (7) and struck out former par. (6) which read as follows:
      "(6) Regulations. - The Secretary may prescribe such regulations
    as may be necessary to prevent the credit provided in this
    subsection from benefiting any person who produces more than
    250,000 wine gallons of wine during a calendar year and to assure
    proper reduction of such credit for persons producing more than
    150,000 wine gallons of wine during a calendar year."
      1990 - Subsec. (b)(1). Pub. L. 101-508, Sec. 11201(b)(1)(A),
    substituted "$1.07" for "17 cents".
      Subsec. (b)(2). Pub. L. 101-508, Sec. 11201(b)(1)(B), substituted
    "$1.57" for "67 cents".
      Subsec. (b)(3). Pub. L. 101-508, Sec. 11201(b)(1)(C), substituted
    "$3.15" for "$2.25".
      Subsec. (b)(5). Pub. L. 101-508, Sec. 11201(b)(1)(D), substituted
    "$3.30" for "$2.40".
      Subsecs. (c) to (f). Pub. L. 101-508, Sec. 11201(b)(2), added
    subsec. (c) and redesignated former subsecs. (c) to (e) as (d) to
    (f), respectively.
      1988 - Subsecs. (d), (e). Pub. L. 100-647 added subsec. (d) and
    redesignated former subsec. (d) as (e).
      1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
    after "Secretary".
      1974 - Subsec. (a). Pub. L. 93-490 substituted "0.392" for
    "0.277".
      1965 - Subsec. (a). Pub. L. 89-44, Sec. 806(a), substituted
    "0.277" for "0.256".
      Subsec. (b). Pub. L. 89-44, Sec. 501(c)(1)-(5), struck out
    provisions at end of each par. setting out a specified reduced rate
    to be applied on and after July 1, 1965.
      1964 - Subsec. (b). Pub. L. 88-348 substituted "July 1, 1965" for
    "July 1, 1964" in five places.
      1963 - Subsec. (b). Pub. L. 88-52 substituted "July 1, 1964" for
    "July 1, 1963" in five places.
      1962 - Subsec. (b). Pub. L. 87-508 substituted "July 1, 1963" for
    "July 1, 1962" in five places.
      1961 - Subsec. (b). Pub. L. 87-72 substituted "July 1, 1962" for
    "July 1, 1961" in five places.
      1960 - Subsec. (b). Pub. L. 86-564 substituted "July 1, 1961" for
    "July 1, 1960" in five places.
      1959 - Subsec. (b). Pub. L. 86-75 substituted "July 1, 1960" for
    "July 1, 1959" in five places.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-206 effective, except as otherwise
    provided, as if included in the provisions of the Taxpayer Relief
    Act of 1997, Pub. L. 105-34, to which such amendment relates, see
    section 6024 of Pub. L. 105-206, set out as a note under section 1
    of this title.

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Section 908(c) of Pub. L. 105-34 provided that: "The amendments
    made by this section [amending this section] shall take effect on
    October 1, 1997."

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-188 effective, except as otherwise
    expressly provided, as if included in the provision of the Revenue
    Reconciliation Act of 1990, Pub. L. 101-508, title XI, to which
    such amendment relates, see section 1702(i) of Pub. L. 104-188, set
    out as a note under section 38 of this title.

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Amendment by Pub. L. 101-508 effective Jan. 1, 1991, see section
    11201(d) of Pub. L. 101-508, set out as a note under section 5001
    of this title.

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Section 6101(b) of Pub. L. 100-647 provided that: "The amendment
    made by subsection (a) [amending this section] shall apply to wine
    removed after December 31, 1988."

                     EFFECTIVE DATE OF 1974 AMENDMENT                 
      Section 6(b) of Pub. L. 93-490 provided that: "The amendment made
    by this section [amending this section] shall take effect on the
    first day of the first calendar month which begins more than 90
    days after the date of enactment of this Act [Oct. 26, 1974]."

                     EFFECTIVE DATE OF 1965 AMENDMENT                 
      Amendment by section 501(c) of Pub. L. 89-44 applicable on and
    after July 1, 1965, see section 701(d) of Pub. L. 89-44, set out as
    a note under section 5701 of this title.
      Section 806(d)(1) of Pub. L. 89-44 provided that: "The amendment
    made by subsection (a) [amending this section] shall take effect on
    July 1, 1965."

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

          FLOOR STOCKS TAXES ON DISTILLED SPIRITS, WINE, AND BEER      
      Imposition of tax on wine, exception for small domestic
    producers, exception for certain small wholesale or retail dealers,
    credit against tax, liability for tax and method of payment,
    controlled groups, other laws applicable, and definitions, see
    section 11201(e) of Pub. L. 101-508, set out as a note under
    section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5042                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart C - Wines

-HEAD-
    Sec. 5042. Exemption from tax

-STATUTE-
    (a) Tax-free production
      (1) Cider
        Subject to regulations prescribed by the Secretary, the
      noneffervescent product of the normal alcoholic fermentation of
      apple juice only, which is produced at a place other than a
      bonded wine cellar and without the use of preservative methods or
      materials, and which is sold or offered for sale as cider and not
      as wine or as a substitute for wine, shall not be subject to tax
      as wine nor to the provisions of subchapter F.
      (2) Wine for personal or family use
        Subject to regulations prescribed by the Secretary - 
        (A) Exemption
          Any adult may, without payment of tax, produce wine for
        personal or family use and not for sale.
        (B) Limitation
          The aggregate amount of wine exempt from tax under this
        paragraph with respect to any household shall not exceed - 
            (i) 200 gallons per calendar year if there are 2 or more
          adults in such household, or
            (ii) 100 gallons per calendar year if there is only 1 adult
          in such household.
        (C) Adults
          For purposes of this paragraph, the term "adult" means an
        individual who has attained 18 years of age, or the minimum age
        (if any) established by law applicable in the locality in which
        the household is situated at which wine may be sold to
        individuals, whichever is greater.
      (3) Experimental wine
        Subject to regulations prescribed by the Secretary, any
      scientific university, college of learning, or institution of
      scientific research may produce, receive, blend, treat, and store
      wine, without payment of tax, for experimental or research use
      but not for consumption (other than organoleptical tests) or
      sale, and may receive such wine spirits without payment of tax as
      may be necessary for such production.
    (b) Cross references
          (1) For provisions relating to exemption of tax on losses of
        wine (including losses by theft or authorized destruction), see
        section 5370.
          (2) For provisions exempting from tax samples of wine, see
        section 5372.
          (3) For provisions authorizing withdrawals of wine free of
        tax or without payment of tax, see section 5362.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1331; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 95-458, Sec. 2(a), Oct. 14, 1978,
    92 Stat. 1255.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5042, act Aug. 16, 1954, ch. 736, 68A Stat. 610,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1978 - Subsec. (a)(2). Pub. L. 95-458 substituted in heading
    "Wine for personal or family use" for "Family wine" and in text
    provision permitting an adult to produce 200 gallons of wine per
    calendar year if there are 2 or more adults in the household or 100
    gallons of wine per calendar year if there is one adult in the
    household for provision which permitted the duly registered head of
    any family to produce an amount of wine not exceeding 200 gallons
    of wine per annum.
      1976 - Subsec. (a)(1) to (3). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary" wherever appearing.

                     EFFECTIVE DATE OF 1978 AMENDMENT                 
      Section 2(c) of Pub. L. 95-458 provided that: "The amendments
    made by this section [amending this section and sections 5051,
    5053, 5054, 5092, 5222, and 5674 of this title] shall take effect
    on the first day of the first calendar month which begins more than
    90 days after the date of the enactment of this Act [Oct. 14,
    1978]."

-End-



-CITE-
    26 USC Sec. 5043                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart C - Wines

-HEAD-
    Sec. 5043. Collection of taxes on wines

-STATUTE-
    (a) Persons liable for payment
      The taxes on wine provided for in this subpart shall be paid - 
      (1) Bonded wine cellars
        In the case of wines removed from any bonded wine cellar, by
      the proprietor of such bonded wine cellar; except that - 
          (A) in the case of any transfer of wine in bond as authorized
        under the provisions of section 5362(b), the liability for
        payment of the tax shall become the liability of the transferee
        from the time of removal of the wine from the transferor's
        premises, and the transferor shall thereupon be relieved of
        such liability; and
          (B) in the case of any wine withdrawn by a person other than
        such proprietor without payment of tax as authorized under the
        provisions of section 5362(c), the liability for payment of the
        tax shall become the liability of such person from the time of
        the removal of the wine from the bonded wine cellar, and such
        proprietor shall thereupon be relieved of such liability.
      (2) Foreign wine
        In the case of foreign wines which are not transferred to a
      bonded wine cellar free of tax under section 5364, by the
      importer thereof.
      (3) Other wines
        Immediately, in the case of any wine produced, imported,
      received, removed, or possessed otherwise than as authorized by
      law, by any person producing, importing, receiving, removing, or
      possessing such wine; and all such persons shall be jointly and
      severally liable for such tax with each other as well as with any
      proprietor, transferee, or importer who may be liable for the tax
      under this subsection.
    (b) Payment of tax
      The taxes on wines shall be paid in accordance with section 5061.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1332; amended Pub. L. 94-455, title XIX, Sec. 1905(b)(2)(C), Oct.
    4, 1976, 90 Stat. 1822; Pub. L. 96-39, title VIII, Sec. 807(a)(8),
    July 26, 1979, 93 Stat. 281; Pub. L. 105-206, title VI, Sec.
    6014(b)(1), July 22, 1998, 112 Stat. 820.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5043, act Aug. 16, 1954, ch. 736, 68A Stat. 610,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1998 - Subsec. (a)(2). Pub. L. 105-206 inserted "which are not
    transferred to a bonded wine cellar free of tax under section 5364"
    after "foreign wines".
      1979 - Subsec. (a)(1)(A). Pub. L. 96-39 struck out "between
    bonded wine cellars" after "transfer of wine in bond".
      1976 - Subsec. (b). Pub. L. 94-455 substituted "The taxes" for
    "Except as provided in subsection (a)(3), the taxes".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-206 effective, except as otherwise
    provided, as if included in the provisions of the Taxpayer Relief
    Act of 1997, Pub. L. 105-34, to which such amendment relates (see
    section 1422(c) of Pub. L. 105-34 set out as an Effective Date note
    under section 5364 of this title), see section 6024 of Pub. L. 105-
    206, set out as a note under section 1 of this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-455 effective on first day of first month
    which begins more than 90 days after Oct. 4, 1976, see section
    1905(d) of Pub. L. 94-455, set out as a note under section 5005 of
    this title.

-End-



-CITE-
    26 USC Sec. 5044                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart C - Wines

-HEAD-
    Sec. 5044. Refund of tax on wine

-STATUTE-
    (a) General
      In the case of any wine removed from a bonded wine cellar and
    returned to bond under section 5361 - 
        (1) any tax imposed by section 5041 shall, if paid, be refunded
      or credited, without interest, to the proprietor of the bonded
      wine cellar to which such wine is delivered; or
        (2) if any tax so imposed has not been paid, the person liable
      for the tax may be relieved of liability therefor,

    under such regulations as the Secretary may prescribe. Such
    regulations may provide that claim for refund or credit under
    paragraph (1), or relief from liability under paragraph (2), may be
    made only with respect to minimum quantities specified in such
    regulations. The burden of proof in all such cases shall be on the
    applicant.
    (b) Date of filing
      No claim under subsection (a) shall be allowed unless filed
    within 6 months after the date of the return of the wine to bond.
    (c) Status of wine returned to bond
      All provisions of this chapter applicable to wine in bond on the
    premises of a bonded wine cellar and to removals thereof shall be
    applicable to wine returned to bond under the provisions of this
    section.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1332; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 105-34, title XIV, Sec. 1416(a),
    (b)(2), Aug. 5, 1997, 111 Stat. 1048; Pub. L. 105-206, title VI,
    Sec. 6014(b)(2), July 22, 1998, 112 Stat. 820.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5044, act Aug. 16, 1954, ch. 736, 68A Stat. 611,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1998 - Subsec. (a). Pub. L. 105-206 substituted "removed from a
    bonded wine cellar" for "produced in the United States" in
    introductory provisions.
      1997 - Pub. L. 105-34, Sec. 1416(b)(2), struck out
    "unmerchantable" after "tax on" in section catchline.
      Subsec. (a). Pub. L. 105-34, Sec. 1416(a), struck out "as
    unmerchantable" after "to bond" in introductory provisions.
      1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
    after "Secretary".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-206 effective, except as otherwise
    provided, as if included in the provisions of the Taxpayer Relief
    Act of 1997, Pub. L. 105-34, to which such amendment relates, see
    section 6024 of Pub. L. 105-206, set out as a note under section 1
    of this title.

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Section 1416(c) of Pub. L. 105-34 provided that: "The amendments
    made by this section [amending this section and section 5361 of
    this title] shall take effect on the 1st day of the 1st calendar
    quarter that begins at least 180 days after the date of the
    enactment of this Act [Aug. 5, 1997]."

-End-



-CITE-
    26 USC Sec. 5045                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart C - Wines

-HEAD-
    Sec. 5045. Cross references

-STATUTE-
          For provisions relating to the establishment and operation of
        wineries, see subchapter F, and for penalties pertaining to
        wine, see subchapter J.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1333.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5045, act Aug. 16, 1954, ch. 736, 68A Stat. 611,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

-End-


-CITE-
    26 USC Subpart D - Beer                                     01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart D - Beer

-HEAD-
                             SUBPART D - BEER                         

-MISC1-
    Sec.                                                     
    5051.       Imposition and rate of tax.                           
    5052.       Definitions.                                          
    5053.       Exemptions.                                           
    5054.       Determination and collection of tax on beer.          
    5055.       Drawback of tax.                                      
    5056.       Refund and credit of tax, or relief from liability.   

                             PRIOR PROVISIONS                         
      A prior subpart D, comprising sections 5051 to 5057 of this
    title, related to beer, prior to the general revision of this
    chapter by Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72
    Stat. 1313.

-End-



-CITE-
    26 USC Sec. 5051                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart D - Beer

-HEAD-
    Sec. 5051. Imposition and rate of tax

-STATUTE-
    (a) Rate of tax
      (1) In general
        A tax is hereby imposed on all beer brewed or produced, and
      removed for consumption or sale, within the United States, or
      imported into the United States. Except as provided in paragraph
      (2), the rate of such tax shall be $18 for every barrel
      containing not more than 31 gallons and at a like rate for any
      other quantity or for fractional parts of a barrel.
      (2) Reduced rate for certain domestic production
        (A) $7 a barrel rate
          In the case of a brewer who produces not more than 2,000,000
        barrels of beer during the calendar year, the per barrel rate
        of the tax imposed by this section shall be $7 on the first
        60,000 barrels of beer which are removed in such year for
        consumption or sale and which have been brewed or produced by
        such brewer at qualified breweries in the United States.
        (B) Controlled groups
          In the case of a controlled group, the 2,000,000 barrel
        quantity specified in subparagraph (A) shall be applied to the
        controlled group, and the 60,000 barrel quantity specified in
        subparagraph (A) shall be apportioned among the brewers who are
        component members of such group in such manner as the Secretary
        or his delegate shall by regulations prescribed. For purposes
        of the preceding sentence, the term "controlled group" has the
        meaning assigned to it by subsection (a) of section 1563,
        except that for such purposes the phrase "more than 50 percent"
        shall be substituted for the phrase "at least 80 percent" in
        each place it appears in such subsection. Under regulations
        prescribed by the Secretary or his delegate, principles similar
        to the principles of the preceding two sentences shall be
        applied to a group of brewers under common control where one or
        more of the brewers is not a corporation.
        (C) Regulations
          The Secretary may prescribe such regulations as may be
        necessary to prevent the reduced rates provided in this
        paragraph from benefiting any person who produces more than
        2,000,000 barrels of beer during a calendar year.
      (3) Tolerances
        Where the Secretary or his delegate finds that the revenue will
      not be endangered thereby, he may by regulations prescribe
      tolerances for barrels and fractional parts of barrels, and, if
      such tolerances are prescribed, no assessment shall be made and
      no tax shall be collected for any excess in any case where the
      contents of a barrel or a fractional part of a barrel are within
      the limit of the applicable tolerance prescribed.
    (b) Assessment on materials used in production in case of fraud
      Nothing contained in this subpart or subchapter G shall be
    construed to authorize an assessment on the quantity of materials
    used in producing or purchased for the purpose of producing beer,
    nor shall the quantity of materials so used or purchased be
    evidence, for the purpose of taxation, of the quantity of beer
    produced; but the tax on all beer shall be paid as provided in
    section 5054, and not otherwise; except that this subsection shall
    not apply to cases of fraud, and nothing in this subsection shall
    have the effect to change the rules of law respecting evidence in
    any prosecution or suit.
    (c) Illegally produced beer
      The production of any beer at any place in the United States
    shall be subject to tax at the rate prescribed in subsection (a)
    and such tax shall be due and payable as provided in section
    5054(a)(3) unless - 
        (1) such beer is produced in a brewery qualified under the
      provisions of subchapter G, or
        (2) such production is exempt from tax under section 5053(e)
      (relating to beer for personal or family use).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1333; amended Pub. L. 86-75, Sec. 3(a)(6), June 30, 1959, 73 Stat.
    157; Pub. L. 86-564, title II, Sec. 202(a)(8), June 30, 1960, 74
    Stat. 290; Pub. L. 87-72, Sec. 3(a)(8), June 30, 1961, 75 Stat.
    193; Pub. L. 87-508, Sec. 3(a)(7), June 28, 1962, 76 Stat. 114;
    Pub. L. 88-52, Sec. 3(a)(8), June 29, 1963, 77 Stat. 72; Pub. L. 88-
    348, Sec. 2(a)(8), June 30, 1964, 78 Stat. 237; Pub. L. 89-44,
    title V, Sec. 501(d), June 21, 1965, 79 Stat. 150; Pub. L. 94-529,
    Sec. 1, Oct. 17, 1976, 90 Stat. 2485; Pub. L. 95-458, Sec.
    2(b)(2)(A), Oct. 14, 1978, 92 Stat. 1256; Pub. L. 101-508, title
    XI, Sec. 11201(c), Nov. 5, 1990, 104 Stat. 1388-416.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5051, act Aug. 16, 1954, ch. 736, 68A Stat. 611,
    as amended by acts Mar. 30, 1955, ch. 18, Sec. 3(a)(8), 69 Stat.
    14; Mar. 29, 1956, ch. 115, Sec. 3(a)(8), 70 Stat. 66; Mar. 29,
    1957, Pub. L. 85-12, Sec. 3(a)(6), 71 Stat. 9; June 30, 1958, Pub.
    L. 85-475, Sec. 3(a)(6), 72 Stat. 259, consisted of provisions
    similar to those comprising this section, prior to the general
    revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1990 - Subsec. (a)(1). Pub. L. 101-508, Sec. 11201(c)(1),
    substituted "$18" for "$9".
      Subsec. (a)(2)(C). Pub. L. 101-508, Sec. 11201(c)(2), added
    subpar. (C).
      1978 - Subsec. (c). Pub. L. 95-458 added subsec. (c).
      1976 - Subsec. (a). Pub. L. 94-529 reduced the excise tax on beer
    for small brewers to $7 per barrel on the first 60,000 barrels
    produced in the United States and removed for sale or consumption
    or sale during the calendar year, the reduced rate to be applicable
    only to brewers producing no more than 2 million barrels of beer in
    a calendar year, and inserted provision that if several brewers are
    members of a controlled group, the 2-million barrel limit is to be
    applied to the controlled group and the 60,000-barrel limit is to
    be apportioned among the members of the controlled group in
    accordance with Treasury Department regulations promulgated by the
    Secretary or his delegate.
      1965 - Subsec. (a). Pub. L. 89-44 struck out sentence providing
    for the imposition on and after July 1, 1965, of a tax of $8 in
    lieu of the tax imposed by the section.
      1964 - Subsec. (a). Pub. L. 88-348 substituted "July 1, 1965" for
    "July 1, 1964".
      1963 - Subsec. (a). Pub. L. 88-52 substituted "July 1, 1964" for
    "July 1, 1963".
      1962 - Subsec. (a). Pub. L. 87-508 substituted "July 1, 1963" for
    "July 1, 1962".
      1961 - Subsec. (a). Pub. L. 87-72 substituted "July 1, 1962" for
    "July 1, 1961".
      1960 - Subsec. (a). Pub. L. 86-564 substituted "July 1, 1961" for
    "July 1, 1960".
      1959 - Subsec. (a). Pub. L. 86-75 substituted "July 1, 1960" for
    "July 1, 1959".

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Amendment by Pub. L. 101-508 effective Jan. 1, 1991, see section
    11201(d) of Pub. L. 101-508, set out as a note under section 5001
    of this title.

                     EFFECTIVE DATE OF 1978 AMENDMENT                 
      Amendment by Pub. L. 95-458 effective on first day of first
    calendar month beginning more than 90 days after Oct. 14, 1978, see
    section 2(c) of Pub. L. 95-458, set out as a note under section
    5042 of this title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Section 2 of Pub. L. 94-529 provided that: "The amendment made by
    the first section of this Act [amending this section] shall take
    effect on the first day of the first calendar year which begins
    after the date of the enactment of this Act [Oct. 17, 1976]."

                     EFFECTIVE DATE OF 1965 AMENDMENT                 
      Amendment by Pub. L. 89-44 applicable on and after July 1, 1965,
    see section 701(d) of Pub. L. 89-44, set out as a note under
    section 5701 of this title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

          FLOOR STOCKS TAXES ON DISTILLED SPIRITS, WINE, AND BEER      
      Imposition of tax on beer, exception for small domestic
    producers, exception for certain small wholesale or retail dealers,
    credit against tax, liability for tax and method of payment,
    controlled groups, other laws applicable, and definitions, see
    section 11201(e) of Pub. L. 101-508, set out as a note under
    section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5052                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart D - Beer

-HEAD-
    Sec. 5052. Definitions

-STATUTE-
    (a) Beer
      For purposes of this chapter (except when used with reference to
    distilling or distilling material) the term beer means beer, ale,
    porter, stout, and other similar fermented beverages (including
    sake or similar products) of any name or description containing one-
    half of 1 percent or more of alcohol by volume, brewed or produced
    from malt, wholly or in part, or from any substitute therefor.
    (b) Gallon
      For purposes of this subpart, the term gallon means the liquid
    measure containing 231 cubic inches.
    (c) Removed for consumption of sale
      Except as provided for in the case of removal of beer without
    payment of tax, the term "removed for consumption or sale", for the
    purposes of this subpart means - 
      (1) Sale of beer
        The sale and transfer of possession of beer for consumption at
      the brewery; or
      (2) Removals
        Any removal of beer from the brewery.
    (d) Brewer
          For definition of brewer, see section 5092.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1333; amended Pub. L. 91-673, Sec. 1(b), Jan. 12, 1971, 84 Stat.
    2056; Pub. L. 109-59, title XI, Sec. 11125(b)(15), Aug. 10, 2005,
    119 Stat. 1956.)


-STATAMEND-
                        AMENDMENT OF SUBSECTION (D)                    
      Pub. L. 109-59, title XI, Sec. 11125(b)(15), (c), Aug. 10, 2005,
    119 Stat. 1956, 1957, provided that, effective July 1, 2008, but
    inapplicable to taxes imposed for periods before such date,
    subsection (d) of this section is amended to read as follows:
    (d) Brewer
      For purposes of this chapter, the term "brewer" means any person
    who brews beer or produces beer for sale. Such term shall not
    include any person who produces only beer exempt from tax under
    section 5053(e).


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5052, act Aug. 16, 1954, ch. 736, 68A Stat. 612,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1971 - Subsec. (c)(2). Pub. L. 91-673 struck out proviso that
    removal of beer shall not include beer returned to the brewery on
    the same day such beer is removed from the brewery.

                     EFFECTIVE DATE OF 2005 AMENDMENT                 
      Amendment by Pub. L. 109-59 effective July 1, 2008, but
    inapplicable to taxes imposed for periods before such date, see
    section 11125(c) of Pub. L. 109-59, set out as a note under section
    5002 of this title.

                     EFFECTIVE DATE OF 1971 AMENDMENT                 
      Amendment by Pub. L. 91-673 effective on first day of first
    calendar month which begins more than 90 days after Jan. 12, 1971,
    see section 5 of Pub. L. 91-673, set out as a note under section
    5056 of this title.

-End-



-CITE-
    26 USC Sec. 5053                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart D - Beer

-HEAD-
    Sec. 5053. Exemptions

-STATUTE-
    (a) Removals for export
      Beer may be removed from the brewery, without payment of tax, for
    export, in such containers and under such regulations, and on the
    giving of such notices, entries, and bonds and other security, as
    the Secretary may by regulations prescribe.
    (b) Removals when unfit for beverage use
      When beer has become sour or damaged, so as to be incapable of
    use as such, a brewer may remove the same from his brewery without
    payment of tax, for manufacturing purposes, under such regulations
    as the Secretary may prescribe.
    (c) Removals for laboratory analysis
      Beer may be removed from the brewery, without payment of tax, for
    laboratory analysis, subject to such limitations and under such
    regulations as the Secretary may prescribe.
    (d) Removals for research, development, or testing
      Under such conditions and regulations as the Secretary may
    prescribe, beer may be removed from the brewery without payment of
    tax for use in research, development, or testing (other than
    consumer testing or other market analysis) of processes, systems,
    materials, or equipment relating to beer or brewery operations.
    (e) Beer for personal or family use
      Subject to regulation prescribed by the Secretary, any adult may,
    without payment of tax, produce beer for personal or family use and
    not for sale. The aggregate amount of beer exempt from tax under
    this subsection with respect to any household shall not exceed - 
        (1) 200 gallons per calendar year if there are 2 or more adults
      in such household, or
        (2) 100 gallons per calendar year if there is only 1 adult in
      such household.

    For purposes of this subsection, the term "adult" means an
    individual who has attained 18 years of age, or the minimum age (if
    any) established by law applicable in the locality in which the
    household is situated at which beer may be sold to individuals,
    whichever is greater.
    (f) Removal for use as distilling material
      Subject to such regulations as the Secretary may prescribe, beer
    may be removed from a brewery without payment of tax to any
    distilled spirits plant for use as distilling material.
    (g) Removals for use of foreign embassies, legations, etc.
      (1) In general
        Subject to such regulations as the Secretary may prescribe - 
          (A) beer may be withdrawn from the brewery without payment of
        tax for transfer to any customs bonded warehouse for entry
        pending withdrawal therefrom as provided in subparagraph (B),
        and
          (B) beer entered into any customs bonded warehouse under
        subparagraph (A) may be withdrawn for consumption in the United
        States by, and for the official and family use of, such foreign
        governments, organizations, and individuals as are entitled to
        withdraw imported beer from such warehouses free of tax.

      Beer transferred to any customs bonded warehouse under
      subparagraph (A) shall be entered, stored, and accounted for in
      such warehouse under such regulations and bonds as the Secretary
      may prescribe, and may be withdrawn therefrom by such
      governments, organizations, and individuals free of tax under the
      same conditions and procedures as imported beer.
      (2) Other rules to apply
        Rules similar to the rules of paragraphs (2) and (3) of section
      5362(e) shall apply for purposes of this subsection.
    (h) Removals for destruction
      Subject to such regulations as the Secretary may prescribe, beer
    may be removed from the brewery without payment of tax for
    destruction.
    (i) Removal as supplies for certain vessels and aircraft
          For exemption as to supplies for certain vessels and
        aircraft, see section 309 of the Tariff Act of 1930, as amended
        (19 U.S.C. 1309).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1334; amended Pub. L. 89-44, title VIII, Sec. 807(b), June 21,
    1965, 79 Stat. 164; Pub. L. 91-673, Sec. 2, Jan. 12, 1971, 84 Stat.
    2056; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
    90 Stat. 1834; Pub. L. 95-458, Sec. 2(b)(1), Oct. 14, 1978, 92
    Stat. 1255; Pub. L. 105-34, title XIV, Secs. 1414(b), 1418(a),
    1419(a), Aug. 5, 1997, 111 Stat. 1047-1049.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5053, act Aug. 16, 1954, ch. 736, 68A Stat. 612,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1997 - Subsec. (f). Pub. L. 105-34, Sec. 1414(b), added subsec.
    (f). Former subsec. (f) redesignated (i).
      Subsec. (g). Pub. L. 105-34, Sec. 1418(a), added subsec. (g).
      Subsec. (h). Pub. L. 105-34, Sec. 1419(a), added subsec. (h).
      Subsec. (i). Pub. L. 105-34, Sec. 1414(b), redesignated subsec.
    (f) as (i).
      1978 - Subsecs. (e), (f). Pub. L. 95-458 added subsec. (e) and
    redesignated former subsec. (e) as (f).
      1976 - Subsecs. (a) to (d). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary" wherever appearing.
      1971 - Subsecs. (d), (e). Pub. L. 91-673 added subsec. (d) and
    redesignated former subsec. (d) as (e).
      1965 - Subsec. (a). Pub. L. 89-44 struck out "to a foreign
    country" after "export".

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Section 1414(d) of Pub. L. 105-34 provided that: "The amendments
    made by this section [amending this section and sections 5056 and
    5222 of this title] shall take effect on the 1st day of the 1st
    calendar quarter that begins at least 180 days after the date of
    the enactment of this Act [Aug. 5, 1997]."
      Section 1418(b) of Pub. L. 105-34 provided that: "The amendment
    made by subsection (a) [amending this section] shall take effect on
    the 1st day of the 1st calendar quarter that begins at least 180
    days after the date of the enactment of this Act [Aug. 5, 1997]."
      Section 1419(b) of Pub. L. 105-34 provided that: "The amendment
    made by subsection (a) [amending this section] shall take effect on
    the 1st day of the 1st calendar quarter that begins at least 180
    days after the date of the enactment of this Act [Aug. 5, 1997]."

                     EFFECTIVE DATE OF 1978 AMENDMENT                 
      Amendment by Pub. L. 95-458 effective on first day of first
    calendar month beginning more than 90 days after Oct. 14, 1978, see
    section 2(c) of Pub. L. 95-458, set out as a note under section
    5042 of this title.

                     EFFECTIVE DATE OF 1971 AMENDMENT                 
      Amendment by Pub. L. 91-673 effective on first day of first
    calendar month which begins more than 90 days after Jan. 12, 1971,
    see section 5 of Pub. L. 91-673, set out as a note under section
    5056 of this title.

                     EFFECTIVE DATE OF 1965 AMENDMENT                 
      Amendment by Pub. L. 89-44 effective July 1, 1965, see section
    807(c) of Pub. L. 89-44, set out as a note under section 5002 of
    this title.

-End-



-CITE-
    26 USC Sec. 5054                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart D - Beer

-HEAD-
    Sec. 5054. Determination and collection of tax on beer

-STATUTE-
    (a) Time of determination
      (1) Beer produced in the United States; certain imported beer
        Except as provided in paragraph (3), the tax imposed by section
      5051 on beer produced in the United States, or imported into the
      United States and transferred to a brewery free of tax under
      section 5418, shall be determined at the time it is removed for
      consumption or sale, and shall be paid by the brewer thereof in
      accordance with section 5061.
      (2) Beer imported into the United States
        Except as provided in paragraph (4), the tax imposed by section
      5051 on beer imported into the United States and not transferred
      to a brewery free of tax under section 5418 shall be determined
      at the time of the importation thereof, or, if entered for
      warehousing, at the time of removal from the 1st such warehouse.
      (3) Illegally produced beer
        The tax on any beer produced in the United States shall be due
      and payable immediately upon production unless - 
          (A) such beer is produced in a brewery qualified under the
        provisions of subchapter G, or
          (B) such production is exempt from tax under sections (!1)
        5053(e) (relating to beer for personal or family use).

      (4) Unlawfully imported beer
        Beer smuggled or brought into the United States unlawfully
      shall, for purposes of this chapter, be held to be imported into
      the United States, and the internal revenue tax shall be due and
      payable at the time of such importation.
    (b) Tax on returned beer
      Beer which has been removed for consumption or sale and is
    thereafter returned to the brewery shall be subject to all
    provisions of this chapter relating to beer prior to removal for
    consumption or sale, including the tax imposed by section 5051. The
    tax on any such returned beer which is again removed for
    consumption or sale shall be determined and paid without respect to
    the tax which was determined at the time of prior removal of the
    beer for consumption or sale.
    (c) Applicability of other provisions of law
      All administrative and penal provisions of this title, insofar as
    applicable, shall apply to any tax imposed by section 5051.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1334; amended Pub. L. 94-455, title XIX, Secs. 1905(a)(5),
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1818, 1834; Pub. L. 95-458,
    Sec. 2(b)(2)(B), Oct. 14, 1978, 92 Stat. 1256; Pub. L. 99-509,
    title VIII, Sec. 8011(b)(2), Oct. 21, 1986, 100 Stat. 1953; Pub. L.
    100-647, title I, Sec. 1018(u)(19), Nov. 10, 1988, 102 Stat. 3591;
    Pub. L. 105-206, title VI, Sec. 6014(a)(1), (2), July 22, 1998, 112
    Stat. 820.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5054, act Aug. 16, 1954, ch. 736, 68A Stat. 613,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      Provisions similar to those comprising subsecs. (a)(1), (2) and
    (b) to (d) of this section were contained in prior sections 5055
    and 5057(a), act Aug. 16, 1954, ch. 736, 68A Stat. 613, prior to
    the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1998 - Subsec. (a)(1). Pub. L. 105-206, Sec. 6014(a)(1), in
    heading inserted "; certain imported beer" after "United States"
    and in text inserted ", or imported into the United States and
    transferred to a brewery free of tax under section 5418," after
    "United States".
      Subsec. (a)(2). Pub. L. 105-206, Sec. 6014(a)(2), inserted "and
    not transferred to a brewery free of tax under section 5418" after
    "United States".
      1988 - Subsec. (a)(2). Pub. L. 100-647 added period at end.
      1986 - Subsec. (a)(2). Pub. L. 99-509 substituted "if entered for
    warehousing, at the time of removal from the 1st such warehouse"
    for "if entered into customs custody, at the time of removal from
    such custody, and shall be paid under such regulations as the
    Secretary shall prescribe.".
      1978 - Subsec. (a)(3). Pub. L. 95-458 inserted provision
    excluding from tax the beer exempt from tax under section 5053(e).
      1976 - Subsec. (a)(2). Pub. L. 94-455, Sec. 1906(b)(13)(A),
    struck out "or his delegate" after "Secretary".
      Subsecs. (c), (d). Pub. L. 94-455, Sec. 1905(a)(5), redesignated
    subsec. (d) as (c) and struck out former subsec. (c) respecting
    stamps or other devices as evidence of payment of tax.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-206 effective, except as otherwise
    provided, as if included in the provisions of the Taxpayer Relief
    Act of 1997, Pub. L. 105-34, to which such amendment relates (see
    section 1421(c) of Pub. L. 105-34 set out as an Effective Date note
    under section 5418 of this title), see section 6024 of Pub. L. 105-
    206, set out as a note under section 1 of this title.

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Amendment by Pub. L. 100-647 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    1019(a) of Pub. L. 100-647, set out as a note under section 1 of
    this title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-509 applicable to articles imported,
    entered for warehousing, or brought into the United States or a
    foreign trade zone after Dec. 15, 1986, see section 8011(c) of Pub.
    L. 99-509, set out as a note under section 5061 of this title.

                     EFFECTIVE DATE OF 1978 AMENDMENT                 
      Amendment by Pub. L. 95-458 effective on first day of first
    calendar month beginning more than 90 days after Oct. 14, 1978, see
    section 2(c) of Pub. L. 95-458, set out as a note under section
    5042 of this title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by section 1905(a)(5) of Pub. L. 94-455 effective on
    first day of first month which begins more than 90 days after Oct.
    4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note
    under section 5005 of this title.

-FOOTNOTE-
    (!1) So in original. Probably should be "section".


-End-



-CITE-
    26 USC Sec. 5055                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart D - Beer

-HEAD-
    Sec. 5055. Drawback of tax

-STATUTE-
      On the exportation of beer, brewed or produced in the United
    States, the brewer thereof shall be allowed a drawback equal in
    amount to the tax paid on such beer if there is such proof of
    exportation as the Secretary may by regulations require. For the
    purpose of this section, exportation shall include delivery for use
    as supplies on the vessels and aircraft described in section 309 of
    the Tariff Act of 1930, as amended (19 U.S.C. 1309).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1335; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 105-34, title XIV, Sec. 1420(a),
    Aug. 5, 1997, 111 Stat. 1049.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5055, act Aug. 16, 1954, ch. 736, 68A Stat. 613,
    related to "determination and collection of tax on beer", prior to
    the general revision of this chapter by Pub. L. 85-859. See section
    5054(a)(1), (2), (c), (d) of this title.
      Provisions similar to those comprising this section were
    contained in prior section 5056, act Aug. 16, 1954, ch. 736, 68A
    Stat. 613, prior to the general revision of this chapter by Pub. L.
    85-859.

                                AMENDMENTS                            
      1997 - Pub. L. 105-34 substituted "paid on such beer if there is
    such proof of exportation as the Secretary may by regulations
    require." for "found to have been paid on such beer, to be paid on
    submission of such evidence, records and certificates indicating
    exportation, as the Secretary may by regulations prescribe."
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Section 1420(b) of Pub. L. 105-34 provided that: "The amendment
    made by subsection (a) [amending this section] shall take effect on
    the 1st day of the 1st calendar quarter that begins at least 180
    days after the date of the enactment of this Act [Aug. 5, 1997]."

-End-



-CITE-
    26 USC Sec. 5056                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart D - Beer

-HEAD-
    Sec. 5056. Refund and credit of tax, or relief from liability

-STATUTE-
    (a) Beer returned or voluntarily destroyed
      Any tax paid by any brewer on beer removed for consumption or
    sale may be refunded or credited to the brewer, without interest,
    or if the tax has not been paid, the brewer may be relieved of
    liability therefor, under such regulations as the Secretary may
    prescribe, if such beer is returned to any brewery of the brewer or
    is destroyed under the supervision required by such regulations. In
    determining the amount of tax due on beer removed on any day, the
    quantity of beer returned to the same brewery from which removed
    shall be allowed, under such regulations as the Secretary may
    prescribe, as an offset against or deduction from the total
    quantity of beer removed from that brewery on the day of such
    return.
    (b) Beer lost by fire, theft, casualty, or act of God
      Subject to regulations prescribed by the Secretary, the tax paid
    by any brewer on beer removed for consumption or sale may be
    refunded or credited to the brewer, without interest, or if the tax
    has not been paid, the brewer may be relieved of liability
    therefor, if such beer is lost, whether by theft or otherwise, or
    is destroyed or otherwise rendered unmerchantable by fire,
    casualty, or act of God before the transfer of title thereto to any
    other person. In any case in which beer is lost or destroyed,
    whether by theft or otherwise, the Secretary may require the brewer
    to file a claim for relief from the tax and submit proof as to the
    cause of such loss. In every case where it appears that the loss
    was by theft, the first sentence shall not apply unless the brewer
    establishes to the satisfaction of the Secretary that such theft
    occurred before removal from the brewery and occurred without
    connivance, collusion, fraud, or negligence on the part of the
    brewer, consignor, consignee, bailee, or carrier, or the employees
    or agents of any of them.
    (c) Beer received at a distilled spirits plant
      Any tax paid by any brewer on beer removed for consumption or
    sale may be refunded or credited to the brewer, without interest,
    or if the tax has not been paid, the brewer may be relieved of
    liability therefor, under regulations as the Secretary may
    prescribe, if such beer is received on the bonded premises of a
    distilled spirits plant pursuant to the provisions of section
    5222(b)(2), for use in the production of distilled spirits.
    (d) Limitations
      No claim under this section shall be allowed (1) unless filed
    within 6 months after the date of the return, loss, destruction,
    rendering unmerchantable, or receipt on the bonded premises of a
    distilled spirits plant or (2) if the claimant was indemnified by
    insurance or otherwise in respect of the tax.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1335; amended Pub. L. 91-673, Sec. 1(a), Jan. 12, 1971, 84 Stat.
    2056; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
    90 Stat. 1834; Pub. L. 105-34, title XIV, Sec. 1414(c), Aug. 5,
    1997, 111 Stat. 1047; Pub. L. 105-206, title VI, Sec. 6014(a)(3),
    July 22, 1998, 112 Stat. 820.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5056, act Aug. 16, 1954, ch. 736, 68A Stat. 613,
    related to "drawback of tax" prior to the general revision of this
    chapter by Pub. L. 85-859. See section 5055 of this title.
      A prior section 5057, act Aug. 16, 1954, ch. 736, 68A Stat. 613,
    related to refund and credit of tax or relief from liability, prior
    to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1998 - Subsecs. (a) to (c). Pub. L. 105-206 substituted "removed
    for consumption or sale" for "produced in the United States".
      1997 - Subsec. (c). Pub. L. 105-34, Sec. 1414(c)(1), added
    subsec. (c). Former subsec. (c) redesignated (d).
      Subsec. (d). Pub. L. 105-34 redesignated subsec. (c) as (d) and
    substituted "rendering unmerchantable, or receipt on the bonded
    premises of a distilled spirits plant" for "or rendering
    unmerchantable".
      1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary" wherever appearing.
      1971 - Subsec. (a). Pub. L. 91-673 inserted provision permitting
    credit or refund of tax if the beer is returned to any brewery of
    the brewer who paid the tax, and provided for offset or deduction
    against amount of beer removed from the brewery on the day of
    return if the beer is returned to the same brewery from which it
    was withdrawn.
      Subsec. (b). Pub. L. 91-673 inserted provisions for credit or
    refund or relief from liability of tax when the beer is lost by
    theft or otherwise or rendered unmerchantable by fire, casualty or
    act of God, before the transfer of title to any other party, and
    required the brewer to file claim for relief from the tax and
    submit proof of the cause of the loss, and in the case of theft, to
    further prove that such theft occurred before removal from the
    brewery and without connivance, collusion, fraud, or negligence on
    the part of the brewer, consignor, consignee, bailee, or carrier,
    or the employees or agents of any of them.
      Subsec. (c). Pub. L. 91-673 substantially reenacted subsec. (c)
    to reflect changes in subsec. (b).

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-206 effective, except as otherwise
    provided, as if included in the provisions of the Taxpayer Relief
    Act of 1997, Pub. L. 105-34, to which such amendment relates, see
    section 6024 of Pub. L. 105-206, set out as a note under section 1
    of this title.

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Amendment by Pub. L. 105-34 effective on the 1st day of the 1st
    calendar quarter that begins at least 180 days after Aug. 5, 1997,
    see section 1414(d) of Pub. L. 105-34, set out as a note under
    section 5053 of this title.

                     EFFECTIVE DATE OF 1971 AMENDMENT                 
      Section 5 of Pub. L. 91-673 provided that: "The amendments made
    by the first four sections of this Act [enacting section 5417 of
    this title and amending this section and sections 5052, 5053, 5401,
    5402, 5411, 5412, and 5416 of this title] shall take effect on the
    first day of the first calendar month which begins more than 90
    days after the date of the enactment of this Act [Jan. 12, 1971]."

-End-


-CITE-
    26 USC Subpart E - General Provisions                       01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart E - General Provisions

-HEAD-
                      SUBPART E - GENERAL PROVISIONS                  

-MISC1-
    Sec.                                                     
    5061.       Method of collecting tax.                             
    5062.       Refund and drawback in case of exportation.           
    [5063.      Repealed.]                                            
    5064.       Losses resulting from disaster, vandalism, or
                 malicious mischief.                                  
    5065.       Territorial extent of law.                            
    5066.       Distilled spirits for use of foreign embassies,
                 legations, etc.                                      
    5067.       Cross reference.                                      

                             PRIOR PROVISIONS                         
      A prior subpart E, comprising sections 5061 to 5065, related to
    general provisions, prior to the general revision of this chapter
    by Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1313.

                                AMENDMENTS                            
      1978 - Pub. L. 95-423, Sec. 1(b), Oct. 6, 1978, 92 Stat. 936,
    substituted "Losses resulting from disaster, vandalism, or
    malicious mischief" for "Losses caused by disaster" in item 5064.
      1971 - Pub. L. 91-659, Sec. 3(b), Jan. 8, 1971, 84 Stat. 1966,
    added item 5066 and redesignated former item 5066 as 5067.
      1965 - Pub. L. 89-44, title V, Sec. 501(e), June 21, 1965, 79
    Stat. 150, struck out item 5063 "Floor stocks tax refunds on
    distilled spirits, wines, cordials, and beer".

-End-



-CITE-
    26 USC Sec. 5061                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart E - General Provisions

-HEAD-
    Sec. 5061. Method of collecting tax

-STATUTE-
    (a) Collection by return
      The taxes on distilled spirits, wines, and beer shall be
    collected on the basis of a return. The Secretary shall, by
    regulation, prescribe the period or event for which such return
    shall be filed, the time for filing such return, the information to
    be shown in such return, and the time for payment of such tax.
    (b) Exceptions
      Notwithstanding the provisions of subsection (a), any taxes
    imposed on, or amounts to be paid or collected in respect of,
    distilled spirits, wines, and beer under - 
        (1) section 5001(a)(4), (5), or (6),
        (2) section 5006(c) or (d),
        (3) section 5041(f),
        (4) section 5043(a)(3),
        (5) section 5054(a)(3) or (4), or
        (6) section 5505(a),

    shall be immediately due and payable at the time provided by such
    provisions (or if no specific time for payment is provided, at the
    time the event referred to in such provision occurs). Such taxes
    and amounts shall be assessed and collected by the Secretary on the
    basis of the information available to him in the same manner as
    taxes payable by return but with respect to which no return has
    been filed.
    (c) Import duties
      The internal revenue taxes imposed by this part shall be in
    addition to any import duties unless such duties are specifically
    designated as being in lieu of internal revenue tax.
    (d) Time for collecting tax on distilled spirits, wines, and beer
      (1) In general
        Except as otherwise provided in this subsection, in the case of
      distilled spirits, wines, and beer to which this part applies
      (other than subsection (b) of this section) which are withdrawn
      under bond for deferred payment of tax, the last day for payment
      of such tax shall be the 14th day after the last day of the
      semimonthly period during which the withdrawal occurs.
      (2) Imported articles
        In the case of distilled spirits, wines, and beer which are
      imported into the United States (other than in bulk containers) -
      
        (A) In general
          The last day for payment of tax shall be the 14th day after
        the last day of the semimonthly period during which the article
        is entered into the customs territory of the United States.
        (B) Special rule for entry for warehousing
          Except as provided in subparagraph (D), in the case of an
        entry for warehousing, the last day for payment of tax shall
        not be later than the 14th day after the last day of the
        semimonthly period during which the article is removed from the
        1st such warehouse.
        (C) Foreign trade zones
          Except as provided in subparagraph (D) and in regulations
        prescribed by the Secretary, articles brought into a foreign
        trade zone shall, notwithstanding any other provision of law,
        be treated for purposes of this subsection as if such zone were
        a single customs warehouse.
        (D) Exception for articles destined for export
          Subparagraphs (B) and (C) shall not apply to any article
        which is shown to the satisfaction of the Secretary to be
        destined for export.
      (3) Distilled spirits, wines, and beer brought into the United
        States from Puerto Rico
        In the case of distilled spirits, wines, and beer which are
      brought into the United States (other than in bulk containers)
      from Puerto Rico, the last day for payment of tax shall be the
      14th day after the last day of the semimonthly period during
      which the article is brought into the United States.
      (4) Taxpayers liable for taxes of not more than $50,000
        (A) In general
          In the case of any taxpayer who reasonably expects to be
        liable for not more than $50,000 in taxes imposed with respect
        to distilled spirits, wines, and beer under subparts A, C, and
        D and section 7652 for the calendar year and who was liable for
        not more than $50,000 in such taxes in the preceding calendar
        year, the last day for the payment of tax on withdrawals,
        removals, and entries (and articles brought into the United
        States from Puerto Rico) under bond for deferred payment shall
        be the 14th day after the last day of the calendar quarter
        during which the action giving rise to the imposition of such
        tax occurs.
        (B) No application after limit exceeded
          Subparagraph (A) shall not apply to any taxpayer for any
        portion of the calendar year following the first date on which
        the aggregate amount of tax due under subparts A, C, and D and
        section 7652 from such taxpayer during such calendar year
        exceeds $50,000, and any tax under such subparts which has not
        been paid on such date shall be due on the 14th day after the
        last day of the semimonthly period in which such date occurs.
        (C) Calendar quarter
          For purposes of this paragraph, the term "calendar quarter"
        means the three-month period ending on March 31, June 30,
        September 30, or December 31.
      (5) Special rule for tax due in September
        (A) In general
          Notwithstanding the preceding provisions of this subsection,
        the taxes on distilled spirits, wines, and beer for the period
        beginning on September 16 and ending on September 26 shall be
        paid not later than September 29.
        (B) Safe harbor
          The requirement of subparagraph (A) shall be treated as met
        if the amount paid not later than September 29 is not less than
         11/15  of the taxes on distilled spirits, wines, and beer for
        the period beginning on September 1 and ending on September 15.
        (C) Taxpayers not required to use electronic funds transfer
          In the case of payments not required to be made by electronic
        funds transfer, subparagraphs (A) and (B) shall be applied by
        substituting "September 25" for "September 26", "September 28"
        for "September 29", and " 2/3 " for " 11/15 ".
      (6) Special rule where due date falls on Saturday, Sunday, or
        holiday
        Notwithstanding section 7503, if, but for this paragraph, the
      due date under this subsection for payment of tax would fall on a
      Saturday, Sunday, or a legal holiday (within the meaning of
      section 7503), such due date shall be the immediately preceding
      day which is not a Saturday, Sunday, or such a holiday (or the
      immediately following day where the due date described in
      paragraph (5) falls on a Sunday).
    (e) Payment by electronic fund transfer
      (1) In general
        Any person who in any 12-month period ending December 31, was
      liable for a gross amount equal to or exceeding $5,000,000 in
      taxes imposed on distilled spirits, wines, or beer by sections
      5001, 5041, and 5051 (or 7652), respectively, shall pay such
      taxes during the succeeding calendar year by electronic fund
      transfer to a Federal Reserve Bank.
      (2) Electronic fund transfer
        The term "electronic fund transfer" means any transfer of
      funds, other than a transaction originated by check, draft, or
      similar paper instrument, which is initiated through an
      electronic terminal, telephonic instrument, or computer or
      magnetic tape so as to order, instruct, or authorize a financial
      institution to debit or credit an account.
      (3) Controlled groups
        (A) In general
          In the case of a controlled group of corporations, all
        corporations which are component members of such group shall be
        treated as 1 taxpayer. For purposes of the preceding sentence,
        the term "controlled group of corporations" has the meaning
        given to such term by subsection (a) of section 1563, except
        that "more than 50 percent" shall be substituted for "at least
        80 percent" each place it appears in such subsection.
        (B) Controlled groups which include nonincorporated persons
          Under regulations prescribed by the Secretary, principles
        similar to the principles of subparagraph (A) shall apply to a
        group of persons under common control where 1 or more of such
        persons is not a corporation.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1335; amended Pub. L. 94-455, title XIX, Secs. 1905(a)(6),
    (b)(2)(E)(iii), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1819, 1822,
    1834; Pub. L. 96-39, title VIII, Secs. 804(b), 807(a)(9), July 26,
    1979, 93 Stat. 274, 281; Pub. L. 98-369, div. A, title I, Sec.
    27(c)(1), July 18, 1984, 98 Stat. 509; Pub. L. 99-509, title VIII,
    Sec. 8011(b)(1), Oct. 21, 1986, 100 Stat. 1952; Pub. L. 99-514,
    title XVIII, Sec. 1801(c)(1), Oct. 22, 1986, 100 Stat. 2786; Pub.
    L. 100-647, title II, Sec. 2003(b)(1)(A), (B), Nov. 10, 1988, 102
    Stat. 3598; Pub. L. 101-508, title XI, Secs. 11201(b)(3),
    11704(a)(21), Nov. 5, 1990, 104 Stat. 1388-416, 1388-519; Pub. L.
    103-465, title I, Sec. 136(c)(5), title VII, Sec. 712(b), Dec. 8,
    1994, 108 Stat. 4842, 5000; Pub. L. 104-188, title I, Sec.
    1702(b)(6), Aug. 20, 1996, 110 Stat. 1869; Pub. L. 109-59, title
    XI, Sec. 11127(a), (b), Aug. 10, 2005, 119 Stat. 1958, 1959.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5061, act Aug. 16, 1954, ch. 736, 68A Stat. 614,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      Provisions similar to those comprising subsec. (d) of this
    section were contained in former section 5001(c), act Aug. 16,
    1954, ch. 736, 68A Stat. 597, prior to the general revision of this
    chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      2005 - Subsec. (d)(4) to (6). Pub. L. 109-59 added par. (4),
    redesignated former pars. (4) and (5) as (5) and (6), respectively,
    and in par. (6) substituted "paragraph (5)" for "paragraph (4)".
      1996 - Subsec. (b)(3). Pub. L. 104-188 substituted "section
    5041(f)," for "section 5041(e),".
      1994 - Subsec. (b)(1). Pub. L. 103-465, Sec. 136(c)(5), amended
    par. (1) generally. Prior to amendment, par. (1) read as follows:
    "section 5001(a)(5), (6), or (7),".
      Subsec. (d)(4). Pub. L. 103-465, Sec. 712(b)(1), added par. (4).
    Former par. (4) redesignated (5).
      Subsec. (d)(5). Pub. L. 103-465, Sec. 712(b), redesignated par.
    (4) as (5), substituted "due date" for "14th day" in heading, and
    inserted "(or the immediately following day where the due date
    described in paragraph (4) falls on a Sunday)" before period at
    end.
      1990 - Subsec. (b)(3). Pub. L. 101-508, Secs. 11201(b)(3),
    11704(a)(21), amended par. (3) identically, substituting "section
    5041(e)" for "section 5041(d)".
      1988 - Subsec. (d)(2)(A), (B), (3). Pub. L. 100-647 substituted
    "last day of the semimonthly period during" for "date on".
      1986 - Subsec. (d). Pub. L. 99-509 amended subsec. (d) generally,
    substituting provisions relating to time for collecting tax on
    distilled spirits, wines, and beer, for provisions relating to
    extension of time for collecting tax on distilled spirits.
      Subsec. (e)(3). Pub. L. 99-514 added par. (3).
      1984 - Subsec. (e). Pub. L. 98-369 added subsec. (e).
      1979 - Subsec. (a). Pub. L. 96-39, Sec. 807(a)(9)(A), struck out
    "rectified distilled spirits and wines," after "distilled spirits,
    wines,".
      Subsec. (b). Pub. L. 96-39, Sec. 807(a)(9)(B), in provisions
    preceding par. (1) struck out "rectified distilled spirits and
    wines" after "spirits, wines," and redesignated pars. (4) to (7) as
    (3) to (6), respectively. Former par. (3), which made reference to
    section 5026(a)(2), was struck out.
      Subsec. (d). Pub. L. 96-39, Sec. 804(b), added subsec. (d).
      1976 - Subsec. (a). Pub. L. 94-455, Secs. 1905(a)(6)(A),
    1906(b)(13)(A), struck out last sentence providing for continued
    payment of taxes by stamp until the Secretary shall by regulation
    provide for collection of the taxes on the basis of a return and
    struck out "or his delegate" after "Secretary".
      Subsec. (b). Pub. L. 94-455, Sec. 1905(a)(6)(B), substituted the
    exceptions provisions for discretion method of collection providing
    that "Whether or not the method of collecting any tax imposed by
    this part is specifically provided in this part, any such tax may,
    under regulations prescribed by the Secretary or his delegate, be
    collected by stamp, coupon, serially-numbered ticket, or the use of
    tax-stamp machines, or by such other reasonable device or method as
    may be necessary or helpful in securing collection of the tax."
      Subsec. (c). Pub. L. 94-455, Sec. 1905(a)(6)(C), substituted the
    import duties provision for provision respecting applicability of
    other provisions of law and reading "All administrative and penalty
    provisions of this title, insofar as applicable, shall apply to the
    collection of any tax which the Secretary or his delegate
    determines or prescribes shall be collected in any manner provided
    in this section."
      Subsec. (d). Pub. L. 94-455, Sec. 1905(b)(2)(E)(iii), struck out
    subsec. (d) which provided cross reference to section 5689 for
    penalty and forfeiture for tampering with a stamp machine.

                     EFFECTIVE DATE OF 2005 AMENDMENT                 
      Pub. L. 109-59, title XI, Sec. 11127(c), Aug. 10, 2005, 119 Stat.
    1959, provided that: "The amendments made by this section [amending
    this section] shall apply with respect to quarterly periods
    beginning on and after January 1, 2006."

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-188 effective, except as otherwise
    expressly provided, as if included in the provision of the Revenue
    Reconciliation Act of 1990, Pub. L. 101-508, title XI, to which
    such amendment relates, see section 1702(i) of Pub. L. 104-188, set
    out as a note under section 38 of this title.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by section 136(c)(5) of Pub. L. 103-465 effective Jan.
    1, 1995, see section 136(d) of Pub. L. 103-465, set out as a note
    under section 5001 of this title.
      Section 712(e) of Pub. L. 103-465 provided that: "The amendments
    made by this section [amending this section and sections 5703 and
    6302 of this title] shall take effect on January 1, 1995."

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Amendment by section 11201(b)(3) of Pub. L. 101-508 effective
    Jan. 1, 1991, see section 11201(d) of Pub. L. 101-508, set out as a
    note under section 5001 of this title.

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Section 2003(b)(2) of Pub. L. 100-647 provided that: "The
    amendments made by paragraph (1) [amending this section and section
    5703 of this title] shall take effect as if included in the
    amendments made by section 8011 of the Omnibus Budget
    Reconciliation Act of 1986 [Pub. L. 99-509]."

                     EFFECTIVE DATE OF 1986 AMENDMENTS                 
      Amendment by Pub. L. 99-514 effective, except as otherwise
    provided, as if included in the provisions of the Tax Reform Act of
    1984, Pub. L. 98-369, div. A, to which such amendment relates, see
    section 1881 of Pub. L. 99-514, set out as a note under section 48
    of this title.
      Section 8011(c) of Pub. L. 99-509, as amended by Pub. L. 99-514,
    Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
      "(1) In general. - Except as provided in paragraph (2), the
    amendments made by this section [amending this section and sections
    5054, 5703, and 5704 of this title] shall apply to removals during
    semimonthly periods ending on or after December 31, 1986.
      "(2) Imported articles, etc. - Subparagraphs (B) and (C) of
    section 5703(b)(2) of the Internal Revenue Code of 1986 [formerly
    I.R.C. 1954] (as added by this section), paragraphs (2) and (3) of
    section 5061(d) of such Code (as amended by this section), and the
    amendments made by subsections (a)(2) and (b)(2) [amending sections
    5054 and 5704 of this title] shall apply to articles imported,
    entered for warehousing, or brought into the United States or a
    foreign trade zone after December 15, 1986.
      "(3) Special rule for distilled spirits and tobacco for
    semimonthly period ending december 15, 1986. - With respect to
    remittances of - 
        "(A) taxes imposed on distilled spirits by section 5001 or 7652
      of such Code, and
        "(B) taxes imposed on tobacco products and cigarette papers and
      tubes by section 5701 or 7652 of such Code,
    for the semimonthly period ending December 15, 1986, the last day
    for payment of such remittances shall be January 14, 1987.
      "(4) Treatment of smokeless tobacco in inventory on June 30,
    1986. - The tax imposed by section 5701(e) of the Internal Revenue
    Code of 1986 shall not apply to any smokeless tobacco which - 
        "(A) on June 30, 1986, was in the inventory of the manufacturer
      or importer, and
        "(B) on such date was in a form ready for sale."

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 applicable to taxes required to be
    paid on or after Sept. 30, 1984, see section 27(d)(2) of Pub. L. 98-
    369, set out as a note under section 5001 of this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by section 1905(a)(6), (b)(2)(E)(iii) of Pub. L. 94-455
    effective on first day of first month which begins more than 90
    days after Oct. 4, 1976, see section 1905(d) of Pub. L. 94-455, set
    out as a note under section 5005 of this title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989        
      For provisions directing that if any amendments made by subtitle
    A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
    title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
    amendment to any plan, such plan amendment shall not be required to
    be made before the first plan year beginning on or after Jan. 1,
    1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
    note under section 401 of this title.

      TRANSITIONAL RULES RELATING TO DETERMINATION AND PAYMENT OF TAX  
      Section 808 of Pub. L. 96-39, as amended by Pub. L. 99-514, Sec.
    2, Oct. 22, 1986, 100 Stat. 2095, provided that:
      "(a) Liability for Payment of Tax. - Except as otherwise provided
    in this section, the tax on all distilled spirits which have been
    withdrawn from bond on determination of tax and on which tax has
    not been paid by the close of December 31, 1979, shall become due
    on January 1, 1980, and shall be payable in accordance with section
    5061 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954].
      "(b) Treatment of Controlled Stock and Bulk Wine. - 
        "(1) Election with respect to controlled stock. - The
      proprietor of a distilled spirits plant may elect to convert any
      distilled spirits or wine which on January 1, 1980, is controlled
      stock.
        "(2) Election with respect to wine. - The proprietor of a
      distilled spirits plant may elect to convert any bulk wine which
      on January 1, 1980, is on the premises of a distilled spirits
      plant.
        "(3) Effect of election. - If an election under paragraph (1)
      or (2) is in effect with respect to any controlled stock or wine -
       
          "(A) any distilled spirits, wine, or rectification tax
        previously paid or determined on such controlled stock or wine
        shall be abated or (without interest) credited or refunded
        under such regulations as the Secretary shall prescribe, and
          "(B) such controlled stock or wine shall be treated as
        distilled spirits or wine on which tax has not been paid or
        determined.
        "(4) Making of elections. - The elections under this subsection
      shall be made at such time and in such manner as the Secretary
      shall by regulations prescribe.
      "(c) Taxpaid Stock. - 
        "(1) Taxpaid stock may remain on bonded premises during 1980. -
      Section 5612(a) of the Internal Revenue Code of 1986 (relating to
      forfeiture of taxpaid distilled spirits remaining on bonded
      premises) shall not apply during 1980.
        "(2) Separation of taxpaid stock. - All distilled spirits and
      wine on which tax has been paid and which are on the bonded
      premises of a distilled spirits plant shall be physically
      separated from other distilled spirits and wine. Such separation
      shall be by the use of separate tanks, rooms, or buildings, or by
      partitioning, or by such other methods as the Secretary finds
      will distinguish such distilled spirits and wine from other
      distilled spirits and wine on the bonded premises of the
      distilled spirits plant.
      "(d) Return of Distilled Spirits Products Containing Taxpaid
    Wine. - With respect to distilled spirits returned to the bonded
    premises of distilled spirits plants during 1980, section
    5008(c)(1) of the Internal Revenue Code of 1986 (relating to
    refunds for distilled spirits returned to bonded premises) shall be
    treated as including a reference to section 5041 of such Code.
      "(e) Return of Distilled Spirits Products Containing Other
    Alcoholic Ingredients. - With respect to distilled spirits to which
    alcoholic ingredients other than distilled spirits have been added
    and which have been withdrawn from a distilled spirits plant before
    January 1, 1980, section 5215(a) of the Internal Revenue Code of
    1986 shall apply only if such spirits are returned to the distilled
    spirits plant from which withdrawn.
      "(f) Secretary Defined. - For purposes of this section, the term
    'Secretary' means the Secretary of the Treasury or his delegate."

-End-



-CITE-
    26 USC Sec. 5062                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart E - General Provisions

-HEAD-
    Sec. 5062. Refund and drawback in case of exportation

-STATUTE-
    (a) Refund
      Under such regulations as the Secretary may prescribe, the amount
    of any internal revenue tax erroneously or illegally collected in
    respect to exported articles may be refunded to the exporter of the
    article, instead of to the manufacturer, if the manufacturer waives
    any claim for the amount so to be refunded.
    (b) Drawback
      On the exportation of distilled spirits or wines manufactured,
    produced, bottled, or packaged in casks or other bulk containers in
    the United States on which an internal revenue tax has been paid or
    determined, and which are contained in any cask or other bulk
    container, or in bottles packed in cases or other containers, there
    shall be allowed, under regulations prescribed by the Secretary, a
    drawback equal in amount to the tax found to have been paid or
    determined on such distilled spirits or wines. In the case of
    distilled spirits, the preceding sentence shall not apply unless
    the claim for drawback is filed by the bottler or packager of the
    spirits and unless such spirits have been marked, especially for
    export, under regulations prescribed by the Secretary. The
    Secretary is authorized to prescribe regulations governing the
    determination and payment or crediting of drawback of internal
    revenue tax on spirits and wines eligible for drawback under this
    subsection, including the requirements of such notices, bonds,
    bills of lading, and other evidence indicating payment or
    determination of tax and exportation as shall be deemed necessary.
    (c) Exportation of imported liquors
      (1) Allowance of tax
        Upon the exportation of imported distilled spirits, wines, and
      beer upon which the duties and internal revenue taxes have been
      paid or determined incident to their importation into the United
      States, and which have been found after entry to be
      unmerchantable or not to conform to sample or specifications, and
      which have been returned to customs custody, the Secretary shall,
      under such regulations as he shall prescribe, refund, remit,
      abate, or credit, without interest, to the importer thereof, the
      full amount of the internal revenue taxes paid or determined with
      respect to such distilled spirits, wines, or beer.
      (2) Destruction in lieu of exportation
        At the option of the importer, such imported distilled spirits,
      wines, and beer, after return to customs custody, may be
      destroyed under customs supervision and the importer thereof
      granted relief in the same manner and to the same extent as
      provided in this subsection upon exportation.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1336; amended Pub. L. 88-539, Sec. 1, Aug. 31, 1964, 78 Stat. 746;
    Pub. L. 89-44, title VIII, Sec. 805(f)(6), June 21, 1965, 79 Stat.
    161; Pub. L. 90-630, Sec. 2(a), Oct. 22, 1968, 82 Stat. 1328; Pub.
    L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat.
    1834; Pub. L. 95-176, Sec. 1, Nov. 14, 1977, 91 Stat. 1363; Pub. L.
    98-369, div. A, title IV, Sec. 454(c)(1), July 18, 1984, 98 Stat.
    820.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5062, act Aug. 16, 1954, ch. 736, 68A Stat. 614,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1984 - Subsec. (b). Pub. L. 98-369 substituted "have been marked"
    for "have been stamped or restamped, and marked".
      1977 - Subsec. (b). Pub. L. 95-176 substituted in first sentence
    "manufactured, produced, bottled, or packaged in casks or other
    bulk containers" and "other bulk container" for "manufactured or
    produced" and "package" and in last sentence "spirits and wines
    eligible for drawback under this subsection, including the
    requirements" for "domestic distilled spirits and wines, including
    the requirement".
      1976 - Subsecs. (a), (b), (c)(1). Pub. L. 94-455 struck out "or
    his delegate" after "Secretary" wherever appearing.
      1968 - Subsec. (b). Pub. L. 90-630 permitted, under Treasury
    regulations, drawback of the tax where the stamping, restamping, or
    marking is done after the spirits have been removed from the
    original bottling plant.
      1965 - Subsec. (c)(1). Pub. L. 89-44 struck out "within six
    months of their release therefrom" after "customs custody".
      1964 - Subsec. (c). Pub. L. 88-539 added subsec. (c).

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective July 1, 1985, see section
    456(b) of Pub. L. 98-369, set out as an Effective Date note under
    section 5101 of this title.

                     EFFECTIVE DATE OF 1977 AMENDMENT                 
      Amendment by Pub. L. 95-176 effective on first day of first
    calendar month beginning more than 90 days after Nov. 14, 1977, see
    section 7 of Pub. L. 95-176, set out as a note under section 5003
    of this title.

                     EFFECTIVE DATE OF 1968 AMENDMENT                 
      Amendment by Pub. L. 90-630 applicable only to articles exported
    on or after first day of first calendar month which begins more
    than 90 days after Oct. 22, 1968, see section 4 of Pub. L. 90-630,
    set out as a note under section 5008 of this title.

                     EFFECTIVE DATE OF 1965 AMENDMENT                 
      Amendment by Pub. L. 89-44 effective July 1, 1965, see section
    805(g)(1) of Pub. L. 89-44, set out as a note under section 5008 of
    this title.

                     EFFECTIVE DATE OF 1964 AMENDMENT                 
      Section 2 of Pub. L. 88-539 provided that: "The amendment made by
    the first section of this Act [amending this section] shall apply
    with respect to articles exported or destroyed after the date of
    the enactment of this Act [Aug. 31, 1964]."

-End-



-CITE-
    26 USC Sec. 5063                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart E - General Provisions

-HEAD-
    Sec. 5063. Repealed.

-MISC1-
    [Sec. 5063. Repealed. Pub. L. 89-44, title V, Sec. 501(e), June 21,
      1965, 79 Stat. 150].
      Section, Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72
    Stat. 1336; Pub. L. 86-75, Sec. 3(b)(1), June 30, 1959, 73 Stat.
    157; Pub. L. 86-564, title II, Sec. 202(b)(1), June 30, 1960, 74
    Stat. 290; Pub. L. 87-72, Sec. 3(b)(1), June 30, 1961, 75 Stat.
    193; Pub. L. 87-508, Sec. 3(b)(1), June 28, 1962, 76 Stat. 114;
    Pub. L. 88-52, Sec. 3(b)(1)(A), June 29, 1963, 77 Stat. 72; Pub. L.
    88-348, Sec. 2(b)(1)(A), June 30, 1964, 78 Stat. 237, made
    provision for floor stocks refunds on distilled spirits, wines,
    cordials, and beer and set out limitations on the eligibility for
    such refunds or credits.
      A prior section 5063, act Aug. 16, 1954, ch. 736, 68A Stat. 615,
    consisted of provisions similar to those comprising section 5063,
    prior to the general revision of this chapter by Pub. L. 85-859.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal applicable on and after July 1, 1965, see section 701(d)
    of Pub. L. 89-44, set out as an Effective Date of 1965 Amendment
    note under section 5701 of this title.

-End-



-CITE-
    26 USC Sec. 5064                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart E - General Provisions

-HEAD-
    Sec. 5064. Losses resulting from disaster, vandalism, or malicious
      mischief

-STATUTE-
    (a) Payments
      The Secretary, under such regulations as he may prescribe, shall
    pay (without interest) an amount equal to the amount of the
    internal revenue taxes paid or determined and customs duties paid
    on distilled spirits, wines, and beer previously withdrawn, which
    were lost, rendered unmarketable, or condemned by a duly authorized
    official by reason of - 
        (1) fire, flood, casualty, or other disaster, or
        (2) breakage, destruction, or other damage (but not including
      theft) resulting from vandalism or malicious mischief,

    if such disaster or damage occurred in the United States and if
    such distilled spirits, wines, or beer were held and intended for
    sale at the time of such disaster or other damage. The payments
    provided for in this section shall be made to the person holding
    such distilled spirits, wines, or beer for sale at the time of such
    disaster or other damage.
    (b) Claims
      (1) Period for making claim; proof
        No claim shall be allowed under this section unless - 
          (A) filed within 6 months after the date on which such
        distilled spirits, wines, or beer were lost, rendered
        unmarketable, or condemned by a duly authorized official, and
          (B) the claimant furnishes proof satisfactory to the
        Secretary that the claimant - 
            (i) was not indemnified by any valid claim of insurance or
          otherwise in respect of the tax, or tax and duty, on the
          distilled spirits, wines, or beer covered by the claim; and
            (ii) is entitled to payment under this section.
      (2) Minimum claim
        Except as provided in paragraph (3)(A), no claim of less than
      $250 shall be allowed under this section with respect to any
      disaster or other damage (as the case may be).
      (3) Special rules for major disasters
        If the President has determined under the Robert T. Stafford
      Disaster Relief and Emergency Assistance Act that a "major
      disaster" (as defined in such Act) has occurred in any part of
      the United States, and if the disaster referred to in subsection
      (a)(1) occurs in such part of the United States by reason of such
      major disaster, then - 
          (A) paragraph (2) shall not apply, and
          (B) the filing period set forth in paragraph (1)(A) shall not
        expire before the day which is 6 months after the date on which
        the President makes the determination that such major disaster
        has occurred.
      (4) Regulations
        Claims under this section shall be filed under such regulations
      as the Secretary shall prescribe.
    (c) Destruction of distilled spirits, wines, or beer
      When the Secretary has made payment under this section in respect
    of the tax, or tax and duty, on the distilled spirits, wines, or
    beer condemned by a duly authorized official or rendered
    unmarketable, such distilled spirits, wines, or beer shall be
    destroyed under such supervision as the Secretary may prescribe,
    unless such distilled spirits, wines, or beer were previously
    destroyed under supervision satisfactory to the Secretary.
    (d) Products of Puerto Rico
      The provisions of this section shall not be applicable in respect
    of distilled spirits, wines, and beer of Puerto Rican manufacture
    brought into the United States and so lost or rendered unmarketable
    or condemned.
    (e) Other laws applicable
      All provisions of law, including penalties, applicable in respect
    of internal revenue taxes on distilled spirits, wines, and beer
    shall, insofar as applicable and not inconsistent with this
    section, be applied in respect of the payments provided for in this
    section to the same extent as if such payments constituted refunds
    of such taxes.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1337; amended Pub. L. 91-606, title III, Sec. 301(i), Dec. 31,
    1970, 84 Stat. 1759; Pub. L. 93-288, title VII, Sec. 702(i),
    formerly title VI, Sec. 602(i), May 22, 1974, 88 Stat. 164,
    renumbered title VII, Sec. 702(i), Pub. L. 103-337, div. C, title
    XXXIV, Sec. 3411(a)(1), (2), Oct. 5, 1994, 108 Stat. 3100; Pub. L.
    94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat.
    1834; Pub. L. 95-423, Sec. 1(a), Oct. 6, 1978, 92 Stat. 935; Pub.
    L. 96-39, title VIII, Sec. 807(a)(10), July 26, 1979, 93 Stat. 282;
    Pub. L. 100-707, title I, Sec. 109(l), Nov. 23, 1988, 102 Stat.
    4709; Pub. L. 108-311, title IV, Sec. 408(a)(7)(D), Oct. 4, 2004,
    118 Stat. 1191.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Robert T. Stafford Disaster Relief and Emergency Assistance
    Act, referred to in subsec. (b)(3), is Pub. L. 93-288, May 22,
    1974, 88 Stat. 143, as amended, which is classified principally to
    chapter 68 (Sec. 5121 et seq.) of Title 42, The Public Health and
    Welfare. For complete classification of this Act to the Code, see
    Short Title note set out under section 5121 of Title 42 and Tables.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5064, act Aug. 16, 1954, ch. 736, 68A Stat. 615,
    related to "territorial extent of law", prior to the general
    revision of this chapter by Pub. L. 85-859. See section 5065 of
    this title.

                                AMENDMENTS                            
      2004 - Subsec. (b)(3). Pub. L. 108-311 inserted "Robert T.
    Stafford" before "Disaster Relief and Emergency Assistance Act" in
    introductory provisions.
      1988 - Subsec. (b)(3). Pub. L. 100-707 substituted "and Emergency
    Assistance Act" for "Act of 1974".
      1979 - Pub. L. 96-39 struck out "rectified products," after
    "distilled spirits, wines," wherever appearing.
      1978 - Pub. L. 95-423 substituted "Losses resulting from
    disaster, vandalism, or malicious mischief" for "Losses caused by
    disaster" in section catchline.
      Subsec. (a). Pub. L. 95-423 substituted provisions authorizing
    the Secretary, under such regulations as he may prescribe, to pay
    the prescribed amount on distilled spirits, etc., lost, rendered
    unmarketable, or condemned by a duly authorized official by reason
    of fire, flood, casualty or other disaster, breakage, destruction,
    or other damage (but not including theft) resulting from vandalism
    or malicious mischief, for provisions authorizing such payment
    where the President has determined under the Disaster Relief Act of
    1974 that a "major disaster" has occurred, and that distilled
    spirits, etc., were lost, rendered unmarketable, or condemned by a
    duly authorized official by reason of such disaster occurring after
    June 30, 1959.
      Subsec. (b). Pub. L. 95-423 redesignated par. (1) as (1)(A),
    substituted provisions disallowing a claim unless filed within 6
    months after such distilled spirits, etc., were lost, rendered
    unmarketable or condemned, for provisions disallowing a claim
    unless filed within 6 months after the President determined that
    such disaster occurred, and added par. (1)(B); in par. (2)
    substituted provisions limiting claims to no less than $250, except
    as provided in par. (3)(A), for provisions demanding proof that
    claimant was not indemnified by any valid claim of insurance and
    that he is entitled to payment under this section; and added pars.
    (3) and (4).
      1976 - Subsecs. (a) to (c). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary" wherever appearing.
      1974 - Subsec. (a). Pub. L. 93-288 substituted "Disaster Relief
    Act of 1974" for "Disaster Relief Act of 1970".
      1970 - Subsec. (a). Pub. L. 91-606 substituted "Disaster Relief
    Act of 1970" for "Act of September 30, 1950 (42 U.S.C. 1855)".

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1978 AMENDMENT                 
      Section 1(c) of Pub. L. 95-423 provided that: "The amendments
    made by this section [amending this section] shall apply to
    disasters (or other damage) occurring on or after the first day of
    the first calendar month which begins more than 90 days after the
    date of the enactment of this Act [Oct. 6, 1978]."

                     EFFECTIVE DATE OF 1974 AMENDMENT                 
      Amendment by Pub. L. 93-288 effective Apr. 1, 1974, see section
    605 of Pub. L. 93-288, formerly set out as an Effective Date note
    under section 5121 of Title 42, The Public Health and Welfare.

                     EFFECTIVE DATE OF 1970 AMENDMENT                 
      Amendment by Pub. L. 91-606 effective Dec. 31, 1970, see section
    304 of Pub. L. 91-606, set out as a note under section 165 of this
    title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

                        EXCEPTION TO EFFECTIVE DATE                    
      Section 210(a)(3) of Pub. L. 85-859, as amended by Pub. L. 99-
    514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
    "Provisions having the effect of section 5064 of the Internal
    Revenue Code of 1986 [formerly I.R.C. 1954] (as such section is
    included in chapter 51 of such Code as amended by section 201 of
    this Act) shall be deemed to be included in the Internal Revenue
    Code of 1986, effective on the day following the date of the
    enactment of this Act [Sept. 2, 1958], and shall apply with respect
    to disasters occurring after such date of enactment, and not later
    than June 30, 1959."

        BEER LOST BY REASON OF FLOODS OF 1951 OR HURRICANES OF 1954    
      Section 207 of Pub. L. 85-859 provided for payment of an amount
    equal to the amount of taxes paid under section 3150(a) of the
    Internal Revenue Code of 1939 on fermented malt liquor which was
    lost, rendered unmarketable, or condemned by reason of the floods
    of 1951 or the hurricanes of 1954, under certain conditions and
    under regulations to be prescribed.

              LOSSES OF ALCOHOLIC LIQUORS CAUSED BY DISASTER          
      Section 208 of Pub. L. 85-859 provided for payment of an amount
    equal to the amount of taxes and customs duties paid on distilled
    spirits, wines, rectified products, and beer previously withdrawn,
    which were lost, rendered unmarketable, or condemned by reason of a
    major disaster occurring after Dec. 31, 1954, and not later than
    Sept. 2, 1958, under certain conditions and under regulations to be
    prescribed.

-End-



-CITE-
    26 USC Sec. 5065                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart E - General Provisions

-HEAD-
    Sec. 5065. Territorial extent of law

-STATUTE-
      The provisions of this part imposing taxes on distilled spirits,
    wines, and beer shall be held to extend to such articles produced
    anywhere within the exterior boundaries of the United States,
    whether the same be within an internal revenue district or not.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1337.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5065, act Aug. 16, 1954, ch. 736, 68A Stat. 615,
    made a cross reference to general administrative provisions
    applicable to assessment, collection, refund, etc., of taxes, prior
    to the general revision of this chapter by Pub. L. 85-859.
      Provisions similar to those comprising this section were
    contained in former section 5064, act Aug. 16, 1954, ch. 736, 68A
    Stat. 615, prior to the general revision of this chapter by Pub. L.
    85-859.

-End-



-CITE-
    26 USC Sec. 5066                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart E - General Provisions

-HEAD-
    Sec. 5066. Distilled spirits for use of foreign embassies,
      legations, etc.

-STATUTE-
    (a) Entry into customs bonded warehouses
      (1) Bottled distilled spirits withdrawn from bonded premises
        Under such regulations as the Secretary may prescribe, bottled
      distilled spirits may be withdrawn from bonded premises as
      provided in section 5214(a)(4) for transfer to customs bonded
      warehouses in which imported distilled spirits are permitted to
      be stored in bond for entry therein pending withdrawal therefrom
      as provided in subsection (b). For the purposes of this chapter,
      the withdrawal of distilled spirits from bonded premises under
      the provisions of this paragraph shall be treated as a withdrawal
      for exportation and all provisions of law applicable to distilled
      spirits withdrawn for exportation under the provisions of section
      5214(a)(4) shall apply with respect to spirits withdrawn under
      this paragraph.
      (2) Bottled distilled spirits eligible for export with benefit of
        drawback
        Under such regulations as the Secretary may prescribe,
      distilled spirits marked especially for export under the
      provisions of section 5062(b) may be shipped to a customs bonded
      warehouse in which imported distilled spirits are permitted to be
      stored, and entered in such warehouses pending withdrawal
      therefrom as provided in subsection (b), and the provisions of
      this chapter shall apply in respect of such distilled spirits as
      if such spirits were for exportation.
      (3) Time deemed exported
        For the purposes of this chapter, distilled spirits entered
      into a customs bonded warehouse as provided in this subsection
      shall be deemed exported at the time so entered.
    (b) Withdrawal from customs bonded warehouses
      Notwithstanding any other provisions of law, distilled spirits
    entered into customs bonded warehouses under the provisions of
    subsection (a) may, under such regulations as the Secretary may
    prescribe, be withdrawn from such warehouses for consumption in the
    United States by and for the official or family use of such foreign
    governments, organizations, and individuals who are entitled to
    withdraw imported distilled spirits from such warehouses free of
    tax. Distilled spirits transferred to customs bonded warehouses
    under the provisions of this section shall be entered, stored, and
    accounted for in such warehouses under such regulations and bonds
    as the Secretary may prescribe, and may be withdrawn therefrom by
    such governments, organizations, and individuals free of tax under
    the same conditions and procedures as imported distilled spirits.
    (c) Withdrawal for domestic use
      Distilled spirits entered into customs bonded warehouses as
    authorized by this section may be withdrawn therefrom for domestic
    use, in which event they shall be treated as American goods
    exported and returned.
    (d) Sale or unauthorized use prohibited
      No distilled spirits withdrawn from customs bonded warehouses or
    otherwise brought into the United States free of tax for the
    official or family use of such foreign governments, organizations,
    or individuals as are authorized to obtain distilled spirits free
    of tax shall be sold, or shall be disposed of or possessed for any
    use other than an authorized use. The provisions of section
    5001(a)(5) (!1) are hereby extended and made applicable to any
    person selling, disposing of, or possessing any distilled spirits
    in violation of the preceding sentence, and to the distilled
    spirits involved in any such violation.


-SOURCE-
    (Added Pub. L. 91-659, Sec. 3(a), Jan. 8, 1971, 84 Stat. 1965;
    amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4,
    1976, 90 Stat. 1834; Pub. L. 95-176, Sec. 2(d), Nov. 14, 1977, 91
    Stat. 1364; Pub. L. 96-39, title VIII, Sec. 807(a)(11), July 26,
    1979, 93 Stat. 282; Pub. L. 98-369, div. A, title IV, Sec.
    454(c)(2), July 18, 1984, 98 Stat. 820.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 5001(a)(5), referred to in subsec. (d), was redesignated
    section 5001(a)(4) by Pub. L. 103-465, title I, Sec. 136(a), Dec.
    8, 1994, 108 Stat. 4841.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5066 was renumbered 5067 of this title.

                                AMENDMENTS                            
      1984 - Subsec. (a)(2). Pub. L. 98-369 substituted "marked" for
    "stamped or restamped, and marked,".
      1979 - Subsec. (a)(1). Pub. L. 96-39, Sec. 807(a)(11)(A),
    substituted "bottled distilled spirits" for "distilled spirits
    bottled in bond for export under the provisions of section 5233, or
    bottled distilled spirits returned to bonded premises under section
    5215(b),".
      Subsec. (b). Pub. L. 96-39, Sec. 807(a)(11)(B), struck out "or
    domestic distilled spirits transferred to customs bonded warehouses
    under section 5521(d)(2)" after "the provisions of subsection (a)".
      1977 - Subsec. (a)(1). Pub. L. 95-176 substituted par. (1)
    heading "Bottled distilled spirits withdrawn from bonded premises"
    for "Distilled spirits bottled in bond for export" and authorized
    withdrawal of bottled distilled spirits returned to bonded premises
    under section 5215(b) as provided in section 5214(a)(4).
      1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary" wherever appearing.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective July 1, 1985, see section
    456(b) of Pub. L. 98-369, set out as an Effective Date note under
    section 5101 of this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1977 AMENDMENT                 
      Amendment by Pub. L. 95-176 effective on first day of first
    calendar month beginning more than 90 days after Nov. 14, 1977, see
    section 7 of Pub. L. 95-176, set out as a note under section 5003
    of this title.

                              EFFECTIVE DATE                          
      Section 6 of Pub. L. 91-659 provided that: "This Act [enacting
    this section and amending sections 5008, 5173, 5178, 5215, and 5232
    of this title] shall take effect on the first day of the first
    calendar month which begins more than 90 days after the date of the
    enactment of this Act [Jan. 8, 1971]."

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    26 USC Sec. 5067                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART I - GALLONAGE TAXES
    Subpart E - General Provisions

-HEAD-
    Sec. 5067. Cross reference

-STATUTE-
          For general administrative provisions applicable to the
        assessment, collection, refund, etc., of taxes, see subtitle F.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1338, Sec. 5066; renumbered Sec. 5067, Pub. L. 91-659, Sec. 3(a),
    Jan. 8, 1971, 84 Stat. 1965.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising this section were
    contained in former section 5065, act Aug. 16, 1954, ch. 736, 68A
    Stat. 615, prior to the general revision of this chapter by Pub. L.
    85-859.

-End-


-CITE-
    26 USC PART II - OCCUPATIONAL TAX                           01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX

-HEAD-
                        PART II - OCCUPATIONAL TAX                    

-MISC1-
    Subpart                                                  
    A.          Proprietors of distilled spirits plants, bonded wine
                 cellars, etc.                                        
    B.          Brewer.                                               
    C.          Manufacturers of stills.                              
    D.          Wholesale dealers.                                    
    E.          Retail dealers.                                       
    F.          Nonbeverage domestic drawback claimants.              
    G.          General provisions.                                   


-STATAMEND-
                           AMENDMENT OF ANALYSIS                       
      Pub. L. 109-59, title XI, Sec. 11125(b)(1)(A), (c), Aug. 10,
    2005, 119 Stat. 1953, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date,
    part heading is amended by substituting "MISCELLANEOUS PROVISIONS"
    for "OCCUPATIONAL TAX" and table of subparts is amended to read as
    follows:

    A.          Manufacturers of stills.                              
    B.          Nonbeverage domestic drawback claimants.              
    C.          Recordkeeping by dealers.                             
    D.          Other provisions.                                     


-MISC2-
                             PRIOR PROVISIONS                         
      A prior part II, consisting of subparts A to G, related to
    occupational tax, prior to the general revision of this chapter by
    Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.

                                AMENDMENTS                            
      1987 - Pub. L. 100-203, title X, Sec. 10512(a)(1)(C), Dec. 22,
    1987, 101 Stat. 1330-448, added item relating to subpart A.
      1979 - Pub. L. 96-39, title VIII, Sec. 807(b)(3), July 26, 1979,
    93 Stat. 290, struck out item relating to subpart A "Rectifier" in
    table of subparts comprising part II.

-End-


-CITE-
    26 USC Subpart A - Proprietors of Distilled Spirits
           Plants, Bonded Wine Cellars, Etc.               01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart A - Proprietors of Distilled Spirits Plants, Bonded Wine
                 Cellars, Etc.                     

-HEAD-
     SUBPART A - PROPRIETORS OF DISTILLED SPIRITS PLANTS, BONDED WINE
                               CELLARS, ETC.

-MISC1-
    Sec.                                                     
    5081.       Imposition and rate of tax.                           


-STATAMEND-
                    REPEAL AND REDESIGNATION OF SUBPART                
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(A), (b)(2), (c), Aug.
    10, 2005, 119 Stat. 1953, 1957, provided that, effective July 1,
    2008, and inapplicable to taxes imposed for periods before such
    date, this subpart is repealed and subpart C of this part is
    redesignated subpart A, consisting of sections 5101 and 5102.


-MISC2-
                             PRIOR PROVISIONS                         
      A prior subpart A, consisted of sections 5081 to 5084 of this
    title, prior to repeal by Pub. L. 96-39, title VIII, Sec. 803(b),
    July 26, 1979, 93 Stat. 274, effective Jan. 1, 1980.
      Section 5081, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
    1958, 72 Stat. 1338, imposed a tax on rectifiers of distilled
    spirits or wines.
      Another prior section 5081, act Aug. 16, 1954, ch. 736, 68A Stat.
    615, imposed a tax on rectifiers of distilled spirits or wines,
    prior to the general revision of this chapter by Pub. L. 85-859.
      Section 5082, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
    1958, 72 Stat. 1338, defined "rectifier".
      Another prior section 5082, act Aug. 16, 1954, ch. 736, 68A Stat.
    616, defined "rectifier", prior to the general revision of this
    chapter by Pub. L. 85-859.
      Section 5083, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
    1958, 72 Stat. 1338; amended Pub. L. 89-44, title VIII, Sec.
    805(f)(7), June 21, 1965, 79 Stat. 161, enumerated source authority
    for 15 exemptions from tax under sections 5021 and 5081 of this
    title.
      Another prior section 5083, act Aug. 16, 1954, ch. 736, 68A Stat.
    616, enumerated source authority for certain exemptions from tax
    under sections 5021 and 5081 of this title, prior to the general
    revision of this chapter by Pub. L. 85-859.
      Section 5084, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
    1958, 72 Stat. 1339, made cross references to other provisions
    relating to rectification.
      Another prior section 5084, act Aug. 16, 1954, ch. 736, 68A Stat.
    616, made cross references to other provisions relating to
    rectification, prior to the general revision of this chapter by
    Pub. L. 85-859.

-End-



-CITE-
    26 USC Sec. 5081                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart A - Proprietors of Distilled Spirits Plants, Bonded Wine
                 Cellars, Etc.                     

-HEAD-
    Sec. 5081. Imposition and rate of tax

-STATUTE-
    (a) General rule
      Every proprietor of - 
        (1) a distilled spirits plant,
        (2) a bonded wine cellar,
        (3) a bonded wine warehouse, or
        (4) a taxpaid wine bottling house,

    shall pay a tax of $1,000 per year in respect of each such
    premises.
    (b) Reduced rates for small proprietors
      (1) In general
        Subsection (a) shall be applied by substituting "$500" for
      "$1,000" with respect to any taxpayer not described in subsection
      (c) the gross receipts of which (for the most recent taxable year
      ending before the 1st day of the taxable period to which the tax
      imposed by subsection (a) relates) are less than $500,000.
      (2) Controlled group rules
        All persons treated as 1 taxpayer under section 5061(e)(3)
      shall be treated as 1 taxpayer for purposes of paragraph (1).
      (3) Certain rules to apply
        For purposes of paragraph (1), rules similar to the rules of
      subparagraphs (B) and (C) of section 448(c)(3) shall apply.
    (c) Exemption for small producers
      Subsection (a) shall not apply with respect to any taxpayer who
    is a proprietor of an eligible distilled spirits plant (as defined
    in section 5181(c)(4)).

-SOURCE-
    (Added Pub. L. 100-203, title X, Sec. 10512(a)(1)(A), Dec. 22,
    1987, 101 Stat. 1330-447; amended Pub. L. 100-647, title VI, Sec.
    6106(a), (b), Nov. 10, 1988, 102 Stat. 3712.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(A), (c), Aug. 10,
    2005, 119 Stat. 1953, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date,
    this section is repealed.


-MISC1-
                             PRIOR PROVISIONS                         
      Prior sections 5081 to 5084 of this title constituted a former
    subpart A of this part, see Prior Provisions note set out preceding
    this section.

                                AMENDMENTS                            
      1988 - Subsec. (b)(1). Pub. L. 100-647, Sec. 6106(b), inserted
    "not described in subsection (c)" after "taxpayer".
      Subsec. (c). Pub. L. 100-647, Sec. 6106(a), added subsec. (c).

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Section 6106(c) of Pub. L. 100-647 provided that: "The amendments
    made by this section [amending this section] shall take effect on
    July 1, 1989."

                              EFFECTIVE DATE                          
      Section 10512(h) of Pub. L. 100-203 provided that:
      "(1) In general. - The amendments made by this section [enacting
    this section and sections 5276 and 5731 of this title and amending
    sections 5091, 5111, 5121, 5131, 5691, and 5801 of this title]
    shall take effect on January 1, 1988.
      "(2) All taxpayers treated as commencing in business on january
    1, 1988. - 
        "(A) In general. - Any person engaged on January 1, 1988, in
      any trade or business which is subject to an occupational tax
      shall be treated for purposes of such tax as having 1st engaged
      in such trade or business on such date.
        "(B) Limitation on amount of tax. - In the case of a taxpayer
      who paid an occupational tax in respect of any premises for any
      taxable period which began before January 1, 1988, and includes
      such date, the amount of the occupational tax imposed by reason
      of subparagraph (A) in respect of such premises shall not exceed
      an amount equal to  1/2  the excess (if any) of - 
          "(i) the rate of such tax as in effect on January 1, 1988,
        over
          "(ii) the rate of such tax as in effect on December 31, 1987.
        "(C) Occupational tax. - For purposes of this paragraph, the
      term 'occupational tax' means any tax imposed under part II of
      subchapter A of chapter 51, section 5276, section 5731, or
      section 5801 of the Internal Revenue Code of 1986 (as amended by
      this section).
        "(D) Due date of tax. - The amount of any tax required to be
      paid by reason of this paragraph shall be due on April 1, 1988."

-End-


-CITE-
    26 USC Subpart B - Brewer                                   01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart B - Brewer

-HEAD-
                            SUBPART B - BREWER                        

-MISC1-
    Sec.                                                     
    5091.       Imposition and rate of tax.                           
    5092.       Definition of brewer.                                 
    5093.       Cross references.                                     


-STATAMEND-
                    REPEAL AND REDESIGNATION OF SUBPART                
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(B), (b)(3)(A), (c),
    Aug. 10, 2005, 119 Stat. 1953, 1957, provided that, effective July
    1, 2008, but inapplicable to taxes imposed for periods before such
    date, this subpart is repealed and subpart F of this part and
    sections 5131 to 5134 are redesignated subpart B and sections 5111
    to 5114, respectively.


-MISC2-
                             PRIOR PROVISIONS                         
      A prior subpart B, consisting of sections 5091 to 5093, related
    to brewer, prior to the general revision of this chapter by Pub. L.
    85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.

-End-



-CITE-
    26 USC Sec. 5091                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart B - Brewer

-HEAD-
    Sec. 5091. Imposition and rate of tax

-STATUTE-
    (a) General rule
      Every brewer shall pay a tax of $1,000 per year in respect of
    each brewery.
    (b) Reduced rates for small brewers
      Rules similar to the rules of section 5081(b) shall apply for
    purposes of subsection (a).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1339; amended Pub. L. 100-203, title X, Sec. 10512(a)(2), Dec. 22,
    1987, 101 Stat. 1330-448.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(B), (c), Aug. 10,
    2005, 119 Stat. 1953, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date,
    this section is repealed.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5091, act Aug. 16, 1954, ch. 736, 68A Stat. 616,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1987 - Pub. L. 100-203 amended section generally. Prior to
    amendment, section read as follows: "Every brewer shall pay $110 a
    year in respect of each brewery; except that any brewer of less
    than 500 barrels a year shall pay the sum of $55 a year. Any beer
    procured by a brewer in his own hogsheads, barrels, or kegs under
    the provisions of section 5413 shall be included in calculating the
    liability to brewers' special tax of both the brewer who produces
    the same and the brewer who procures the same."

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-203 effective Jan. 1, 1988, see section
    10512(h) of Pub. L. 100-203, set out as an Effective Date note
    under section 5081 of this title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5092                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart B - Brewer

-HEAD-
    Sec. 5092. Definition of brewer

-STATUTE-
      Every person who brews beer (except a person who produces only
    beer exempt from tax under section 5053(e)) and every person who
    produces beer for sale shall be deemed to be a brewer.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1339; amended Pub. L. 95-458, Sec. 2(b)(3), Oct. 14, 1978, 92 Stat.
    1256.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(B), (c), Aug. 10,
    2005, 119 Stat. 1953, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date,
    this section is repealed.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5092, act Aug. 16, 1954, ch. 736, 68A Stat. 617,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1978 - Pub. L. 95-458 inserted provision which excludes from
    definition of brewer a person who produces beer exempt from tax
    under section 5053(e).

                     EFFECTIVE DATE OF 1978 AMENDMENT                 
      Amendment by Pub. L. 95-458 effective on the first day of the
    first calendar month beginning more than 90 days after Oct. 14,
    1978, see section 2(c) of Pub. L. 95-458, set out as a note under
    section 5042 of this title.

-End-



-CITE-
    26 USC Sec. 5093                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart B - Brewer

-HEAD-
    Sec. 5093. Cross references

-STATUTE-
          (1) For exemption of brewer from special tax as wholesale and
        retail dealer, see section 5113(a).
          (2) For provisions relating to liability for special tax for
        carrying on business in more than one location, see section
        5143(c).
          (3) For exemption from special tax in case of sales made on
        purchaser dealers' premises, see section 5113(d).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1339.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(B), (c), Aug. 10,
    2005, 119 Stat. 1953, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date,
    this section is repealed.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5093, act Aug. 16, 1954, ch. 736, 68A Stat. 617,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

-End-


-CITE-
    26 USC Subpart C - Manufacturers of Stills                  01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart C - Manufacturers of Stills

-HEAD-
                    SUBPART C - MANUFACTURERS OF STILLS                

-MISC1-
    Sec.                                                     
    5101.       Notice of manufacture of still; notice of set up of
                 still.                                               
    5102.       Definition of manufacturer of stills.                 


-STATAMEND-
                  REDESIGNATION AND ENACTMENT OF SUBPART              
      Pub. L. 109-59, title XI, Sec. 11125(b)(2), (4), (c), Aug. 10,
    2005, 119 Stat. 1953, 1954, 1957, provided that, effective July 1,
    2008, but inapplicable to taxes imposed for periods before such
    date, this subpart is redesignated as subpart A of this part and a
    new subpart C, consisting of sections 5121 to 5124, is added.


-MISC2-
                             PRIOR PROVISIONS                         
      A prior subpart C, consisting of sections 5101 to 5106, related
    to manufacturers of stills, prior to the general revision of this
    subpart by Pub. L. 98-369, div. A, title IV, Sec. 451(a), July 18,
    1984, 98 Stat. 818.
      Another prior subpart C, consisting of sections 5101 to 5106,
    related to manufacturers of stills, prior to the general revision
    of this chapter by Pub. L. 85-859, title II, Sec. 201, Sept. 2,
    1958, 72 Stat. 1313.

-End-



-CITE-
    26 USC Sec. 5101                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart C - Manufacturers of Stills

-HEAD-
    Sec. 5101. Notice of manufacture of still; notice of set up of
      still

-STATUTE-
    (a) Notice requirements
      (1) Notice of manufacture of still
        The Secretary may, pursuant to regulations, require any person
      who manufactures any still, boiler, or other vessel to be used
      for the purpose of distilling, to give written notice, before the
      still, boiler, or other vessel is removed from the place of
      manufacture, setting forth by whom it is to be used, its
      capacity, and the time of removal from the place of manufacture.
      (2) Notice of set up of still
        The Secretary may, pursuant to regulations, require that no
      still, boiler, or other vessel be set up without the manufacturer
      of the still, boiler, or other vessel first giving written notice
      to the Secretary of that purpose.
    (b) Penalties, etc.
          (1) For penalty and forfeiture for failure to give notice of
        manufacture, or for setting up a still without first giving
        notice, when required by the Secretary, see sections 5615(2)
        and 5687.
          (2) For penalty and forfeiture for failure to register still
        or distilling apparatus when set up, see section 5601(a)(1) and
        5615(1).

-SOURCE-
    (Added Pub. L. 98-369, div. A, title IV, Sec. 451(a), July 18,
    1984, 98 Stat. 818.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5101, added Pub. L. 85-859, title II, Sec. 201,
    Sept. 2, 1958, 72 Stat. 1339, contained provisions relating to
    imposition and rate of tax, prior to the general revision of this
    subpart by Pub. L. 98-369.
      Another prior section 5101, act Aug. 16, 1954, ch. 736, 68A Stat.
    617, consisted of provisions similar to those comprising this
    section, prior to the general revision of this chapter by Pub. L.
    85-859.

                              EFFECTIVE DATE                          
      Section 456 of part II (Secs. 451-456) of subtitle D of title IV
    of division A of Pub. L. 98-369, as amended by Pub. L. 99-514,
    title XVIII, Sec. 1845, Oct. 22, 1986, 100 Stat. 2856, provided
    that:
      "(a) In General. - Except as otherwise provided in this section
    the amendments made by this part [enacting this section and section
    5102 of this title, amending sections 5005, 5062, 5066, 5116, 5134,
    5179, 5204, 5206, 5207, 5214, 5215, 5235, 5301, 5354, 5555, 5604,
    5613, 5615, 5691, 6103, 6801, and 7213 of this title, repealing
    section 5205 of this title, and omitting sections 5103, 5105, and
    5106 of this title] shall take effect on the first day of the first
    calendar month which begins more than 90 days after the date of the
    enactment of this Act [July 18, 1984].
      "(b) Repeal of Stamp Requirement. - The amendments made by
    section 454 [amending sections 5062, 5066, 5116, 5204, 5206, 5207,
    5215, 5235, 5301, 5555, 5604, 5613, and 6801 of this title and
    repealing section 5205 of this title] shall take effect on July 1,
    1985.
      "(c) Fortification of Cooking Wine. - The amendments made by
    section 455 [amending sections 5005, 5214, and 5354 of this title]
    shall take effect on the date of the enactment of this Act [July
    18, 1984].
      "(d) Section 452. - The amendment made by section 452 [amending
    section 5134 of this title] shall apply to products manufactured or
    produced after October 31, 1984."

-End-



-CITE-
    26 USC Sec. 5102                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart C - Manufacturers of Stills

-HEAD-
    Sec. 5102. Definition of manufacturer of stills

-STATUTE-
      Any person who manufactures any still or condenser to be used in
    distilling shall be deemed a manufacturer of stills.

-SOURCE-
    (Added Pub. L. 98-369, div. A, title IV, Sec. 451(a), July 18,
    1984, 98 Stat. 819.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5102, added Pub. L. 85-859, title II, Sec. 201,
    Sept. 2, 1958, 72 Stat. 1339, consisted of provisions similar to
    those comprising this section, prior to the general revision of
    this subpart by Pub. L. 98-369.
      Another prior section 5102, act Aug. 16, 1954, ch. 736, 68A Stat.
    617, defined manufacturer of stills, prior to the general revision
    of this chapter by Pub. L. 85-859.
      A prior section 5103, added Pub. L. 85-859, title II, Sec. 201,
    Sept. 2, 1958, 72 Stat. 1339, related to exemptions from the taxes
    imposed by section 5101 of this title, prior to the general
    revision of this subpart by Pub. L. 98-369.
      Another prior section 5103, act Aug. 16, 1954, ch. 736, 68A Stat.
    617, related to exemptions, prior to the general revision of this
    chapter by Pub. L. 85-859.
      A prior section 5104, added Pub. L. 85-859, title II, Sec. 201,
    Sept. 2, 1958, 72 Stat. 1339, provided that the tax imposed on
    stills or condensers by section 5101 be paid by stamp, denoting the
    tax, under regulations prescribed by Secretary or his delegate,
    prior to repeal by Pub. L. 94-455, title XIX, Sec.
    1905(b)(3)(A)(i), Oct. 4, 1976, 90 Stat. 1822, effective on first
    day of first month which began more than 90 days after Oct. 4,
    1976.
      Another prior section 5104, act Aug. 16, 1954, ch. 736, 68A Stat.
    617, required taxes to be paid by stamps, prior to the general
    revision of this chapter by Pub. L. 85-859.
      A prior section 5105, added Pub. L. 85-859, title II, Sec. 201,
    Sept. 2, 1958, 72 Stat. 1339; amended Pub. L. 94-455, title XIX,
    Secs. 1905(b)(6)(A), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823,
    1834, related to notice of manufacturer of and permit to set up
    still, prior to the general revision of this subpart by Pub. L. 98-
    369. See section 5101 of this title.
      Another prior section 5105, act Aug. 16, 1954, ch. 736, 68A Stat.
    617, related to notice of manufacture of and permit to set up
    still, prior to the general revision of this chapter by Pub. L. 85-
    859.
      A prior section 5106, added Pub. L. 85-859, title II, Sec. 201,
    Sept. 2, 1958, 72 Stat. 1340; amended Pub. L. 94-455, title XIX,
    Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, related to export
    without payment of tax and export with the privilege of drawback,
    prior to the general revision of this subpart by Pub. L. 98-369.
      Another prior section 5106, act Aug. 16, 1954, ch. 736, 68A Stat.
    618, related to payment of tax and drawback on exports, prior to
    the general revision of this chapter by Pub. L. 85-859.

                              EFFECTIVE DATE                          
      Section effective on first day of first calendar month which
    begins more than 90 days after July 18, 1984, see section 456(a) of
    Pub. L. 98-369, set out as a note under section 5101 of this title.

-End-


-CITE-
    26 USC Subpart D - Wholesale Dealers                        01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart D - Wholesale Dealers

-HEAD-
                       SUBPART D - WHOLESALE DEALERS                   

-MISC1-
    Sec.                                                     
    5111.       Imposition and rate of tax.                           
    5112.       Definitions.                                          
    5113.       Exemptions.                                           
    5114.       Records.                                              
    [5115.      Repealed.]                                            
    5116.       Packaging distilled spirits for industrial uses.      
    5117.       Prohibited purchases by dealers.                      


-STATAMEND-
       REPEAL OF SUBPART AND REDESIGNATION OF SUBPART F AS SUBPART B   
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(C), (b)(3)(A), (B),
    (c), Aug. 10, 2005, 119 Stat. 1953, 1957, provided that, effective
    July 1, 2008, but inapplicable to taxes imposed for periods before
    such date, this subpart, other than sections 5114 and 5116, is
    repealed and subpart F of this part and sections 5131 to 5134 are
    redesignated as subpart B and sections 5111 to 5114, respectively,
    and subpart B analysis is amended to read as follows:

    5111.       Eligibility.                                          
    5112.       Registration and regulation.                          
    5113.       Investigation of claims.                              
    5114.       Drawback.                                             


-MISC2-
                             PRIOR PROVISIONS                         
      A prior subpart D, consisting of sections 5111 to 5116, related
    to wholesale dealers, prior to the general revision of this chapter
    by Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1313.

                                AMENDMENTS                            
      1997 - Pub. L. 105-34, title XIV, Sec. 1415(b)(3), Aug. 5, 1997,
    111 Stat. 1047, struck out item 5115 "Sign required on premises".

-End-



-CITE-
    26 USC Sec. 5111                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart D - Wholesale Dealers

-HEAD-
    Sec. 5111. Imposition and rate of tax

-STATUTE-
    (a) Wholesale dealers in liquors
      Every wholesale dealer in liquors shall pay a special tax of $500
    a year.
    (b) Wholesale dealers in beer
      Every wholesale dealer in beer shall pay a special tax of $500 a
    year.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1340; amended Pub. L. 94-455, title XIX, Sec. 1905(b)(3)(B), Oct.
    4, 1976, 90 Stat. 1822; Pub. L. 100-203, title X, Sec. 10512(b),
    Dec. 22, 1987, 101 Stat. 1330-448.)


-STATAMEND-
        REPEAL OF SECTION AND REDESIGNATION OF SECTION 5131 AS 5111    
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(C), (b)(3)(A), (C),
    (c), Aug. 10, 2005, 119 Stat. 1953, 1954, 1957, provided that,
    effective July 1, 2008, but inapplicable to taxes imposed for
    periods before such date, this section is repealed and section 5131
    of this title is redesignated section 5111 and amended by striking
    "and rate of tax" in section catchline and by striking subsec. (a)
    heading and subsec. (b).


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5111, act Aug. 16, 1954, ch. 736, 68A Stat. 618,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      Provisions similar to those comprising subsec. (a) of this
    section were contained in former section 5112(a), act Aug. 16,
    1954, ch. 736, 68A Stat. 618, prior to the general revision of this
    chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1987 - Subsec. (a). Pub. L. 100-203, Sec. 10512(b)(1),
    substituted "$500" for "$255".
      Subsec. (b). Pub. L. 100-203, Sec. 10512(b)(2), substituted
    "$500" for "$123".
      1976 - Subsec. (a). Pub. L. 94-455 struck out provisions
    authorizing the issuance of stamps denoting payment of the special
    tax.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-203 effective Jan. 1, 1988, see section
    10512(h) of Pub. L. 100-203, set out as an Effective Date note
    under section 5081 of this title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-455 effective on first day of first month
    which begins more than 90 days after Oct. 4, 1976, see section
    1905(d) of Pub. L. 94-455, set out as a note under section 5005 of
    this title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5112                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart D - Wholesale Dealers

-HEAD-
    Sec. 5112. Definitions

-STATUTE-
    (a) Dealer
      When used in this subpart, subpart E, or subpart G, the term
    "dealer" means any person who sells, or offers for sale, any
    distilled spirits, wines, or beer.
    (b) Wholesale dealer in liquors
      When used in this chapter, the term "wholesale dealer in liquors"
    means any dealer, other than a wholesale dealer in beer, who sells,
    or offers for sale, distilled spirits, wines, or beer, to another
    dealer.
    (c) Wholesale dealer in beer
      When used in this chapter, the term "wholesale dealer in beer"
    means a dealer who sells, or offers for sale, beer, but not
    distilled spirits or wines, to another dealer.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1340.)


-STATAMEND-
        REPEAL OF SECTION AND REDESIGNATION OF SECTION 5132 AS 5112    
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(C), (b)(3)(A), (c),
    Aug. 10, 2005, 119 Stat. 1953, 1957, provided that, effective July
    1, 2008, but inapplicable to taxes imposed for periods before such
    date, this section is repealed and section 5132 of this title is
    redesignated section 5112.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5112, act Aug. 16, 1954, ch. 736, 68A Stat. 618,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      Prior section 5112(a) also provided for issuance of stamp
    denoting payment of special tax as "wholesale dealer in wines" or
    "wholesale dealer in wines and beer". See section 5111(a) of this
    title.

-End-



-CITE-
    26 USC Sec. 5113                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart D - Wholesale Dealers

-HEAD-
    Sec. 5113. Exemptions

-STATUTE-
    (a) Sales by proprietors of controlled premises
      No proprietor of a distilled spirits plant, bonded wine cellar,
    taxpaid wine bottling house, or brewery, shall be required to pay
    special tax under section 5111 or section 5121 on account of the
    sale at his principal business office as designated in writing to
    the Secretary, or at his distilled spirits plant, bonded wine
    cellar, taxpaid wine bottling house, or brewery, as the case may
    be, of distilled spirits, wines, or beer, which, at the time of
    sale, are stored at his distilled spirits plant, bonded wine
    cellar, taxpaid wine bottling house, or brewery, as the case may
    be, or had been removed from such premises to a taxpaid storeroom
    operated in connection therewith and are stored therein. However,
    on such proprietor shall have more than one place of sale, as to
    each distilled spirits plant, bonded wine cellar, taxpaid wine
    bottling house, or brewery, that shall be exempt from special taxes
    by reason of the sale of distilled spirits, wines, or beer stored
    at such premises (or removed therefrom and stored as provided in
    this section), by reason of this subsection.
    (b) Sales by liquor stores operated by States, political
      subdivisions, etc.
      No liquor store engaged in the business of selling to persons
    other than dealers, which is operated by a State, by a political
    subdivision of a State or by the District of Columbia, shall be
    required to pay any special tax imposed under section 5111, by
    reason of selling distilled spirits, wines, or beer to dealers
    qualified to do business as such in such State, subdivision, or
    District, if such State, political subdivision, or District has
    paid the applicable special tax imposed under section 5121, and if
    such State, political subdivision, or District has paid special tax
    under section 5111 at its principal place of business.
    (c) Casual sales
      (1) Sales by creditors, fiduciaries, and officers of court
        No person shall be deemed to be a dealer by reason of the sale
      of distilled spirits, wines, or beer which have been received by
      him as security for or in payment of a debt, or as an executor,
      administrator, or other fiduciary, or which have been levied on
      by any officer under order or process of any court or magistrate,
      if such distilled spirits, wines, or beer are sold by such person
      in one parcel only or at public auction in parcels of not less
      than 20 wine gallons.
      (2) Sales by retiring partners or representatives of deceased
        partners to incoming or remaining partners
        No person shall be deemed to be a dealer by reason of a sale of
      distilled spirits, wines, or beer made by such person as a
      retiring partner or the representative of a deceased partner to
      the incoming, remaining, or surviving partner or partners of a
      firm.
      (3) Return of liquors for credit, refund, or exchange
        No person shall be deemed to be a dealer by reason of the bona
      fide return of distilled spirits, wines, or beer to the dealer
      from whom purchased (or to the successor of the vendor's business
      or line of merchandise) for credit, refund, or exchange, and the
      giving of such credit, refund, or exchange shall not be deemed to
      be a purchase within the meaning of section 5117.
    (d) Dealers making sales on purchaser dealer's premises
      (1) Wholesale dealers in liquors
        No wholesale dealer in liquors who has paid the special tax as
      such dealer shall again be required to pay special tax as such
      dealer on account of sales of wines or beer to wholesale or
      retail dealers in liquors, or to limited retail dealers, or of
      beer to wholesale or retail dealers in beer, consummated at the
      purchaser's place of business.
      (2) Wholesale dealers in beer
        No wholesale dealer in beer who has paid the special tax as
      such a dealer shall again be required to pay special tax as such
      dealer on account of sales of beer to wholesale or retail dealers
      in liquors or beer, or to limited retail dealers, consummated at
      the purchaser's place of business.
    (e) Sales by retail dealers in liquidation
      No retail dealer in liquors or retail dealer in beer, selling in
    liquidation his entire stock of liquors in one parcel or in parcels
    embracing not less than his entire stock of distilled spirits, of
    wines, or of beer to any other dealer, shall be deemed to be a
    wholesale dealer in liquors or a wholesale dealer in beer, as the
    case may be, by reason of such sale or sales.
    (f) Sales to limited retail dealers
      (1) Retail dealers in liquors
        No retail dealer in liquors who has paid special tax as such
      dealer under section 5121(a) shall be required to pay special tax
      under section 5111 on account of the sale at his place of
      business of distilled spirits, wines, or beer to limited retail
      dealers as defined in section 5122(c).
      (2) Retail dealers in beer
        No retail dealer in beer who has paid special tax as such
      dealer under section 5121(b) shall be required to pay special tax
      under section 5111 on account of the sale at his place of
      business of beer to limited retail dealers as defined in section
      5122(c).
    (g) Coordination of taxes under section 5111
      No tax shall be imposed by section 5111(a) with respect to a
    person's activities at any place during a year if such person has
    paid the tax imposed by section 5111(b) with respect to such place
    for such year.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1340; amended Pub. L. 87-863, Sec. 4(b), Oct. 23, 1962, 76 Stat.
    1142; Pub. L. 94-455, title XIX, Secs. 1905(a)(7), 1906(b)(13)(A),
    Oct. 4, 1976, 90 Stat. 1819, 1834; Pub. L. 100-647, title II, Sec.
    2004(t)(2), (4), Nov. 10, 1988, 102 Stat. 3609, 3610.)


-STATAMEND-
        REPEAL OF SECTION AND REDESIGNATION OF SECTION 5133 AS 5113    
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(C), (b)(3)(A), (c),
    Aug. 10, 2005, 119 Stat. 1953, 1957, provided that, effective July
    1, 2008, but inapplicable to taxes imposed for periods before such
    date, this section is repealed and section 5133 of this title is
    redesignated section 5113.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5113, act Aug. 16, 1954, ch. 736, 68A Stat. 619,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      Provisions similar to those comprising subsecs. (a), (d), and (e)
    of this section were contained in prior sections 5123(a), (b)(3),
    (c), 5144(c), and 5306, act Aug. 16, 1954, ch. 736, 68A Stat. 621,
    624, 657, prior to the general revision of this chapter by Pub. L.
    85-859.

                                AMENDMENTS                            
      1988 - Subsec. (a). Pub. L. 100-647, Sec. 2004(t)(2), substituted
    "controlled premises" for "distilled spirits plants, bonded wine
    cellars, or breweries" in heading and inserted "taxpaid wine
    bottling house," after "bonded wine cellar," wherever appearing in
    text.
      Subsec. (g). Pub. L. 100-647, Sec. 2004(t)(4), added subsec. (g).
      1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
    out "or his delegate" after "Secretary".
      Subsec. (f)(1). Pub. L. 94-455, Sec. 1905(a)(7), inserted
    reference to distilled spirits.
      1962 - Subsec. (b). Pub. L. 87-863 substituted "if such State,
    political subdivision, or district" for "if such liquor store"
    before "has paid the", and struck out reference to Territories
    wherever appearing.

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Amendment by Pub. L. 100-647 effective, except as otherwise
    provided, as if included in the provisions of the Revenue Act of
    1987, Pub. L. 100-203, title X, to which such amendment relates,
    see section 2004(u) of Pub. L. 100-647, set out as a note under
    section 56 of this title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-455 effective on first day of first month
    which begins more than 90 days after Oct. 4, 1976, see section
    1905(d) of Pub. L. 94-455, set out as a note under section 5005 of
    this title.

                     EFFECTIVE DATE OF 1962 AMENDMENT                 
      Section 4(c) of Pub. L. 87-863 provided that: "The amendments
    made by subsections (a) and (b) of this section [amending this
    section and section 5123 of this title] shall take effect on July
    1, 1962."

-End-



-CITE-
    26 USC Sec. 5114                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart D - Wholesale Dealers

-HEAD-
    Sec. 5114. Records

-STATUTE-
    (a) Requirements
      (1) Distilled spirits
        Every wholesale dealer in liquors who sells distilled spirits
      to other dealers shall keep daily a record of distilled spirits
      received and disposed of by him, in such form and at such place
      and containing such information, and shall submit correct
      summaries of such records to the Secretary at such time and in
      such form and manner, as the Secretary shall by regulations
      prescribe. Such dealer shall also submit correct extracts from or
      copies of such records, at such time and in such form and manner
      as the Secretary may by regulations prescribe; however, the
      Secretary may on application by such dealer, in accordance with
      such regulations, relieve him from this requirement until further
      notice, whenever the Secretary deems that the submission of such
      extracts or copies serves no useful purpose in law enforcement or
      in protection of the revenue.
      (2) Wines and beer
        Every wholesale dealer in liquors and every wholesale dealer in
      beer shall provide and keep, at such place as the Secretary shall
      by regulations prescribe, a record in book form of all wines and
      beer received, showing the quantities thereof and from whom and
      the dates received, or shall keep all invoices of, and bills for,
      all wines and beer received.
    (b) Exemption of States, political subdivisions, etc.
      The provision of subsection (a) shall not apply to a State, to a
    political subdivision of a State, to the District of Columbia, or
    to liquor stores operated by any of them, if they maintain and make
    available for inspection by internal revenue officers such records
    as will enable such officers to trace all distilled spirits, wines,
    and beer received, and all distilled spirits disposed of by them.
    Such States, subdivisions, District, or liquor stores shall, upon
    the request of the Secretary, furnish him such transcripts,
    summaries and copies of their records with respect to distilled
    spirits as he shall require.
    (c) Cross references
          (1) For provisions requiring proprietors of distilled spirits
        plants to keep records and submit reports of receipts and
        dispositions of distilled spirits, see section 5207.
          (2) For penalty for violation of subsection (a), see section
        5603.
          (3) For provisions relating to the preservation and
        inspection of records, and entry of premises for inspection,
        see section 5146.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1342; amended Pub. L. 94-455, title XIX, Secs. 1905(c)(1),
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823, 1834; Pub. L. 109-59,
    title XI, Sec. 11125(b)(5)(A), (B)(i), Aug. 10, 2005, 119 Stat.
    1954.)


-STATAMEND-
                  AMENDMENT AND REDESIGNATION OF SECTION              
      Pub. L. 109-59, title XI, Sec. 11125(b)(3)(A), (5)(A), (B)(i),
    (c), Aug. 10, 2005, 119 Stat. 1953, 1954, 1957, provided that,
    effective July 1, 2008, but inapplicable to taxes imposed for
    periods before such date:
      (1) this section is amended by substituting "Sec. 5432 [probably
    should be 5121]. Recordkeeping by wholesale dealers" for "Sec.
    5114. Records" in section catchline and this section is transferred
    and inserted after the section analysis of subpart C of this part;
    and
      (2) section 5134 of this title is redesignated section 5114.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5114, act Aug. 16, 1954, ch. 736, 68A Stat. 619,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
    out "or his delegate" after "Secretary" wherever appearing.
      Subsec. (b). Pub. L. 94-455, Secs. 1905(c)(1), 1906(b)(13)(A),
    struck out "or Territory" after "a State", "Territories" after
    "States,", and "or his delegate" after "Secretary".

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by section 1905(c)(1) of Pub. L. 94-455 effective on
    first day of first month which begins more than 90 days after Oct.
    4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note
    under section 5005 of this title.

-End-



-CITE-
    26 USC Sec. 5115                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart D - Wholesale Dealers

-HEAD-
    Sec. 5115. Repealed.

-MISC1-
    [Sec. 5115. Repealed. Pub. L. 105-34, title XIV, Sec. 1415(a), Aug.
      5, 1997, 111 Stat. 1047].
      Section, added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958,
    72 Stat. 1342; amended Pub. L. 94-455, title XIX, Sec.
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, related to requirement
    that a sign be posted on premises where liquor is sold and penalty
    for noncompliance.
      A prior section 5115, act Aug. 16, 1954, ch. 736, 68A Stat. 620,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
    See section 5205(d) of this title.

-End-



-CITE-
    26 USC Sec. 5116                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart D - Wholesale Dealers

-HEAD-
    Sec. 5116. Packaging distilled spirits for industrial uses

-STATUTE-
    (a) General
      The Secretary may, at his discretion and under such regulations
    as he may prescribe, authorize a dealer engaging in the business of
    supplying distilled spirits for industrial uses to package
    distilled spirits, on which the tax has been paid or determined,
    for such uses in containers of a capacity in excess of 1 wine
    gallon and not more than 5 wine gallons.
    (b) Cross reference
          For provisions relating to containers of distilled spirits,
        see section 5206.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1343; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(12),
    July 26, 1979, 93 Stat. 282; Pub. L. 98-369, div. A, title IV, Sec.
    454(c)(3), July 18, 1984, 98 Stat. 821; Pub. L. 109-59, title XI,
    Sec. 11125(b)(11), Aug. 10, 2005, 119 Stat. 1956.)


-STATAMEND-
                  AMENDMENT AND REDESIGNATION OF SECTION              
      Pub. L. 109-59, title XI, Sec. 11125(b)(11), (c), Aug. 10, 2005,
    119 Stat. 1956, 1957, provided that, effective July 1, 2008, but
    inapplicable to taxes imposed for periods before such date,
    subsection (a) of this section is amended by inserting "(as defined
    in section 5121(c))" after "dealer" and this section is
    redesignated section 5131 and transferred and inserted after the
    section analysis of subpart D of this part.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5116, act Aug. 16, 1954, ch. 736, 68A Stat. 620,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1984 - Subsec. (b). Pub. L. 98-369 substituted "reference" for
    "references" in heading, struck out former par. (1) which provided
    a cross reference to section 5205(a)(1) of this title regarding
    stamps for immediate containers, and struck out designation "(2)"
    preceding provisions relating to containers of distilled spirits.
      1979 - Subsec. (b)(1). Pub. L. 96-39 substituted "section
    5205(a)(1)" for "section 5205(a)(2)".
      1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
    after "Secretary".

                     EFFECTIVE DATE OF 2005 AMENDMENT                 
      Amendment by Pub. L. 109-59 effective July 1, 2008, but
    inapplicable to taxes imposed for periods before such date, see
    section 11125(c) of Pub. L. 109-59, set out as a note under section
    5002 of this title.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective July 1, 1985, see section
    456(b) of Pub. L. 98-369, set out as an Effective Date note under
    section 5101 of this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

-End-



-CITE-
    26 USC Sec. 5117                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart D - Wholesale Dealers

-HEAD-
    Sec. 5117. Prohibited purchases by dealers

-STATUTE-
    (a) General
      It shall be unlawful for any dealer to purchase distilled spirits
    for resale from any person other than - 
        (1) a wholesale dealer in liquors who has paid the special tax
      as such dealer to cover the place where such purchase is made; or
        (2) a wholesale dealer in liquors who is exempt, at the place
      where such purchase is made, from payment of such tax under any
      provision of this chapter; or
        (3) a person who is not required to pay special tax as a
      wholesale dealer in liquors.
    (b) Limited retail dealers
      A limited retail dealer may lawfully purchase distilled spirits
    for resale from a retail dealer in liquors.
    (c) Penalty and forfeiture
          For penalty and forfeiture provisions applicable to violation
        of subsection (a), see sections 5687 and 7302.
    (d) Special rule during suspension period
      Except as provided in subsection (b) or by the Secretary, during
    the suspension period (as defined in section 5148) it shall be
    unlawful for any dealer to purchase distilled spirits for resale
    from any person other than a wholesale dealer in liquors who is
    required to keep records under section 5114.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1343; amended Pub. L. 94-455, title XIX, Sec. 1905(a)(8), Oct. 4,
    1976, 90 Stat. 1819; Pub. L. 108-357, title II, Sec. 246(b), Oct.
    22, 2004, 118 Stat. 1448.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(C), (c), Aug. 10,
    2005, 119 Stat. 1953, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date,
    this section is repealed.


-MISC1-
                                AMENDMENTS                            
      2004 - Subsec. (d). Pub. L. 108-357 added subsec. (d).
      1976 - Subsecs. (b), (c). Pub. L. 94-455 added subsec. (b) and
    redesignated former subsec. (b) as (c).

                     EFFECTIVE DATE OF 2004 AMENDMENT                 
      Pub. L. 108-357, title II, Sec. 246(d), Oct. 22, 2004, 118 Stat.
    1449, provided that: "The amendments made by this section [enacting
    section 5148 of this title, renumbering former section 5148 of this
    title as section 5149 of this title, and amending this section]
    shall take effect on the date of the enactment of this Act [Oct.
    22, 2004]."

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-455 effective on first day of first month
    which begins more than 90 days after Oct. 4, 1976, see section
    1905(d) of Pub. L. 94-455, set out as a note under section 5005 of
    this title.

-End-


-CITE-
    26 USC Subpart E - Retail Dealers                           01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart E - Retail Dealers

-HEAD-
                        SUBPART E - RETAIL DEALERS                    

-MISC1-
    Sec.                                                     
    5121.       Imposition and rate of tax.                           
    5122.       Definitions.                                          
    5123.       Exemptions.                                           
    5124.       Records.                                              
    5125.       Cross references.                                     


-STATAMEND-
               REPEAL OF SUBPART AND ENACTMENT OF SUBPART C           
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(D), (b)(4), (c), Aug.
    10, 2005, 119 Stat. 1953, 1954, 1957, provided that, effective July
    1, 2008, but inapplicable to taxes imposed for periods before such
    date, this subpart, other than section 5124 of this title, is
    repealed and a new subpart C is added after subpart B with subpart
    heading and analysis to read as follows:

           SUBPART C - RECORDKEEPING AND REGISTRATION BY DEALERS       

-MISC2-
    Sec.                                                     
    5121.       Recordkeeping by wholesale dealers.                   
    5122.       Recordkeeping by retail dealers.                      
    5123.       Preservation and inspection of records, and entry of
                 premises for inspection.                             
    5124.       Registration by dealers.                              

                             PRIOR PROVISIONS                         
      A prior subpart E, consisting of sections 5121 to 5124, related
    to retail dealers, prior to the general revision of this chapter by
    Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.

-End-



-CITE-
    26 USC Sec. 5121                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart E - Retail Dealers

-HEAD-
    Sec. 5121. Imposition and rate of tax

-STATUTE-
    (a) Retail dealers in liquors
      Every retail dealer in liquors shall pay a special tax of $250 a
    year.
    (b) Retail dealers in beer
      Every retail dealer in beer shall pay a special tax of $250 a
    year.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1343; amended Pub. L. 94-455, title XIX, Sec. 1905(a)(9),
    (b)(3)(C), Oct. 4, 1976, 90 Stat. 1819, 1822; Pub. L. 100-203,
    title X, Sec. 10512(c), Dec. 22, 1987, 101 Stat. 1330-448.)


-STATAMEND-
     REPEAL OF SECTION AND AMENDMENT AND REDESIGNATION OF SECTION 5114
                                  AS 5121
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(D), (b)(5), (c), Aug.
    10, 2005, 119 Stat. 1953, 1954, 1957, provided that, effective July
    1, 2008, but inapplicable to taxes imposed for periods before such
    date:
      (1) this section is repealed; and
      (2) section 5114 of this title is transferred and inserted after
    the section analysis of subpart C of this part and amended as
    follows:
      (A) by striking the section catchline and inserting "Sec. 5432
    [probably should be 5121]. Recordkeeping by wholesale dealers";
      (B) by redesignating subsection (c) as (d) and inserting the
    following new subsection (c):
    "(c) Wholesale dealers
      "For purposes of this part - 
      "(1) Wholesale dealer in liquors
        "The term 'wholesale dealer in liquors' means any dealer (other
      than a wholesale dealer in beer) who sells, or offers for sale,
      distilled spirits, wines, or beer, to another dealer.
      "(2) Wholesale dealer in beer
        "The term 'wholesale dealer in beer' means any dealer who
      sells, or offers for sale, beer, but not distilled spirits or
      wines, to another dealer.
      "(3) Dealer
        "The term 'dealer' means any person who sells, or offers for
      sale, any distilled spirits, wines, or beer.
      "(4) Presumption in case of sale of 20 wine gallons or more
        "The sale, or offer for sale, of distilled spirits, wines, or
      beer, in quantities of 20 wine gallons or more to the same person
      at the same time, shall be presumptive evidence that the person
      making such sale, or offer for sale, is engaged in or carrying on
      the business of a wholesale dealer in liquors or a wholesale
      dealer in beer, as the case may be. Such presumption may be
      overcome by evidence satisfactorily showing that such sale, or
      offer for sale, was made to a person other than a dealer."; and
      (C) in paragraph (3) of section 5121(d), as so redesignated, by
    substituting "section 5123" for "section 5146".


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5121, act Aug. 16, 1954, ch. 736, 68A Stat. 621,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      Prior section 5121(a)(2) regarded wholesale dealers in liquors
    selling in quantities of less than 5 wine gallons as retail dealers
    liable to special tax. See section 5122(a) of this title.
      Prior section 5121(b)(2) regarded wholesale dealers in beer
    selling in quantities of less than 5 gallons as retail dealers
    liable to special tax. See section 5122(b) of this title.
      Prior section 5121(c) also described limited retail dealers. See
    section 5122(c) of this title.
      Provisions similar to those comprising subsecs. (a)(1), (2) of
    this section were contained in prior section 5122(a), (c), act Aug.
    16, 1954, ch. 736, 68A Stat. 621, prior to the general revision of
    this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1987 - Subsec. (a). Pub. L. 100-203, Sec. 10512(c)(1),
    substituted "$250" for "$54".
      Subsec. (b). Pub. L. 100-203, Sec. 10512(c)(2), substituted
    "$250" for "$24".
      Subsec. (c). Pub. L. 100-203, Sec. 10512(c)(3), struck out
    subsec. (c) which read as follows: "Every limited retail dealer
    shall pay a special tax of $4.50 for each calendar month in which
    sales are made as such dealer; except that the special tax shall be
    $2.20 for each calendar month in which only sales of beer or wine
    are made."
      1976 - Subsec. (a). Pub. L. 94-455, Sec. 1905(b)(3)(C), struck
    out provision for the issuance of a stamp denoting payment of the
    special tax.
      Subsec. (c). Pub. L. 94-455, Sec. 1905(a)(9), substituted "$4.50"
    for "$2.20" as amount of special tax for each calendar month in
    which sales are made as such dealer, and inserted provision setting
    special tax at $2.20 for each calendar month in which only sales of
    beer or wine are made.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-203 effective Jan. 1, 1988, see section
    10512(h) of Pub. L. 100-203, set out as an Effective Date note
    under section 5081 of this title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-455 effective on first day of first month
    which begins more than 90 days after Oct. 4, 1976, see section
    1905(d) of Pub. L. 94-455, set out as a note under section 5005 of
    this title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5122                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart E - Retail Dealers

-HEAD-
    Sec. 5122. Definitions

-STATUTE-
    (a) Retail dealers in liquors
      When used in this chapter, the term "retail dealer in liquors"
    means any dealer, other than a retail dealer in beer or a limited
    retail dealer, who sells, or offers for sale, any distilled
    spirits, wines, or beer, to any person other than a dealer.
    (b) Retail dealer in beer
      When used in this chapter, the term "retail dealer in beer" means
    any dealer, other than a limited retail dealer, who sells, or
    offers for sale, beer, but not distilled spirits or wines, to any
    person other than a dealer.
    (c) Limited retail dealer
      When used in this chapter, the term "limited retail dealer" means
    any fraternal, civic, church, labor, charitable, benevolent, or ex-
    servicemen's organization making sales of distilled spirits, wine
    or beer on the occasion of any kind of entertainment, dance,
    picnic, bazaar, or festival held by it, or any person making sales
    of distilled spirits, wine or beer to the members, guests, or
    patrons of bona fide fairs, reunions, picnics, carnivals, or other
    similar outings, if such organization or person is not otherwise
    engaged in business as a dealer.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1344; amended Pub. L. 94-455, title XIX, Sec. 1905(a)(10), Oct. 4,
    1976, 90 Stat. 1819.)


-STATAMEND-
     REPEAL OF SECTION AND AMENDMENT AND REDESIGNATION OF SECTION 5124
                                  AS 5122
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(D), (b)(6), (c), Aug.
    10, 2005, 119 Stat. 1953, 1955, 1957, provided that, effective July
    1, 2008, but inapplicable to taxes imposed for periods before such
    date:
      (1) this section is repealed; and
      (2) section 5124 of this title is transferred and inserted after
    section 5121 of this title and amended as follows:
      (A) by striking the section catchline and inserting "Sec. 5122.
    Recordkeeping by retail dealers";
      (B) in subsection (c), by substituting "section 5123" for
    "section 5146"; and
      (C) by redesignating subsection (c) as (d) and inserting the
    following new subsection (c):
    (c) Retail dealers
      For purposes of this section - 
      (1) Retail dealer in liquors
        The term "retail dealer in liquors" means any dealer (other
      than a retail dealer in beer or a limited retail dealer) who
      sells, or offers for sale, distilled spirits, wines, or beer, to
      any person other than a dealer.
      (2) Retail dealer in beer
        The term "retail dealer in beer" means any dealer (other than a
      limited retail dealer) who sells, or offers for sale, beer, but
      not distilled spirits or wines, to any person other than a
      dealer.
      (3) Limited retail dealer
        The term "limited retail dealer" means any fraternal, civic,
      church, labor, charitable, benevolent, or ex-servicemen's
      organization making sales of distilled spirits, wine or beer on
      the occasion of any kind of entertainment, dance, picnic, bazaar,
      or festival held by it, or any person making sales of distilled
      spirits, wine or beer to the members, guests, or patrons of bona
      fide fairs, reunions, picnics, carnivals, or other similar
      outings, if such organization or person is not otherwise engaged
      in business as a dealer.
      (4) Dealer
        The term "dealer" has the meaning given such term by section
      5121(c)(3).


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5122, act Aug. 16, 1954, ch. 736, 68A Stat. 621,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      Prior section 5122(a) also provided for issuance of stamp
    denoting payment of special tax as "retail dealer in wines" or
    "retail dealer in wines and beer". See section 5121(a)(1) of this
    title.
      Prior section 5122(c) related to "retail drug stores or
    pharmacies". See section 5121(a)(2) of this title.
      Provisions similar to those comprising subsec. (c) of this
    section were contained in prior section 5121(c), act Aug. 16, 1954,
    ch. 736, 68A Stat. 620.

                                AMENDMENTS                            
      1976 - Subsec. (c). Pub. L. 94-455 inserted reference to
    distilled spirits.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-455 effective on first day of first month
    which begins more than 90 days after Oct. 4, 1976, see section
    1905(d) of Pub. L. 94-455, set out as a note under section 5005 of
    this title.

-End-



-CITE-
    26 USC Sec. 5123                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart E - Retail Dealers

-HEAD-
    Sec. 5123. Exemptions

-STATUTE-
    (a) Wholesale dealers
      (1) Wholesale dealers in liquors
        No special tax shall be imposed under section 5121(a) or (b) on
      any dealer by reason of the selling, or selling, or offering for
      sale, of distilled spirits, wines, or beer at any location where
      such dealer is required to pay special tax under section 5111(a).
      (2) Wholesale dealers in beer
        No special tax shall be imposed under section 5121(b) on any
      dealer by reason of the selling, or offering for sale, of beer at
      any location where such dealer is required to pay special tax
      under section 5111(b).
    (b) Business conducted in more than one location
      (1) Retail dealers at large
        Any retail dealer in liquors or retailer dealer in beer whose
      business is such as to require him to travel from place to place
      in different States of the United States may, under regulations
      prescribed by the Secretary, procure a special tax stamp "At
      Large" covering his activities throughout the United States with
      the payment of but one special tax as a retail dealer in liquors
      or as a retail dealer in beer, as the case may be.
      (2) Dealers on trains, aircraft, and boats
        Nothing contained in this chapter shall prevent the issue,
      under such regulations as the Secretary may prescribe, of special
      tax stamps to - 
          (A) persons carrying on the business of retail dealers in
        liquors, or retail dealers in beer, on trains, aircraft, boats
        or other vessels, engaged in the business of carrying
        passengers; or
          (B) persons carrying on the business of retail dealers in
        liquors or retail dealers in beer on boats or other vessels
        operated by them, when such persons operate from a fixed
        address in a port or harbor and supply exclusively boats or
        other vessels, or persons thereon, at such port or harbor.
      (3) Liquor stores operated by States, political subdivisions,
        etc.
        A State, a political subdivision of a State, or the District of
      Columbia shall not be required to pay more than one special tax
      as a retail dealer in liquors under section 5121(a) regardless of
      the number of locations at which such State, political
      subdivision, or District carries on business as a retail dealer
      in liquors.
    (c) Coordination of taxes under section 5121
      No tax shall be imposed by section 5121(a) with respect to a
    person's activities at any place during a year if such person has
    paid the tax imposed by section 5121(b) with respect to such place
    for such year.
    (d) Cross references
          (1) For exemption of proprietors of distilled spirits plants,
        bonded wine cellars, and breweries from special tax as dealers,
        see section 5113(a).
          (2) For provisions relating to sales by creditors,
        fiduciaries, and officers of courts, see section 5113(c)(1).
          (3) For provisions relating to sales by retiring partners or
        representatives of deceased partners to incoming or remaining
        partners, see section 5113(c)(2).
          (4) For provisions relating to return of liquors for credit,
        refund, or exchange, see section 5113(c)(3).
          (5) For provisions relating to sales by retail dealers in
        liquidation, see section 5113(e).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1344; amended Pub. L. 87-863, Sec. 4(a), Oct. 23, 1962, 76 Stat.
    1142; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
    90 Stat. 1834; Pub. L. 100-647, title II, Sec. 2004(t)(3), Nov. 10,
    1988, 102 Stat. 3610.)


-STATAMEND-
        REPEAL OF SECTION AND REDESIGNATION OF SECTION 5146 AS 5123    
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(D), (b)(7), (c), Aug.
    10, 2005, 119 Stat. 1953, 1955, 1957, provided that, effective July
    1, 2008, but inapplicable to taxes imposed for periods before such
    date, this section is repealed and section 5146 of this title is
    redesignated section 5123.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5123, act Aug. 16, 1954, ch. 736, 68A Stat. 621,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      Former section 5123(a), (b)(3), and (c) related to "exemptions of
    brewers selling in eighth-barrel packages", "dealers making sales
    on purchaser dealers' premises" and "sales by retail dealers in
    liquidation". See section 5113(a), (d)(1), (2) and (e),
    respectively, of this title.

                                AMENDMENTS                            
      1988 - Subsecs. (c), (d). Pub. L. 100-647 added subsec. (c) and
    redesignated former subsec. (c) as (d).
      1976 - Subsec. (b)(1), (2). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary".
      1962 - Subsec. (b)(3). Pub. L. 87-863 added par. (3).

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Amendment by Pub. L. 100-647 effective, except as otherwise
    provided, as if included in the provisions of the Revenue Act of
    1987, Pub. L. 100-203, title X, to which such amendment relates,
    see section 2004(u) of Pub. L. 100-647, set out as a note under
    section 56 of this title.

                     EFFECTIVE DATE OF 1962 AMENDMENT                 
      Amendment by Pub. L. 87-863 effective July 1, 1962, see section
    4(c) of Pub. L. 87-863, set out as a note under section 5113 of
    this title.

-End-



-CITE-
    26 USC Sec. 5124                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart E - Retail Dealers

-HEAD-
    Sec. 5124. Records

-STATUTE-
    (a) Receipts
      Every retail dealer in liquors and every retail dealer in beer
    shall provide and keep in his place of business a record in book
    form of all distilled spirits, wines, and beer received, showing
    the quantity thereof and from whom and the dates received, or shall
    keep all invoices of, and bills for, all distilled spirits, wines,
    and beer received.
    (b) Dispositions
      When he deems it necessary for law enforcement purposes or the
    protection of the revenue, the Secretary may by regulations require
    retail dealers in liquors and retail dealers in beer to keep
    records of the disposition of distilled spirits, wines, or beer, in
    such form or manner and of such quantities as the Secretary may
    prescribe.
    (c) Cross references
          For provisions relating to the preservation and inspection of
        records, and entry of premises for inspection, see section
        5146.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1345; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 109-59, title XI, Sec.
    11125(b)(6)(A), (B)(i), Aug. 10, 2005, 119 Stat. 1955.)


-STATAMEND-
                  REDESIGNATION AND ENACTMENT OF SECTION              
      Pub. L. 109-59, title XI, Sec. 11125(b)(6)(A), (B)(i), (8), (c),
    Aug. 10, 2005, 119 Stat. 1955, 1957, provided that, effective July
    1, 2008, but inapplicable to taxes imposed for periods before such
    date:
      (1) this section is transferred and inserted after section 5121
    of this title and amended by striking the section catchline and
    inserting "Sec. 5122. Recordkeeping by retail dealers"; and
      (2) a new section 5124 of this title is enacted to read as
    follows:
    Sec. 5124. Registration by dealers
      Every dealer who is subject to the recordkeeping requirements
    under section 5121 or 5122 shall register with the Secretary such
    dealer's name or style, place of residence, trade or business, and
    the place where such trade or business is to be carried on. In the
    case of a firm or company, the names of the several persons
    constituting the same, and the places of residence, shall be so
    registered.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5124, act Aug. 16, 1954, ch. 736, 68A Stat. 622,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      Prior section 5124(b), (c) related to "inspection and
    preservation of records". See section 5146(a) of this title.
      Prior section 5124(d) was a cross reference to a penalty
    provision relating to retail dealers' records.

                                AMENDMENTS                            
      1976 - Subsec. (b). Pub. L. 94-455 struck out "or his delegate"
    after "Secretary" in two places.

                     EFFECTIVE DATE OF 2005 AMENDMENT                 
      Amendment by Pub. L. 109-59 effective July 1, 2008, but
    inapplicable to taxes imposed for periods before such date, see
    section 11125(c) of Pub. L. 109-59, set out as a note under section
    5002 of this title.

-End-



-CITE-
    26 USC Sec. 5125                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart E - Retail Dealers

-HEAD-
    Sec. 5125. Cross references

-STATUTE-
          (1) For provisions relating to prohibited purchases by
        dealers, see section 5117.
          (2) For provisions relating to presumptions of liability as
        wholesale dealer in case of sale of 20 wine gallons or more,
        see section 5691(b).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1345.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(D), (c), Aug. 10,
    2005, 119 Stat. 1953, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date,
    this section is repealed.

-End-


-CITE-
    26 USC Subpart F - Nonbeverage Domestic Drawback
           Claimants                                       01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart F - Nonbeverage Domestic Drawback Claimants

-HEAD-
            SUBPART F - NONBEVERAGE DOMESTIC DRAWBACK CLAIMANTS        

-MISC1-
    Sec.                                                     
    5131.       Eligibility and rate of tax.                          
    5132.       Registration and regulation.                          
    5133.       Investigation of claims.                              
    5134.       Drawback.                                             


-STATAMEND-
           REDESIGNATION OF SUBPART F AND ENACTMENT OF SUBPART D       
      Pub. L. 109-59, title XI, Sec. 11125(b)(3)(A), (10), (c), Aug.
    10, 2005, 119 Stat. 1953, 1955, 1957, provided that, effective July
    1, 2008, but inapplicable to taxes imposed for periods before such
    date, this subpart is redesignated subpart B and a new subpart D is
    added with subpart heading and analysis to read as follows:

                       SUBPART D - OTHER PROVISIONS                   

-MISC2-
    Sec.                                                     
    5131.       Packaging distilled spirits for industrial uses.      
    5132.       Prohibited purchases by dealers.                      

                             PRIOR PROVISIONS                         
      A prior subpart F, consisting of sections 5131 to 5134, related
    to nonbeverage domestic drawback claimants, prior to the general
    revision of this chapter by Pub. L. 85-859, title II, Sec. 201,
    Sept. 2, 1958, 72 Stat. 1313.

-End-



-CITE-
    26 USC Sec. 5131                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart F - Nonbeverage Domestic Drawback Claimants

-HEAD-
    Sec. 5131. Eligibility and rate of tax

-STATUTE-
    (a) Eligibility for drawback
      Any person using distilled spirits on which the tax has been
    determined, in the manufacture or production of medicines,
    medicinal preparations, food products, flavors, flavoring extracts,
    or perfume, which are unfit for beverage purposes, on payment of a
    special tax per annum, shall be eligible for drawback at the time
    when such distilled spirits are used in the manufacture of such
    products as provided for in this subpart.
    (b) Rate of tax
      The special tax imposed by subsection (a) shall be $500 per year.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1345; amended Pub. L. 94-455, title XIX, Sec. 1905(a)(11), Oct. 4,
    1976, 90 Stat. 1819; Pub. L. 100-203, title X, Sec. 10512(d), Dec.
    22, 1987, 101 Stat. 1330-448; Pub. L. 103-465, title I, Sec.
    136(b), Dec. 8, 1994, 108 Stat. 4841; Pub. L. 109-59, title XI,
    Sec. 11125(a)(2), (b)(3)(A), Aug. 10, 2005, 119 Stat. 1953.)


-STATAMEND-
                  AMENDMENT AND REDESIGNATION OF SECTION              
      Pub. L. 109-59, title XI, Sec. 11125(a)(2), (b)(3)(A), (11), (c),
    Aug. 10, 2005, 119 Stat. 1953, 1956, 1957, provided that, effective
    July 1, 2008, but inapplicable to taxes imposed for periods before
    such date:
      (1) this section is redesignated section 5111 of this title and
    subsection (a) of this section is amended by striking out ", on
    payment of a special tax per annum,"; and
      (2) section 5116 of this title is inserted after the table of
    sections of subpart D, redesignated section 5131, and amended by
    inserting "(as defined in section 5121(c))" after "dealer" in
    subsection (a).


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5131, act Aug. 16, 1954, ch. 736, 68A Stat. 622,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1994 - Subsec. (a). Pub. L. 103-465 substituted "flavoring
    extracts, or perfume" for "or flavoring extracts".
      1987 - Subsec. (b). Pub. L. 100-203 amended subsec. (b)
    generally. Prior to amendment, subsec. (b) read as follows: "The
    special tax imposed by subsection (a) shall be graduated in amount
    as follows: (1) for total annual use not exceeding 25 proof
    gallons, $25 a year; (2) for total annual use not exceeding 50
    proof gallons, $50 a year; (3) for total annual use of more than 50
    proof gallons, $100 a year."
      1976 - Subsec. (a). Pub. L. 94-455 struck out "produced in a
    domestic registered distillery or industrial alcohol plant and
    withdrawn from bond, or using distilled spirits withdrawn from the
    bonded premises of a distilled spirits plant," after "Any person
    using distilled spirits".

                     EFFECTIVE DATE OF 2005 AMENDMENT                 
      Amendment by Pub. L. 109-59 effective July 1, 2008, but
    inapplicable to taxes imposed for periods before such date, see
    section 11125(c) of Pub. L. 109-59, set out as a note under section
    5002 of this title.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-465 effective Jan. 1, 1995, see section
    136(d) of Pub. L. 103-465, set out as a note under section 5001 of
    this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-203 effective Jan. 1, 1988, see section
    10512(h) of Pub. L. 100-203, set out as an Effective Date note
    under section 5081 of this title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-455 effective on first day of first month
    which begins more than 90 days after Oct. 4, 1976, see section
    1905(d) of Pub. L. 94-455, set out as a note under section 5005 of
    this title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5132                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart F - Nonbeverage Domestic Drawback Claimants

-HEAD-
    Sec. 5132. Registration and regulation

-STATUTE-
      Every person claiming drawback under this subpart shall register
    annually with the Secretary; keep such books and records as may be
    necessary to establish the fact that distilled spirits received by
    him and on which the tax has been determined were used in the
    manufacture or production of medicines, medicinal preparations,
    food products, flavors, flavoring extracts, or perfume, which were
    unfit for use for beverage purposes; and be subject to such rules
    and regulations in relation thereto as the Secretary shall
    prescribe to secure the Treasury against frauds.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1345; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 103-465, title I, Sec. 136(b), Dec.
    8, 1994, 108 Stat. 4841; Pub. L. 109-59, title XI, Sec.
    11125(b)(3)(A), Aug. 10, 2005, 119 Stat. 1953.)


-STATAMEND-
                  REDESIGNATION AND ENACTMENT OF SECTION              
      Pub. L. 109-59, title XI, Sec. 11125(b)(3)(A), (12), (c), Aug.
    10, 2005, 119 Stat. 1953, 1956, 1957, provided that, effective July
    1, 2008, but inapplicable to taxes imposed for periods before such
    date, this section is redesignated section 5112 of this title and a
    new section 5132 of this title is enacted to read as follows:
    Sec. 5132. Prohibited purchases by dealers
    (a) In general
      Except as provided in regulations prescribed by the Secretary, it
    shall be unlawful for a dealer to purchase distilled spirits for
    resale from any person other than a wholesale dealer in liquors who
    is required to keep the records prescribed by section 5121.
    (b) Limited retail dealers
      A limited retail dealer may lawfully purchase distilled spirits
    for resale from a retail dealer in liquors.
    (c) Penalty and forfeiture
          For penalty and forfeiture provisions applicable to
        violations of subsection (a), see sections 5687 and 7302.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5132, act Aug. 16, 1954, ch. 736, 68A Stat. 623,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1994 - Pub. L. 103-465 substituted "flavoring extracts, or
    perfume" for "or flavoring extracts".
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-465 effective Jan. 1, 1995, see section
    136(d) of Pub. L. 103-465, set out as a note under section 5001 of
    this title.

-End-



-CITE-
    26 USC Sec. 5133                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart F - Nonbeverage Domestic Drawback Claimants

-HEAD-
    Sec. 5133. Investigation of claims

-STATUTE-
      For the purpose of ascertaining the correctness of any claim
    filed under this subpart, the Secretary is authorized to examine
    any books, papers, records, or memoranda bearing upon the matters
    required to be alleged in the claim, to require the attendance of
    the person filing the claim or of any officer or employee of such
    person or the attendance of any other person having knowledge in
    the premises, to take testimony with reference to any matter
    covered by the claim, and to administer oaths to any person giving
    such testimony.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1346; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 109-59, title XI, Sec.
    11125(b)(3)(A), Aug. 10, 2005, 119 Stat. 1953.)


-STATAMEND-
                         REDESIGNATION OF SECTION                     
      Pub. L. 109-59, title XI, Sec. 11125(b)(3)(A), (c), Aug. 10,
    2005, 119 Stat. 1953, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date,
    this section is redesignated section 5113 of this title.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5133, act Aug. 16, 1954, ch. 736, 68A Stat. 623,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

-End-



-CITE-
    26 USC Sec. 5134                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart F - Nonbeverage Domestic Drawback Claimants

-HEAD-
    Sec. 5134. Drawback

-STATUTE-
    (a) Rate of drawback
      In the case of distilled spirits on which the tax has been paid
    or determined, and which have been used as provided in this
    subpart, a drawback shall be allowed on each proof gallon at a rate
    of $1 less than the rate at which the distilled spirits tax has
    been paid or determined.
    (b) Claims
      Such drawback shall be due and payable quarterly upon filing of a
    proper claim with the Secretary; except that, where any person
    entitled to such drawback shall elect in writing to file monthly
    claims therefor, such drawback shall be due and payable monthly
    upon filing of a proper claim with the Secretary. The Secretary may
    require persons electing to file monthly drawback claims to file
    with him a bond or other security in such amount and with such
    conditions as he shall by regulations prescribe. Any such election
    may be revoked on filing of notice thereof with the Secretary. No
    claim under this subpart shall be allowed unless filed with the
    Secretary within the 6 months next succeeding the quarter in which
    the distilled spirits covered by the claim were used as provided in
    this subpart.
    (c) Allowance of drawback even where certain requirements not met
      (1) In general
        No claim for drawback under this section shall be denied in the
      case of a failure to comply with any requirement imposed under
      this subpart or any rule or regulation issued thereunder upon the
      claimant's establishing to the satisfaction of the Secretary that
      distilled spirits on which the tax has been paid or determined
      were in fact used in the manufacture or production of medicines,
      medicinal preparations, food products, flavors, flavoring
      extracts, or perfume, which were unfit for beverage purposes.
      (2) Penalty
        (A) In general
          In the case of a failure to comply with any requirement
        imposed under this subpart or any rule or regulation issued
        thereunder, the claimant shall be liable for a penalty of
        $1,000 for each failure to comply unless it is shown that the
        failure to comply was due to reasonable cause.
        (B) Penalty may not exceed amount of claim
          The aggregate amount of the penalties imposed under
        subparagraph (A) for failures described in paragraph (1) in
        respect of any claim shall not exceed the amount of such claim
        (determined without regard to subparagraph (A)).
      (3) Penalty treated as tax
        The penalty imposed by paragraph (2) shall be assessed,
      collected, and paid in the same manner as taxes, as provided in
      section 6665(a).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1346; amended Pub. L. 90-615, Sec. 2(a), Oct. 21, 1968, 82 Stat.
    1210; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
    90 Stat. 1834; Pub. L. 98-369, div. A, title IV, Sec. 452, July 18,
    1984, 98 Stat. 819; Pub. L. 103-465, title I, Sec. 136(b), Dec. 8,
    1994, 108 Stat. 4841; Pub. L. 104-188, title I, Sec. 1704(t)(12),
    Aug. 20, 1996, 110 Stat. 1888; Pub. L. 109-59, title XI, Sec.
    11125(b)(3)(A), Aug. 10, 2005, 119 Stat. 1953.)


-STATAMEND-
                            TRANSFER OF SECTION                        
      Pub. L. 109-59, title XI, Sec. 11125(b)(3)(A), (c), Aug. 10,
    2005, 119 Stat. 1953, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date,
    this section is redesignated section 5114 of this title.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5134, acts Aug. 16, 1954, ch. 736, 68A Stat. 623;
    Mar. 30, 1955, ch. 18, Sec. 3(b)(2), 69 Stat. 15; Mar. 29, 1956,
    ch. 115, Sec. 3(b)(2), 70 Stat. 67; Mar. 29, 1957, Pub. L. 85-12,
    Sec. 3(b)(2), 71 Stat. 10; June 30, 1958, Pub. L. 85-475, Sec.
    3(b)(2), 72 Stat. 259, consisted of provisions similar to those
    comprising this section, prior to the general revision of this
    chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1996 - Subsec. (c)(3). Pub. L. 104-188 substituted "section
    6665(a)" for "section 6662(a)".
      1994 - Subsec. (c)(1). Pub. L. 103-465 substituted "flavoring
    extracts, or perfume" for "or flavoring extracts".
      1984 - Subsec. (c). Pub. L. 98-369 added subsec. (c).
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.
      1968 - Subsec. (b). Pub. L. 90-615 substituted "6 months" for "3
    months" in last sentence.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-465 effective Jan. 1, 1995, see section
    136(d) of Pub. L. 103-465, set out as a note under section 5001 of
    this title.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 applicable to products manufactured
    or produced after Oct. 31, 1984, see section 456(d) of Pub. L. 98-
    369, set out as an Effective Date note under section 5101 of this
    title.

                     EFFECTIVE DATE OF 1968 AMENDMENT                 
      Section 2(b) of Pub. L. 90-615 provided that: "The amendment made
    by subsection (a) [amending this section] shall apply to claims
    filed on or after the date of the enactment of this Act [Oct. 21,
    1968]."

-End-


-CITE-
    26 USC Subpart G - General Provisions                       01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart G - General Provisions

-HEAD-
                      SUBPART G - GENERAL PROVISIONS                  

-MISC1-
    Sec.                                                     
    5141.       Registration.                                         
    5142.       Payment of tax.                                       
    5143.       Provisions relating to liability for occupational
                 taxes.                                               
    [5144.      Repealed.]                                            
    5145.       Application of State laws.                            
    5146.       Preservation and inspection of records, and entry of
                 premises for inspection.                             
    5147.       Application of subpart.                               
    5148.       Suspension of occupational tax.                       
    5149.       Cross references.                                     


-STATAMEND-
                             REPEAL OF SUBPART                         
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(E), (c), Aug. 10,
    2005, 119 Stat. 1953, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date,
    this subpart, other than sections 5142, 5143, 5145, and 5146 of
    this title, is repealed.


-MISC2-
                             PRIOR PROVISIONS                         
      A prior subpart G, consisting of sections 5141 to 5149, related
    to general provisions, prior to the general revision of this
    chapter by Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72
    Stat. 1313.

                                AMENDMENTS                            
      2004 - Pub. L. 108-357, title II, Sec. 246(c), Oct. 22, 2004, 118
    Stat. 1449, added items 5148 and 5149 and struck out former item
    5148 "Cross references".
      1976 - Pub. L. 94-455, title XIX, Sec. 1905(b)(3)(D)(ii), Oct. 4,
    1976, 90 Stat. 1822, struck out item 5144 "Supply of stamps".

-End-



-CITE-
    26 USC Sec. 5141                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart G - General Provisions

-HEAD-
    Sec. 5141. Registration

-STATUTE-
          For provisions relating to registration in the case of
        persons engaged in any trade or business on which a special tax
        is imposed, see section 7011(a).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1346.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(E), (c), Aug. 10,
    2005, 119 Stat. 1953, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date,
    this section is repealed.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5141, act Aug. 16, 1954, ch. 736, 68A Stat. 624,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5142                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart G - General Provisions

-HEAD-
    Sec. 5142. Payment of tax

-STATUTE-
    (a) Condition precedent to carrying on business
      No person shall be engaged in or carry on any trade or business
    subject to tax under this part (except the tax imposed by section
    5131) until he has paid the special tax therefor.
    (b) Computation
      All special taxes under this part (except the tax imposed by
    section 5131) shall be imposed as of on the first day of July in
    each year, or on commencing any trade or business on which such tax
    is imposed. In the former case the tax shall be reckoned for 1
    year, and in the latter case it shall be reckoned proportionately,
    from the first day of the month in which the liability to a special
    tax commenced, to and including the 30th day of June following.
    (c) How paid
      (1) Payment by return
        The special taxes imposed by this part shall be paid on the
      basis of a return under such regulations as the Secretary shall
      prescribe.
      (2) Stamp denoting payment of tax
        After receiving a properly executed return and remittance of
      any special tax imposed by this subpart, the Secretary shall
      issue to the taxpayer an appropriate stamp as a receipt denoting
      payment of the tax. This paragraph shall not apply in the case of
      a return covering liability for a past period.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1346; amended Pub. L. 94-455, title XIX, Sec. 1905(a)(12), Oct. 4,
    1976, 90 Stat. 1820; Pub. L. 109-59, title XI, Sec.
    11125(b)(20)(A), Aug. 10, 2005, 119 Stat. 1956.)


-STATAMEND-
                         REDESIGNATION OF SECTION                     
      Pub. L. 109-59, title XI, Sec. 11125(b)(20)(A), (c), Aug. 10,
    2005, 119 Stat. 1956, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date,
    this section is redesignated section 5732 of this title and
    transferred to subchapter D of chapter 52 of this title.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5142, act Aug. 16, 1954, ch. 736, 68A Stat. 624,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      Prior section 5142(d) also contained a cross reference to a
    penalty and forfeiture provision for nonpayment of special taxes.
    See section 5149(1) of this title.

                                AMENDMENTS                            
      1976 - Subsec. (c). Pub. L. 94-455 substituted provisions under
    which the special taxes would be paid on the basis of a return for
    provisions under which the special taxes were paid by stamps
    denoting the tax.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-455 effective on first day of first month
    which begins more than 90 days after Oct. 4, 1976, see section
    1905(d) of Pub. L. 94-455, set out as a note under section 5005 of
    this title.

-End-



-CITE-
    26 USC Sec. 5143                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart G - General Provisions

-HEAD-
    Sec. 5143. Provisions relating to liability for occupational taxes

-STATUTE-
    (a) Partners
      Any number of persons doing business in partnership at any one
    place shall be required to pay but one special tax.
    (b) Different businesses of same ownership and location
      Whenever more than one of the pursuits or occupations described
    in this part are carried on in the same place by the same person at
    the same time, except as otherwise provided in this part, the tax
    shall be paid for each according to the rates severally prescribed.
    (c) Businesses in more than one location
      (1) Liability for tax
        The payment of a special tax imposed by this part shall not
      exempt from an additional special tax the person carrying on a
      trade or business in any other place than that stated in the
      register kept in the office of the official in charge of the
      internal revenue district.
      (2) Storage
        Nothing contained in paragraph (1) shall require a special tax
      for the storage of liquors at a location other than the place
      where liquors are sold or offered for sale.
      (3) Definition of place
        The term "place" as used in this section means the entire
      office, plant or area of the business in any one location under
      the same proprietorship; and passageways, streets, highways, rail
      crossings, waterways, or partitions dividing the premises, shall
      not be deemed sufficient separation to require additional special
      tax, if the various divisions are otherwise contiguous.
    (d) Death or change of location
      Certain persons, other than the person who has paid the special
    tax under this part for the carrying on of any business at any
    place, may secure the right to carry on, without incurring
    additional special tax, the same business at the same place for the
    remainder of the taxable period for which the special tax was paid.
    The persons who may secure such right are:
        (1) the surviving spouse or child, or executor or administrator
      or other legal representative, of a deceased taxpayer;
        (2) a husband or wife succeeding to the business of his or her
      living spouse;
        (3) a receiver or trustee in bankruptcy, or an assignee for
      benefit of creditors; and
        (4) the partner or partners remaining after death or withdrawal
      of a member of a partnership.

    When any person moves to any place other than the place for which
    special tax was paid for the carrying on of any business, he may
    secure the right to carry on, without incurring additional special
    tax, the same business at his new location for the remainder of the
    taxable period for which the special tax was paid. To secure the
    right to carry on the business without incurring additional special
    tax, the successor, or the person relocating his business, must
    register the succession or relocation with the Secretary in
    accordance with regulations prescribed by the Secretary.
    (e) Federal agencies or instrumentalities
      Any tax imposed by this part shall apply to any agency or
    instrumentality of the United States unless such agency or
    instrumentality is granted by statute a specific exemption from
    such tax.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1347; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 109-59, title XI, Sec.
    11125(b)(20)(A), Aug. 10, 2005, 119 Stat. 1956.)


-STATAMEND-
                         REDESIGNATION OF SECTION                     
      Pub. L. 109-59, title XI, Sec. 11125(b)(20)(A), (c), Aug. 10,
    2005, 119 Stat. 1956, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date,
    this section is redesignated section 5733 of this title and
    transferred to subchapter D of chapter 52 of this title.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5143, act Aug. 16, 1954, ch. 736, 68A Stat. 624,
    related to time for filing returns and cross-referred to penalty
    provisions for failure to file returns or for making false or
    fraudulent returns, prior to the general revision of this chapter
    by Pub. L. 85-859. See subtitle F of this title.
      Provisions similar to those comprising this section were
    contained in a prior section 5144, act Aug. 16, 1954, ch. 736, 68A
    Stat. 624, prior to the general revision of this chapter by Pub. L.
    85-859.

                                AMENDMENTS                            
      1976 - Subsec. (d)(4). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary".

-End-



-CITE-
    26 USC Sec. 5144                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart G - General Provisions

-HEAD-
    Sec. 5144. Repealed.

-MISC1-
    [Sec. 5144. Repealed. Pub. L. 94-455, title XIX, Sec.
      1905(b)(3)(D)(i), Oct. 4, 1976, 90 Stat. 1822].
      Section, added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958,
    72 Stat. 1348, authorized and directed Secretary or his delegate to
    procure the necessary stamps for payment of special taxes and to
    make needful regulations relative thereto.
      A prior section 5144, act Aug. 16, 1954, ch. 736, 68A Stat. 624,
    related to liability for occupational taxes, prior to the general
    revision of this chapter by Pub. L. 85-859. See sections 5113(a)
    and 5143 of this title.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective on first day of first month which begins more
    than 90 days after Oct. 4, 1976, see section 1905(d) of Pub. L. 94-
    455, set out as an Effective Date of 1976 Amendment note under
    section 5005 of this title.

-End-



-CITE-
    26 USC Sec. 5145                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart G - General Provisions

-HEAD-
    Sec. 5145. Application of State laws

-STATUTE-
      The payment of any tax imposed by this part for carrying on any
    trade or business shall not be held to exempt any person from any
    penalty or punishment provided by the laws of any State for
    carrying on such trade or business within such State, or in any
    manner to authorize the commencement or continuance of such trade
    or business contrary to the laws of such State or in places
    prohibited by municipal law; nor shall the payment of any such tax
    be held to prohibit any State from placing a duty or tax on the
    same trade or business, for State or other purposes.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1348; amended Pub. L. 109-59, title XI, Sec. 11125(b)(20)(A), Aug.
    10, 2005, 119 Stat. 1956.)


-STATAMEND-
                         REDESIGNATION OF SECTION                     
      Pub. L. 109-59, title XI, Sec. 11125(b)(20)(A), (c), Aug. 10,
    2005, 119 Stat. 1956, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date,
    this section is redesignated section 5734 of this title and
    transferred to subchapter D of chapter 52 of this title.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5145, act Aug. 16, 1954, ch. 736, 68A Stat. 625,
    related to "supply of stamps", prior to the general revision of
    this chapter by Pub. L. 85-859. See section 5144 of this title.
      Provisions similar to those comprising this section were
    contained in a prior section 5148, act Aug. 16, 1954, ch. 736, 68A
    Stat. 626, prior to the general revision of this chapter by Pub. L.
    85-859.

-End-



-CITE-
    26 USC Sec. 5146                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart G - General Provisions

-HEAD-
    Sec. 5146. Preservation and inspection of records, and entry of
      premises for inspection

-STATUTE-
    (a) Preservation and inspection of records
      Any records or other documents required to be kept under this
    part or regulations issued pursuant thereto shall be preserved by
    the person required to keep such records or documents, as the
    Secretary may by regulations prescribe, and shall be kept available
    for inspection by any internal revenue officer during business
    hours.
    (b) Entry of premises for inspection
      The Secretary may enter during business hours the premises
    (including places of storage) of any dealer for the purpose of
    inspecting or examining any records or other documents required to
    be kept by such dealer under this chapter or regulations issued
    pursuant thereto and any distilled spirits, wines, or beer kept or
    stored by such dealer on such premises.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1348; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 109-59, title XI, Sec. 11125(b)(7),
    Aug. 10, 2005, 119 Stat. 1955.)


-STATAMEND-
                         REDESIGNATION OF SECTION                     
      Pub. L. 109-59, title XI, Sec. 11125(b)(7), (c), Aug. 10, 2005,
    119 Stat. 1955, 1957, provided that, effective July 1, 2008, but
    inapplicable to taxes imposed for periods before such date, this
    section is redesignated section 5123 of this title and transferred
    to subpart C of this part.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5146, act Aug. 16, 1954, ch. 736, 68A Stat. 625,
    contained cross references to provisions respecting posting stamp
    in place of business, prior to the general revision of this chapter
    by Pub. L. 85-859. See sections 6806 and 7273 of this title.
      Provisions similar to those comprising subsec. (a) of this
    section were contained in prior sections 5114(a) and 5124 (b), (c),
    act Aug. 16, 1954, ch. 736, 68A Stat. 619, 622, prior to the
    general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.

-End-



-CITE-
    26 USC Sec. 5147                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart G - General Provisions

-HEAD-
    Sec. 5147. Application of subpart

-STATUTE-
      The provisions of this subpart shall extend to and apply to the
    special taxes imposed by the other subparts of this part and to the
    persons on whom such taxes are imposed.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1348.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(E), (c), Aug. 10,
    2005, 119 Stat. 1953, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date,
    this section is repealed.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5147, act Aug. 16, 1954, ch. 736, 68A Stat. 626,
    made a cross reference to provision respecting keeping of list of
    special taxpayers for public inspection, prior to the general
    revision of this chapter by Pub. L. 85-859.
      Provisions similar to those comprising this section were
    contained in a prior section 5149, act Aug. 16, 1954, ch. 736, 68A
    Stat. 626, prior to the general revision of this chapter by Pub. L.
    85-859.

-End-



-CITE-
    26 USC Sec. 5148                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart G - General Provisions

-HEAD-
    Sec. 5148. Suspension of occupational tax

-STATUTE-
    (a) In general
      Notwithstanding sections 5081, 5091, 5111, 5121, and 5131, the
    rate of tax imposed under such sections for the suspension period
    shall be zero. During such period, persons engaged in or carrying
    on a trade or business covered by such sections shall register
    under section 5141 and shall comply with the recordkeeping
    requirements under this part.
    (b) Suspension period
      For purposes of subsection (a), the suspension period is the
    period beginning on July 1, 2005, and ending on June 30, 2008.

-SOURCE-
    (Added Pub. L. 108-357, title II, Sec. 246(a), Oct. 22, 2004, 118
    Stat. 1448.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(E), (c), Aug. 10,
    2005, 119 Stat. 1953, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date,
    this section is repealed.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5148 was renumbered section 5149 of this title.
      Another prior section 5148, act Aug. 16, 1954, ch. 736, 68A Stat.
    626, related to "Application of State laws", prior to the general
    revision of this chapter by Pub. L. 85-859. See section 5145 of
    this title.

-End-



-CITE-
    26 USC Sec. 5149                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter A - Gallonage and Occupational Taxes
    PART II - OCCUPATIONAL TAX
    Subpart G - General Provisions

-HEAD-
    Sec. 5149. Cross references

-STATUTE-
          (1) For penalties for willful nonpayment of special taxes,
        see section 5691.
          (2) For penalties applicable to this part generally, see
        subchapter J.
          (3) For penalties, authority for assessments, and other
        general and administrative provisions applicable to this part,
        see subtitle F.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1348, Sec. 5148; amended Pub. L. 94-455, title XIX, Sec.
    1905(b)(3)(E), Oct. 4, 1976, 90 Stat. 1822; renumbered Sec. 5149,
    Pub. L. 108-357, title II, Sec. 246(a), Oct. 22, 2004, 118 Stat.
    1448.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 109-59, title XI, Sec. 11125(a)(1)(E), (c), Aug. 10,
    2005, 119 Stat. 1953, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date,
    this section is repealed.


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising subd. (1) of this section
    were contained in a prior section 5142(d), act Aug. 16, 1954, ch.
    736, 68A Stat. 624, prior to the general revision of this chapter
    by Pub. L. 85-859.
      A prior section 5149, act Aug. 16, 1954, ch. 736, 68A Stat. 626,
    related to "Application of subpart", prior to the general revision
    of this chapter by Pub. L. 85-859. See section 5147 of this title.

                                AMENDMENTS                            
      2004 - Pub. L. 108-357 renumbered section 5148 of this title as
    this section.
      1976 - Par. (3). Pub. L. 94-455 inserted reference to authority
    for assessments.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-455 effective on first day of first month
    which begins more than 90 days after Oct. 4, 1976, see section
    1905(d) of Pub. L. 94-455, set out as a note under section 5005 of
    this title.

-End-


-CITE-
    26 USC Subchapter B - Qualification Requirements for
           Distilled Spirits Plants                        01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter B - Qualification Requirements for Distilled Spirits
                    Plants                      

-HEAD-
      SUBCHAPTER B - QUALIFICATION REQUIREMENTS FOR DISTILLED SPIRITS
                                  PLANTS

-MISC1-
    Sec.                                                     
    5171.       Establishment.                                        
    5172.       Application.                                          
    5173.       Bonds.                                                
    [5174.      Repealed.]                                            
    5175.       Export bonds.                                         
    5176.       New or renewed bonds.                                 
    5177.       Other provisions relating to bonds.                   
    5178.       Distilled spirits plants.(!1)                          
    5179.       Registration of stills.                               
    5180.       Signs.                                                
    5181.       Distilled spirits for fuel use.                       
    5182.       Cross references.                                     

                             PRIOR PROVISIONS                         
      A prior subchapter B, Distilleries, consisted of part I,
    Establishment, part II, Operation, and part III, General Provisions
    Relating to Distilleries and Distilled Spirits, and consisted of
    sections 5171 to 5180, 5191 to 5197, and 5211 to 5217,
    respectively, prior to the general revision of this chapter by Pub.
    L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.

                                AMENDMENTS                            
      1980 - Pub. L. 96-223, title II, Sec. 232(e)(2)(F), Apr. 2, 1980,
    94 Stat. 280, added item 5181 and redesignated former item 5181 as
    5182.
      1979 - Pub. L. 96-39, title VIII, Sec. 807(b)(4), July 26, 1979,
    93 Stat. 290, substituted "Bonds" for "Qualification bonds" in item
    5173, struck out item 5174 "Withdrawal bonds", and substituted
    "Distilled spirits plants" for "Premises of distilled spirits
    plants" in item 5178.

-FOOTNOTE-
    (!1) So in original. Does not conform to section catchline.


-End-



-CITE-
    26 USC Sec. 5171                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter B - Qualification Requirements for Distilled Spirits
                    Plants                      

-HEAD-
    Sec. 5171. Establishment

-STATUTE-
    (a) Certain operations may be conducted only on bonded premises
      Except as otherwise provided by law, operations as a distiller,
    warehouseman, or processor may be conducted only on the bonded
    premises of a distilled spirits plant by a person who is qualified
    under this subchapter.
    (b) Establishment of distilled spirits plant
      A distilled spirits plant may be established only by a person who
    intends to conduct at such plant operations as a distiller, as a
    warehouseman, or as both.
    (c) Registration
      (1) In general
        Each person shall, before commencing operations at a distilled
      spirits plant (and at such other times as the Secretary may by
      regulations prescribe), make application to the Secretary for,
      and receive notice of, the registration of such plant.
      (2) Application required where new operations are added
        No operation in addition to those set forth in the application
      made pursuant to paragraph (1) may be conducted at a distilled
      spirits plant until the person has made application to the
      Secretary for, and received notice of, the registration of such
      additional operation.
      (3) Secretary may establish minimum capacity and level of
        activity requirements
        The Secretary may by regulations prescribe for each type of
      operation minimum capacity and level of activity requirements for
      qualifying premises as a distilled spirits plant.
      (4) Applicant must comply with law and regulations
        No plant (or additional operation) shall be registered under
      this section until the applicant has complied with the
      requirements of law and regulations in relation to the
      qualification of such plant (or additional operation).
    (d) Permits
      (1) Requirements
        Each person required to file an application for registration
      under subsection (c) whose distilled spirits operations (or any
      part thereof) are not required to be covered by a basic permit
      under the Federal Alcohol Administration Act (27 U.S.C. secs. 203
      and 204) shall, before commencing the operations (or part
      thereof) not so covered, apply for and obtain a permit under this
      subsection from the Secretary to engage in such operations (or
      part thereof). Subsections (b), (c), (d), (e), (f), (g), and (h)
      of section 5271 are hereby made applicable to persons filing
      applications and permits required by or issued under this
      subsection.
      (2) Exceptions for agencies of a State or political subdivisions
        Paragraph (1) shall not apply to any agency of a State or
      political subdivision thereof or to any officer or employee of
      any such agency, and no such agency, officer, or employee shall
      be required to obtain a permit thereunder.
    (e) Cross references
          (1) For penalty for failure of a distiller or processor to
        file application for registration as required by this section,
        see section 5601(a)(2).
          (2) For penalty for the filing of a false application by a
        distiller, warehouseman, or processor of distilled spirits, see
        section 5601(a)(3).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1349; amended Pub. L. 94-455, title XIX, Secs. 1905(a)(13),
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1820, 1834; Pub. L. 96-39,
    title VIII, Sec. 805(a), July 26, 1979, 93 Stat. 274.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Federal Alcohol Administration Act, referred to in subsec.
    (d)(1), is act Aug. 29, 1935, ch. 814, 49 Stat. 977, as amended,
    which is classified generally to subchapter I (Sec. 201 et seq.) of
    chapter 8 of Title 27, Intoxicating Liquors. The basic permit is
    covered by sections 203 and 204 of Title 27. For complete
    classification of this Act to the Code, see section 201 of Title 27
    and Tables.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5171, act Aug. 16, 1954, ch. 736, 68A Stat. 627,
    related to "premises prohibited for distilling", prior to the
    general revision of this chapter by Pub. L. 85-859. See sections
    5178(a)(1)(B), (b), (c)(2), and 5505(b) of this title.
      Provisions similar to those comprising subsecs. (a), (b)(1) and
    (c) of this section were contained in prior sections of act Aug.
    16, 1954, prior to the general revision of this chapter by Pub. L.
    85-859, as follows:


        Present subsecs.:                    Prior sections             
    --------------------------------------------------------------------
    (a)                         5172, 5175(a), 5177(a), 5178, 5231,     
                                 5243(a), 5271(a), 5301-5303, 5305,     
                                 5331(a)(1).                            
    (b)(1)                      5301-5303, 5304(a)(1).                  
    (c)                         5175(b), 5271(b).                       
    --------------------------------------------------------------------

      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 627 to 631, 643, 645, 650, 654, 655.

                                AMENDMENTS                            
      1979 - Subsecs. (a), (b). Pub. L. 96-39 added subsecs. (a) and
    (b) and redesignated former subsecs. (a) and (b) as (c) and (d),
    respectively.
      Subsec. (c). Pub. L. 96-39 redesignated former subsec. (a) as (c)
    and inserted provisions relating to an application requirement
    where new operations are added and permitting the Secretary to
    establish minimum capacity and level of activity requirements.
    Former subsec. (c) redesignated (e).
      Subsec. (d). Pub. L. 96-39 redesignated former subsec. (b) as (d)
    and substituted reference to subsection (c) for reference to
    subsection (a) and struck out reference to section 5274.
      Subsec. (e). Pub. L. 96-39 redesignated former subsec. (c) as (e)
    and substituted reference to processor for reference to rectifier
    and reference to warehouseman for reference to bonded warehouseman
    and struck out reference to bottler.
      1976 - Subsec. (b)(1). Pub. L. 94-455, Secs. 1905(a)(13)(A),
    1906(b)(13)(A), struck out "49 Stat. 978;" before "27 U.S.C. 203,
    204" in parenthetical provisions after "Federal Alcohol
    Administration Act" and struck out "or his delegate" after
    "Secretary".
      Subsec. (b)(3). Pub. L. 94-455, Sec. 1905(a)(13)(B), struck out
    par. (3) under which persons who were qualified on June 30, 1959,
    to perform operations for which a permit was required covering
    operations not required to be covered by a basic permit under the
    Federal Alcohol Administration Act had been allowed to continue
    operations pending a reasonable opportunity to make application for
    a permit.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by section 1905(a)(13) of Pub. L. 94-455 effective on
    first day of first month which begins more than 90 days after Oct.
    4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note
    under section 5005 of this title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

             TRANSITIONAL RULES RELATING TO ALL-IN-BOND METHOD         
      Section 809(a), (b) of Pub. L. 96-39, as amended by Pub. L. 99-
    514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
      "(a) New Application Required. - 
        "(1) In general. - For purposes of section 5171 of the Internal
      Revenue Code of 1986 [formerly I.R.C. 1954] (relating to
      establishment of distilled spirits plants), each person who
      intends to continue any distilled spirits operation at a premises
      after December 31, 1979, shall be treated as intending to
      establish a distilled spirits plant on such premises on January
      1, 1980.
        "(2) Current registration to remain in effect. -
      Notwithstanding paragraph (1), the registration of any person
      under section 5171 of the Internal Revenue Code of 1986 which is
      in effect on December 31, 1979, shall remain in effect until
      final action on the application required by paragraph (1).
      "(b) Continuing Operations at Existing Premises. - With respect
    to any operation which was permitted to be conducted on May 1,
    1979, at premises which were registered on such date under section
    5171 of the Internal Revenue Code of 1986, the determination of
    whether such premises qualify for registration under such section
    as a distilled spirits plant shall be made without regard to
    whether or not - 
        "(1) the person engaged in operations at such premises is
      registered under such section with respect to such premises as a
      distiller or warehouseman, and
        "(2) such premises meet the minimum capacity and level of
      activity requirements for that type of operation."

-End-



-CITE-
    26 USC Sec. 5172                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter B - Qualification Requirements for Distilled Spirits
                    Plants                      

-HEAD-
    Sec. 5172. Application

-STATUTE-
      The application for registration required by section 5171(c)
    shall, in such manner and form as the Secretary may by regulations
    prescribe, identify the applicant and persons interested in the
    business (or businesses) covered by the application, show the
    nature, location and extent of the premises, show the specific type
    or types of operations to be conducted on such premises, and show
    any other information which the Secretary may by regulations
    require for the purpose of carrying out the provisions of this
    chapter.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1349; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(13),
    July 26, 1979, 93 Stat. 282.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5172, act Aug. 16, 1954, ch. 736, 68A Stat. 627,
    related to "conditions precedent to carrying on business of
    distilling", prior to the general revision of this chapter by Pub.
    L. 85-859 and is covered in part by this section. See also sections
    5171(a), 5173(a), 5178(a)(1)(A), and 5601(a)(2), (4) of this title.
      Provisions similar to those comprising this section were
    contained in prior sections 5175(a), 5178, 5231, 5243(a), 5271,
    5301 to 5303, 5305, and 5331(a)(1), act Aug. 16, 1954, ch. 736, 68A
    Stat. 628, 631, 643, 645, 650, 654, 655, 657, 661, prior to the
    general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1979 - Pub. L. 96-39 substituted "section 5171(c)" for "section
    5171(a)".
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

-End-



-CITE-
    26 USC Sec. 5173                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter B - Qualification Requirements for Distilled Spirits
                    Plants                      

-HEAD-
    Sec. 5173. Bonds

-STATUTE-
    (a) Operations at, and withdrawals from, distilled spirits plant
      must be covered by bond
      (1) Operations
        No person intending to establish a distilled spirits plant may
      commence operations at such plant unless such person has
      furnished bond covering operations at such plant.
      (2) Withdrawals
        No distilled spirits (other than distilled spirits withdrawn
      under section 5214 or 7510) may be withdrawn from bonded premises
      except on payment of tax unless the proprietor of the bonded
      premises has furnished bond covering such withdrawal.
    (b) Operations bonds
      The bond required by paragraph (1) of subsection (a) shall meet
    the requirements of paragraph (1), (2), or (3) of this subsection:
      (1) One plant bond
        The bond covers operations at a single distilled spirits plant.
      (2) Adjacent wine cellar bond
        The bond covers operations at a distilled spirits plant and at
      an adjacent bonded wine cellar.
      (3) Area bond
        The bond covers operations at 2 or more distilled spirits
      plants (and adjacent bonded wine cellars) which - 
          (A) are located in the same geographical area (as designated
        in regulations prescribed by the Secretary), and
          (B) are operated by the same person (or, in the case of a
        corporation, by such corporation and its controlled
        subsidiaries).
    (c) Withdrawal bonds
      The bond required by paragraph (2) of subsection (a) shall cover
    withdrawals from 1 or more bonded premises the operations at which
    could be covered by the same operations bond under subsection (b).
    (d) Unit bonds
      Under regulations prescribed by the Secretary, the requirements
    of paragraphs (1) and (2) of subsection (a) shall be treated as met
    by a unit bond which covers both operations at, and withdrawals
    from, 1 or more bonded premises which could be covered by the same
    operations bond under subsection (b).
    (e) Terms and conditions
      (1) In general
        Any bond furnished under this section shall be conditioned that
      the person furnishing the bond - 
          (A) will faithfully comply with all provisions of law and
        regulations relating to the activities covered by such bond,
        and
          (B) will pay - 
            (i) all taxes imposed by this chapter, and
            (ii) all penalties incurred by, or fines imposed on, such
          person for violation of any such provision.
      (2) Other terms and conditions
        Any bond furnished under this section shall contain such other
      terms and conditions as may be required by regulations prescribed
      by the Secretary.
    (f) Amount
      (1) In general
        The penal sum of any bond shall be the amount determined under
      regulations prescribed by the Secretary.
      (2) Maximum and minimum amount
        The Secretary shall by regulations prescribe a minimum amount
      and a maximum amount for each type of bond which may be furnished
      under this section.
    (g) Total amount available
      The total amount of any bond furnished under this section shall
    be available for the satisfaction of any liability incurred under
    the terms and conditions of such bond.
    (h) Special rules
      For purposes of this section - 
      (1) Withdrawal bonds
        In the case of any bond furnished under this section which
      covers withdrawals but not operations - 
          (A) such bond shall be in addition to the operations bond,
        and
          (B) if distilled spirits are withdrawn under such bond, the
        operations bond shall no longer cover liability for payment of
        the tax on the spirits withdrawn.
      (2) Adjacent wine cellars
        (A) Requirements
          No wine cellar shall be treated as being adjacent to a
        distilled spirits plant unless - 
            (i) such distilled spirits plant is qualified under this
          subchapter for the production of distilled spirits, and
            (ii) such wine cellar and the distilled spirits plant are
          operated by the same person (or, in the case of a
          corporation, by such corporation and its controlled
          subsidiaries).
        (B) Bond in lieu of wine cellar bond
          In the case of any adjacent wine cellar, a bond furnished
        under this section which covers operations at such wine cellar
        shall be in lieu of any bond which would otherwise be required
        under section 5354 with respect to such wine cellar (other than
        supplemental bonds required under the second sentence of
        section 5354).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1349; amended Pub. L. 91-659, Sec. 4, Jan. 8, 1971, 84 Stat. 1966;
    Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90
    Stat. 1834; Pub. L. 96-39, title VIII, Sec. 805(c), July 26, 1979,
    93 Stat. 276.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5173, act Aug. 16, 1954, ch. 736, 68A Stat. 628,
    related to "distillery fixtures and equipment", prior to the
    general revision of this chapter by Pub. L. 85-859. See sections
    5178(a)(1)(A), (2)(B)(C), (c)(1) and 5202(b) of this title.
      Provisions similar to those comprising subsecs. (a), (b), (b)(1),
    (b)(1)(A) to (C), (b)(3), (c), (c)(1), (d) and (e)(1) of this
    section were contained in prior sections of act Aug. 16, 1954,
    prior to the general revision of this chapter by Pub. L. 85-859, as
    follows:


        Present subsecs.:                    Prior sections             
    --------------------------------------------------------------------
    (a)                         5172, 5176(a), 5231, 5232(a), 5272(a),  
                                 5301-5303, 5304(a)(5), 5305, 5311(a)(3).
    (b)                         5176 (a), (d).                          
    (b)(1)                      5176(a), 5177(c).                       
    (b)(1)(A)-(C)               5177(b)(1)-(3).                         
    (b)(3)                      5177(b)(4).                             
    (c)                         5232(a), 5302, 5303, 5306, 5331(a)(3).  
    (c)(1)                      5232(a).                                
    (d)                         5272(a).                                
    (e)(1)                      5304(a)(5).                             
    --------------------------------------------------------------------

      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 627, 629 to 631, 643, 650, 654, 655, 657, 662.

                                AMENDMENTS                            
      1979 - Pub. L. 96-39, among other changes, struck out provisions
    relating to liens on distillery property and the furnishing of
    indemnity bonds as methods of securing tax payments and inserted
    provisions relating to the one plant operations bond, which will
    cover the operations at a bonded wine cellar which is adjacent to
    the distilled spirits plant and operated by the same person.
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.
      1971 - Subsec. (b)(1). Pub. L. 91-659, Sec. 4(b), extended
    exception clause in parenthetical by making reference to cl. (4) of
    this subsection.
      Subsec. (b)(2). Pub. L. 91-659, Sec. 4(c), inserted reference to
    par. (4).
      Subsec. (b)(4). Pub. L. 91-659, Sec. 4(a), added par. (4).

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1971 AMENDMENT                 
      Amendment by Pub. L. 91-659 effective on first day of first
    calendar month which begins more than 90 days after Jan. 8, 1971,
    see section 6 of Pub. L. 91-659, set out as an Effective Date note
    under section 5066 of this title.

             TRANSITIONAL RULES RELATING TO ALL-IN-BOND METHOD         
      Section 809(c) of Pub. L. 96-39, as amended by Pub. L. 99-514,
    Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "For purposes
    of section 5173 of the Internal Revenue Code of 1986 [formerly
    I.R.C. 1954] (relating to bonds), each person who intends to
    continue operation at a premises after December 31, 1979, shall be
    treated as intending to establish a distilled spirits plant on such
    premises on January 1, 1980."

-End-



-CITE-
    26 USC Sec. 5174                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter B - Qualification Requirements for Distilled Spirits
                    Plants                      

-HEAD-
    Sec. 5174. Repealed.

-MISC1-
    [Sec. 5174. Repealed. Pub. L. 96-39, title VIII, Sec. 807(a)(14),
      July 26, 1979, 93 Stat. 282].
      Section, added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958,
    72 Stat. 1352; amended Pub. L. 94-455, title XIX, Secs.
    1905(a)(14), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1820, 1834,
    related to withdrawal bonds.
      A prior section 5174, act Aug. 16, 1954, ch. 736, 68A Stat. 630,
    related to "registry of stills", prior to the general revision of
    this chapter by Pub. L. 85-859. See sections 5179 and 5505(d) of
    this title.
      Provisions similar to those comprising subsec. (a)(1) of section
    5174, added by Pub. L. 85-859, title I, Sec. 201, Sept. 2, 1958,
    725 Stat. 1352, relating to the withdrawal from bonded premises of
    distilled spirits on the furnishing of a bond by the proprietor of
    the bonded premises to secure payment of the tax on such spirits,
    were contained in prior sections 5176(b) and 5232(b), act Aug. 16,
    1954, ch. 736, 68A Stat. 629, 643, prior to the general revision of
    this chapter by Pub. L. 85-859.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective Jan. 1, 1980, see section 810 of Pub. L. 96-39,
    set out as an Effective Date of 1979 Amendment note under section
    5001 of this title.

-End-



-CITE-
    26 USC Sec. 5175                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter B - Qualification Requirements for Distilled Spirits
                    Plants                      

-HEAD-
    Sec. 5175. Export bonds

-STATUTE-
    (a) Requirements
      No distilled spirits shall be withdrawn from bonded premises for
    exportation, or for transfer to a customs bonded warehouse, without
    payment of tax unless the exporter has furnished bond to cover such
    withdrawal under such regulations and conditions, and in such form
    and penal sum, as the Secretary may prescribe.
    (b) Exception where proprietor withdraws spirits for exportation
      In the case of distilled spirits withdrawn from bonded premises
    by the proprietor for exportation without payment of tax, the bond
    of such proprietor required to be furnished under paragraph (1) of
    section 5173(a) covering such premises shall cover such
    exportation, and subsection (a) shall not apply.
    (c) Cancellation or credit of export bonds
      The bonds given under subsection (a) shall be cancelled or
    credited and the bonds liable under subsection (b) credited if
    there is such proof of exportation as the Secretary may by
    regulations require.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1352; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 95-176, Sec. 3(b), Nov. 14, 1977,
    91 Stat. 1365; Pub. L. 96-39, title VIII, Sec. 807(a)(15), July 26,
    1979, 93 Stat. 282; Pub. L. 105-34, title XIV, Sec. 1412(a), Aug.
    5, 1997, 111 Stat. 1046.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5175, act Aug. 16, 1954, ch. 736, 68A Stat. 628,
    related to "notice of business of distiller", prior to the general
    revision of this chapter by Pub. L. 85-859. See sections 5171(a),
    (c) and 5172 of this title.
      Provisions similar to those comprising this section were
    contained in a prior section 5247(a), act Aug. 16, 1954, ch. 736,
    68A Stat. 647, prior to the general revision of this chapter by
    Pub. L. 85-859.

                                AMENDMENTS                            
      1997 - Subsec. (c). Pub. L. 105-34 substituted "if there is such
    proof of exportation as the Secretary may by regulations require."
    for "on the submission of such evidence, records, and certification
    indicating exportation as the Secretary may by regulations
    prescribe."
      1979 - Subsec. (a). Pub. L. 96-39, Sec. 807(a)(15)(A), struck out
    "for storage therein pending exportation" after "customs bonded
    warehouse".
      Subsec. (b). Pub. L. 96-39, Sec. 807(a)(15)(B), substituted "from
    bonded premises by the proprietor for exportation without payment
    of tax, the bond of such proprietor required to be furnished under
    paragraph (1) of section 5173(a) covering such premises shall cover
    such exportation, and subsection (a) shall not apply" for "for
    exportation without payment of tax on application of the proprietor
    of bonded premises, the bond of such proprietor covering such
    bonded premises shall cover such exportation and subsection (a)
    shall not be applicable".
      1977 - Subsec. (a). Pub. L. 95-176 required export bonds for
    withdrawals from bonded premises, without payment of tax, for
    transfer to a customs bonded warehouse for storage therein pending
    exportation.
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Section 1412(b) of Pub. L. 105-34 provided that: "The amendment
    made by subsection (a) [amending this section] shall take effect on
    the 1st day of the 1st calendar quarter that begins at least 180
    days after the date of the enactment of this Act [Aug. 5, 1997]."

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1977 AMENDMENT                 
      Amendment by Pub. L. 95-176 effective on first day of first
    calendar month beginning more than 90 days after Nov. 14, 1977, see
    section 7 of Pub. L. 95-176, set out as a note under section 5003
    of this title.

                CONTINUATION OF DISTILLER'S NOTICE AND BOND            
      Section 210(f) of Pub. L. 85-859, as amended by Pub. L. 99-514,
    Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
    "Notwithstanding any provision of section 5175 or 5176(a) of the
    Internal Revenue Code of 1986 [formerly I.R.C. 1954], the Secretary
    of the Treasury or his delegate may waive, as to registered
    distillers or registered fruit distillers qualified to operate
    under bond on April 30, 1959, requirements for filing notice and
    executing new bond on May 1, 1959, if the distiller and the surety
    have executed consent to continuation of the terms of the existing
    bond to cover operations from May 1, 1959, to June 30, 1959, both
    dates inclusive. Nothing in this subsection shall be construed as
    limiting the authority of the Secretary of the Treasury or his
    delegate under section 5176(b) or (c) of the Internal Revenue Code
    of 1986."

-End-



-CITE-
    26 USC Sec. 5176                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter B - Qualification Requirements for Distilled Spirits
                    Plants                      

-HEAD-
    Sec. 5176. New or renewed bonds

-STATUTE-
    (a) General
      New bonds shall be required under sections 5173 and 5175 in case
    of insolvency or removal of any surety, and may, at the discretion
    of the Secretary, be required in any other contingency affecting
    the validity or impairing the efficiency of such bond.
    (b) Bonds
      If the proprietor of a distilled spirits plant fails or refuses
    to furnish a bond required under paragraph (1) of section 5173(a)
    or to renew the same, and neglects to immediately withdraw the
    spirits and pay the tax thereon, the Secretary shall proceed to
    collect the tax.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1353; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(16),
    July 26, 1979, 93 Stat. 282.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5176(c), act Aug. 16, 1954, ch. 736, 68A Stat.
    629, consisted of provisions similar to those comprising subsec.
    (a) of this section, prior to the general revision of this chapter
    by Pub. L. 85-859.
      Prior section 5176(a), (b), (d), (e), related to distiller's
    bond: form and approval; additional bond; exemption from survey
    requirements; and cross references, prior to the general revision
    of this chapter by Pub. L. 85-859. See sections 5173(a), (b),
    5174(a)(1) and 5177 of this title.
      Provisions similar to those comprising this section were
    contained in prior section 5232(c), act Aug. 16, 1954, ch. 736, 68A
    Stat. 643, prior to the general revision of this chapter by Pub. L.
    85-859.

                                AMENDMENTS                            
      1979 - Subsec. (a). Pub. L. 96-39, Sec. 807(a)(16)(A), struck out
    ", 5174," after "sections 5173".
      Subsec. (b). Pub. L. 96-39, Sec. 807(a)(16)(A), substituted
    reference to paragraph (1) of section 5173(a) for reference to
    section 5173(c) and struck out provisions relating to failure or
    refusal of the proprietor of a distilled spirits plant to withdraw
    any spirits from storage on bonded premises before the expiration
    of the time limited on the bond and pay the tax thereon.
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                CONTINUATION OF DISTILLER'S NOTICE AND BOND            
      Authority to waive requirements for filing notice and executing
    new bond on May 1, 1959, if distiller and surety have executed
    consent to continuation of the terms of existing bond to cover
    operations from May 1, 1959 to June 30, 1959, see section 210(f) of
    Pub. L. 85-859, set out as a note under section 5175 of this title.

-End-



-CITE-
    26 USC Sec. 5177                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter B - Qualification Requirements for Distilled Spirits
                    Plants                      

-HEAD-
    Sec. 5177. Other provisions relating to bonds

-STATUTE-
    (a) General provisions relating to bonds
      The provisions of section 5551 shall be applicable to the bonds
    required by or given under sections 5173 and 5175.
    (b) Cross references
          (1) For deposit of United States bonds or notes in lieu of
        sureties, see section 9303 of title 31, United States Code.
          (2) For penalty and forfeiture for failure or refusal to give
        bond, or for giving false, forged, or fraudulent bond, or
        carrying on the business of a distiller without giving bond,
        see sections 5601(a)(4), 5601(a)(5), 5601(b), and 5615(3).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1353; amended Pub. L. 94-455, title XIX, Sec. 1905(b)(6)(B), Oct.
    4, 1976, 90 Stat. 1823; Pub. L. 96-39, title VIII, Sec. 807(a)(17),
    July 26, 1979, 93 Stat. 282; Pub. L. 97-258, Sec. 3(f)(3), Sept.
    13, 1982, 96 Stat. 1064.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5177, act Aug. 16, 1954, ch. 736, 68A Stat. 628,
    related to "conditions of approval of distiller's bond", prior to
    the general revision of this chapter by Pub. L. 85-859. See section
    5173(b)(1) of this title.
      Prior section 5177(a) was a general provision. See section
    5171(a) of this title.
      Prior section 5177(b)(1) to (3) related to ownership, consent of
    owner, or indemnity bond. See section 5173(b)(1)(A) to (C) of this
    title.
      Prior section 5177(b)(4) related to judicial sale. See section
    5173(b)(3) of this title.
      Prior section 5177(c) related to situation of distillery. See
    sections 5173(b)(1) and 5551(c) of this title.
      Prior section 5177(d) was a cross reference to penalty for
    improper approval of distiller's bond, and to general provisions
    relating to approval, disapproval and appeal on bonds. See subsec.
    (a) of this section and section 5551 of this title.
      Provisions similar to those comprising subsec. (b) of this
    section were contained in prior sections 5176(e) and 5232(d), act
    Aug. 16, 1954, ch. 736, 68A Stat. 630, 644, prior to the general
    revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1982 - Subsec. (b)(1). Pub. L. 97-258 substituted "section 9303
    of title 31, United States Code" for "6 U.S.C. 15".
      1979 - Subsec. (a). Pub. L. 96-39 struck out ", 5174," after
    "sections 5173".
      1976 - Subsec. (b)(2). Pub. L. 94-455 substituted "5601(b)" for
    "5601(b)(2)".

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-455 effective on first day of first month
    which begins more than 90 days after Oct. 4, 1976, see section
    1905(d) of Pub. L. 94-455, set out as a note under section 5005 of
    this title.

-End-



-CITE-
    26 USC Sec. 5178                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter B - Qualification Requirements for Distilled Spirits
                    Plants                      

-HEAD-
    Sec. 5178. Premises of distilled spirits plants

-STATUTE-
    (a) Location, construction, and arrangement
      (1) General
        (A) The premises of a distilled spirits plant shall be as
      described in the application required by section 5171(c). The
      Secretary shall prescribe such regulations relating to the
      location, construction, arrangement, and protection of distilled
      spirits plants as he deems necessary to facilitate inspection and
      afford adequate security to the revenue.
        (B) No distilled spirits plant for the production of distilled
      spirits shall be located in any dwelling house, in any shed,
      yard, or inclosure connected with any dwelling house, or on board
      any vessel or boat, or on premises where beer or wine is made or
      produced, or liquors of any description are retailed, or on
      premises where any other business is carried on (except when
      authorized under subsection (b)).
        (C) Notwithstanding any other provision of this chapter
      relating to distilled spirits plants the Secretary may approve
      the location, construction, arrangement, and method of operation
      of any establishment which was qualified to operate on the date
      preceding the effective date of this section if he deems that
      such location, construction, arrangement, and method of operation
      will afford adequate security to the revenue.
      (2) Production operations
        (A) Any person establishing a distilled spirits plant may, as
      described in his application for registration, produce distilled
      spirits from any source or substance.
        (B) The distilling system shall be continuous and shall be so
      designed and constructed and so connected as to prevent the
      unauthorized removal of distilled spirits before their production
      gauge.
        (C) The Secretary is authorized to order and require - 
          (i) such identification of, changes of, and additions to,
        distilling apparatus, connecting pipes, pumps, tanks, and any
        machinery connected with or used in or on the premises, and
          (ii) such fastenings, locks, and seals to be part of any of
        the stills, tubs, pipes, tanks, and other equipment, as he may
        deem necessary to facilitate inspection and afford adequate
        security to the revenue.
      (3) Warehousing operations
        (A) Any person establishing a distilled spirits plant for the
      production of distilled spirits may, as described in the
      application for registration, warehouse bulk distilled spirits on
      the bonded premises of such plant.
        (B) Distilled spirits plants for the bonded warehousing of bulk
      distilled spirits elsewhere than as described in subparagraph (A)
      may be established at the discretion of the Secretary by
      proprietors referred to in subparagraph (A) or by other persons
      under such regulations as the Secretary shall prescribe.
      (4) Processing operations
        Any person establishing a distilled spirits plant may, as
      described in the application for registration, process distilled
      spirits on the bonded premises of such plant.
    (b) Use of premises for other businesses
      The Secretary may authorize the carrying on of such other
    businesses (not specifically prohibited by section 5601(a)(6)) on
    premises of distilled spirits plants, as he finds will not
    jeopardize the revenue. Such other businesses shall not be carried
    on until an application to carry on such business has been made to
    and approved by the Secretary.
    (c) Cross references
          (1) For provisions authorizing the Secretary to require
        installation of meters, tanks, and other apparatus, see section
        5552.
          (2) For penalty for distilling on prohibited premises, see
        section 5601(a)(6).
          (3) For provisions relating to the bottling of distilled
        spirits labeled as alcohol, see section 5235.
          (4) For provisions relating to the unauthorized use of
        distilled spirits in any manufacturing process, see section
        5601(a)(9).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1353; amended Pub. L. 91-659, Sec. 5, Jan. 8, 1971, 84 Stat. 1966;
    Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90
    Stat. 1834; Pub. L. 95-176, Sec. 2(b), Nov. 14, 1977, 91 Stat.
    1364; Pub. L. 96-39, title VIII, Secs. 805(b)(1), 807(a)(18), July
    26, 1979, 93 Stat. 275, 283.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5178, act Aug. 16, 1954, ch. 736, 68A Stat. 631,
    related to plan of distillery, prior to the general revision of
    this chapter by Pub. L. 85-859. See sections 5171(a) and 5172 of
    this title.
      Provisions similar to those comprising subsecs. (a)(1)(A), (B),
    (2)(A) to (C), (3), (4)(A), (B), (D), (5), (b), (c)(1), (2), (4) of
    this section were contained in prior sections of act Aug. 16, 1954,
    prior to the general revision of this chapter by Pub. L. 85-859, as
    follows:


        Present subsecs.:                    Prior sections             
    --------------------------------------------------------------------
    (a)(1)(A)                   5172, 5173(a), 5231, 5271(a), 5273(a),  
                                 5305.                                  
    (a)(1)(B)                   5171(a).                                
    (a)(2)(A)                   5307.                                   
    (a)(2)(B)                   5173(b).                                
    (a)(2)(C)                   5173(a), (c).                           
    (a)(3)                      5231, 5243(a), 5302.                    
    (a)(4)(A)                   5243(a).                                
    (a)(4)(B), (D)              5271(a), 5273(a).                       
    (a)(5)                      5303, 5305, 5331(a)(1).                 
    (b)                         5171(a).                                
    (c)(1)                      5173(d)(1), 5273(b)(1).                 
    (c)(2)                      5171(b).                                
    (c)(4)                      5216(b).                                
    --------------------------------------------------------------------

      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 627, 628, 641, 643, 645, 650, 654, 655, 657, 661.

                                AMENDMENTS                            
      1979 - Subsec. (a)(1)(A). Pub. L. 96-39, Sec. 807(a)(18),
    substituted "section 5171(c)" for "section 5171(a)".
      Subsec. (a)(2). Pub. L. 96-39, Sec. 805(b)(1), substituted in
    heading "operations" for "facilities" and in subpar. (A) "produce"
    for "provided facilities which may be used for the production of"
    and struck out in subpar. (B) "closed at all points where potable
    or readily recoverable spirits are present and the distilling
    apparatus" after "shall be continuous and".
      Subsec. (a)(3). Pub. L. 96-39, Sec. 805(b)(1), substituted in
    heading "Warehousing operations" for "Bonded warehousing
    facilities" and in subpar. (A) "the application" for "his
    application" and "warehouse bulk distilled spirits" for "establish
    warehousing facilities" and struck out subpar. (C) which related to
    facilities for the storage on bonded premises of distilled spirits
    in casks, packages, cases, or similar portable approved containers
    and subpar. (D), which related to the establishment of a portion of
    the premises established under subpar. (C) as an export storage
    facility for the storage of distilled spirits returned to bonded
    premises under section 5215(b).
      Subsec. (a)(4). Pub. L. 96-39, Sec. 805(b)(1), substituted
    provisions relating to processing operations for provisions
    relating to bottling facilities.
      Subsec. (a)(5). Pub. L. 96-39, Sec. 805(b)(1), struck out par.
    (5) which related to arrangement and segregation of denaturing
    facilities by regulation of the Secretary.
      1977 - Subsec. (a)(3)(D). Pub. L. 95-176 added subpar. (D).
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.
      1971 - Subsec. (a)(4)(A). Pub. L. 91-659 substantially reenacted
    existing provisions and added cl. (ii) and the following sentence.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1977 AMENDMENT                 
      Amendment by Pub. L. 95-176 effective on first day of first
    calendar month beginning more than 90 days after Nov. 14, 1977, see
    section 7 of Pub. L. 95-176, set out as a note under section 5003
    of this title.

                     EFFECTIVE DATE OF 1971 AMENDMENT                 
      Amendment by Pub. L. 91-659 effective on first day of first
    calendar month which begins more than 90 days after Jan. 8, 1971,
    see section 6 of Pub. L. 91-659, set out as an Effective Date note
    under section 5066 of this title.

-End-



-CITE-
    26 USC Sec. 5179                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter B - Qualification Requirements for Distilled Spirits
                    Plants                      

-HEAD-
    Sec. 5179. Registration of stills

-STATUTE-
    (a) Requirements
      Every person having in his possession or custody, or under his
    control, any still or distilling apparatus set up, shall register
    such still or apparatus with the Secretary immediately on its being
    set up, by subscribing and filing with the Secretary a statement,
    in writing, setting forth the particular place where such still or
    distilling apparatus is set up, the kind of still and its capacity,
    the owner thereof, his place of residence, and the purpose for
    which said still or distilling apparatus has been or is intended to
    be used (except that stills or distilling apparatus not used or
    intended to be used for the distillation, redistillation, or
    recovery of distilled spirits are not required to be registered
    under this section).
    (b) Cross references
          (1) For penalty and forfeiture provisions relating to
        unregistered stills, see sections 5601(a)(1) and 5615(1).
          (2) For provisions requiring notification to set up a still,
        boiler, or other vessel for distilling, see section 5101(a)(2).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1355; amended Pub. L. 94-455, title XIX, Secs. 1905(b)(6)(C),
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823, 1834; Pub. L. 98-369,
    div. A, title IV, Sec. 451(b)(1), July 18, 1984, 98 Stat. 819.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5179, act Aug. 16, 1954, ch. 736, 68A Stat. 631,
    related to "survey of distillery", prior to the general revision of
    this chapter by Pub. L. 85-859.
      Provisions similar to those comprising this section were
    contained in prior sections 5174 and 5275(2), act Aug. 16, 1954,
    ch. 736, 68A Stat. 630, 651, prior to the general revision of this
    chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1984 - Subsec. (b)(2). Pub. L. 98-369 substituted "notification
    to set up a still, boiler, or other vessel for distilling, see
    section 5101(a)(2)" for "permit to set up a still, boiler or other
    vessel for distilling, see section 5105".
      1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
    out "or his delegate" after "Secretary".
      Subsec. (b)(1). Pub. L. 94-455, Sec. 1905(b)(6)(C), struck out ",
    5601(b)(1)," after "5601(a)(1)".

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective on first day of first
    calendar month which begins more than 90 days after July 18, 1984,
    see section 456(a) of Pub. L. 98-369, set out as an Effective Date
    note under section 5101 of this title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by section 1905(b)(6)(C) of Pub. L. 94-455 effective on
    first day of first month which begins more than 90 days after Oct.
    4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note
    under section 5005 of this title.

-End-



-CITE-
    26 USC Sec. 5180                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter B - Qualification Requirements for Distilled Spirits
                    Plants                      

-HEAD-
    Sec. 5180. Signs

-STATUTE-
    (a) Requirements
      Every person engaged in distilled spirits operations shall place
    and keep conspicuously on the outside of his place of business a
    sign showing the name of such person and denoting the business, or
    businesses, in which engaged. The sign required by this subsection
    shall be in such form and contain such information as the Secretary
    shall by regulations prescribe.
    (b) Penalty
          For penalty and forfeiture relating to failure to post sign
        or improperly posting such sign, see section 5681.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1355; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(19),
    July 26, 1979, 93 Stat. 283.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5180, act Aug. 16, 1954, ch. 736, 68A Stat. 632,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      Provisions similar to those comprising this section were
    contained in prior section 5274, act Aug. 16, 1954, ch. 736, 68A
    Stat. 651, prior to the general revision of this chapter by Pub. L.
    85-859.

                                AMENDMENTS                            
      1979 - Subsec. (a). Pub. L. 96-39 substituted "distilled spirits
    operation" for "distilling, bonded warehousing, rectifying, or
    bottling of distilled spirits".
      1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
    after "Secretary".

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

-End-



-CITE-
    26 USC Sec. 5181                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter B - Qualification Requirements for Distilled Spirits
                    Plants                      

-HEAD-
    Sec. 5181. Distilled spirits for fuel use

-STATUTE-
    (a) In general
      (1) Purposes for which plant may be established
        On such application and bond and in such manner as the
      Secretary may prescribe by regulation, a person may establish a
      distilled spirits plant solely for the purpose of - 
          (A) producing, processing, and storing, and
          (B) using or distributing,

      distilled spirits to be used exclusively for fuel use.
      (2) Regulations
        In prescribing regulations under paragraph (1) and in carrying
      out the provisions of this section, the Secretary shall, to the
      greatest extent possible, take steps to - 
          (A) expedite all applications;
          (B) establish a minimum bond; and
          (C) generally encourage and promote (through regulation or
        otherwise) the production of alcohol for fuel purposes.
    (b) Authority to exempt
      The Secretary may by regulation provide for the waiver of any
    provision of this chapter (other than this section or any provision
    requiring the payment of tax) for any distilled spirits plant
    described in subsection (a) if the Secretary finds it necessary to
    carry out the provisions of this section.
    (c) Special rules for small plant production
      (1) Applications
        (A) In general
          An application for an operating permit for an eligible
        distilled spirits plant shall be in such a form and manner, and
        contain such information, as the Secretary may by regulations
        prescribe; except that the Secretary shall, to the greatest
        extent possible, take steps to simplify the application so as
        to expedite the issuance of such permits.
        (B) Receipt of application
          Within 15 days of receipt of an application under
        subparagraph (A), the Secretary shall send a written notice of
        receipt to the applicant, together with a statement as to
        whether the application meets the requirements of subparagraph
        (A). If such a notice is not sent and the applicant has a
        receipt indicating that the Secretary has received an
        application, paragraph (2) shall apply as if a written notice
        required by the preceding sentence, together with a statement
        that the application meets the requirements of subparagraph
        (A), had been sent on the 15th day after the date the Secretary
        received the application.
        (C) Multiple applications
          If more than one application is submitted with respect to any
        eligible distilled spirits plant in any calendar quarter, the
        provisions of this section shall apply only to the first
        application submitted with respect to such plant during such
        quarter. For purposes of the preceding sentence, if a corrected
        or amended first application is filed, such application shall
        not be considered as a separate application, and the 15-day
        period referred to in subparagraph (A) shall commence with
        receipt of the corrected or amended application.
      (2) Determination
        (A) In general
          In any case in which the Secretary under paragraph (1)(B) has
        notified an applicant of receipt of an application which meets
        the requirements of paragraph (1)(A), the Secretary shall make
        a determination as to whether such operating permit is to be
        issued, and shall notify the applicant of such determination,
        within 45 days of the date on which notice was sent under
        paragraph (1)(B).
        (B) Failure to make determination
          If the Secretary has not notified an applicant within the
        time prescribed under subparagraph (A), the application shall
        be treated as approved.
        (C) Rejection of application
          If the Secretary determines under subparagraph (A) that a
        permit should not be issued - 
            (i) the Secretary shall include in the notice to the
          applicant of such determination under subparagraph (A)
          detailed reasons for such determination, and
            (ii) such determination shall not prejudice any further
          application for such operating permit.
      (3) Bond
        No bond shall be required for an eligible distilled spirits
      plant. For purposes of section 5212 and subsection (e)(2) of this
      section, the premises of an eligible distilled spirits plant
      shall be treated as bonded premises.
      (4) Eligible distilled spirits plant
        The term "eligible distilled spirits plant" means a plant which
      is used to produce distilled spirits exclusively for fuel use and
      the production from which does not exceed 10,000 proof gallons
      per year.
    (d) Withdrawal free of tax
      Distilled spirits produced under this section may be withdrawn
    free of tax from the bonded premises (and any premises which are
    not bonded by reason of subsection (c)(3)) of a distilled spirits
    plant exclusively for fuel use as provided in section 5214(a)(12).
    (e) Prohibited withdrawal, use, sale, or disposition
      (1) In general
        Distilled spirits produced under this section shall not be
      withdrawn, used, sold, or disposed of for other than fuel use.
      (2) Rendering unfit for use
        For protection of the revenue and under such regulations as the
      Secretary may prescribe, distilled spirits produced under this
      section shall, before withdrawal from the bonded premises of a
      distilled spirits plant, be rendered unfit for beverage use by
      the addition of substances which will not impair the quality of
      the spirits for fuel use.
    (f) Definition of distilled spirits
      For purposes of this section, the term "distilled spirits" does
    not include distilled spirits produced from petroleum, natural gas,
    or coal.

-SOURCE-
    (Added Pub. L. 96-223, title II, Sec. 232(e)(1), Apr. 2, 1980, 94
    Stat. 278.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5181 was renumbered 5182 of this title.

                              EFFECTIVE DATE                          
      Section 232(h)(3) of Pub. L. 96-223 provided that: "The
    amendments made by subsection (e) [enacting this section, amending
    sections 5004, 5005, 5214, and 5601, and repealing provisions set
    out as a note under section 4081 of this title] shall take effect
    on the first day of the first calendar month beginning more than 60
    days after the date of the enactment of this Act [Apr. 2, 1980]."

-End-



-CITE-
    26 USC Sec. 5182                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter B - Qualification Requirements for Distilled Spirits
                    Plants                      

-HEAD-
    Sec. 5182. Cross references

-STATUTE-
          For provisions requiring payment of special (occupational)
        tax as wholesale liquor dealer, see section 5111, or as retail
        liquor dealer, see section 5121.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1356, Sec. 5181; amended Pub. L. 96-39, title VIII, Sec.
    807(a)(20), July 26, 1979, 93 Stat. 283; renumbered Sec. 5182, Pub.
    L. 96-223, title II, Sec. 232(e)(1), Apr. 2, 1980, 94 Stat. 278;
    Pub. L. 109-59, title XI, Sec. 11125(b)(16), Aug. 10, 2005, 119
    Stat. 1956.)


-STATAMEND-
                           AMENDMENT OF SECTION                       
      Pub. L. 109-59, title XI, Sec. 11125(b)(16), (c), Aug. 10, 2005,
    119 Stat. 1956, 1957, provided that, effective July 1, 2008, but
    inapplicable to taxes imposed for periods before such date, the
    text of this section is amended to read as follows:
          For provisions requiring recordkeeping by wholesale liquor
        dealers, see section 5112, and by retail liquor dealers, see
        section 5122.


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising this section were
    contained in a prior section 5275(3), act Aug. 16, 1954, ch. 736,
    68A Stat. 651, prior to the general revision of this chapter by
    Pub. L. 85-859.

                                AMENDMENTS                            
      1979 - Pub. L. 96-39 struck out "as rectifier, see section 5081,
    or" after "(occupational) tax".

                     EFFECTIVE DATE OF 2005 AMENDMENT                 
      Amendment by Pub. L. 109-59 effective July 1, 2008, but
    inapplicable to taxes imposed for periods before such date, see
    section 11125(c) of Pub. L. 109-59, set out as a note under section
    5002 of this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

-End-


-CITE-
    26 USC Subchapter C - Operation of Distilled Spirits
           Plants                                          01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants

-HEAD-
           SUBCHAPTER C - OPERATION OF DISTILLED SPIRITS PLANTS       

-MISC1-
    Part                                                     
    I.          General provisions.                                   
    II.         Operations on bonded premises.                        
    [III.       Repealed.]                                            

                             PRIOR PROVISIONS                         
      A prior subchapter C, Internal Revenue Bonded Warehouses,
    consisted of part I, Establishment, and part II, Operation, and
    consisted of sections 5231 to 5233 and 5241 to 5252, respectively,
    prior to the general revision of this chapter by Pub. L. 85-859,
    title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.

                                AMENDMENTS                            
      1979 - Pub. L. 96-39, title VIII, Sec. 807(b)(5), July 26, 1979,
    93 Stat. 290, struck out item relating to Part III "Operations on
    bottling premises" in table of parts comprising subchapter C.

-End-


-CITE-
    26 USC PART I - GENERAL PROVISIONS                          01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART I - GENERAL PROVISIONS

-HEAD-
                        PART I - GENERAL PROVISIONS                    

-MISC1-
    Sec.                                                     
    5201.       Regulation of operations.                             
    5202.       Supervision of operations.                            
    5203.       Entry and examination of premises.                    
    5204.       Gauging.                                              
    [5205.      Repealed.]                                            
    5206.       Containers.                                           
    5207.       Records and reports.                                  

                             PRIOR PROVISIONS                         
      A prior part I, Establishment, consisted of sections 5231 to
    5233, prior to the general revision of this chapter by Pub. L. 85-
    859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.

                                AMENDMENTS                            
      1984 - Pub. L. 98-369, div. A, title IV, Sec. 454(c)(14), July
    18, 1984, 98 Stat. 823, struck out item 5205 "Stamps".

-End-



-CITE-
    26 USC Sec. 5201                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART I - GENERAL PROVISIONS

-HEAD-
    Sec. 5201. Regulation of operations

-STATUTE-
    (a) General
      Proprietors of distilled spirits plants shall conduct all
    operations authorized to be conducted on the premises of such
    plants under such regulations as the Secretary shall prescribe.
    (b) Distilled spirits for industrial uses
      The regulations of the Secretary under this chapter respecting
    the production, warehousing, denaturing, distribution, sale,
    export, and use of distilled spirits for industrial purposes shall
    be such as he deems necessary, advisable, or proper to secure the
    revenue, to prevent diversion to illegal uses, and to place the
    distilled spirits industry and other industries using such
    distilled spirits as a chemical raw material or for other lawful
    industrial purposes on the highest possible plane of scientific and
    commercial efficiency and development consistent with the
    provisions of this chapter. Where nonpotable chemical mixtures
    containing distilled spirits are produced for transfer to the
    bonded premises of a distilled spirits plant for completion of
    processing, the Secretary may waive any provision of this chapter
    with respect to the production of such mixtures, and the processing
    of such mixtures on the bonded premises shall be deemed to be
    production of distilled spirits for purposes of this chapter.
    (c) Hours of operations
      The Secretary may prescribe regulations relating to hours for
    distillery operations and to hours for removal of distilled spirits
    from distilled spirits plants; however, such regulations shall not
    be more restrictive, as to any operation or function, that the
    provisions of internal revenue law and regulations relating to such
    operation or function in effect on the day preceding the effective
    date of this section.
    (d) Identification of distilled spirits
      The Secretary may provide by regulations for the addition of
    tracer elements to distilled spirits to facilitate the enforcement
    of this chapter. Tracer elements to be added to distilled spirits
    at any distilled spirits plant under provisions of this subsection
    shall be of such character and in such quantity as the Secretary
    may authorize or require, and such as will not impair the quality
    of the distilled spirits for their intended use.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1357; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(21),
    July 26, 1979, 93 Stat. 283.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising subsecs. (a) to (c) of
    this section were contained in prior sections of act Aug. 16, 1954,
    prior to the general revision of this chapter by Pub. L. 85-859, as
    follows:


        Present subsecs.:                    Prior sections             
    --------------------------------------------------------------------
    (a)                         5193(a), 5194(g), 5241(a), 5281,        
                                 5282(a), 5302, 5305-5307, 5319(6).     
    (b)                         5305.                                   
    (c)                         5195, 5215, 5306.                       
    --------------------------------------------------------------------

      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 633, 636, 640, 644, 651, 654, 657, 661.

                                AMENDMENTS                            
      1979 - Subsec. (a). Pub. L. 96-39 substituted "all operations
    authorized to be conducted" for "their operations relating to the
    production, storage, denaturing, rectification and bottling of
    distilled spirits, and all other operations authorized to be
    conducted".
      1976 - Subsecs. (a) to (d). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary" wherever appearing.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5202                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART I - GENERAL PROVISIONS

-HEAD-
    Sec. 5202. Supervision of operations

-STATUTE-
      All operations on the premises of a distilled spirits plant shall
    be conducted under such supervision and controls (including the use
    of Government locks and seals) as the Secretary shall by
    regulations prescribe.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1357; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 806(a),
    July 26, 1979, 93 Stat. 279.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising this section were
    contained in prior sections of act Aug. 16, 1954, prior to the
    general revision of this chapter by Pub. L. 85-859, as follows:


        Present subsecs.:                    Prior sections             
    --------------------------------------------------------------------
    (a)                         5192(a), (c), 5241(a), (b), 5282(b).    
    (b)                         5173(b), 5192(b), (c).                  
    (c)                         5241(a), (b).                           
    (d)                         5241(b).                                
    (e)                         5331(a)(1).                             
    (f)                         5193(a), 5250(a), (b).                  
    (g)                         5243(b).                                
    --------------------------------------------------------------------

      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 628, 633, 644, 646, 649, 652, 661.

                                AMENDMENTS                            
      1979 - Pub. L. 96-39 substituted provisions making on-site
    supervision and the use of government locks and seals optional at
    the discretion of the Secretary of the Treasury for provisions
    whereby bonded warehouses are required to be kept under government
    locks and certain activities are required to be conducted under
    government supervision.
      1976 - Subsecs. (a) to (g). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary".

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

-End-



-CITE-
    26 USC Sec. 5203                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART I - GENERAL PROVISIONS

-HEAD-
    Sec. 5203. Entry and examination of premises

-STATUTE-
    (a) Keeping premises accessible
      Every proprietor of a distilled spirits plant shall furnish the
    Secretary such keys as may be required for internal revenue
    officers to gain access to the premises and any structures thereon,
    and such premises shall always be kept accessible to any officer
    having such keys.
    (b) Right of entry and examination
      It shall be lawful for any internal revenue officer at all times,
    as well by night as by day, to enter any distilled spirits plant,
    or any other premises where distilled spirits operations are
    carried on, or structure or place used in connection therewith for
    storage or other purposes; to make examination of the materials,
    equipment, and facilities thereon; and make such gauges and
    inventories as he deems necessary. Whenever any officer, having
    demanded admittance, and having declared his name and office, is
    not admitted into such premises by the proprietor or other person
    having charge thereof, it shall be lawful for such officer, at all
    times, as well by night as by day, to use such force as is
    necessary for him to gain entry to such premises.
    (c) Furnishing facilities and assistance
      On the demand of any internal revenue officer or agent, every
    proprietor of a distilled spirits plant shall furnish the necessary
    facilities and assistance to enable the officer or agent to gauge
    the spirits in any container or to examine any apparatus,
    equipment, containers, or materials on such premises. Such
    proprietor shall also, on demand of such officer or agent, open all
    doors, and open for examination all boxes, packages, and all casks,
    barrels, and other vessels on such premises.
    (d) Authority to break up grounds or walls
      It shall be lawful for any internal revenue officer, and any
    person acting in his aid, to break up the ground on any part of a
    distilled spirits plant or any other premises where distilled
    spirits operations are carried on, or any ground adjoining or near
    to such plant or premises, or any wall or partition thereof, or
    belonging thereto, or other place, to search for any pipe, cock,
    private conveyance, or utensil; and, upon finding any such pipe or
    conveyance leading therefrom or thereto, to break up any ground,
    house, wall, or other place through or into which such pipe or
    other conveyance leads, and to break or cut away such pipe or other
    conveyance, and turn any cock, or to examine whether such pipe or
    other conveyance conveys or conceals any distilled spirits, mash,
    wort, or beer, or other liquor, from the sight or view of the
    officer, so as to prevent or hinder him from taking a true account
    thereof.
    (e) Penalty
          For penalty for violation of this section, see section 5687.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1357; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(22),
    July 26, 1979, 93 Stat. 283.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising this section were
    contained in prior sections of act Aug. 16, 1954, prior to the
    general revision of this chapter by Pub. L. 85-859, as follows:


        Present subsecs.:                    Prior sections             
    --------------------------------------------------------------------
    (a)                         5196(a).                                
    (b)                         5196(b), (e).                           
    (c)                         5196(c), (e), 5283, 5615.               
    (d)                         5196(d), 5283.                          
    (e)                         5615, 5687.                             
    --------------------------------------------------------------------

      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 636, 652, 686, 700.

                                AMENDMENTS                            
      1979 - Subsec. (b). Pub. L. 96-39, Sec. 807(a)(22)(A),
    substituted "where distilled spirits operations are carried on" for
    "where distilled spirits are produced or rectified".
      Subsec. (c). Pub. L. 96-39, Sec. 807(a)(22)(B), substituted "on
    such premises" for "not under the control of the internal revenue
    officer in charge".
      Subsec. (d). Pub. L. 96-39, Sec. 807(a)(22)(C), substituted
    "where distilled spirits operations are carried on" for "where
    distilled spirits are produced or rectified".
      1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
    after "Secretary".

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

-End-



-CITE-
    26 USC Sec. 5204                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART I - GENERAL PROVISIONS

-HEAD-
    Sec. 5204. Gauging

-STATUTE-
    (a) General
      The Secretary may by regulations require the gauging of distilled
    spirits for such purposes, as he may deem necessary, and all
    required gauges shall be made at such times and under such
    conditions as he may by regulations prescribe.
    (b) Gauging instruments
      For the determination of tax and the prevention and detection of
    frauds, the Secretary may prescribe for use such hydrometers,
    saccharometers, weighing and gauging instruments, or other means or
    methods for ascertaining the quantity, gravity, and producing
    capacity of any mash, wort, or beer used, or to be used, in the
    production of distilled spirits, and the strength and quantity of
    spirits subject to tax, as he may deem necessary; and he may
    prescribe regulations to secure a uniform and correct system of
    inspection, weighing, marking, and gauging of spirits.
    (c) Gauging, marking, and branding by proprietors
      The Secretary may by regulations require the proprietor of a
    distilled spirits plant, at the proprietor's expense and under such
    supervision as the Secretary may require, to do such gauging,
    marking, and branding and such mechanical labor pertaining thereto
    as the Secretary deems proper and determines may be done without
    danger to the revenue.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1358; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(23),
    July 26, 1979, 93 Stat. 283; Pub. L. 98-369, div. A, title IV, Sec.
    454(c)(4), July 18, 1984, 98 Stat. 821.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising this section were
    contained in prior sections of act Aug. 16, 1954, prior to the
    general revision of this chapter by Pub. L. 85-859, as follows:


        Present subsecs.:                    Prior sections             
    --------------------------------------------------------------------
    (a)                         5193(a), 5194(g), 5245, 5282(b).        
    (b)                         5212.                                   
    (c)                         5193(d), 5250(b), 5282(b), 5306.        
    --------------------------------------------------------------------

      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 633, 634, 636, 639, 647, 649, 652, 657.

                                AMENDMENTS                            
      1984 - Subsec. (c). Pub. L. 98-369 struck out "stamping," before
    "marking" in heading and text.
      1979 - Subsec. (a). Pub. L. 96-39 struck out ", in addition to
    those specified in section 5202(f)," after "spirits for such
    purposes".
      1976 - Subsecs. (a) to (c). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary" wherever appearing.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective July 1, 1985, see section
    456(b) of Pub. L. 98-369, set out as an Effective Date note under
    section 5101 of this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

-End-



-CITE-
    26 USC Sec. 5205                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART I - GENERAL PROVISIONS

-HEAD-
    Sec. 5205. Repealed.

-MISC1-
    [Sec. 5205. Repealed. Pub. L. 98-369, div. A, title IV, Sec.
      454(a), July 18, 1984, 98 Stat. 820].
      Section, added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958,
    72 Stat. 1358; amended Pub. L. 94-455, title XIX, Sec.
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 94-569, Sec.
    1, Oct. 20, 1976, 90 Stat. 2699; Pub. L. 95-176, Sec. 2(c), Nov.
    14, 1977, 91 Stat. 1364; Pub. L. 96-39, title VIII, Sec.
    807(a)(24), July 26, 1979, 93 Stat. 283, related to stamps for
    containers of distilled spirits.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective July 1, 1985, see section 456(b) of Pub. L. 98-
    369, set out as an Effective Date note under section 5101 of this
    title.

-End-



-CITE-
    26 USC Sec. 5206                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART I - GENERAL PROVISIONS

-HEAD-
    Sec. 5206. Containers

-STATUTE-
    (a) Authority to prescribe
      The Secretary shall by regulations prescribe the types or kinds
    of containers which may be used to contain, store, transfer,
    convey, remove, or withdraw distilled spirits.
    (b) Standards of fill
      The Secretary may by regulations prescribe the standards of fill
    for approved containers.
    (c) Marking, branding, or identification
      Containers of distilled spirits (and cases containing bottles or
    other containers of such spirits) shall be marked, branded, or
    identified in such manner as the Secretary shall by regulations
    prescribe.
    (d) Effacement of marks and brands on emptied containers
      Every person who empties, or causes to be emptied, any container
    of distilled spirits bearing any mark or brand required by law (or
    regulations pursuant thereto) shall at the time of emptying such
    container efface and obliterate such mark or brand; except that the
    Secretary may, by regulations, waive any requirement of this
    subsection where he determines that no jeopardy to the revenue will
    be involved.
    (e) Applicability
      This section shall be applicable exclusively with respect to
    containers of distilled spirits for industrial use, with respect to
    containers of distilled spirits of a capacity of more than one
    gallon for other than industrial use, and with respect to cases
    containing bottles or other containers of distilled spirits.
    (f) Cross references
          (1) For other provisions relating to regulation of containers
        of distilled spirits, see section 5301.
          (2) For provisions relating to labeling containers of
        distilled spirits of one gallon or less for nonindustrial uses,
        see section 105(e) of the Federal Alcohol Administration Act
        (27 U.S.C. 205(e)).
          (3) For provisions relating to the marking and branding of
        containers of distilled spirits by proprietors, see section
        5204(c).
          (4) For penalties and forfeitures relating to marks and
        brands, see sections 5604 and 5613.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1360; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 98-369, div. A, title IV, Sec.
    454(c)(5), July 18, 1984, 98 Stat. 821; Pub. L. 104-188, title I,
    Sec. 1704(t)(13), Aug. 20, 1996, 110 Stat. 1888.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising subsecs. (a) to (c) of
    this section were contained in prior sections of act Aug. 16, 1954,
    prior to the general revision of this chapter by Pub. L. 85-859, as
    follows:


        Present subsecs.:                    Prior sections             
    --------------------------------------------------------------------
    (a)                         5193(a), (b), 5194, 5247(a), (d), 5302. 
    (b)                         5193(c).                                
    (c)                         5009(a), 5193(a), 5194, 5243(d), (e),   
                                 5250(a), 5282(b).                      
    --------------------------------------------------------------------

      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 603, 633 to 635, 646 to 649, 652, 654.

                                AMENDMENTS                            
      1996 - Subsec. (f)(2). Pub. L. 104-188 substituted "section
    105(e)" for "section 5(e)".
      1984 - Subsecs. (d) to (f). Pub. L. 98-369 added subsec. (d),
    redesignated existing subsecs. (d) and (e) as (e) and (f),
    respectively, and in subsec. (f) added pars. (3) and (4).
      1976 - Subsecs. (a) to (c). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary".

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective July 1, 1985, see section
    456(b) of Pub. L. 98-369, set out as an Effective Date note under
    section 5101 of this title.

-End-



-CITE-
    26 USC Sec. 5207                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART I - GENERAL PROVISIONS

-HEAD-
    Sec. 5207. Records and reports

-STATUTE-
    (a) Records of distilled spirits plant proprietors
      Every distilled spirits plant proprietor shall keep records in
    such form and manner as the Secretary shall by regulations
    prescribe of:
        (1) The following production activities - 
          (A) the receipt of materials intended for use in the
        production of distilled spirits, and the use thereof,
          (B) the receipt and use of distilled spirits received for
        redistillation, and
          (C) the kind and quantity of distilled spirits produced.

        (2) The following storage activities - 
          (A) the kind and quantity of distilled spirits, wines, and
        alcoholic ingredients entered into storage,
          (B) the kind and quantity of distilled spirits, wines, and
        alcoholic ingredients removed, and the purpose for which
        removed, and
          (C) the kind and quantity of distilled spirits returned to
        storage.

        (3) The following denaturation activities - 
          (A) the kind and quantity of denaturants received and used or
        otherwise disposed of,
          (B) the kind and quantity of distilled spirits denatured, and
          (C) the kind and quantity of denatured distilled spirits
        removed.

        (4) The following processing activities - 
          (A) all distilled spirits, wines, and alcoholic ingredients
        received or transferred,
          (B) the kind and quantity of distilled spirits packaged or
        bottled, and
          (C) the kind and quantity of distilled spirits removed from
        his premises.

        (5) Such additional information with respect to activities
      described in paragraphs (1), (2), (3), and (4), and with respect
      to other activities, as may by regulations be required.
    (b) Reports
      Every person required to keep records under subsection (a) shall
    render such reports covering his operations, at such times and in
    such form and manner and containing such information, as the
    Secretary shall by regulations prescribe.
    (c) Preservation and inspection
      The records required by subsection (a) and a copy of each report
    required by subsection (b) shall be available for inspection by any
    internal revenue officer during business hours, and shall be
    preserved by the person required to keep such records and reports
    for such period as the Secretary shall by regulations prescribe.
    (d) Penalty
          For penalty and forfeiture for refusal or neglect to keep
        records required under this section, or for false entries
        therein, see sections 5603 and 5615(5).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1361; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 95-176, Sec. 2(e), Nov. 14, 1977,
    91 Stat. 1364; Pub. L. 96-39, title VIII, Sec. 807(a)(25), July 26,
    1979, 93 Stat. 283; Pub. L. 98-369, div. A, title IV, Sec.
    454(c)(6), July 18, 1984, 98 Stat. 821; Pub. L. 105-34, title XIV,
    Sec. 1413(a), Aug. 5, 1997, 111 Stat. 1046.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising this section were
    contained in prior sections of act Aug. 16, 1954, prior to the
    general revision of this chapter by Pub. L. 85-859, as follows:


        Present subsecs.:                    Prior sections:            
    --------------------------------------------------------------------
    (a)                         5197(a)(1)(A), (a)(2), 5305, 5331(a)(3).
    (b)                         5285, 5555(a).                          
    (c)                         5197(b), 5285, 5305, 5331(a)(3),        
                                 5555(a).                               
    (d)                         5197(a)(1)(B), 5285, 5305, 5331(a)(3),  
                                 5555(a).                               
    (e)                         5197(c)(2), 5285.                       
    --------------------------------------------------------------------

      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 637, 638, 652, 657, 662, 681.

                                AMENDMENTS                            
      1997 - Subsec. (c). Pub. L. 105-34 struck out "shall be kept on
    the premises where the operations covered by the record are carried
    on and" after "required by subsection (b)".
      1984 - Subsec. (a)(4)(D). Pub. L. 98-369, Sec. 454(c)(6), struck
    out subpar. (D) which required every distilled spirits plant
    proprietor to keep records in such form and manner as prescribed by
    the Secretary of the receipt, use, and balance on hand of all
    stamps required by law or regulations to be used by the proprietor.
      1979 - Subsec. (a). Pub. L. 96-39 struck out provisions relating
    to the bottling of distilled spirits in bond and relating to the
    kind and quantity of distilled spirits returned to bonded premises
    and inserted provisions relating to the kind and quantity of
    distilled spirits returned to storage and relating to receipt, use,
    and balance on hand of all stamps required by law or regulations to
    be used by the Secretary.
      Subsec. (b). Pub. L. 96-39 redesignated subsec. (c) as (b) and
    struck out "or (b)" after "subsection (a)". Former subsec. (b),
    relating to records of rectifiers and bottlers, was struck out.
      Subsec. (c). Pub. L. 96-39 redesignated subsec. (d) as (c),
    struck out "and (b)," after "subsection (a)", and substituted
    "subsection (b)" for "subsection (c)". Former subsec. (c)
    redesignated (b).
      Subsecs. (d), (e). Pub. L. 96-39 redesignated subsec. (e) as (d).
    Former subsec. (d) redesignated (c).
      1977 - Subsec. (a)(10), (11). Pub. L. 95-176, Sec. 2(e)(2), (3),
    added par. (10) and redesignated former par. (10) as (11).
      1976 - Subsecs. (a) to (d). Pub. L. 94 - 455 struck out "or his
    delegate" after "Secretary" wherever appearing.

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Section 1413(b) of Pub. L. 105-34 provided that: "The amendment
    made by subsection (a) [amending this section] shall take effect on
    the 1st day of the 1st calendar quarter that begins at least 180
    days after the date of the enactment of this Act [Aug. 5, 1997]."

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective July 1, 1985, see section
    456(b) of Pub. L. 98-369, set out as an Effective Date note under
    section 5101 of this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1977 AMENDMENT                 
      Amendment by Pub. L. 95-176 effective on first day of first
    calendar month beginning more than 90 days after Nov. 14, 1977, see
    section 7 of Pub. L. 95-176, set out as a note under section 5003
    of this title.

-End-


-CITE-
    26 USC PART II - OPERATIONS ON BONDED PREMISES              01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES

-HEAD-
                  PART II - OPERATIONS ON BONDED PREMISES              

-MISC1-
    Subpart                                                  
    A.          General                                               
    B.          Production.                                           
    C.          Storage.                                              
    D.          Denaturation.                                         

                             PRIOR PROVISIONS                         
      A prior part II, Operation, consisted of sections 5241 to 5252,
    prior to the general revision of this chapter by Pub. L. 85-859,
    title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.

-End-


-CITE-
    26 USC Subpart A - General                                  01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart A - General

-HEAD-
                            SUBPART A - GENERAL                        

-MISC1-
    Sec.                                                     
    5211.       Production and entry of distilled spirits.            
    5212.       Transfer of distilled spirits between bonded premises.
    5213.       Withdrawal of distilled spirits from bonded premises
                 on determination of tax.                             
    5214.       Withdrawal of distilled spirits from bonded premises
                 free of tax or without payment of tax.               
    5215.       Return of tax determined distilled spirits to bonded
                 premises.                                            
    5216.       Regulation of operations.                             

-End-



-CITE-
    26 USC Sec. 5211                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart A - General

-HEAD-
    Sec. 5211. Production and entry of distilled spirits

-STATUTE-
      Distilled spirits in the process of production in a distilled
    spirits plant may be held prior to the production gauge only for so
    long as is reasonably necessary to complete the process of
    production. Under such regulations as the Secretary shall
    prescribe, all distilled spirits produced in a distilled spirits
    plant shall be gauged and a record made of such gauge within a
    reasonable time after the production thereof has been completed.
    The proprietor shall, pursuant to such production gauge and in
    accordance with such regulations as the Secretary shall prescribe,
    make appropriate entry for - 
        (1) deposit of such spirits on bonded premises for storage or
      processing;
        (2) withdrawal upon determination of tax as authorized by law;
        (3) withdrawal under the provisions of section 5214; and
        (4) transfer for redistillation under the provisions of section
      5223.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1362; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(26),
    July 26, 1979, 93 Stat. 284.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5211, act Aug. 16, 1954, ch. 736, 68A Stat. 638,
    related to detention of casks, packages, or containers on
    suspicion, prior to the general revision of this chapter by Pub. L.
    85-859. See section 5311 of this title.
      Provisions similar to those comprising this section were
    contained in prior sections 5193(a), 5194(a), (e) to (g), 5242(a),
    5305, act Aug. 16, 1954, ch. 736, 68A Stat. 633 to 636, 645, 657,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1979 - Pars. (1), (5). Pub. L. 96-39 substituted in par. (1) "on
    bonded premises for storage or processing" for "in storage on
    bonded premises" and struck out par. (5) which related to an
    appropriate entry by the proprietor for immediate denaturation.
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5212                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart A - General

-HEAD-
    Sec. 5212. Transfer of distilled spirits between bonded premises

-STATUTE-
      Bulk distilled spirits on which the internal revenue tax has not
    been paid or determined as authorized by law may, under such
    regulations as the Secretary shall prescribe, be transferred in
    bond between bonded premises in any approved container. For the
    purposes of this chapter, the removal of bulk distilled spirits for
    transfer in bond between bonded premises shall not be construed to
    be a withdrawal from bonded premises. The provisions of this
    section restricting transfers to bulk distilled spirits shall not
    apply to alcohol bottled under the provisions of section 5235 which
    is to be withdrawn for industrial purposes.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1362; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 805(b)(2),
    July 26, 1979, 93 Stat. 276; Pub. L. 96-598, Sec. 6(d), Dec. 24,
    1980, 94 Stat. 3490.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5212, act Aug. 16, 1954, ch. 736, 68A Stat. 639,
    related to the prevention and detection of fraud and contained a
    cross reference to provisions for gauging and marking of spirits,
    prior to the general revision of this chapter by Pub. L. 85-859.
    See section 5204(b) of this title.
      Provisions similar to those comprising this section were
    contained in prior sections 5194(a), (e) to (g), 5217(a), 5246,
    5308, act Aug. 16, 1954, ch. 736, 68A Stat. 634 to 636, 641, 647,
    657, prior to the general revision of this chapter by Pub. L. 85-
    859.

                                AMENDMENTS                            
      1980 - Pub. L. 96-598 inserted provision that restriction on
    transfers to bulk distilled spirits not apply to alcohol bottled
    under section 5235 of this title which is to be withdrawn for
    industrial purposes.
      1979 - Pub. L. 96-39 substituted "Bulk distilled spirits" for
    "Distilled spirits" and "bulk distilled spirits" for "distilled
    spirits".
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

-End-



-CITE-
    26 USC Sec. 5213                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart A - General

-HEAD-
    Sec. 5213. Withdrawal of distilled spirits from bonded premises on
      determination of tax

-STATUTE-
      Subject to the provisions of section 5173, distilled spirits may
    be withdrawn from the bonded premises of a distilled spirits plant
    on payment or determination of tax thereon, in approved containers,
    under such regulations as the Secretary shall prescribe.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1362; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(27),
    July 26, 1979, 93 Stat. 285.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5213, act Aug. 16, 1954, ch. 736, 68A Stat. 639,
    related to return of materials used in the manufacture of distilled
    spirits, prior to the general revision of this chapter by Pub. L.
    85-859. See sections 5002(a)(6) and 5291 of this title.
      Provisions similar to those comprising this section were
    contained in prior sections 5194(a), (e) and 5244, act Aug. 16,
    1954, ch. 736, 68A Stat. 634, 647, prior to the general revision of
    this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1979 - Pub. L. 96-39 substituted "Subject to the provisions of
    section 5173" for "On application to the Secretary and subject to
    the provisions of section 5174(a)".
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

-End-



-CITE-
    26 USC Sec. 5214                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart A - General

-HEAD-
    Sec. 5214. Withdrawal of distilled spirits from bonded premises
      free of tax or without payment of tax

-STATUTE-
    (a) Purposes
      Distilled spirits on which the internal revenue tax has not been
    paid or determined may, subject to such regulations as the
    Secretary shall prescribe, be withdrawn from the bonded premises of
    any distilled spirits plant in approved containers - 
        (1) free of tax after denaturation of such spirits in the
      manner prescribed by law for - 
          (A) exportation;
          (B) use in the manufacture of ether, chloroform, or other
        definite chemical substance where such distilled spirits are
        changed into some other chemical substance and do not appear in
        the finished product; or
          (C) any other use in the arts and industries (except for uses
        prohibited by section 5273(b) or (d)) and for fuel, light, and
        power; or

        (2) free of tax by, and for the use of, the United States or
      any governmental agency thereof, any State, any political
      subdivision of a State, or the District of Columbia, for
      nonbeverage purposes; or
        (3) free of tax for nonbeverage purposes and not for resale or
      use in the manufacture of any product for sale - 
          (A) for the use of any educational organization described in
        section 170(b)(1)(A)(ii) which is exempt from income tax under
        section 501(a), or for the use of any scientific university or
        college of learning;
          (B) for any laboratory for use exclusively in scientific
        research;
          (C) for use at any hospital, blood bank, or sanitarium),
        (including use in making any analysis or test at such hospital,
        blood bank, or sanitarium), or at any pathological laboratory
        exclusively engaged in making analyses, or tests, for hospitals
        or sanitariums; or
          (D) for the use of any clinic operated for charity and not
        for profit (including use in the compounding of bona fide
        medicines for treatment outside of such clinics of patients
        thereof); or

        (4) without payment of tax for exportation, after making such
      application and entries, filing such bonds as are required by
      section 5175, and complying with such other requirements as may
      by regulations be prescribed; or
        (5) without payment of tax for use in wine production, as
      authorized by section 5373; or
        (6) without payment of tax for transfer to manufacturing bonded
      warehouses for manufacturing in such warehouses for export, as
      authorized by law; or
        (7) without payment of tax for use of certain vessels and
      aircraft, as authorized by law; or
        (8) without payment of tax for transfer to foreign-trade zones,
      as authorized by law; or
        (9) without payment of tax, for transfer (for the purpose of
      storage pending exportation) to any customs bonded warehouse from
      which distilled spirits may be exported, and distilled spirits
      transferred to a customs bonded warehouse under this paragraph
      shall be entered, stored, and accounted for under such
      regulations and bonds as the Secretary may prescribe; or
        (10) without payment of tax by a proprietor of bonded premises
      for use in research, development, or testing (other than consumer
      testing or other market analysis) of processes, systems,
      materials, or equipment, relating to distilled spirits or
      distilled spirits operations, under such limitations and
      conditions as to quantities, use, and accountability as the
      Secretary may by regulations require for the protection of the
      revenue; or
        (11) free of tax when contained in an article (within the
      meaning of section 5002(a)(14)); or
        (12) free of tax in the case of distilled spirits produced
      under section 5181; or
        (13) without payment of tax for use on bonded wine cellar
      premises in the production of wine or wine products which will be
      rendered unfit for beverage use and removed pursuant to section
      5362(d).
    (b) Cross references
          (1) For provisions relating to denaturation, see sections
        5241 and 5242.
          (2) For provisions requiring permit for users of distilled
        spirits withdrawn free of tax and for users of specially
        denatured distilled spirits, see section 5271.
          (3) For provisions relating to withdrawal of distilled
        spirits without payment of tax for use of certain vessels and
        aircraft, as authorized by law, see 19 U.S.C. 1309.
          (4) For provisions relating to withdrawal of distilled
        spirits without payment of tax for manufacture in manufacturing
        bonded warehouse, see 19 U.S.C. 1311.
          (5) For provisions relating to foreign-trade zones, see 19
        U.S.C. 81c.
          (6) For provisions authorizing regulations for withdrawal of
        distilled spirits free of tax for use of the United States, see
        section 7510.
          (7) For provisions authorizing removal of distillates to
        bonded wine cellars for use in the production of distilling
        material, see section 5373(c).
          (8) For provisions relating to distilled spirits for use of
        foreign embassies, legations, etc., see section 5066.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1362; amended Pub. L. 91-172, title I, Sec. 101(j)(29), Dec. 30,
    1969, 83 Stat. 529; Pub. L. 94-455, title XIX, Secs. 1905(c)(2),
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823, 1834; Pub. L. 95-176,
    Secs. 3(a), (d), 4(a), Nov. 14, 1977, 91 Stat. 1365; Pub. L. 96-39,
    title VIII, Sec. 807(a)(28), July 26, 1979, 93 Stat. 285; Pub. L.
    96-223, title II, Sec. 232(e)(2)(B), Apr. 2, 1980, 94 Stat. 280;
    Pub. L. 98-369, div. A, title IV, Sec. 455(a), July 18, 1984, 98
    Stat. 823.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5214, act Aug. 16, 1954, ch. 736, 68A Stat. 639,
    related to regulation of traffic in containers of distilled
    spirits, prior to the general revision of this chapter by Pub. L.
    85-859. See section 5301(a), (c), (d) of this title.
      Provisions similar to those comprising subsecs. (a)(1) to (4),
    (9) and (b)(3) to (5) of this section were contained in prior
    sections of act Aug. 16, 1954, prior to the general revision of
    this chapter by Pub. L. 85-859, as follows:


        Present subsecs.:                    Prior sections             
    --------------------------------------------------------------------
    (a)                         5243(e), 5247, 5310(a)-(c), 5331        
                                 (a)(1), (b), 5373(b)(4), 5522(a).      
    (a)(1)                      5310(a), 5331(a)(1), (b).               
    (a)(2), (3)                 5310(b), (c).                           
    (a)(4)                      5243(e), 5247.                          
    (a)(9)                      5373(b)(4).                             
    (b)(3)                      5248(2).                                
    (b)(4)                      5248(4).                                
    (b)(5)                      5248(3).                                
    --------------------------------------------------------------------

      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 646-648, 658, 661, 662, 667.

                                AMENDMENTS                            
      1984 - Subsec. (a)(13). Pub. L. 98-369 added par. (13).
      1980 - Subsec. (a)(12). Pub. L. 96-223 added par. (12).
      1979 - Subsec. (a)(6). Pub. L. 96-39, Sec. 807(a)(28)(A),
    inserted "for manufacturing in such warehouses for export" after
    "bonded warehouses" and substituted "by law" for "by section
    5522(a)".
      Subsec. (a)(9). Pub. L. 96-39, Sec. 807(a)(28)(B), struck out "in
    the case of distilled spirits bottled in bond for export under
    section 5233 or distilled spirits returned to bonded premises under
    section 5215(b)," after "payment of tax,".
      Subsec. (a)(10). Pub. L. 96-39, Sec. 807(a)(28)(C), (D),
    substituted "distilled spirits operations" for "distillery
    operations".
      Subsec. (a)(11). Pub. L. 96-39, Sec. 807(a)(28)(D), added par.
    (11).
      Subsec. (b)(4) to (8). Pub. L. 96-39, Sec. 807(a)(28)(E), added
    par. (4) and redesignated former pars. (4) to (7) as (5) to (8),
    respectively.
      1977 - Subsec. (a)(9). Pub. L. 95-176, Sec. 3(a), substituted
    provisions for withdrawal of distilled spirits from bonded premises
    without payment of tax where the distilled spirits are bottled in
    bond for export or are returned to bonded premises for transfer
    (for the purpose of storage pending exportation) to any customs
    bonded warehouse for exportation and requiring the transferred
    distilled spirits to be entered, stored, and accounted for, for
    prior provision for tax free withdrawals for use as samples in
    making tests or laboratory analyses.
      Subsec. (a)(10). Pub. L. 95-176, Sec. 4(a), added par. (10).
      Subsec. (b)(7). Pub. L. 95-176, Sec. 3(d), added par. (7).
      1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
    after "Secretary" in introductory provisions and struck out "or
    Territory" after "State" in par. (2).
      1969 - Subsec. (a)(3)(A). Pub. L. 91-172 substituted "section
    170(b)(1)(A)(ii)" for "section 503(b)(2)".

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective July 18, 1984, see section
    456(c) of Pub. L. 98-369, set out as an Effective Date note under
    section 5101 of this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-223 effective on first day of first
    calendar month beginning more than 60 days after Apr. 2, 1980, see
    section 232(h)(3) of Pub. L. 96-223, set out as an Effective Date
    note under section 5181 of this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1977 AMENDMENT                 
      Amendment by Pub. L. 95-176 effective on first day of first
    calendar month beginning more than 90 days after Nov. 14, 1977, see
    section 7 of Pub. L. 95-176, set out as a note under section 5003
    of this title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by section 1905(c)(2) of Pub. L. 94-455 effective on
    first day of first month which begins more than 90 days after Oct.
    4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note
    under section 5005 of this title.

                     EFFECTIVE DATE OF 1969 AMENDMENT                 
      Amendment by Pub. L. 91-172 effective Jan. 1, 1970, see section
    101(k)(1) of Pub. L. 91-172, set out as an Effective Date note
    under section 4940 of this title.

-End-



-CITE-
    26 USC Sec. 5215                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart A - General

-HEAD-
    Sec. 5215. Return of tax determined distilled spirits to bonded
      premises

-STATUTE-
    (a) General rule
      Under such regulations as the Secretary may prescribe, distilled
    spirits on which tax has been determined or paid may be returned to
    the bonded premises of a distilled spirits plant but only for
    destruction, denaturation, redistillation, reconditioning, or
    rebottling.
    (b) Applicability of chapter to distilled spirits returned to a
      distilled spirits plant
      All provisions of this chapter applicable to distilled spirits in
    bond shall be applicable to distilled spirits returned to bonded
    premises under the provisions of this section on such return.
    (c) Return of bottled distilled spirits for relabeling and
      reclosing
      Under such regulations as the Secretary shall prescribe, bottled
    distilled spirits withdrawn from bonded premises may be returned to
    bonded premises for relabeling or reclosing, and the tax under
    section 5001 shall not again be collected on such spirits.
    (d) Cross reference
          For provisions relating to the abatement, credit, or refund
        of tax on distilled spirits returned to a distilled spirits
        plant under this section, see section 5008(c).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1364; amended Pub. L. 89-44, title VIII, Sec. 805(c), June 21,
    1965, 79 Stat. 161; Pub. L. 91-659, Sec. 2(c), Jan. 8, 1971, 84
    Stat. 1964; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4,
    1976, 90 Stat. 1834; Pub. L. 95-176, Sec. 2(a), Nov. 14, 1977, 91
    Stat. 1363; Pub. L. 96-39, title VIII, Sec. 807(a)(29), July 26,
    1979, 93 Stat. 285; Pub. L. 98-369, div. A, title IV, Sec.
    454(c)(7), July 18, 1984, 98 Stat. 821.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5215, act Aug. 16, 1954, ch. 736, 68A Stat. 640,
    related to exemption of distillers of fruit brandy from certain
    requirements, prior to the general revision of this chapter by Pub.
    L. 85-859. See sections 5201(c), 5312(a), (c), 5373(a) and 5562 of
    this title.

                                AMENDMENTS                            
      1984 - Subsec. (c). Pub. L. 98-369 substituted "reclosing" for
    "restamping" in heading and text.
      1979 - Pub. L. 96-39 amended section generally thereby
    authorizing the return of distilled spirits to the bonded premises
    of the distilled spirits plant for certain enumerated purposes
    except mere storage.
      1977 - Subsec. (a). Pub. L. 95-176 reenacted existing provisions
    but struck out last sentence relating to applicability of chapter
    to distilled spirits returned to bonded premises, which was covered
    in subsec. (d).
      Subsecs. (b), (c). Pub. L. 95-176 added subsecs. (b) and (c) and
    redesignated former subsec. (b) as (e).
      Subsec. (d). Pub. L. 95-176 redesignated last sentence of former
    subsec. (a) as subsec. (d) and inserted introductory phrase "Except
    as otherwise provided in this section,".
      Subsec. (e). Pub. L. 95-176 redesignated former subsec. (b) as
    par. (1) and added par. (2).
      1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
    after "Secretary".
      1971 - Subsec. (a). Pub. L. 91-659, Sec. 2(c)(1), struck out
    requirements that withdrawn distilled spirits be returned when
    found unsuitable, in bulk containers, before processing and before
    removal from the original container and permitted return of
    withdrawn distilled spirits other than products to which any
    alcoholic ingredients other than such distilled spirits have been
    added and made additional authorization under section 5234(a)(1)(B)
    for mingling returned distilled spirits.
      Subsec. (b). Pub. L. 91-659, Sec. 2(c)(2), (3), repealed subsec.
    (b) which provided for definition of "original container in which
    such distilled spirits were withdrawn from bonded premises" in the
    case of distilled spirits withdrawn by pipeline. Former subsec. (c)
    redesignated (b).
      1965 - Subsec. (a). Pub. L. 89-44 inserted reference to
    destruction to redistillation, denaturation, and mingling in second
    sentence on list of options which might be used in disposing of
    returned distilled spirits.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective July 1, 1985, see section
    456(b) of Pub. L. 98-369, set out as an Effective Date note under
    section 5101 of this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1977 AMENDMENT                 
      Amendment by Pub. L. 95-176 effective on first day of first
    calendar month beginning more than 90 days after Nov. 14, 1977, see
    section 7 of Pub. L. 95-176, set out as a note under section 5003
    of this title.

                     EFFECTIVE DATE OF 1971 AMENDMENT                 
      Amendment by Pub. L. 91-659 effective on first day of first
    calendar month which begins more than 90 days after January 8,
    1971, see section 6 of Pub. L. 91-659, set out as an Effective Date
    note under section 5066 of this title.

                     EFFECTIVE DATE OF 1965 AMENDMENT                 
      Amendment by Pub. L. 89-44 effective July 1, 1965, see section
    805(g)(1) of Pub. L. 89-44, set out as a note under section 5008 of
    this title.

        DISTILLED SPIRITS TO WHICH ALCOHOLIC INGREDIENTS OTHER THAN
      DISTILLED SPIRITS HAVE BEEN ADDED AND WHICH HAVE BEEN WITHDRAWN
           FROM DISTILLED SPIRITS PLANTS BEFORE JANUARY 1, 1980
      Subsec. (a) of this section to apply to distilled spirits to
    which alcoholic ingredients other than distilled spirits have been
    added and which have been withdrawn from a distilled spirits plant
    before Jan. 1, 1980, only if such spirits are returned to the
    distilled spirits plant from which withdrawn, see section 808(e) of
    Pub. L. 96-39, set out as a note under section 5061 of this title.

-End-



-CITE-
    26 USC Sec. 5216                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart A - General

-HEAD-
    Sec. 5216. Regulation of operations

-STATUTE-
          For general provisions relating to operations on bonded
        premises see part I of this subchapter.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1364.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5216, act Aug. 16, 1954, ch. 736, 68A Stat. 640,
    related to "mash, wort and vinegar; vinegar factories", prior to
    the general revision of this chapter by Pub. L. 85-859. See
    sections 5178(c)(4), 5222(a)(1), (2)(D), (d), 5501, 5502(a), 5503,
    5504(a), (b), 5505(a), (c) and 5601(a)(7), (8), (9)(A) of this
    title.
      A prior section 5217, acts Aug. 16, 1954, ch. 736, 68A Stat. 641;
    July 11, 1956, ch. 573, Sec. 1, 70 Stat. 530; July 11, 1958, Pub.
    L. 85-517, 72 Stat. 357, related to national emergency transfers,
    prior to the general revision of this chapter by Pub. L. 85-859.

-End-


-CITE-
    26 USC Subpart B - Production                               01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart B - Production

-HEAD-
                          SUBPART B - PRODUCTION                      

-MISC1-
    Sec.                                                     
    5221.       Commencement, suspension, and resumption of
                 operations.                                          
    5222.       Production, receipt, removal, and use of distilling
                 materials.                                           
    5223.       Redistillation of spirits, articles, and residues.    

                                AMENDMENTS                            
      1965 - Pub. L. 89-44, title VIII, Sec. 805(f)(9), June 21, 1965,
    79 Stat. 161, inserted reference to articles and residues in item
    5223.

-End-



-CITE-
    26 USC Sec. 5221                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart B - Production

-HEAD-
    Sec. 5221. Commencement, suspension, and resumption of operations

-STATUTE-
    (a) Commencement, suspension, and resumption
      The proprietor of a distilled spirits plant authorized to produce
    distilled spirits shall not commence production operations until
    written notice has been given to the Secretary stating when
    operations will begin. Any proprietor of a distilled spirits plant
    desiring to suspend production of distilled spirits shall give
    notice in writing to the Secretary, stating when he will suspend
    such operations. Pursuant to such notice, an internal revenue
    officer shall take such action as the Secretary shall prescribe to
    prevent the production of distilled spirits. No proprietor, after
    having given such notice, shall, after the time stated therein,
    produce distilled spirits on such premises until he again gives
    notice in writing to the Secretary stating the time when he will
    resume operations. At the time stated in the notice of resuming
    such operations an internal revenue officer shall take such action
    as is necessary to permit operations to be resumed. The notices
    submitted under this section shall be in such form and submitted in
    such manner as the Secretary may by regulations require. Nothing in
    this section shall apply to suspensions caused by unavoidable
    accidents; and the Secretary shall prescribe regulations to govern
    such cases of involuntary suspension.
    (b) Penalty
          For penalty and forfeiture for carrying on the business of
        distiller after having given notice of suspension, see sections
        5601(a)(14) and 5615(3).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1364; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 806(b),
    July 26, 1979, 93 Stat. 279.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising subsec. (a) of this
    section were contained in prior section 5191(a), act Aug. 16, 1954,
    ch. 736, 68A Stat. 632, prior to the general revision of this
    chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1979 - Subsec. (a). Pub. L. 96-39 substituted "until written
    notice has been given to the Secretary stating when operations will
    begin" for "until an internal revenue officer has been assigned to
    the premises".
      1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
    after "Secretary".

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5222                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart B - Production

-HEAD-
    Sec. 5222. Production, receipt, removal, and use of distilling
      materials

-STATUTE-
    (a) Production, removal, and use
      (1) No mash, wort, or wash fit for distillation or for the
    production of distilled spirits shall be made or fermented in any
    building or on any premises other than on the bonded premises of a
    distilled spirits plant duly authorized to produce distilled
    spirits according to law; and no mash, wort, or wash so made or
    fermented shall be removed from any such premises before being
    distilled, except as authorized by the Secretary; and no person
    other than an authorized distiller shall, by distillation or any
    other process, produce distilled spirits from any mash, wort, wash,
    or other material.
      (2) Nothing in this subsection shall be construed to apply to - 
        (A) authorized operations performed on the premises of vinegar
      plants established under part I of subchapter H;
        (B) authorized production and removal of fermented materials
      produced on authorized brewery or bonded wine cellar premises as
      provided by law;
        (C) products exempt from tax under the provisions of section
      5042 or 5053(e); or
        (D) fermented materials used in the manufacture of vinegar by
      fermentation.
    (b) Receipt
      Under such regulations as the Secretary may prescribe, fermented
    materials to be used in the production of distilled spirits may be
    received on the bonded premises of a distilled spirits plant
    authorized to produce distilled spirits as follows - 
        (1) from the premises of a bonded wine cellar authorized to
      remove such material by section 5362(c)(6);
        (2) beer conveyed without payment of tax from brewery premises,
      beer which has been lawfully removed from brewery premises upon
      determination of tax, or
        (3) cider exempt from tax under the provisions of section
      5042(a)(1).
    (c) Processing of distilled spirits containing extraneous
      substances
      The Secretary may by regulations provide for the removal from the
    distilling system, and the addition to the fermented or unfermented
    distilling material, of distilled spirits containing substantial
    quantities of fusel oil or aldehydes, or other extraneous
    substances.
    (d) Penalty
          For penalty and forfeiture for unlawful production, removal,
        or use of material fit for distillation or for the production
        of distilled spirits, and for penalty and forfeiture for
        unlawful production of distilled spirits, see sections
        5601(a)(7), 5601(a)(8), and 5615(4).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1365; amended Pub. L. 94-455, title XIX, Secs. 1905(b)(6)(D),
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823, 1834; Pub. L. 95-458,
    Sec. 2(b)(4), Oct. 14, 1978, 92 Stat. 1256; Pub. L. 96-39, title
    VIII, Sec. 807(a)(30), July 26, 1979, 93 Stat. 286; Pub. L. 105-34,
    title XIV, Sec. 1414(a), Aug. 5, 1997, 111 Stat. 1047.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising subsecs. (a)(1), (2)(D),
    (b), and (d) of this section were contained in prior sections of
    act Aug. 16, 1954, prior to the general revision of this chapter by
    Pub. L. 85-859, as follows:


        Present subsecs.:                    Prior sections             
    --------------------------------------------------------------------
    (a)(1), (2)(D)              5216(a)(1), (4).                        
    (b)                         5309, 5362(7), 5412.                    
    (d)                         5216(b).                                
    --------------------------------------------------------------------

      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 640, 641, 658, 665, 675.

                                AMENDMENTS                            
      1997 - Subsec. (b)(2). Pub. L. 105-34 amended par. (2) generally.
    Prior to amendment, par. (2) read as follows: "conveyed without
    payment of tax from contiguous brewery premises where produced;
    or".
      1979 - Subsec. (c). Pub. L. 96-39 struck out ", in the production
    facilities of a distilled spirits plant" after "distilling
    material".
      1978 - Subsec. (a)(2)(C). Pub. L. 95-458 inserted reference to
    section 5053(e).
      1976 - Subsecs. (a)(1), (b), (c). Pub. L. 94-455, Sec.
    1906(b)(13)(A), struck out "or his delegate" after "Secretary".
      Subsec. (d). Pub. L. 94-455, Sec. 1905(b)(6)(D), struck out
    "5601(b)(3), 5601(b)(4)," after "5601(a)(8),".

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Amendment by Pub. L. 105-34 effective on the 1st day of the 1st
    calendar quarter that begins at least 180 days after Aug. 5, 1997,
    see section 1414(d) of Pub. L. 105-34, set out as a note under
    section 5053 of this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1978 AMENDMENT                 
      Amendment by Pub. L. 95-458 effective on first day of first
    calendar month beginning more than 90 days after Oct. 14, 1978, see
    section 2(c) of Pub. L. 95-458, set out as a note under section
    5042 of this title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by section 1905(b)(6)(D) of Pub. L. 94-455 effective on
    first day of first month which begins more than 90 days after Oct.
    4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note
    under section 5005 of this title.

-End-



-CITE-
    26 USC Sec. 5223                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart B - Production

-HEAD-
    Sec. 5223. Redistillation of spirits, articles, and residues

-STATUTE-
    (a) Spirits on bonded premises
      The proprietor of a distilled spirits plant authorized to produce
    distilled spirits may, under such regulations as the Secretary
    shall prescribe, redistill any distilled spirits which have not
    been withdrawn from bonded premises.
    (b) Distilled spirits returned for redistillation
      Distilled spirits which have been lawfully removed from bonded
    premises free of tax or without payment of tax may, under such
    regulations as the Secretary may prescribe, be returned for
    redistillation to the bonded premises of a distilled spirits plant
    authorized to produce distilled spirits.
    (c) Redistillation of articles and residues
      Articles, containing denatured distilled spirits, which were
    manufactured under the provisions of subchapter D or on the bonded
    premises of a distilled spirits plant, and the spirits residues of
    manufacturing processes related thereto, may be received, and the
    distilled spirits therein recovered by redistillation, on the
    bonded premises of a distilled spirits plant authorized to produce
    distilled spirits, under such regulations as the Secretary may
    prescribe.
    (d) Denatured distilled spirits, articles, and residues
      Distilled spirits recovered by the redistillation of denatured
    distilled spirits, or by the redistillation of the articles or
    residues described in subsection (c), may not be withdrawn from
    bonded premises except for industrial use or after denaturation
    thereof in the manner prescribed by law.
    (e) Products of redistillation
      All distilled spirits redistilled on bonded premises subsequent
    to production gauge shall be treated the same as if such spirits
    had been originally produced by the redistiller and all provisions
    of this chapter applicable to the original production of distilled
    spirits shall be applicable thereto. Any prior obligation as to
    taxes, liens, and bonds with respect to such distilled spirits
    shall be extinguished on redistillation. Nothing in this subsection
    shall be construed as affecting any provision of law relating to
    the labeling of distilled spirits or as limiting the authority of
    the Secretary to regulate the marking, branding, or identification
    of distilled spirits redistilled under this section.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1365; amended Pub. L. 89-44, title VIII, Sec. 805(d), (f)(8), (10),
    June 21, 1965, 79 Stat. 161, 162; Pub. L. 94-455, title XIX, Sec.
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-39, title
    VIII, Sec. 807(a)(31), July 26, 1979, 93 Stat. 286.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising subsecs. (a) and (d) of
    this section were contained in prior sections of act Aug. 16, 1954,
    prior to the general revision of this chapter by Pub. L. 85-859, as
    follows:


        Present subsecs.:                    Prior sections             
    --------------------------------------------------------------------
    (a)                         5194(f), 5217(a), 5305, 5308.           
    (d)                         5194(f).                                
    --------------------------------------------------------------------

      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 635, 641, 657.

                                AMENDMENTS                            
      1979 - Subsec. (c). Pub. L. 96-39, Sec. 807(a)(31)(A), inserted
    "or on the bonded premises of a distilled spirits plant" after
    "subchapter D,".
      Subsec. (e). Pub. L. 96-39, Sec. 807(a)(31)(B), struck out
    provisions relating to the treatment of the processing of distilled
    spirits, subsequent to production gauge, in the manufacture of
    vodka in the production facilities of a distilled spirits plant as
    a redistillation of the spirits for purposes of this subsection,
    subsection (a), and sections 5025(d) and 5215.
      1976 - Subsecs. (a) to (c), (e). Pub. L. 94-455 struck out "or
    his delegate" after "Secretary" wherever appearing.
      1965 - Pub. L. 89-44, Sec. 805(f)(8), substituted "spirits,
    articles, and residues" for "spirits" in section catchline.
      Subsec. (c). Pub. L. 89-44, Sec. 805(d), added subsec. (c).
    Former subsecs. (c) redesignated (d).
      Subsec. (d). Pub. L. 89-44, Sec. 805(d), (f)(10), redesignated
    subsec. (c) as (d), inserted ", articles, and residues" after
    "distilled spirits" in heading, and inserted ", or by the
    redistillation of the articles or residues described in subsection
    (c)," after "denatured distilled spirits" in text. Former subsec.
    (d) redesignated (e).
      Subsec. (e). Pub. L. 89-11, Sec. 805(d), redesignated former
    subsec. (d) as (e).

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1965 AMENDMENT                 
      Amendment by Pub. L. 89-44 effective Oct. 1, 1965, see section
    805(g)(2) of Pub. L. 89-44, set out as a note under section 5004 of
    this title.

-End-


-CITE-
    26 USC Subpart C - Storage                                  01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart C - Storage

-HEAD-
                            SUBPART C - STORAGE                        

-MISC1-
    Sec.                                                     
    5231.       Entry for deposit.                                    
    5232.       Imported distilled spirits.                           
    [5233, 5234. Repealed.]                                           
    5235.       Bottling of alcohol for industrial purposes.          
    5236.       Discontinuance of storage facilities and transfer of
                 distilled spirits.                                   

                                AMENDMENTS                            
      1979 - Pub. L. 96-39, title VIII, Sec. 807(b)(6), July 26, 1979,
    93 Stat. 290, substituted "Entry for deposit" for "Entry for
    deposit in storage" in item 5231 and struck out items 5233
    "Bottling of distilled spirits in bond" and 5234 "Mingling and
    blending of distilled spirits".

-End-



-CITE-
    26 USC Sec. 5231                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart C - Storage

-HEAD-
    Sec. 5231. Entry for deposit

-STATUTE-
      All distilled spirits entered for deposit on the bonded premises
    of a distilled spirits plant under section 5211 shall, under such
    regulations as the Secretary shall prescribe, be deposited in the
    facilities on the bonded premises designated in the entry for
    deposit.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1366; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(32),
    July 26, 1979, 93 Stat. 286.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5231, act Aug. 16, 1954, ch. 736, 68A Stat. 643,
    related to authority to establish internal revenue bonded
    warehouses, prior to the general revision of this chapter by Pub.
    L. 85-859. See sections 5171(a), 5172, 5173(a), and
    5178(a)(1)(A)(B), (3)(A)(B) of this title.
      Provisions similar to those comprising this section were
    contained in prior section 5242(a), (b)(5), act Aug. 16, 1954, ch.
    736, 68A Stat. 645, prior to the general revision of this chapter
    by Pub. L. 85-859.

                                AMENDMENTS                            
      1979 - Pub. L. 96-39 struck out in section catchline "in storage"
    after "for deposit" and subsec. (a) catchline and in text
    substituted "on the bonded premises of a distilled spirits plant"
    for "in storage" and "in the facilities" for "in storage
    facilities" and repealed subsec. (b) which related to a cross
    reference to section 5006(a)(2) for provisions requiring that all
    distilled spirits entered for deposit be withdrawn within 20 years
    from date of original entry for deposit.
      1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
    after "Secretary".

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5232                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart C - Storage

-HEAD-
    Sec. 5232. Imported distilled spirits

-STATUTE-
    (a) Transfer to distilled spirits plant without payment of tax
      Distilled spirits imported or brought into the United States in
    bulk containers may, under such regulations as the Secretary shall
    prescribe, be withdrawn from customs custody and transferred in
    such bulk containers or by pipeline to the bonded premises of a
    distilled spirits plant without payment of the internal revenue tax
    imposed on such distilled spirits. The person operating the bonded
    premises of the distilled spirits plant to which such spirits are
    transferred shall become liable for the tax on distilled spirits
    withdrawn from customs custody under this section upon release of
    the spirits from customs custody, and the importer, or the person
    bringing such distilled spirits into the United States, shall
    thereupon be relieved of his liability for such tax.
    (b) Withdrawals, etc.
      Distilled spirits transferred pursuant to subsection (a) - 
        (1) may be redistilled or denatured only if of 185 degrees or
      more of proof, and
        (2) may be withdrawn for any purpose authorized by this
      chapter, in the same manner as domestic distilled spirits.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1366; amended Pub. L. 90-630, Sec. 3(a), Oct. 22, 1968, 82 Stat.
    1328; Pub. L. 91-659, Sec. 7, Jan. 8, 1971, 84 Stat. 1967; Pub. L.
    94-455, title XIX, Sec. 1905(a)(15), Oct. 4, 1976, 90 Stat. 1820;
    Pub. L. 96-39, title VIII, Sec. 807(a)(33), July 26, 1979, 93 Stat.
    286.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5232, acts Aug. 16, 1954, ch. 736, 68A Stat. 643;
    Sept. 2, 1958, Pub. L. 85-859, title II, Sec. 206(b), 72 Stat.
    1431, related to bond requirements of internal revenue bonded
    warehouses, prior to the general revision of this chapter by Pub.
    L. 85-859. See sections 5005(c)(1), 5006(a)(2), 5173(a), (c)(1),
    5174(a)(1), 5176(a), (b), and 5177(b)(1) of this title.
      Provisions similar to those comprising this section were
    contained in prior section 5311, act Aug. 16, 1954, ch. 736, 68A
    Stat. 658, prior to the general revision of this chapter by Pub. L.
    85-859.

                                AMENDMENTS                            
      1979 - Subsec. (b). Pub. L. 96-39 redesignated par. (2) and (3)
    as (1) and (2). Former par. (1), which prohibited distilled spirits
    transferred pursuant to subsection (a) from being bottled in bond
    under section 5233, was struck out.
      1976 - Subsec. (a). Pub. L. 94-455 inserted ", or the person
    bringing such distilled spirits into the United States," after "and
    the importer".
      1971 - Subsec. (a). Pub. L. 91-659, Sec. 7(a), extended privilege
    of transfer of distilled spirits to the plant without payment of
    tax to distilled spirits imported, or brought into the United
    States, and struck out reference to section 5001.
      Subsec. (b). Pub. L. 91-659, Sec. 7(b), struck out "Imported"
    before "distilled spirits" and thus applied subsection to all
    distilled spirits.
      1968 - Pub. L. 90-630 permitted withdrawal in bulk containers or
    by pipeline from customs custody to internal revenue bond without
    payment of internal revenue taxes of all imported distilled spirits
    in bulk containers, regardless of proof, extended to all such
    imported distilled spirits the withdrawal privileges already
    available to imported distilled spirits of at least 185 proof,
    whether or not they have been redistilled or denatured, provided
    that transferor's liability for the internal revenue tax ceases
    when the transferee's liability attaches, and established that
    imported bulk spirits are not eligible for the bottled in bond
    privileges available to domestic spirits.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-455 effective on first day of first month
    which begins more than 90 days after Oct. 4, 1976, see section
    1905(d) of Pub. L. 94-455, set out as a note under section 5005 of
    this title.

                     EFFECTIVE DATE OF 1971 AMENDMENT                 
      Amendment by Pub. L. 91-659 effective on first day of first
    calendar month which begins more than 90 days after Jan. 8, 1971,
    see section 6 of Pub. L. 91-659, set out as an Effective Date note
    under section 5066 of this title.

                     EFFECTIVE DATE OF 1968 AMENDMENT                 
      Amendment by Pub. L. 90-630 applicable only to withdrawals from
    customs custody on or after first day of first calendar month which
    begins more than 90 days after Oct. 22, 1968, see section 4 of Pub.
    L. 90-630, set out as a note under section 5008 of this title.

-End-



-CITE-
    26 USC Sec. 5233                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart C - Storage

-HEAD-
    Sec. 5233. Repealed.

-MISC1-
    [Sec. 5233. Repealed. Pub. L. 96-39, title VIII, Sec. 807(a)(34),
      July 26, 1979, 93 Stat. 286].
      Section, added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958,
    72 Stat. 1366; amended Pub. L. 94-455, title XIX, Secs.
    1905(a)(16), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1820, 1834,
    related to the bottling of distilled spirits in bond.
      A prior section 5233, act Aug. 16, 1954, ch. 736, 68A Stat. 644,
    made a cross reference provision to establishment of bottling in
    bond department, prior to the general revision of this chapter by
    Pub. L. 85-859.
      Provisions similar to those comprising subsecs. (a) to (d) and
    (e)(1) of section 5233 added by Pub. L. 85-859, title II, Sec. 201,
    Sept. 2, 1958, 72 Stat. 1366, were contained in prior section
    5243(a) to (c), (g), act Aug. 16, 1954, ch. 736, 68A Stat. 645, as
    amended by Pub. L. 85-859, title II, Sec. 206(c), Sept. 2, 1958, 72
    Stat. 1431.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective Jan. 1, 1980, see section 810 of Pub. L. 96-39,
    set out as an Effective Date of 1979 Amendment note under section
    5001 of this title.

-End-



-CITE-
    26 USC Sec. 5234                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart C - Storage

-HEAD-
    Sec. 5234. Repealed.

-MISC1-
    [Sec. 5234. Repealed. Pub. L. 96-39, title VIII, Sec. 807(a)(35),
      July 26, 1979, 93 Stat. 286].
      Section, added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958,
    72 Stat. 1367; amended Pub. L. 89-44, title VIII, Sec. 805(f)(11),
    June 21, 1965, 79 Stat. 162; Pub. L. 94-455, title XIX, Secs.
    1905(a)(17), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1820, 1834;
    Pub. L. 95-176, Sec. 5(a), Nov. 14, 1977, 91 Stat. 1366, related to
    the mingling and blending of distilled spirits.
      Provisions similar to those comprising section 5234(a)(1)(A) and
    (b) to (d) of this title were contained in prior sections of act
    Aug. 16, 1954, ch. 736, prior to the general revision of this
    chapter by Pub. L. 85-859, as follows:


            Subsecs.:                        Prior sections             
    --------------------------------------------------------------------
    (a)(1)(A)                   5306.                                   
    (b)                         5217(a).                                
    (c)                         5023.                                   
    (d)                         5251.                                   
    --------------------------------------------------------------------


      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 606, 641, 649, 657.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective Jan. 1, 1980, see section 810 of Pub. L. 96-39,
    set out as an Effective Date of 1979 Amendment note under section
    5001 of this title.

-End-



-CITE-
    26 USC Sec. 5235                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart C - Storage

-HEAD-
    Sec. 5235. Bottling of alcohol for industrial purposes

-STATUTE-
      Alcohol for industrial purposes may be bottled, labeled, and
    cased on bonded premises of a distilled spirits plant prior to
    payment or determination of tax, under such regulations as the
    Secretary may prescribe.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1369; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(36),
    July 26, 1979, 93 Stat. 286; Pub. L. 98-369, div. A, title IV, Sec.
    454(c)(8), July 18, 1984, 98 Stat. 821.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising this section were
    contained in prior section 5305, act Aug. 16, 1954, ch. 736, 68A
    Stat. 657, prior to the general revision of this chapter by Pub. L.
    85-859.

                                AMENDMENTS                            
      1984 - Pub. L. 98-369 struck out "stamped," before "labeled," and
    struck out provision that section 5205(a)(1) shall not apply to
    alcohol bottled, stamped, and labeled as such under this section.
      1979 - Pub. L. 96-39 substituted "section 5205(a)(1) shall not
    apply" for "sections 5178(a)(4)(A), 5205(a)(1), and 5233 (relating
    to the bottling of distilled spirits in bond) shall not be
    applicable".
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective July 1, 1985, see section
    456(b) of Pub. L. 98-369, set out as an Effective Date note under
    section 5101 of this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

-End-



-CITE-
    26 USC Sec. 5236                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart C - Storage

-HEAD-
    Sec. 5236. Discontinuance of storage facilities and transfer of
      distilled spirits

-STATUTE-
      When the Secretary finds any facilities for the storage of
    distilled spirits on bonded premises to be unsafe or unfit for use,
    or the spirits contained therein subject to great loss or wastage
    he may require the discontinuance of the use of such facilities and
    require the spirits contained therein to be transferred to such
    other storage facilities as he may designate. Such transfer shall
    be made at such time and under such supervision as the Secretary
    may require and the expense of the transfer shall be paid by the
    owner or the warehouseman of the distilled spirits. Whenever the
    owner of such distilled spirits or the warehouseman fails to make
    such transfer within the time prescribed, or to pay the just and
    proper expense of such transfer, as ascertained and determined by
    the Secretary, such distilled spirits may be seized and sold by the
    Secretary in the same manner as goods are sold on distraint for
    taxes, and the proceeds of such sale shall be applied to the
    payment of the taxes due thereon and the cost and expenses of such
    sale and removal, and the balance paid over to the owner of such
    distilled spirits.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1369; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising this section were
    contained in prior section 5252, act Aug. 16, 1954, ch. 736, 68A
    Stat. 649, prior to the general revision of this chapter by Pub. L.
    85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.

-End-


-CITE-
    26 USC Subpart D - Denaturation                             01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart D - Denaturation

-HEAD-
                         SUBPART D - DENATURATION                     

-MISC1-
    Sec.                                                     
    5241.       Authority to denature.                                
    5242.       Denaturing materials.                                 
    5243.       Sale of abandoned spirits for denaturation without
                 collection of tax.                                   
    5244.       Cross references.                                     

-End-



-CITE-
    26 USC Sec. 5241                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart D - Denaturation

-HEAD-
    Sec. 5241. Authority to denature

-STATUTE-
      Under such regulations as the Secretary shall prescribe,
    distilled spirits may be denatured on the bonded premises of a
    distilled spirits plant qualified for the processing of distilled
    spirits. Distilled spirits to be denatured under this section shall
    be of such kind and such degree of proof as the Secretary shall by
    regulations prescribe. Distilled spirits denatured under this
    section may be used on the bonded premises of a distilled spirits
    plant in the manufacture of any article.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1369; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(37),
    July 26, 1979, 93 Stat. 286.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5241, act Aug. 16, 1954, ch. 736, 68A Stat. 644,
    related to supervision of operations of internal revenue bonded
    warehouses, prior to the general revision of this chapter by Pub.
    L. 85-859. See sections 5201(a), 5202 (a), (c), (d), and 7803 of
    this title and section 22 of former Title 5, Executive Departments
    and Government Officers and Employees.
      Provisions similar to those comprising this section were
    contained in prior sections 5194(c), 5303, 5310(a), 5331(a)(1), act
    Aug. 16, 1954, ch. 736, 68A Stat. 635, 655, 658, 661, prior to the
    general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1979 - Pub. L. 96-39 substituted "a distilled spirits plant
    qualified for the processing of distilled spirits" for "any
    distilled spirits plant operated by a proprietor who is authorized
    to produce distilled spirits at such plant or on other bonded
    premises", struck out provision that any other person operating
    bonded premises may, at the discretion of the Secretary and under
    such regulations as he may prescribe, be authorized to denature
    distilled spirits on such bonded premises, and inserted provision
    that distilled spirits denatured under this section may be used on
    the bonded premises of a distilled spirits plant in the manufacture
    of any article.
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5242                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart D - Denaturation

-HEAD-
    Sec. 5242. Denaturing materials

-STATUTE-
      Methanol or other denaturing materials suitable to the use for
    which the denatured distilled spirits are intended to be withdrawn
    shall be used for the denaturation of distilled spirits. Denaturing
    materials shall be such as to render the spirits with which they
    are admixed unfit for beverage or internal human medicinal use. The
    character and the quantity of denaturing materials used shall be as
    prescribed by the Secretary by regulations.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1369; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5242, acts Aug. 16, 1954, ch. 736, 68A Stat. 645;
    Sept. 2, 1958, Pub. L. 85-859, title II, Sec. 206(e), 72 Stat.
    1431, related to deposit of spirits in warehouses, prior to the
    general revision of this chapter by Pub. L. 85-859.
      Provisions similar to those comprising this section were
    contained in prior sections 5303, 5310(a) and 5331(a)(1), (2), act
    Aug. 16, 1954, ch. 736, 68A Stat. 655, 658, 661, prior to the
    general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

-End-



-CITE-
    26 USC Sec. 5243                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart D - Denaturation

-HEAD-
    Sec. 5243. Sale of abandoned spirits for denaturation without
      collection of tax

-STATUTE-
      Notwithstanding any other provision of law, any distilled spirits
    abandoned to the United States may be sold, in such cases as the
    Secretary may by regulation provide, to the proprietor of any
    distilled spirits plant for denaturation, or redistillation and
    denaturation, without the payment of the internal revenue tax
    thereon.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1370; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5243, acts Aug. 16, 1954, ch. 736, 68A Stat. 645;
    Sept. 2, 1958, Pub. L. 85-859, Sec. 206(c), 72 Stat. 1431, related
    to bottling of distilled spirits in bond, prior to the general
    revision of this chapter by Pub. L. 85-859. See sections 5171,
    5172, 5175, 5178(a)(3)(C), (4)(A), 5202(g), 5206(c), 5214(a)(4),
    and 5233(a) to (c), (e)(1) of this title and section 121 of Title
    27, Intoxicating Liquors.
      Provisions similar to those comprising this section were
    contained in prior section 5333, act Aug. 16, 1954, ch. 736, 68A
    Stat. 662, prior to the general revision of this chapter by Pub. L.
    85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

-End-



-CITE-
    26 USC Sec. 5244                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    PART II - OPERATIONS ON BONDED PREMISES
    Subpart D - Denaturation

-HEAD-
    Sec. 5244. Cross references

-STATUTE-
          (1) For provisions authorizing the withdrawal from the bonded
        premises of a distilled spirits plant of denatured distilled
        spirits, see section 5214(a)(1).
          (2) For provisions requiring a permit to procure specially
        denatured distilled spirits, see section 5271.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1370.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5244, act Aug. 16, 1954, ch. 736, 68A Stat. 647,
    related to withdrawal of spirits from bonded warehouse on
    determination of tax, prior to the general revision of this chapter
    by Pub. L. 85-859. See section 5213 of this title.

-End-


-CITE-
    26 USC [PART III - REPEALED]                                01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    [PART III - REPEALED]

-HEAD-
                           [PART III - REPEALED]                       

-End-



-CITE-
    26 USC Secs. 5251, 5252                                     01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter C - Operation of Distilled Spirits Plants
    [PART III - REPEALED]

-HEAD-
    Secs. 5251, 5252. Repealed.

-MISC1-
    [Secs. 5251, 5252. Repealed. Pub. L. 96-39, title VIII, Sec.
      807(a)(38), July 26, 1979, 93 Stat. 286].
      Section 5251, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
    1958, 72 Stat. 1370; amended Pub. L. 94-455, title XIX, Sec.
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, required proprietors
    of distilled spirits plants to give notice of their intention to
    rectify or compound any distilled spirits or wines.
      A prior section 5251, act Aug. 16, 1954, ch. 736, 68A Stat. 649,
    made a cross reference provision to "blending of beverage brandies
    in internal revenue bonded warehouses", prior to the general
    revision of this chapter by Pub. L. 85-859.
      Provisions similar to those comprising section 5251 of this title
    were contained in prior section 5282(a), act Aug. 16, 1954, ch.
    736, 68A Stat. 651, prior to the general revision of this chapter
    by Pub. L. 85-859.
      Section 5252, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
    1958, 72 Stat. 1370, set out cross references to other sections
    with regard to the regulation of operations.
      A prior section 5252, act Aug. 16, 1954, ch. 736, 68A Stat. 649,
    related to "discontinuance of warehouse and transfer of
    merchandise", prior to the general revision of this chapter by Pub.
    L. 85-859. See section 5236 of this title.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective Jan. 1, 1980, see section 810 of Pub. L. 96-39,
    set out as an Effective Date of 1979 Amendment note under section
    5001 of this title.

-End-


-CITE-
    26 USC Subchapter D - Industrial Use of Distilled Spirits    01/03/2007 

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter D - Industrial Use of Distilled Spirits

-HEAD-
            SUBCHAPTER D - INDUSTRIAL USE OF DISTILLED SPIRITS        

-MISC1-
    Sec.                                                     
    5271.       Permits.                                              
    5272.       Bonds.                                                
    5273.       Sale, use, and recovery of denatured distilled
                 spirits.                                             
    5274.       Applicability of other laws.                          
    5275.       Records and reports.                                  
    5276.       Occupational tax.                                     

                             PRIOR PROVISIONS                         
      A prior subchapter D, Rectifying Plants, consisted of part I,
    Establishment, and part II, Operation, and comprised sections 5271
    to 5275 and 5281 to 5285, respectively, prior to the general
    revision of this chapter by Pub. L. 85-859, title II, Sec. 201,
    Sept. 2, 1958, 72 Stat. 1313.

                                AMENDMENTS                            
      1987 - Pub. L. 100-203, title X, Sec. 10512(e)(2), Dec. 22, 1987,
    101 Stat. 1330-449, added item 5276.

-End-



-CITE-
    26 USC Sec. 5271                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter D - Industrial Use of Distilled Spirits

-HEAD-
    Sec. 5271. Permits

-STATUTE-
    (a) Requirements
      No person shall - 
        (1) procure or use distilled spirits free of tax under the
      provisions of section 5214(a)(2) or (3); or
        (2) procure, deal in, or use specially denatured distilled
      spirits; or
        (3) recover specially or completely denatured distilled
      spirits, until he has filed an application with and received a
      permit to do so from the Secretary.
    (b) Form of application and permit
      (1) The application required by subsection (a) shall be in such
    form, shall be submitted at such times, and shall contain such
    information, as the Secretary shall by regulations prescribe.
      (2) Permits under this section shall, under such regulations as
    the Secretary shall prescribe, designate and limit the acts which
    are permitted, and the place where and time when such acts may be
    performed. Such permits shall be issued in such form and under such
    conditions as the Secretary may by regulations prescribe.
    (c) Disapproval of application
      Any application submitted under this section may be disapproved
    and the permit denied if the Secretary, after notice and
    opportunity for hearing, finds that - 
        (1) in case of an application to withdraw and use distilled
      spirits free of tax, the applicant is not authorized by law or
      regulations issued pursuant thereto to withdraw or use such
      distilled spirits; or
        (2) the applicant (including, in the case of a corporation, any
      officer, director, or principal stockholder, and, in the case of
      a partnership, a partner) is, by reason of his business
      experience, financial standing, or trade connections, not likely
      to maintain operations in compliance with this chapter; or
        (3) the applicant has failed to disclose any material
      information required, or made any false statement as to any
      material fact, in connection with his application; or
        (4) the premises on which it is proposed to conduct the
      business are not adequate to protect the revenue.
    (d) Changes after issuance of permit
      With respect to any change relating to the information contained
    in the application for a permit issued under this section, the
    Secretary may by regulations require the filing of written notice
    of such change and, where the change affects the terms of the
    permit, require the filing of an amended application.
    (e) Suspension or revocation
      If, after notice and hearing, the Secretary finds that any person
    holding a permit issued under this section - 
        (1) has not in good faith complied with the provisions of this
      chapter or regulations issued thereunder; or
        (2) has violated the conditions of such permit; or
        (3) has made any false statement as to any material fact in his
      application therefor; or
        (4) has failed to disclose any material information required to
      be furnished; or
        (5) has violated or conspired to violate any law of the United
      States relating to intoxicating liquor, or has been convicted of
      any offense under this title punishable as a felony or of any
      conspiracy to commit such offense; or
        (6) is, in the case of any person who has a permit under
      subsection (a)(1) or (a)(2), by reason of his operations, no
      longer warranted in procuring or using the distilled spirits or
      specially denatured distilled spirits authorized by his permit;
      or
        (7) has, in the case of any person who has a permit under
      subsection (a)(2), manufactured articles which do not correspond
      to the descriptions and limitations prescribed by law and
      regulations; or
        (8) has not engaged in any of the operations authorized by the
      permit for a period of more than 2 years;

    such permit may, in whole or in part, be revoked or be suspended
    for such period as the Secretary deems proper.
    (f) Duration of permits
      Permits issued under this section, unless terminated by the terms
    of the permit, shall continue in effect until suspended or revoked
    as provided in this section, or until voluntarily surrendered.
    (g) Posting of permits
      Permits issued under this section, to use distilled spirits free
    of tax, to deal in, or use specially denatured distilled spirits,
    or to recover specially or completely denatured distilled spirits,
    shall be kept posted available for inspection on the premises
    covered by the permit.
    (h) Regulations
      The Secretary shall prescribe all necessary regulations relating
    to issuance, denial, suspension, or revocation, of permits under
    this section, and for the disposition of distilled spirits
    (including specially denatured distilled spirits) procured under
    permit pursuant to this section which remain unused when such
    permit is no longer in effect.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1370; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5271, act Aug. 16, 1954, ch. 736, 68A Stat. 650,
    related to "notice of business of rectifier", prior to the general
    revision of this chapter by Pub. L. 85-859. See sections 5171(a),
    (c), 5172, and 5178(a)(1)(A), (4)(B)-(D) of this title.
      Provisions similar to those comprising subsecs. (a) to (f) and
    (h) of this section were contained in prior section 5304(a)(1) to
    (4), (b), (c), act Aug. 16, 1954, ch. 736, 68A Stat. 655, prior to
    the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Subsecs. (a) to (e), (h). Pub. L. 94-455 struck out "or
    his delegate" after "Secretary" wherever appearing.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5272                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter D - Industrial Use of Distilled Spirits

-HEAD-
    Sec. 5272. Bonds

-STATUTE-
    (a) Requirements
      Before any permit required by section 5271(a) is granted, the
    Secretary may require a bond, in such form and amount as he may
    prescribe, to insure compliance with the terms of the permit and
    the provisions of this chapter.
    (b) Exceptions
      No bond shall be required in the case of permits issued to the
    United States or any governmental agency thereof, or to the several
    States or any political subdivision thereof, or to the District of
    Columbia.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1372; amended Pub. L. 94-455, title XIX, Secs. 1905(c)(3),
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823, 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5272, act Aug. 16, 1954, ch. 736, 68A Stat. 650,
    related to requirement and approval of bond as condition to
    commencing business of rectifier of spirits, prior to the general
    revision of this chapter by Pub. L. 85-859. See section 5173(a),
    (d) of this title.
      Provisions similar to those comprising this section were
    contained in prior sections 5304(a)(5) and 5310(d), act Aug. 16,
    1954, ch. 736, 68A Stat. 655, 658, prior to the general revision of
    this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
    out "or his delegate" after "Secretary".
      Subsec. (b). Pub. L. 94-455, Sec. 1905(c)(3), struck out "and
    Territories" after "several States".

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by section 1905(c)(3) of Pub. L. 94-455 effective on
    first day of first month which begins more than 90 days after Oct.
    4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note
    under section 5005 of this title.

-End-



-CITE-
    26 USC Sec. 5273                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter D - Industrial Use of Distilled Spirits

-HEAD-
    Sec. 5273. Sale, use, and recovery of denatured distilled spirits

-STATUTE-
    (a) Use of specially denatured distilled spirits
      Any person using specially denatured distilled spirits in the
    manufacture of articles shall file such formulas and statements of
    process, submit such samples, and comply with such other
    requirements, as the Secretary shall by regulations prescribe, and
    no person shall use specially denatured distilled spirits in the
    manufacture or production of any article until approval of the
    article, formula, and process has been obtained from the Secretary.
    (b) Internal medicinal preparations and flavoring extracts
      (1) Manufacture
        No person shall use denatured distilled spirits in the
      manufacture of medicinal preparations or flavoring extracts for
      internal human use where any of the spirits remains in the
      finished product.
      (2) Sale
        No person shall sell or offer for sale for internal human use
      any medicinal preparations or flavoring extracts manufactured
      from denatured distilled spirits where any of the spirits remains
      in the finished product.
    (c) Recovery of spirits for reuse in manufacturing
      Manufacturers employing processes in which denatured distilled
    spirits withdrawn under section 5214(a)(1) are expressed,
    evaporated, or otherwise removed, from the articles manufactured
    shall be permitted to recover such distilled spirits and to have
    such distilled spirits restored to a condition suitable solely for
    reuse in manufacturing processes under such regulations as the
    Secretary may prescribe.
    (d) Prohibited withdrawal or sale
      No person shall withdraw or sell denatured distilled spirits, or
    sell any article containing denatured distilled spirits for
    beverage purposes.
    (e) Cross references
          (1) For penalty and forfeiture for unlawful use or
        concealment of denatured distilled spirits, see section 5607.
          (2) For applicability of all provisions of law relating to
        distilled spirits that are not denatured, including those
        requiring payment of tax, to denatured distilled spirits or
        articles produced, withdrawn, sold, transported, or used in
        violation of law or regulations, see section 5001(a)(6).(!1)

          (3) For definition of "articles", see section 5002(a)(14).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1372; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(39),
    July 26, 1979, 93 Stat. 286.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 5001(a)(6), referred to in subsec. (e)(2), was
    redesignated section 5001(a)(5) by Pub. L. 103-465, title I, Sec.
    136(a), Dec. 8, 1994, 108 Stat. 4841.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5273, act Aug. 16, 1954, ch. 736, 68A Stat. 650,
    related to premises of rectifier, prior to the general revision of
    this chapter by Pub. L. 85-859. See section 5178(a)(1)(A), (4)(B),
    (D) and (c)(1) of this title.
      Provisions similar to those comprising this section were
    contained in prior sections of act Aug. 16, 1954, prior to the
    general revision of this chapter by Pub. L. 85-859, as follows:


        Present subsecs.:                    Prior sections             
    --------------------------------------------------------------------
    (a)                         5331(a), (b).                           
    (b)                         5303, 5305, 5310(a), 5331(a)(1), (2),   
                                 (b), 5647.                             
    (c)                         5332.                                   
    (d)                         5303, 5305, 5310(a), 5331(a), 5647.     
    (e)(1), (2)                 5334.                                   
    --------------------------------------------------------------------

      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 655, 657, 658, 661, 662, 693.

                                AMENDMENTS                            
      1979 - Subsec. (e)(3). Pub. L. 96-39 substituted "section
    5002(a)(14)" for "section 5002(a)(11)".
      1976 - Subsecs. (a), (c). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary" wherever appearing.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

-FOOTNOTE-               

    (!1) See References in Text note below.


-End-



-CITE-
    26 USC Sec. 5274                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter D - Industrial Use of Distilled Spirits

-HEAD-
    Sec. 5274. Applicability of other laws

-STATUTE-
      The provisions, including penalties, of sections 9, and 10 of the
    Federal Trade Commission Act (15 U.S.C., secs. 49, 50), as now or
    hereafter amended, shall apply to the jurisdiction, powers, and
    duties of the Secretary under this subtitle, and to any person
    (whether or not a corporation) subject to the provisions of this
    subtitle.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1372; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5274, act Aug. 16, 1954, ch. 736, 68A Stat. 651,
    related to sign required on rectifying premises, prior to the
    general revision of this chapter by Pub. L. 85-859. See section
    5180 of this title.
      Provisions similar to those comprising this section were
    contained in prior section 5317(b), act Aug. 16, 1954, ch. 736, 68A
    Stat. 660, prior to the general revision of this chapter by Pub. L.
    85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

-End-



-CITE-
    26 USC Sec. 5275                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter D - Industrial Use of Distilled Spirits

-HEAD-
    Sec. 5275. Records and reports

-STATUTE-
      Every person procuring or using distilled spirits withdrawn under
    section 5214(a)(2) or (3), or procuring, dealing in, or using
    specially denatured distilled spirits, or recovering specially
    denatured or completely denatured distilled spirits, shall keep
    such records and file such reports of the receipt and use of
    distilled spirits withdrawn free of tax, of the receipt,
    disposition, use, and recovery of denatured distilled spirits, the
    manufacture and disposition of articles, and such other information
    as the Secretary may be regulations require. The Secretary may
    require any person reprocessing, bottling or repackaging articles,
    or dealing in completely denatured distilled spirits or articles,
    to keep such records, submit such reports, and comply with such
    other requirements as he may by regulations prescribe. Records
    required to be kept under this section and a copy of all reports
    required to be filed shall be preserved as regulations shall
    prescribe and shall be kept available for inspection by any
    internal revenue officer during business hours. Such officer may
    also inspect and take samples of distilled spirits, denatured
    distilled spirits, or articles (including any substances for use in
    the manufacture thereof), to which such records or reports relate.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1373; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5275, act Aug. 16, 1954, ch. 736, 68A Stat. 651,
    related to cross references, prior to the general revision of this
    chapter by Pub. L. 85-859. See sections 5179(2) and 5181 of this
    title.
      Provisions similar to those comprising this section were
    contained in prior sections 5305, 5313(b), and 5331(a)(3), act Aug.
    16, 1954, ch. 736, 68A Stat. 657, 659, 662, prior to the general
    revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.

-End-



-CITE-
    26 USC Sec. 5276                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter D - Industrial Use of Distilled Spirits

-HEAD-
    Sec. 5276. Occupational tax

-STATUTE-
    (a) General rule
      Except as otherwise provided in this section, a permit issued
    under section 5271 shall not be valid with respect to acts
    conducted at any place unless the person holding such permit pays a
    special tax of $250 with respect to such place.
    (b) Certain occupational tax rules to apply
      Rules similar to the rules of subpart G of part II of subchapter
    A shall apply for purposes of this section.
    (c) Exception for United States
      Subsection (a) shall not apply to any permit issued to an agency
    or instrumentality of the United States.
    (d) Exception for certain educational institutions
      Subsection (a) shall not apply with respect to any scientific
    university, college of learning, or institution of scientific
    research which - 
        (1) is issued a permit under section 5271, and
        (2) with respect to any calendar year during which such permit
      is in effect, procures less than 25 gallons of distilled spirits
      free of tax for experimental or research use but not for
      consumption (other than organoleptic tests) or sale.

-SOURCE-
    (Added Pub. L. 100-203, title X, Sec. 10512(e)(1), Dec. 22, 1987,
    101 Stat. 1330-448; amended Pub. L. 100-647, title II, Sec.
    2004(t)(1), title VI, Sec. 6105(a), (b), Nov. 10, 1988, 102 Stat.
    3609, 3711; Pub. L. 101-239, title VII, Sec. 7816(o), Dec. 19,
    1989, 103 Stat. 2422.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 109-59, title XI, Sec. 11125(a)(3), (c), Aug. 10, 2005,
    119 Stat. 1953, 1957, provided that, effective July 1, 2008, but
    inapplicable to taxes imposed for periods before such date, this
    section is repealed.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5281, act Aug. 16, 1954, ch. 736, 68A Stat. 651,
    related to regulation of business rectifier, prior to the general
    revision of this chapter by Pub. L. 85-859.
      A prior section 5282, act Aug. 16, 1954, ch. 736, 68A Stat. 651,
    related to rectification of spirits, prior to the general revision
    of this chapter by Pub. L. 85-859.
      A prior section 5283, act Aug. 16, 1954, ch. 736, 68A Stat. 652,
    related to examination of rectifying premises, prior to the general
    revision of this chapter by Pub. L. 85-859.
      A prior section 5284, act Aug. 16, 1954, ch. 736, 68A Stat. 652,
    related to prohibited hours for removal of distilled spirits, prior
    to the general revision of this chapter by Pub. L. 85-859.
      A prior section 5285, act Aug. 16, 1954, ch. 736, 68A Stat. 652,
    related to records and returns, prior to the general revision of
    this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1989 - Subsec. (a). Pub. L. 101-239, Sec. 7816(o)(2), substituted
    "Except as otherwise provided in this section," for "Except as
    provided in subsection (c),".
      Subsec. (c). Pub. L. 101-239, Sec. 7816(o)(1)(A), redesignated
    subsec. (c), relating to exemption for certain educational
    institutions, as (d).
      Subsec. (d). Pub. L. 101-239, Sec. 7816(o)(1)(A), redesignated
    subsec. (c), relating to exemption for certain educational
    institutions, as (d) and substituted "Exception" for "Exemption" in
    heading.
      Subsec. (d)(1). Pub. L. 101-239, Sec. 7816(o)(1)(B), substituted
    "section 5271" for "section 5271(a)(2)".
      Subsec. (d)(2). Pub. L. 101-239, Sec. 7816(o)(1)(C), substituted
    "distilled spirits free of tax" for "specially denatured distilled
    spirits".
      1988 - Subsec. (a). Pub. L. 100-647, Sec. 6105(b), substituted
    "Except as provided in subsection (c), a permit" for "A permit".
      Subsec. (c). Pub. L. 100-647, Sec. 6105(a), added subsec. (c)
    relating to exemption for certain educational institutions.
      Pub. L. 100-647, Sec. 2004(t)(1), added subsec. (c) relating to
    exception for United States.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Technical and
    Miscellaneous Revenue Act of 1988, Pub. L. 100-647, to which such
    amendment relates, see section 7817 of Pub. L. 101-239, set out as
    a note under section 1 of this title.

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Amendment by section 2004(t)(1) of Pub. L. 100-647 effective,
    except as otherwise provided, as if included in the provisions of
    the Revenue Act of 1987, Pub. L. 100-203, title X, to which such
    amendment relates, see section 2004(u) of Pub. L. 100-647, set out
    as a note under section 56 of this title.
      Section 6105(c) of Pub. L. 100-647 provided that: "The amendments
    made by this section [amending this section] shall take effect on
    July 1, 1989."

                              EFFECTIVE DATE                          
      Section effective Jan. 1, 1988, see section 10512(h) of Pub. L.
    100-203, set out as a note under section 5081 of this title.

-End-


-CITE-
    26 USC Subchapter E - General Provisions Relating to
           Distilled Spirits                               01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter E - General Provisions Relating to Distilled Spirits

-HEAD-
      SUBCHAPTER E - GENERAL PROVISIONS RELATING TO DISTILLED SPIRITS  

-MISC1-
    Part                                                     
    I.          Return of materials used in the manufacture or
                 recovery of distilled spirits.                       
    II.         Regulation of traffic in containers of distilled
                 spirits.                                             
    III.        Miscellaneous provisions.                             

                             PRIOR PROVISIONS                         
      A prior subchapter E, Industrial Alcohol Plants, Bonded
    Warehouses, Denaturing Plants, and Denaturation, consisted of part
    I, Industrial Alcohol Plants, Bonded Warehouses, and Denaturing
    Plants and part II, Denaturation, and consisted of sections 5301 to
    5320 and 5331 to 5334, respectively, prior to the general revision
    of this chapter by Pub. L. 85-859, title II, Sec. 201, Sept. 2,
    1958, 72 Stat. 1313.

-End-


-CITE-
    26 USC PART I - RETURN OF MATERIALS USED IN THE
                     MANUFACTURE OR RECOVERY OF
                     DISTILLED SPIRITS                     01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter E - General Provisions Relating to Distilled Spirits
    PART I - RETURN OF MATERIALS USED IN THE MANUFACTURE OR RECOVERY OF
              DISTILLED SPIRITS                       

-HEAD-
    PART I - RETURN OF MATERIALS USED IN THE MANUFACTURE OR RECOVERY OF
                             DISTILLED SPIRITS

-MISC1-
    Sec.                                                     
    5291.       General.                                              

                             PRIOR PROVISIONS                         
      A prior part I, Industrial Alcohol Plants, Bonded Warehouses, and
    Denaturing Plants, consisted of sections 5301 to 5320, prior to the
    general revision of this chapter by Pub. L. 85-859, title II, Sec.
    201, Sept. 2, 1958, 72 Stat. 1313.

-End-



-CITE-
    26 USC Sec. 5291                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter E - General Provisions Relating to Distilled Spirits
    PART I - RETURN OF MATERIALS USED IN THE MANUFACTURE OR RECOVERY OF
              DISTILLED SPIRITS                       

-HEAD-
    Sec. 5291. General

-STATUTE-
    (a) Requirement
      Every person disposing of any substance of the character used in
    the manufacture of distilled spirits, or disposing of denatured
    distilled spirits or articles from which distilled spirits may be
    recovered, shall, when required by the Secretary, render a correct
    return, in such form and manner as the Secretary may by regulations
    prescribe, showing the name and address of the person to whom each
    disposition was made, with such details, as to the quantity so
    disposed of or other information which the Secretary may require as
    to each such disposition, as will enable the Secretary to determine
    whether all taxes due with respect to any distilled spirits
    manufactured or recovered from any such substance, denatured,
    distilled spirits, or articles, have been paid. Every person
    required to render a return under this section shall keep such
    records as will enable such person to render a correct return. Such
    records shall be preserved for such period as the Secretary shall
    by regulations prescribe, and shall be kept available for
    inspection by any internal revenue officer during business hours.
    (b) Cross references
          (1) For the definition of distilled spirits, see section
        5002(a)(8).
          (2) For the definition of articles, see section 5002(a)(14).
          (3) For penalty for violation of subsection (a), see section
        5605.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1373; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(40),
    July 26, 1979, 93 Stat. 286.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising this section were
    contained in prior section 5213, act Aug. 16, 1954, ch. 736, 68A
    Stat. 639, prior to the general revision of this chapter by Pub. L.
    85-859.

                                AMENDMENTS                            
      1979 - Subsec. (b)(1). Pub. L. 96-39, Sec. 807(a)(40)(A),
    substituted "section 5002(a)(8)" for "section 5002(a)(6)".
      Subsec. (b)(2). Pub. L. 96-39, Sec. 807(a)(40)(B), substituted
    "section 5002(a)(14)" for "section 5002(a)(11)".
      1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
    after "Secretary" wherever appearing.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-


-CITE-
    26 USC PART II - REGULATION OF TRAFFIC IN CONTAINERS OF
           DISTILLED SPIRITS                               01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter E - General Provisions Relating to Distilled Spirits
    PART II - REGULATION OF TRAFFIC IN CONTAINERS OF DISTILLED SPIRITS

-HEAD-
    PART II - REGULATION OF TRAFFIC IN CONTAINERS OF DISTILLED SPIRITS

-MISC1-
    Sec.                                                     
    5301.       General.                                              

                             PRIOR PROVISIONS                         
      A prior part II, Denaturation, consisted of section 5331 to 5334,
    prior to the general revision of this chapter by Pub. L. 85-859,
    title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.

-End-



-CITE-
    26 USC Sec. 5301                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter E - General Provisions Relating to Distilled Spirits
    PART II - REGULATION OF TRAFFIC IN CONTAINERS OF DISTILLED SPIRITS

-HEAD-
    Sec. 5301. General

-STATUTE-
    (a) Requirements
      Whenever in his judgment such action is necessary to protect the
    revenue, the Secretary is authorized, by the regulations prescribed
    by him and permits issued thereunder if required by him - 
        (1) to regulate the kind, size, branding, marking, sale,
      resale, possession, use, and reuse of containers (of a capacity
      of not more than 5 wine gallons) designed or intended for use for
      the sale of distilled spirits (within the meaning of such term as
      it is used in section 5002(a)(8) for other than industrial use;
      and
        (2) to require, of persons manufacturing, dealing in, or using
      any such containers, the submission to such inspection, the
      keeping of such records, and the filing of such reports as may be
      deemed by him reasonably necessary in connection therewith.

    Any requirements imposed under this section shall be in addition to
    any other requirements imposed by, or pursuant to, law and shall
    apply as well to persons not liable for tax under the internal
    revenue laws as to persons so liable.
    (b) Disposition
      Every person disposing of containers of the character used for
    the packaging of distilled spirits shall, when required by the
    Secretary for protection of the revenue, render a correct return,
    in such form and manner as the Secretary may by regulations
    prescribe, showing the name and address of the person to whom each
    disposition was made, with such details as to the quantities so
    disposed of or other information which the Secretary may require as
    to each such disposition. Every person required to render a return
    under this section shall keep such records as will enable such
    person to render a correct return. Such records shall be preserved
    for such period as the Secretary shall by regulations prescribe,
    and shall be kept available for inspection by any internal revenue
    officer during business hours.
    (c) Refilling of liquor bottles
      No person who sells, or offers for sale, distilled spirits, or
    agent or employee of such person, shall - 
        (1) place in any liquor bottle any distilled spirits whatsoever
      other than those contained in such bottle at the time of tax
      determination under the provisions of this chapter; or
        (2) possess any liquor bottle in which any distilled spirits
      have been placed in violation of the provisions of paragraph (1);
      or
        (3) by the addition of any substance whatsoever to any liquor
      bottle, in any manner alter or increase any portion of the
      original contents contained in such bottle at the time of tax
      determination under the provisions of this chapter; or
        (4) possess any liquor bottle, any portion of the contents of
      which has been altered or increased in violation of the
      provisions of paragraph (3);

    except that the Secretary may by regulations authorize the reuse of
    liquor bottles, under such conditions as he may by regulations
    prescribe. When used in this subsection the term "liquor bottle"
    shall mean a liquor bottle or other container which has been used
    for the bottling or packaging of distilled spirits under
    regulations issued pursuant to subsection (a).
    (d) Closures
      The immediate container of distilled spirits withdrawn from
    bonded premises, or from customs custody, on determination of tax
    shall bear a closure or other device which is designed so as to
    require breaking in order to gain access to the contents of such
    container. The preceding sentence shall not apply to containers of
    bulk distilled spirits.
    (e) Penalty
          For penalty for violation of this section, see section 5606.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1374; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(41),
    July 26, 1979, 93 Stat. 287; Pub. L. 98-369, div. A, title IV, Sec.
    454(b), (c)(9), July 18, 1984, 98 Stat. 820, 821.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5301, act Aug. 16, 1954, ch. 736, 68A Stat. 654,
    related to establishment of industrial alcohol plants, prior to the
    general revision of this chapter by Pub. L. 85-859. See sections
    5171(a), (b)(1), 5172, 5173(a), (b) of this title.
      Provisions similar to those comprising subsecs. (a), (c), and (d)
    of this section were contained in prior section 5214, act Aug. 16,
    1954, ch. 736, 68A Stat. 639, prior to the general revision of this
    chapter by Pub. L. 85-859.
      A prior section 5302, act Aug. 16, 1954, ch. 736, 68A Stat. 645,
    related to the establishment of industrial alcohol warehouses,
    prior to the general revision of this chapter by Pub. L. 85-859.
    See sections 5171(a), (b)(1), 5172, 5173(a), (c), 5178(a)(3)(A),
    (B), 5201(a), and 5206(a) of this title.
      A prior section 5303, act Aug. 16, 1954, ch. 736, 68A Stat. 655,
    related to establishment of industrial alcohol denaturing plants,
    prior to the general revision of this chapter by Pub. L. 85-859.
    See sections 5171(a), (b)(1), 5172, 5173(a), (c), 5178(a)(5), 5241,
    5242, and 5273(b)(1), (2), (d) of this title.
      A prior section 5304, act Aug. 16, 1954, ch. 736, 68A Stat. 655,
    related to alcohol permits, prior to the general revision of this
    chapter by Pub. L. 85-859. See sections 5171(b)(1), 5173(a),
    (e)(1), 5271(a) to (c), (e), (f), (h), and 5272(a) of this title.
      A prior section 5305, act Aug. 16, 1954, ch. 736, 68A Stat. 657,
    related to regulations for establishing, bonding, and operations of
    plants and warehouses, prior to the general revision of this
    chapter by Pub. L. 85-859. See sections 5171, 5172, 5173(a),
    5178(a)(1)(A), (5), 5201(a), (b), 5207(a), (c), (d), 5211, 5223(a),
    5235, 5273(b)(1), (2), (d), 5275, and 5312(b) of this title.
      A prior section 5306, act Aug. 16, 1954, ch. 736, 68A Stat. 657,
    related to exemption of industrial alcohol plants and warehouses
    from certain laws, prior to the general revision of this chapter by
    Pub. L. 85-859. See sections 5025(d), (e)(1), 5103, 5113(a),
    5173(c), 5201(a), (c), 5204(c), 5234(a)(1)(A), 5306, and 5312(c) of
    this title.
      A prior section 5307, act Aug. 16, 1954, ch. 736, 68A Stat. 657,
    related to production, use, or sale of alcohol, prior to the
    general revision of this chapter by Pub. L. 85-859. See sections
    5178(a)(2)(A) and 5201(a) of this title.
      A prior section 5308, act Aug. 16, 1954, ch. 736, 68A Stat. 657,
    related to transfer of alcohol to other plants or warehouses, prior
    to the general revision of this chapter by Pub. L. 85-859. See
    sections 5212 and 5223(a) of this title.
      A prior section 5309, act Aug. 16, 1954, ch. 736, 68A Stat. 658,
    related to withdrawal of fermented liquors to industrial alcohol
    plants, prior to the general revision of this chapter by Pub. L. 85-
    859. See section 5222(b) of this title.
      A prior section 5310, act Aug. 16, 1954, ch. 736, 68A Stat. 658,
    related to withdrawal of alcohol free of tax, prior to the general
    revision of this chapter by Pub. L. 85-859. See sections 5214(a),
    (a)(1) to (3), 5241, 5242, 5272(b), 5273(b)(1), (2), (d), and 5313
    of this title.

                                AMENDMENTS                            
      1984 - Subsec. (c). Pub. L. 98-369, Sec. 454(c)(9), substituted
    "tax determination" for "stamping" in pars. (1) and (3), and struck
    out ", if the liquor bottles are to be again stamped under the
    provisions of this chapter" after "by regulations prescribe" in
    provisions following par. (4).
      Subsec. (d). Pub. L. 98-369, Sec. 454(b), added subsec. (d) and
    redesignated former subsec. (d) as (e).
      1979 - Subsec. (a)(1). Pub. L. 96-39 substituted "section
    5002(a)(8)" for "section 5002(a)(6)".
      1976 - Subsecs. (a) to (c). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary" wherever appearing.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective July 1, 1985, see section
    456(b) of Pub. L. 98-369, set out as an Effective Date note under
    section 5101 of this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-


-CITE-
    26 USC PART III - MISCELLANEOUS PROVISIONS                  01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter E - General Provisions Relating to Distilled Spirits
    PART III - MISCELLANEOUS PROVISIONS

-HEAD-
                    PART III - MISCELLANEOUS PROVISIONS                

-MISC1-
    Sec.                                                     
    5311.       Detention of containers.                              
    5312.       Production and use of distilled spirits for
                 experimental research.                               
    5313.       Withdrawal of distilled spirits from customs custody
                 free of tax for use of the United States.            
    5314.       Special applicability of certain provisions.          
    [5315.      Repealed.]                                            

                                AMENDMENTS                            
      1976 - Pub. L. 94-455, title XIX, Sec. 1905(b)(4), Oct. 4, 1976,
    90 Stat. 1822, struck out item 5315 "Status of certain distilled
    spirits on July 1, 1959".

-End-



-CITE-
    26 USC Sec. 5311                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter E - General Provisions Relating to Distilled Spirits
    PART III - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 5311. Detention of containers

-STATUTE-
      It shall be lawful for any internal revenue officer to detain any
    container, containing or supposed to contain, distilled spirits,
    wines, or beer, when he has reason to believe that the tax imposed
    by law on such distilled spirits, wines, or beer has not been paid
    or determined as required by law, or that such container is being
    removed in violation of law; and every such container may be held
    by him at a safe place until it shall be determined whether the
    property so detained is liable by law to be proceeded against for
    forfeiture; but such summary detention shall not continue in any
    case longer than 72 hours without process of law or intervention of
    the officer to whom such detention is to be reported.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1375.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5311, act Aug. 16, 1954, ch. 736, 68A Stat. 658,
    related to importation of alcohol for industrial purposes, prior to
    the general revision of this chapter by Pub. L. 85-859. See section
    5232 of this title.
      Provisions similar to those comprising this section were
    contained in prior section 5211, act Aug. 16, 1954, ch. 736, 68A
    Stat. 638, prior to the general revision of this chapter by Pub. L.
    85-859.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5312                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter E - General Provisions Relating to Distilled Spirits
    PART III - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 5312. Production and use of distilled spirits for experimental
      research

-STATUTE-
    (a) Scientific institutions and colleges of learning
      Under such regulations as the Secretary may prescribe and on the
    filing of such bonds and applications as he may require, any
    scientific university, college of learning, or institution of
    scientific research may produce, receive, blend, treat, test, and
    store distilled spirits, without payment of tax, for experimental
    or research use but not for consumption (other than organoleptic
    tests) or sale, in such quantities as may be reasonably necessary
    for such purposes.
    (b) Experimental distilled spirits plants
      Under such regulations as the Secretary may prescribe and on the
    filing of such bonds and applications as he may require,
    experimental distilled spirits plants may, at the discretion of the
    Secretary, be established and operated for specific and limited
    periods of time solely for experimentation in, or development of - 
        (1) sources of materials from which distilled spirits may be
      produced;
        (2) processes by which distilled spirits may be produced or
      refined; or
        (3) industrial uses of distilled spirits.
    (c) Authority to exempt
      The Secretary may by regulations provide for the waiver of any
    provision of this chapter (other than this section) to the extent
    he deems necessary to effectuate the purposes of this section,
    except that he may not waive the payment of any tax on distilled
    spirits removed from any such university, college, institution, or
    plant.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1375; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5312, act Aug. 16, 1954, ch. 736, 68A Stat. 659,
    made a cross reference to remission and refund of tax on alcohol
    for loss or leakage, prior to the general revision of this chapter
    by Pub. L. 85-859.
      Provisions similar to those comprising this section were
    contained in prior sections of act Aug. 16, 1954, prior to the
    general revision of this chapter by Pub. L. 85-859, as follows:


        Present subsecs.:                    Prior sections             
    --------------------------------------------------------------------
    (a)                         5215.                                   
    (b)                         5305.                                   
    (c)                         5215, 5306.                             
    --------------------------------------------------------------------

      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 640, 657.

                                AMENDMENTS                            
      1976 - Subsecs. (a) to (c). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary" wherever appearing.

-End-



-CITE-
    26 USC Sec. 5313                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter E - General Provisions Relating to Distilled Spirits
    PART III - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 5313. Withdrawal of distilled spirits from customs custody
      free of tax for use of the United States

-STATUTE-
      Distilled spirits may be withdrawn free of tax from customs
    custody by the United States or any governmental agency thereof for
    its own use for nonbeverage purposes, under such regulations as may
    be prescribed by the Secretary.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1375; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5313, act Aug. 16, 1954, ch. 736, 68A Stat. 659,
    related to powers and duties of persons enforcing provisions
    respecting industrial alcohol plants, bonded warehouses, and
    denaturing plants, prior to the general revision of this chapter by
    Pub. L. 85-859. See section 5275 of this title.
      Provisions similar to those comprising this section were
    contained in prior section 5310(b), act Aug. 16, 1954, ch. 736, 68A
    Stat. 658, prior to the general revision of this chapter by Pub. L.
    85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

-End-



-CITE-
    26 USC Sec. 5314                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter E - General Provisions Relating to Distilled Spirits
    PART III - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 5314. Special applicability of certain provisions

-STATUTE-
    (a) Puerto Rico
      (1) Applicability
        The provisions of this subsection shall not apply to the
      Commonwealth of Puerto Rico unless the Legislative Assembly of
      the Commonwealth of Puerto Rico expressly consents thereto in the
      manner prescribed in the constitution of the Commonwealth of
      Puerto Rico, for the enactment of a law.
      (2) In general
        Distilled spirits for the purposes authorized in section
      5214(a)(2) and (3), denatured distilled spirits, and articles, as
      described in this paragraph, produced or manufactured in Puerto
      Rico, may be brought into the United States free of any tax
      imposed by section 5001(a)(10) (!1) or 7652(a)(1) for disposal
      under the same conditions as like spirits, denatured spirits, and
      articles, produced or manufactured in the United States; and the
      provisions of this chapter and regulations promulgated thereunder
      (and all other provisions of the internal revenue laws applicable
      to the enforcement thereof, including the penalties of special
      application thereto) relating to the production, bonded
      warehousing, and denaturation of distilled spirits, to the
      withdrawal of distilled spirits or denatured distilled spirits,
      and to the manufacture of articles from denatured distilled
      spirits, shall, insofar as applicable, extend to and apply in
      Puerto Rico in respect of - 

          (A) distilled spirits for shipment to the United States for
        the purposes authorized in section 5214(a)(2) and (3);
          (B) distilled spirits for denaturation;
          (C) denatured distilled spirits for shipment to the United
        States;
          (D) denatured distilled spirits for use in the manufacture of
        articles for shipment to the United States; and
          (E) articles, manufactured from denatured distilled spirits,
        for shipment to the United States.
      (3) Withdrawals authorized by Puerto Rico
        Distilled spirits (including denatured distilled spirits) may
      be withdrawn from the bonded premises of a distilled spirits
      plant in Puerto Rico pursuant to authorization issued under the
      laws of the Commonwealth of Puerto Rico; such spirits so
      withdrawn, and products containing such spirits so withdrawn, may
      not be brought into the United States free of tax.
      (4) Costs of administration
        Any expenses incurred by the Treasury Department in connection
      with the enforcement in Puerto Rico of the provisions of this
      subtitle and section 7652(a), and regulations promulgated
      thereunder, shall be charged against and retained out of taxes
      collected under this title in respect of commodities of Puerto
      Rican manufacture brought into the United States. The funds so
      retained shall be deposited as a reimbursement to the
      appropriation to which such expenses were originally charged.
    (b) Virgin Islands
      (1) In general
        Distilled spirits for the purposes authorized in section
      5214(a)(2) and (3), denatured distilled spirits, and articles, as
      described in this paragraph, produced or manufactured in the
      Virgin Islands, may be brought into the United States free of any
      tax imposed by section 7652(b)(1) for disposal under the same
      conditions as like spirits, denatured spirits, and articles,
      produced or manufactured in the United States; and the provisions
      of this chapter and regulations promulgated thereunder (and all
      other provisions of the internal revenue laws applicable to the
      enforcement thereof, including the penalties of special
      application thereto) relating to the production, bonded
      warehousing, and denaturation of distilled spirits, to the
      withdrawal of distilled spirits or denatured distilled spirits,
      and to the manufacture of articles from denatured distilled
      spirits, shall, insofar as applicable, extend to and apply in the
      Virgin Islands in respect of - 
          (A) distilled spirits for shipment to the United States for
        the purposes authorized in section 5214(a)(2) and (3);
          (B) distilled spirits for denaturation;
          (C) denatured distilled spirits for shipment to the United
        States;
          (D) denatured distilled spirits for use in the manufacture of
        articles for shipment to the United States; and
          (E) articles, manufactured from denatured distilled spirits,
        for shipment to the United States.
      (2) Advance of funds
        The insular government of the Virgin Islands shall advance to
      the Treasury of the United States such funds as may be required
      from time to time by the Secretary for the purpose of defraying
      all expenses incurred by the Treasury Department in connection
      with the enforcement in the Virgin Islands of paragraph (1) and
      regulations promulgated thereunder. The funds so advanced shall
      be deposited in a separate trust fund in the Treasury of the
      United States and shall be available to the Treasury Department
      for the purposes of this subsection.
      (3) Regulations issued by Virgin Islands
        The Secretary may authorize the Governor of the Virgin Islands,
      or his duly authorized agents, to issue or adopt such
      regulations, to approve such bonds, and to issue, suspend, or
      revoke such permits, as are necessary to carry out the provisions
      of this subsection. When regulations have been issued or adopted
      under this paragraph with concurrence of the Secretary he may
      exempt the Virgin Islands from any provisions of law and
      regulations otherwise made applicable by the provisions of
      paragraph (1), except that denatured distilled spirits, articles
      and distilled spirits for tax-free purposes which are brought
      into the United States from the Virgin Islands under the
      provisions of this subsection shall in all respects conform to
      the requirements of law and regulations imposed on like products
      of domestic manufacture.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1375; amended Pub. L. 94-455, title XIX, Secs. 1905(a)(18),
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1820, 1834.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 5001(a)(10), referred to in subsec. (a)(2), was
    redesignated section 5001(a)(9) by Pub. L. 103-465, title I, Sec.
    136(a), Dec. 8, 1994, 108 Stat. 4841.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5314, act Aug. 16, 1954, ch. 736, 68A Stat. 659,
    related to officers and agents authorized to investigate, issue
    search warrants, and prosecute for violations, prior to the general
    revision of this chapter by Pub. L. 85-859. See sections 5557 of
    this title.
      Provisions similar to those comprising subsec. (a)(2) of this
    section were contained in prior section 5318, act Aug. 16, 1954,
    ch. 736, 68A Stat. 660, prior to the general revisions of this
    chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Subsec. (a)(2). Pub. L. 94-455, Sec. 1905(a)(18),
    substituted "section 5001(a)(10)" for "section 5001(a)(4)".
      Subsec. (b)(2), (3). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
    out "or his delegate" after "Secretary" wherever appearing.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by section 1905(a)(18) of Pub. L. 94-455 effective on
    first day of first month which begins more than 90 days after Oct.
    4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note
    under section 5005 of this title.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    26 USC Sec. 5315                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter E - General Provisions Relating to Distilled Spirits
    PART III - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 5315. Repealed.

-MISC1-
    [Sec. 5315. Repealed. Pub. L. 94-455, title XIX, Sec. 1905(a)(19),
      Oct. 4, 1976, 90 Stat. 1820].
      Section 5315, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
    1958, 72 Stat. 1377, related to status of certain distilled spirits
    on July 1, 1959.
      A prior section 5316, act Aug. 16, 1954, ch. 736, 68A Stat. 660,
    related to form of affidavit, information or indictment, prior to
    the general revision of this chapter by Pub. L. 85-859. See Fed.
    Rules Cr. Proc., rules 7(c), (f), and 8(a), Title 18, Appendix,
    Crimes and Criminal Procedure.
      A prior section 5317, act Aug. 16, 1954, ch. 736, 68A Stat. 660,
    related to applicability of other laws, prior to the general
    revision of this chapter by Pub. L. 85-859. See section 5274 of
    this title.
      A prior section 5318, act Aug. 16, 1954, ch. 736, 68A Stat. 660,
    related to application of this part to Puerto Rico and the Virgin
    Islands, prior to the general revision of this chapter by Pub. L.
    85-859. See section 5314(a)(2) of this title.
      A prior section 5319, act Aug. 16, 1954, ch. 736, 68A Stat. 661,
    related to definitions, etc., prior to the general revision of this
    chapter by Pub. L. 85-859. See sections 5002(a)(6)(A), (9), (11)
    and 5201(a) of this title.
      A prior section 5320, act Aug. 16, 1954, ch. 736, 68A Stat. 661,
    related to cross references, prior to the general revision of this
    chapter by Pub. L. 85-859.
      A prior section 5331, act Aug. 16, 1954, ch. 736, 68A Stat. 661,
    related to withdrawal from bond free of tax, prior to the general
    revision of this chapter by Pub. L. 85-859. See sections 5171(a),
    5172, 5173(a), (c), 5178(a)(5), 5202(e), 5207(a), (c), (d),
    5214(a), (a)(1), 5241, 5242, 5273(a), (b)(1), (2), (d), and 5275 of
    this title.
      A prior section 5332, act Aug. 16, 1954, ch. 736, 68A Stat. 662,
    related to recovery of spirits for reuse in manufacturing, prior to
    the general revision of this chapter by Pub. L. 85-859. See section
    5273(c) of this title.
      A prior section 5333, act Aug. 16, 1954, ch. 736, 68A Stat. 662,
    related to sale of abandoned spirits for denaturation without
    collection of tax, prior to the general revision of this chapter by
    Pub. L. 85-859. See section 5243 of this title.
      A prior section 5334, act Aug. 16, 1954, ch. 736, 68A Stat. 662,
    related to cross references, prior to the general revision of this
    chapter by Pub. L. 85-859. See section 5273(e)(1), (2) of this
    title.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective on first day of first month which begins more
    than 90 days after Oct. 4, 1976, see section 1905(d) of Pub. L. 94-
    455, set out as an Effective Date of 1976 Amendment note under
    section 5005 of this title.

-End-


-CITE-
    26 USC Subchapter F - Bonded and Taxpaid Wine Premises      01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises

-HEAD-
              SUBCHAPTER F - BONDED AND TAXPAID WINE PREMISES          

-MISC1-
    Part                                                     
    I.          Establishment.                                        
    II.         Operations.                                           
    III.        Cellar treatment and classification of wine.          
    IV.         General.                                              

                             PRIOR PROVISIONS                         
      A prior subchapter F, Bonded and Taxpaid Wine Premises, consisted
    of part I, Establishment, part II, Operations, part III, Cellar
    Treatment and Classification of Wine, and part IV, General, and
    comprised sections 5351 to 5357, 5361 to 5373, 5381 to 5388, and
    5391 to 5392, respectively, prior to the general revision of this
    chapter by Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72
    Stat. 1313.

-End-


-CITE-
    26 USC PART I - ESTABLISHMENT                               01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART I - ESTABLISHMENT

-HEAD-
                          PART I - ESTABLISHMENT                      

-MISC1-
    Sec.                                                     
    5351.       Bonded wine cellar.                                   
    5352.       Taxpaid wine bottling house.                          
    5353.       Bonded wine warehouse.                                
    5354.       Bond.                                                 
    5355.       General provisions relating to bonds.                 
    5356.       Application.                                          
    5357.       Premises.                                             

                             PRIOR PROVISIONS                         
      A prior part I consisted of sections 5351 to 5357 of this title,
    prior to the general revision of this chapter by Pub. L. 85-859,
    title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.

-End-



-CITE-
    26 USC Sec. 5351                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART I - ESTABLISHMENT

-HEAD-
    Sec. 5351. Bonded wine cellar

-STATUTE-
      Any person establishing premises for the production, blending,
    cellar treatment, storage, bottling, packaging, or repackaging of
    untaxpaid wine (other than wine produced exempt from tax under
    section 5042), including the use of wine spirits in wine
    production, shall, before commencing operations, make application
    to the Secretary and file bond and receive permission to operate.
    Such premises shall be known as "bonded wine cellars"; except that
    any such premises engaging in production operations may, in the
    discretion of the Secretary, be designated as a "bonded winery".

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1378; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5351, act Aug. 16, 1954, ch. 736, 68A Stat. 663,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5352                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART I - ESTABLISHMENT

-HEAD-
    Sec. 5352. Taxpaid wine bottling house

-STATUTE-
      Any person bottling, packaging, or repackaging taxpaid wines
    shall, before commencing such operations, make application to the
    Secretary and receive permission to operate. Such premises shall be
    known as "tax-paid wine bottling houses."

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1378; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(42),
    July 26, 1979, 93 Stat. 287.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5352, act Aug. 16, 1954, ch. 736, 68A Stat. 663,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1979 - Pub. L. 96-39 struck out "at premises other than the
    bottling premises of a distilled spirits plant" after "taxpaid
    wines".
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

-End-



-CITE-
    26 USC Sec. 5353                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART I - ESTABLISHMENT

-HEAD-
    Sec. 5353. Bonded wine warehouse

-STATUTE-
      Any responsible warehouse company or other responsible person
    may, upon filing application with the Secretary and consent of the
    proprietor and the surety on the bond of any bonded wine cellar,
    under regulations prescribed by the Secretary, establish on such
    premises facilities for the storage of wines and allied products
    for credit purposes, to be known as a "bonded wine warehouse". The
    proprietor of the bonded wine cellar shall remain responsible in
    all respects for operations in the warehouse and the tax on the
    wine or wine spirit stored therein.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1379; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5353, act Aug. 16, 1954, ch. 736, 68A Stat. 663,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.

-End-



-CITE-
    26 USC Sec. 5354                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART I - ESTABLISHMENT

-HEAD-
    Sec. 5354. Bond

-STATUTE-
      The bond for a bonded wine cellar shall be in such form, on such
    conditions, and with such adequate surety, as regulations issued by
    the Secretary shall prescribe, and shall be in a penal sum not less
    than the tax on any wine or distilled spirits possessed or in
    transit at any one time (taking into account the appropriate amount
    of credit with respect to such wine under section 5041(c)), but not
    less than $1,000 nor more than $50,000; except that where the tax
    on such wine and on such distilled spirits exceeds $250,000, the
    penal sum of the bond shall be not more than $100,000. Where
    additional liability arises as a result of deferral of payment of
    tax payable on any return, the Secretary may require the proprietor
    to file a supplemental bond in such amount as may be necessary to
    protect the revenue. The liability of any person on any such bond
    shall apply whether the transaction or operation on which the
    liability of the proprietor is based occurred on or off the
    proprietor's premises.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1379; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 98-369, div. A, title IV, Sec.
    455(c), July 18, 1984, 98 Stat. 823; Pub. L. 104-188, title I, Sec.
    1702(b)(7), Aug. 20, 1996, 110 Stat. 1869.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5354, act Aug. 16, 1954, ch. 736, 68A Stat. 663,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1996 - Pub. L. 104-188 inserted "(taking into account the
    appropriate amount of credit with respect to such wine under
    section 5041(c))" after "any one time".
      1984 - Pub. L. 98-369 substituted "distilled spirits" for "wine
    spirits" in two places.
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-188 effective, except as otherwise
    expressly provided, as if included in the provision of the Revenue
    Reconciliation Act of 1990, Pub. L. 101-508, title XI, to which
    such amendment relates, see section 1702(i) of Pub. L. 104-188, set
    out as a note under section 38 of this title.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective July 18, 1984, see section
    456(c) of Pub. L. 98-369, set out as an Effective Date note under
    section 5101 of this title.

-End-



-CITE-
    26 USC Sec. 5355                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART I - ESTABLISHMENT

-HEAD-
    Sec. 5355. General provisions relating to bonds

-STATUTE-
      The provisions of section 5551 (relating to bonds) shall be
    applicable to the bonds required under section 5354.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1379.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5355, act Aug. 16, 1954, ch. 736, 68A Stat. 664,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

-End-



-CITE-
    26 USC Sec. 5356                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART I - ESTABLISHMENT

-HEAD-
    Sec. 5356. Application

-STATUTE-
      The application required by this part shall disclose, as
    regulations issued by the Secretary shall provide, such information
    as may be necessary to enable the Secretary to determine the
    location and extent of the premises, the type of operations to be
    conducted on such premises, and whether the operations will be in
    conformity with law and regulations.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1379; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5356, act Aug. 16, 1954, ch. 736, 68A Stat. 664,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.

-End-



-CITE-
    26 USC Sec. 5357                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART I - ESTABLISHMENT

-HEAD-
    Sec. 5357. Premises

-STATUTE-
      Bonded wine cellar premises, including noncontiguous portions
    thereof, shall be so located, constructed, and equipped, as to
    afford adequate protection to the revenue, as regulations
    prescribed by the Secretary may provide.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1379; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5357, act Aug. 16, 1954, ch. 736, 68A Stat. 664,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

-End-


-CITE-
    26 USC PART II - OPERATIONS                                 01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART II - OPERATIONS

-HEAD-
                           PART II - OPERATIONS                       

-MISC1-
    Sec.                                                     
    5361.       Bonded wine cellar operations.                        
    5362.       Removals of wine from bonded wine cellars.            
    5363.       Taxpaid wine bottling house operations.               
    5364.       Wine imported in bulk.                                
    5365.       Segregation of operations.                            
    5366.       Supervision.                                          
    5367.       Records.                                              
    5368.       Gauging and marking.                                  
    5369.       Inventories.                                          
    5370.       Losses.                                               
    5371.       Insurance coverage, etc.                              
    5372.       Sampling.                                             
    5373.       Wine spirits.                                         

                             PRIOR PROVISIONS                         
      A prior part II consisted of sections 5361 to 5373 of this title,
    prior to the general revision of this chapter by Pub. L. 85-859,
    title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.

                                AMENDMENTS                            
      1997 - Pub. L. 105-34, title XIV, Sec. 1422(b), Aug. 5, 1997, 111
    Stat. 1050, added item 5364.
      1979 - Pub. L. 96-39, title VIII, Sec. 807(b)(7), July 26, 1979,
    93 Stat. 290, struck out item 5364 "Standard wine premises".
      1976 - Pub. L. 94-455, title XIX, Sec. 1905(b)(5), Oct. 4, 1976,
    90 Stat. 1822, substituted "and marking" for ", marking, and
    stamping" in item 5368.

-End-



-CITE-
    26 USC Sec. 5361                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART II - OPERATIONS

-HEAD-
    Sec. 5361. Bonded wine cellar operations

-STATUTE-
      In addition to the operations described in section 5351, the
    proprietor of a bonded wine cellar may, subject to regulations
    prescribed by the Secretary, on such premises receive taxpaid wine
    for return to bond, reconditioning, or destruction; prepare for
    market and store commercial fruit products and by-products not
    taxable as wines; produce or receive distilling material or vinegar
    stock; produce (with or without added wine spirits, and without
    added sugar) or receive on wine premises, subject to tax as wine
    but not for sale or consumption as beverage wine, (1) heavy bodied
    blending wines and Spanish-type blending sherries, and (2) other
    wine products made from natural wine for nonbeverage purposes; and
    such other operations as may be conducted in a manner that will not
    jeopardize the revenue or conflict with wine operations.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1380; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(43),
    July 26, 1979, 93 Stat. 287; Pub. L. 105-34, title XIV, Sec.
    1416(b)(1), Aug. 5, 1997, 111 Stat. 1048.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5361, act Aug. 16, 1954, ch. 736, 68A Stat. 664,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1997 - Pub. L. 105-34 struck out "unmerchantable" after "premises
    receive".
      1979 - Pub. L. 96-39 substituted "or receive on wine premises"
    for "or receive on standard wine premises only".
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Amendment by Pub. L. 105-34 effective on the 1st day of the 1st
    calendar quarter that begins at least 180 days after Aug. 5, 1997,
    see section 1416(c) of Pub. L. 105-34, set out as a note under
    section 5044 of this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5362                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART II - OPERATIONS

-HEAD-
    Sec. 5362. Removals of wine from bonded wine cellars

-STATUTE-
    (a) Withdrawals on determination of tax
      Wine may be withdrawn from bonded wine cellars on payment or
    determination of the tax thereon, under such regulations as the
    Secretary shall prescribe.
    (b) Transfers of wine between bonded premises
      (1) In general
        Wine on which the tax has not been paid or determined may,
      under such regulations as the Secretary shall prescribe, be
      transferred in bond between bonded premises.
      (2) Wine transferred to a distilled spirits plant may not be
        removed for consumption or sale as wine
        Any wine transferred to the bonded premises of a distilled
      spirits plant - 
          (A) may be used in the manufacture of a distilled spirits
        product, and
          (B) may not be removed from such bonded premises for
        consumption or sale as wine.
      (3) Continued liability for tax
        The liability for tax on wine transferred to the bonded
      premises of a distilled spirits plant pursuant to paragraph (1)
      shall (except as otherwise provided by law) continue until the
      wine is used in a distilled spirits product.
      (4) Transfer in bond not treated as removal for consumption or
        sale
        For purposes of this chapter, the removal of wine for transfer
      in bond between bonded premises shall not be treated as a removal
      for consumption or sale.
      (5) Bonded premises
        For purposes of this subsection, the term "bonded premises"
      means a bonded wine cellar or the bonded premises of a distilled
      spirits plant.
    (c) Withdrawals of wine free of tax or without payment of tax
      Wine on which the tax has not been paid or determined may, under
    such regulations and bonds as the Secretary may deem necessary to
    protect the revenue, be withdrawn from bonded wine cellars - 
        (1) without payment of tax for export by the proprietor or by
      any authorized exporter;
        (2) without payment of tax for transfer to any foreign-trade
      zone;
        (3) without payment of tax for use of certain vessels and
      aircraft as authorized by law;
        (4) without payment of tax for transfer to any customs bonded
      warehouse;
        (5) without payment of tax for use in the production of
      vinegar;
        (6) without payment of tax for use in distillation in any
      distilled spirits plant authorized to produce distilled spirits;
        (7) free of tax for experimental or research purposes by any
      scientific university, college of learning, or institution of
      scientific research;
        (8) free of tax for use by or for the account of the proprietor
      or his agents for analysis or testing, organoleptic or otherwise;
      and
        (9) free of tax for use by the United States or any agency
      thereof, and for use for analysis, testing, research, or
      experimentation by the governments of the several States and the
      District of Columbia or of any political subdivision thereof or
      by any agency of such governments. No bond shall be required of
      any such government or agency under this paragraph.
    (d) Withdrawal free of tax of wine and wine products unfit for
      beverage use
      Under such regulations as the Secretary may deem necessary to
    protect the revenue, wine, or wine products made from wine, when
    rendered unfit for beverage use, on which the tax has not been paid
    or determined, may be withdrawn from bonded wine cellars free of
    tax. The wine or wine products to be so withdrawn may be treated
    with methods or materials which render such wine or wine products
    suitable for their intended use. No wine or wine products so
    withdrawn shall contain more than 21 percent of alcohol by volume,
    or be used in the compounding of distilled spirits or wine for
    beverage use or in the manufacture of any product intended to be
    used in such compounding.
    (e) Withdrawal from customs bonded warehouses for use of foreign
      embassies, legations, etc.
      (1) In general
        Notwithstanding any other provision of law, wine entered into
      customs bonded warehouses under subsection (c)(4) may, under such
      regulations as the Secretary may prescribe, be withdrawn from
      such warehouses for consumption in the United States by and for
      the official or family use of such foreign governments,
      organizations, and individuals who are entitled to withdraw
      imported wines from such warehouses free of tax. Wines
      transferred to customs bonded warehouses under subsection (c)(4)
      shall be entered, stored, and accounted for in such warehouses
      under such regulations and bonds as the Secretary may prescribe,
      and may be withdrawn therefrom by such governments,
      organizations, and individuals free of tax under the same
      conditions and procedures as imported wines.
      (2) Withdrawal for domestic use
        Wine entered into customs bonded warehouses under subsection
      (c)(4) for purposes of removal under paragraph (1) may be
      withdrawn therefrom for domestic use. Wines so withdrawn shall be
      treated as American goods exported and returned.
      (3) Sale or unauthorized use prohibited
        Wine withdrawn from customs bonded warehouses or otherwise
      brought into the United States free of tax for the official or
      family use of foreign governments, organizations, or individuals
      authorized to obtain wine free of tax shall not be sold and shall
      not be disposed of or possessed for any use other than an
      authorized use. The provisions of paragraphs (1)(B) and (3) of
      section 5043(a) are hereby extended and made applicable to any
      person selling, disposing of, or possessing any wine in violation
      of the preceding sentence, and to the wine involved in any such
      violation.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1380; amended Pub. L. 90-73, Sec. 1(a), Aug. 29, 1967, 81 Stat.
    175; Pub. L. 94-455, title XIX, Secs. 1905(c)(4), 1906(b)(13)(A),
    Oct. 4, 1976, 90 Stat. 1823, 1834; Pub. L. 96-39, title VIII, Sec.
    807(a)(44), July 26, 1979, 93 Stat. 287; Pub. L. 96-601, Sec. 2(a),
    (b), Dec. 24, 1980, 94 Stat. 3495.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5362, act Aug. 16, 1954, ch. 736, 68A Stat. 665,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1980 - Subsec. (c)(4). Pub. L. 96-601, Sec. 2(a), substituted
    "customs bonded" for "class 6 customs manufacturing".
      Subsec. (e). Pub. L. 96-601, Sec. 2(b), added subsec. (e).
      1979 - Subsec. (b). Pub. L. 96-39 substituted references to
    bonded premises for references to bonded wine cellars and inserted
    provisions relating to wine transferred in bond to a distilled
    spirits plant which may not be removed for consumption or sale as
    wine, provisions relating to continued liability for tax on wine
    transferred to bonded premises, and provisions defining "bonded
    premises".
      1976 - Subsecs. (a) to (c). Pub. L. 94-455, Sec. 1906(b)(13)(A),
    struck out "or his delegate" after "Secretary" wherever appearing.
      Subsec. (c)(9). Pub. L. 94-455, Sec. 1905(c)(4), struck out "and
    Territories" after "the several States".
      Subsec. (d). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or
    his delegate" after "Secretary".
      1967 - Subsec. (d). Pub. L. 90-73 added subsec. (d).

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Section 2(c) of Pub. L. 96-601 provided that: "The amendments
    made by this section [amending this section] shall take effect on
    the first day of the first calendar month which begins more than 90
    days after the date of the enactment of this Act [Dec. 24, 1980]."

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by section 1905(c)(4) of Pub. L. 94-455 effective on
    first day of first month which begins more than 90 days after Oct.
    4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note
    under section 5005 of this title.

                     EFFECTIVE DATE OF 1967 AMENDMENT                 
      Section 1(b) of Pub. L. 90-73 provided that: "The amendment made
    by subsection (a) [amending this section] shall become effective on
    the first day of the first month which begins 90 days or more after
    the date of the enactment of this Act [Aug. 29, 1967]."

-End-



-CITE-
    26 USC Sec. 5363                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART II - OPERATIONS

-HEAD-
    Sec. 5363. Taxpaid wine bottling house operations

-STATUTE-
      In addition to the operations described in section 5352, the
    proprietor of a taxpaid wine bottling house may, subject to
    regulations issued by the Secretary, on such premises mix wine of
    the same kind and taxable grade to facilitate handling; preserve,
    filter, or clarify wine; and conduct operations not involving wine
    where such operations will not jeopardize the revenue or conflict
    with wine operations.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1381; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(45),
    July 26, 1979, 93 Stat. 287.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5363, act Aug. 16, 1954, ch. 736, 68A Stat. 665,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1979 - Pub. L. 96-39 struck out provision that this subchapter
    apply to any wine received on the bottling premises of any
    distilled spirits plant for bottling, packaging, or repackaging,
    and to all operations relative thereto and provision that sections
    5021, 5081, and 5082, not apply to the mixing or treatment of
    taxpaid wine under this section.
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

-End-



-CITE-
    26 USC Sec. 5364                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART II - OPERATIONS

-HEAD-
    Sec. 5364. Wine imported in bulk

-STATUTE-
      Natural wine (as defined in section 5381) imported or brought
    into the United States in bulk containers may, under such
    regulations as the Secretary may prescribe, be withdrawn from
    customs custody and transferred in such bulk containers to the
    premises of a bonded wine cellar without payment of the internal
    revenue tax imposed on such wine. The proprietor of a bonded wine
    cellar to which such wine is transferred shall become liable for
    the tax on the wine withdrawn from customs custody under this
    section upon release of the wine from customs custody, and the
    importer, or the person bringing such wine into the United States,
    shall thereupon be relieved of the liability for such tax.

-SOURCE-
    (Added Pub. L. 105-34, title XIV, Sec. 1422(a), Aug. 5, 1997, 111
    Stat. 1050; amended Pub. L. 105-206, title VI, Sec. 6014(b)(3),
    July 22, 1998, 112 Stat. 820.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5364, added Pub. L. 85-859, title II, Sec. 201,
    Sept. 2, 1958, 72 Stat. 1381, limited proprietors of bonded wine
    cellars or taxpaid wine bottling houses to the production,
    reception, storage, or use of only standard wine, prior to repeal
    by Pub. L. 96-39, title VIII, Secs. 807(a)(46), 810, July 26, 1979,
    93 Stat. 287, 292, eff. Jan. 1, 1980.
      Another prior section 5364, act Aug. 16, 1954, ch. 736, 68A Stat.
    665, consisted of provisions similar to those comprising this
    section, prior to the general revision of this chapter by Pub. L.
    85-859.

                                AMENDMENTS                            
      1998 - Pub. L. 105-206 substituted "Natural wine (as defined in
    section 5381) imported or brought into" for "Wine imported or
    brought into" in first sentence.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-206 effective, except as otherwise
    provided, as if included in the provisions of the Taxpayer Relief
    Act of 1997, Pub. L. 105-34, to which such amendment relates, see
    section 6024 of Pub. L. 105-206, set out as a note under section 1
    of this title.

                              EFFECTIVE DATE                          
      Section 1422(c) of Pub. L. 105-34 provided that: "The amendments
    made by this section [enacting this section] shall take effect on
    the 1st day of the 1st calendar quarter that begins at least 180
    days after the date of the enactment of this Act [Aug. 5, 1997]."

-End-



-CITE-
    26 USC Sec. 5365                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART II - OPERATIONS

-HEAD-
    Sec. 5365. Segregation of operations

-STATUTE-
      The Secretary may require by regulations such segregation of
    operations within the premises, by partitions or otherwise, as may
    be necessary to prevent jeopardy to the revenue, to prevent
    confusion between untaxpaid wine operations and such other
    operations as are authorized in this subchapter, to prevent
    substitution with respect to the several methods of producing
    effervescent wines, and to prevent the commingling of standard
    wines with other than standard wines.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1381; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(47),
    July 26, 1979, 93 Stat. 287.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5365, act Aug. 16, 1954, ch. 736, 68A Stat. 665,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1979 - Pub. L. 96-39 authorized segregation of operations to
    prevent the commingling of standard wines with other than standard
    wines.
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

-End-



-CITE-
    26 USC Sec. 5366                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART II - OPERATIONS

-HEAD-
    Sec. 5366. Supervision

-STATUTE-
      The Secretary may by regulations require that operations at a
    bonded wine cellar or taxpaid wine bottling house be supervised by
    an internal revenue officer where necessary for the protection of
    the revenue or for the proper enforcement of this subchapter.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1381; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5366, act Aug. 16, 1954, ch. 736, 68A Stat. 666,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

-End-



-CITE-
    26 USC Sec. 5367                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART II - OPERATIONS

-HEAD-
    Sec. 5367. Records

-STATUTE-
      The proprietor of a bonded wine cellar or a tax-paid wine
    bottling house shall keep such records and file such returns, in
    such form and containing such information, as the Secretary may by
    regulations provide.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1381; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5367, act Aug. 16, 1954, ch. 736, 68A Stat. 666,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

-End-



-CITE-
    26 USC Sec. 5368                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART II - OPERATIONS

-HEAD-
    Sec. 5368. Gauging and marking

-STATUTE-
    (a) Gauging and marking
      All wine or wine spirits shall be locked, sealed, and gauged, and
    shall be marked, branded, labeled, or otherwise identified, in such
    manner as the Secretary may by regulations prescribe.
    (b) Marking
      Wines shall be removed in such containers (including vessels,
    vehicles, and pipelines) bearing such marks and labels evidencing
    compliance with this chapter, as the Secretary may by regulations
    prescribe.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1381; amended Pub. L. 94-455, title XIX, Secs. 1905(a)(20),
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1820, 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5368, act Aug. 16, 1954, ch. 736, 68A Stat. 666,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 substituted "Gauging and marking" for
    "Gauging, marking, and stamping" in section catchline, substituted
    "Marking" for "Stamping" in heading for subsec. (b), and, in text
    of subsec. (b), substituted "marks and labels" for "marks, labels,
    and stamps" and struck out "or his delegate" after "Secretary"
    wherever appearing.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by section 1905(a)(20) of Pub. L. 94-455 effective on
    first day of first month which begins more than 90 days after Oct.
    4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note
    under section 5005 of this title.

-End-



-CITE-
    26 USC Sec. 5369                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART II - OPERATIONS

-HEAD-
    Sec. 5369. Inventories

-STATUTE-
      Each proprietor of premises subject to the provisions of this
    subchapter shall take and report such inventories as the Secretary
    may by regulations prescribe.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1381; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5369, act Aug. 16, 1954, ch. 736, 68A Stat. 666,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

-End-



-CITE-
    26 USC Sec. 5370                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART II - OPERATIONS

-HEAD-
    Sec. 5370. Losses

-STATUTE-
    (a) General
      No tax shall be collected in respect of any wines lost or
    destroyed while in bond, except that tax shall be collected - 
      (1) Theft
        In the case of loss by theft, unless the Secretary shall find
      that the theft occurred without connivance, collusion, fraud, or
      negligence on the part of the proprietor or other person
      responsible for the tax, or the owner, consignor, consignee,
      bailee, or carrier, or the agents or employees of any of them;
      and
      (2) Voluntary destruction
        In the case of voluntary destruction, unless the wine was
      destroyed under Government supervision, or on such adequate
      notice to, and approval by, the Secretary as regulations shall
      provide.
    (b) Proof of loss
      In any case in which the wine is lost or destroyed, whether by
    theft or otherwise, the Secretary may require by regulations the
    proprietor of the bonded wine cellar or other person liable for the
    tax to file a claim for relief from the tax and submit proof as to
    the cause of such loss. In every case where it appears that the
    loss was by theft, the burden shall be on the proprietor or other
    person liable for the tax to establish to the satisfaction of the
    Secretary, that such loss did not occur as the result of
    connivance, collusion, fraud, or negligence on the part of the
    proprietor, owner, consignor, consignee, bailee, or carrier, or the
    agents or employees of any of them.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1381; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5370, act Aug. 16, 1954, ch. 736, 68A Stat. 666,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.

-End-



-CITE-
    26 USC Sec. 5371                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART II - OPERATIONS

-HEAD-
    Sec. 5371. Insurance coverage, etc.

-STATUTE-
      Any remission, abatement, refund, or credit of, or other relief
    from, taxes on wines or wine spirits authorized by law shall be
    allowed only to the extent that the claimant is not indemnified or
    recompensed for the tax.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1382.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5371, act Aug. 16, 1954, ch. 736, 68A Stat. 667,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

-End-



-CITE-
    26 USC Sec. 5372                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART II - OPERATIONS

-HEAD-
    Sec. 5372. Sampling

-STATUTE-
      Under regulations prescribed by the Secretary, wine may be
    utilized in any bonded wine cellar for testing, tasting, or
    sampling, free of tax.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1382; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5372, act Aug. 16, 1954, ch. 736, 68A Stat. 667,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

-End-



-CITE-
    26 USC Sec. 5373                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART II - OPERATIONS

-HEAD-
    Sec. 5373. Wine spirits

-STATUTE-
    (a) In general
      The wine spirits authorized to be used in wine production shall
    be brandy or wine spirits produced in a distilled spirits plant
    (with or without the use of water to facilitate extraction and
    distillation) exclusively from - 
        (1) fresh or dried fruit, or their residues,
        (2) the wine or wine residues, therefrom, or
        (3) special natural wine under such conditions as the Secretary
      may by regulations prescribe;

    except that where, in the production of natural wine or special
    natural wine, sugar has been used, the wine or the residuum thereof
    may not be used if the unfermented sugars therein have been
    refermented. Such wine spirits shall not be reduced with water from
    distillation proof, nor be distilled, unless regulations otherwise
    provide, at less than 140 degrees of proof (except that commercial
    brandy aged in wood for a period of not less than 2 years, and
    barreled at not less than 100 degrees of proof, shall be deemed
    wine spirits for the purpose of this subsection).
    (b) Withdrawal of wine spirits
      (1) The proprietor of any bonded wine cellar may withdraw and
    receive wine spirits without payment of tax from the bonded
    premises of any distilled spirits plant, or from any bonded wine
    cellar as provided in paragraph (2), for use in the production of
    natural wine, for addition to concentrated or unconcentrated juice
    for use in wine production, or for such other uses as may be
    authorized in this subchapter.
      (2) Wine spirits so withdrawn, and not used in wine production or
    as otherwise authorized in this subchapter, may, as provided by
    regulations prescribed by the Secretary, be transferred to the
    bonded premises of any distilled spirits plant or bonded wine
    cellar, or may be taxpaid and removed as provided by law.
      (3) On such use, transfer, or taxpayment, the Secretary shall
    credit the proprietor with the amount of wine spirits so used or
    transferred or taxpaid and, in addition, with such portion of wine
    spirits so withdrawn as may have been lost either in transit or on
    the bonded wine cellar premises, to the extent allowable under
    section 5008(a). Where the proprietor has used wine spirits in
    actual wine production but in violation of the requirements of this
    subchapter, the Secretary shall also extend such credit to the wine
    spirits so used if the proprietor satisfactorily shows that such
    wine spirits were not knowingly used in violation of law.
      (4) Suitable samples of brandy or wine spirits may, under
    regulations prescribed by the Secretary, be withdrawn free of tax
    from the bonded premises of any distilled spirits plant, bonded
    wine cellar, or authorized experimental premises, for analysis or
    testing.
    (c) Distillates containing aldehydes
      When the Secretary deems such removal and use will not jeopardize
    the revenue nor unduly increase administrative supervision,
    distillates containing aldehydes may, under such regulations as the
    Secretary may prescribe, be removed without payment of tax from the
    bonded premises of a distilled spirits plant to an adjacent bonded
    wine cellar and used therein in fermentation of wine to be used as
    distilling material at the distilled spirits plant from which such
    unfinished distilled spirits were removed.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1382; amended Pub. L. 90-619, Sec. 1, Oct. 22, 1968, 82 Stat. 1236;
    Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90
    Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5373, act Aug. 16, 1954, ch. 736, 68A Stat. 667,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.
      1968 - Subsec. (a). Pub. 90-619 inserted special natural wine,
    under conditions prescribed by regulations, as one of the materials
    from which wine spirits may be produced and extended to special
    natural wines the existing prohibition on the use of natural wine
    whose sugars have been refermented.

                     EFFECTIVE DATE OF 1968 AMENDMENT                 
      Section 6 of Pub. L. 90-619 provided that: "The amendments made
    by this Act [amending this section and sections 5382 to 5387 of
    this title] shall take effect on the first day of the first month
    which begins 90 days or more after the date of the enactment of
    this Act [Oct. 22, 1968]."

-End-


-CITE-
    26 USC PART III - CELLAR TREATMENT AND CLASSIFICATION OF
           WINE                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART III - CELLAR TREATMENT AND CLASSIFICATION OF WINE

-HEAD-
          PART III - CELLAR TREATMENT AND CLASSIFICATION OF WINE      

-MISC1-
    Sec.                                                     
    5381.       Natural wine.                                         
    5382.       Cellar treatment of natural wine.                     
    5383.       Amelioration and sweetening limitations for natural
                 grape wines.                                         
    5384.       Amelioration and sweetening limitations for natural
                 fruit and berry wines.                               
    5385.       Specially sweetened natural wines.                    
    5386.       Special natural wines.                                
    5387.       Agricultural wines.                                   
    5388.       Designation of wines.                                 

                             PRIOR PROVISIONS                         
      A prior part III consisted of sections 5381 to 5388 of this
    title, prior to the general revision of this chapter by Pub. L. 85-
    859, title II, Sept. 2, 1958, 72 Stat. 1313.

-End-



-CITE-
    26 USC Sec. 5381                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART III - CELLAR TREATMENT AND CLASSIFICATION OF WINE

-HEAD-
    Sec. 5381. Natural wine

-STATUTE-
      Natural wine is the product of the juice or must of sound, ripe
    grapes or other sound, ripe fruit, made with such cellar treatment
    as may be authorized under section 5382 and containing not more
    than 21 percent by weight of total solids. Any wine conforming to
    such definition except for having become substandard by reason of
    its condition shall be deemed not to be natural wine, unless the
    condition is corrected.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1383; amended Pub. L. 96-39, title VIII, Sec. 807(a)(48), July 26,
    1979, 93 Stat. 288.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5381, act Aug. 16, 1954, ch. 736, 68A Stat. 668,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1979 - Pub. L. 96-39 struck out provisions authorizing removal
    for distillation of wine deemed not to be natural wine, destruction
    of such wine under government supervision, and transfer of such
    wine to premises in which other than natural wine may be stored or
    used.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5382                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART III - CELLAR TREATMENT AND CLASSIFICATION OF WINE

-HEAD-
    Sec. 5382. Cellar treatment of natural wine

-STATUTE-
    (a) Proper cellar treatment
      (1) In general
        Proper cellar treatment of natural wine constitutes - 
          (A) subject to paragraph (2), those practices and procedures
        in the United States, whether historical or newly developed, of
        using various methods and materials to correct or stabilize the
        wine, or the fruit juice from which it is made, so as to
        produce a finished product acceptable in good commercial
        practice in accordance with regulations prescribed by the
        Secretary; and
          (B) subject to paragraph (3), in the case of wine produced
        and imported subject to an international agreement or treaty,
        those practices and procedures acceptable to the United States
        under such agreement or treaty.
      (2) Recognition of continuing treatment
        For purposes of paragraph (1)(A), where a particular treatment
      has been used in customary commercial practice in the United
      States, it shall continue to be recognized as a proper cellar
      treatment in the absence of regulations prescribed by the
      Secretary finding such treatment not to be proper cellar
      treatment within the meaning of this subsection.
      (3) Certification of practices and procedures for imported wine
        (A) In general
          In the case of imported wine produced after December 31,
        2004, the Secretary shall accept the practices and procedures
        used to produce such wine, if, at the time of importation - 
            (i) the Secretary has on file or is provided with a
          certification from the government of the producing country,
          accompanied by an affirmed laboratory analysis, that the
          practices and procedures used to produce the wine constitute
          proper cellar treatment under paragraph (1)(A),
            (ii) the Secretary has on file or is provided with such
          certification, if any, as may be required by an international
          agreement or treaty under paragraph (1)(B), or
            (iii) in the case of an importer that owns or controls or
          that has an affiliate that owns or controls a winery
          operating under a basic permit issued by the Secretary, the
          importer certifies that the practices and procedures used to
          produce the wine constitute proper cellar treatment under
          paragraph (1)(A).
        (B) Affiliate defined
          For purposes of this paragraph, the term "affiliate" has the
        meaning given such term by section 117(a)(4) of the Federal
        Alcohol Administration Act (27 U.S.C. 211(a)(4)) and includes a
        winery's parent or subsidiary or any other entity in which the
        winery's parent or subsidiary has an ownership interest.
    (b) Specifically authorized treatments
      The practices and procedures specifically enumerated in this
    subsection shall be deemed proper cellar treatment for natural
    wine:
        (1) The preparation and use of pure concentrated or
      unconcentrated juice or must. Concentrated juice or must reduced
      with water to its original density or to not less than 22 degrees
      Brix or unconcentrated juice or must reduced with water to not
      less than 22 degrees Brix shall be deemed to be juice or must,
      and shall include such amounts of water to clear crushing
      equipment as regulations prescribed by the Secretary may provide.
        (2) The addition to natural wine, or to concentrated or
      unconcentrated juice or must, from one kind of fruit, of wine
      spirits (whether or not tax-paid) distilled in the United States
      from the same kind of fruit; except that (A) the wine, juice, or
      concentrate shall not have an alcoholic content in excess of 24
      percent by volume after the addition of wine spirits, and (B) in
      the case of still wines, wine spirits may be added in any State
      only to natural wines produced by fermentation in bonded wine
      cellars located within the same State.
        (3) Amelioration and sweetening of natural grape wines in
      accordance with section 5383.
        (4) Amelioration and sweetening of natural wines from fruits
      other than grapes in accordance with section 5384.
        (5) In the case of effervescent wines, such preparations for
      refermentation and for dosage as may be acceptable in good
      commercial practice, but only if the alcoholic content of the
      finished product does not exceed 14 percent by volume.
        (6) The natural darkening of the sugars or other elements in
      juice, must, or wine due to storage, concentration, heating
      processes, or natural oxidation.
        (7) The blending of natural wines with each other or with heavy-
      bodied blending wine or with concentrated or unconcentrated
      juice, whether or not such juice contains wine spirits, if the
      wines, juice, or wine spirits are from the same kind of fruit.
        (8) Such use of acids to correct natural deficiencies and
      stabilize the wine as may be acceptable in good commercial
      practice.
        (9) The addition - 
          (A) to natural grape or berry wine of the winemaker's own
        production, of volatile fruit-flavor concentrate produced from
        the same kind and variety of grape or berry at a plant
        qualified under section 5511, or
          (B) to natural fruit wine (other than grape or berry) of the
        winemaker's own production, of volatile fruit-flavor
        concentrate produced from the same kind of fruit at such a
        plant,

      so long as the proportion of the volatile fruit-flavor
      concentrate to the wine does not exceed the proportion of the
      volatile fruit-flavor concentrate to the original juice or must
      from which it was produced. The transfer of volatile fruit-flavor
      concentrate from a plant qualified under section 5511 to a bonded
      wine cellar and its storage and use in such a cellar shall be
      under such applications and bonds, and under such other
      requirements, as may be provided in regulations prescribed by the
      Secretary.
    (c) Other authorized treatment
      The Secretary may by regulations prescribe limitations on the
    preparation and use of clarifying, stabilizing, preserving,
    fermenting, and corrective methods or materials, to the extent that
    such preparation or use is not acceptable in good commercial
    practice.
    (d) Use of juice or must from which volatile fruit flavor has been
      removed
      For purposes of this part, juice, concentrated juice, or must
    processed at a plant qualified under section 5511 may be deemed to
    be pure juice, concentrated juice, or must even though volatile
    fruit flavor has been removed if, at a plant qualified under
    section 5511 or at the bonded wine cellar, there is added to such
    juice, concentrated juice, or must, or (in the case of a bonded
    wine cellar) to wine of the winemaker's own production made
    therefrom, either the identical volatile flavor removed or - 
        (1) in the case of natural grape or berry wine of the
      winemaker's own production, an equivalent quantity of volatile
      fruit-flavor concentrate produced at such a plant and derived
      from the same kind and variety of grape or berry, or
        (2) in the case of natural fruit wine (other than grape or
      berry wine) of the winemaker's own production, an equivalent
      quantity of volatile fruit-flavor concentrate produced at such a
      plant and derived from the same kind of fruit.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1383; amended Pub. L. 88-653, Secs. 1, 2, Oct. 13, 1964, 78 Stat.
    1085; Pub. L. 89-44, title VIII, Sec. 806(c)(1), June 21, 1965, 79
    Stat. 164; Pub. L. 90-619, Sec. 2, Oct. 22, 1968, 82 Stat. 1237;
    Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90
    Stat. 1834; Pub. L. 108-429, title II, Sec. 2002(a), Dec. 3, 2004,
    118 Stat. 2588; Pub. L. 109-432, div. D, title III, Sec. 3007, Dec.
    20, 2006, 120 Stat. 3176.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5382, act Aug. 16, 1954, ch. 736, 68A Stat. 668,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      2006 - Subsec. (a)(1)(A). Pub. L. 109-432 substituted "correct or
    stabilize" for "stabilize".
      2004 - Subsec. (a). Pub. L. 108-429 amended heading and text of
    subsec. (a) generally. Prior to amendment text read as follows:
    "Proper cellar treatment of natural wine constitutes those
    practices and procedures in the United States and elsewhere,
    whether historical or newly developed, of using various methods and
    materials to correct or stabilize the wine, or the fruit juice from
    which it is made, so as to produce a finished product acceptable in
    good commercial practice. Where a particular treatment has been
    used in customary commercial practice, it shall continue to be
    recognized as a proper cellar treatment in the absence of
    regulations prescribed by the Secretary finding such treatment not
    to be a proper cellar treatment within the meaning of this
    subsection."
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.
      1968 - Subsec. (b)(2)(B). Pub. L. 90-619 permitted wine spirits
    to be added to natural wine produced by fermentation in any bonded
    wine cellars located within the same State in which the addition is
    to take place.
      1965 - Subsec. (b)(2). Pub. L. 89-44 struck out "made without
    added sugar or reserved as provided in sections 5383(b) and
    5384(b)" after "winemaker's own production".
      1964 - Subsec. (b)(9). Pub. L. 88-653, Sec. 1, added par. (9).
      Subsec. (d). Pub. L. 88-653, Sec. 2, added subsec. (d).

                     EFFECTIVE DATE OF 2004 AMENDMENT                 
      Pub. L. 108-429, title II, Sec. 2002(b), Dec. 3, 2004, 118 Stat.
    2589, provided that: "The amendment made by this section [amending
    this section] shall take effect on January 1, 2005."

                     EFFECTIVE DATE OF 1968 AMENDMENT                 
      Amendment by Pub. L. 90-619 effective on first day of first month
    which begins 90 days or more after Oct. 22, 1968, see section 6 of
    Pub. L. 90-619, set out as a note under section 5373 of this title.

                     EFFECTIVE DATE OF 1965 AMENDMENT                 
      Amendment by Pub. L. 89-44 effective Jan. 1, 1966, see section
    806(d)(2) of Pub. L. 89-44, set out as a note under section 5383 of
    this title.

                     EFFECTIVE DATE OF 1964 AMENDMENT                 
      Section 4 of Pub. L. 88-653 provided that: "The amendments made
    by the first section [amending this section] and sections 2 and 3
    of this Act [amending this section and section 5511 of this title]
    shall take effect on the first day of the second month which begins
    more than 10 days after the date on which this Act is enacted [Oct.
    13, 1964]."

-End-



-CITE-
    26 USC Sec. 5383                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART III - CELLAR TREATMENT AND CLASSIFICATION OF WINE

-HEAD-
    Sec. 5383. Amelioration and sweetening limitations for natural
      grape wines

-STATUTE-
    (a) Sweetening of grape wines
      Any natural grape wine may be sweetened after fermentation and
    before taxpayment with pure dry sugar or liquid sugar if the total
    solids content of the finished wine does not exceed 12 percent of
    the weight of the wine and the alcoholic content of the finished
    wine after sweetening is not more than 14 percent by volume; except
    that the use under this subsection of liquid sugar shall be limited
    so that the resultant volume will not exceed the volume which could
    result from the maximum authorized use of pure dry sugar only.
    (b) High acid wines
      (1) Amelioration
        Before, during, and after fermentation, ameliorating materials
      consisting of pure dry sugar or liquid sugar, water, or a
      combination of sugar and water, may be added to natural grape
      wines of a winemaker's own production when such wines are made
      from juice having a natural fixed acid content of more than five
      parts per thousand (calculated before fermentation and as
      tartaric acid). Ameliorating material so added shall not reduce
      the natural fixed acid content of the juice to less than five
      parts per thousand, nor exceed 35 percent of the volume of juice
      (calculated exclusive of pulp) and ameliorating material
      combined.
      (2) Sweetening
        Any wine produced under this subsection may be sweetened by the
      producer thereof, after amelioration and fermentation, with pure
      dry sugar or liquid sugar if the total solids content of the
      finished wine does not exceed (A) 17 percent by weight if the
      alcoholic content is more than 14 percent by volume, or (B) 21
      percent by weight if the alcoholic content is not more than 14
      percent by volume. The use under this paragraph of liquid sugar
      shall be limited to cases where the resultant volume does not
      exceed the volume which could result from the maximum authorized
      use of pure dry sugar only.
      (3) Wine spirits
        Wine spirits may be added (whether or not wine spirits were
      previously added) to wine produced under this subsection only if
      the wine contains not more than 14 percent of alcohol by volume
      derived from fermentation.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1384; amended Pub. L. 89-44, title VIII, Sec. 806(b)(1), June 21,
    1965, 79 Stat. 162; Pub. L. 90-619, Sec. 3, Oct. 22, 1968, 82 Stat.
    1237.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5383, act Aug. 16, 1954, ch. 736, 68A Stat. 669,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1968 - Subsec. (a). Pub. L. 90-619, Sec. 3(b), substituted "not
    more than 14 percent" for "less than 14 percent".
      Subsec. (b). Pub. L. 90-619, Sec. 3(a), simplified production
    procedures and calculations, provided that the limitation on
    sweetening high acid wine is to be based upon the total solids
    content of the finished wine, authorized the use of liquid sugar
    but only to the extent that it did not increase the total volume of
    the finished wine above what it would be if the maximum authorized
    use had been made of dry sugar only, and inserted provisions making
    it clear that wine spirits may be added at more than one stage in
    the process of wine production.
      1965 - Pub. L. 89-44 divided subsec. (b) relating to high acid
    wines into pars. (1) and (2) and par. (2) into subpars. (A) to (E),
    struck out reserve inventory requirement with respect to the
    amelioration and sweetening of wines, authorized use of other than
    pure, dry sugar, and allowed limited use of liquid sugar at
    appropriate points where use of pure dry sugar had formerly been
    prescribed.

                     EFFECTIVE DATE OF 1968 AMENDMENT                 
      Amendment by Pub. L. 90-619 effective on first day of first month
    which begins 90 days or more after Oct. 22, 1968, see section 6 of
    Pub. L. 90-619, set out as a note under section 5373 of this title.

                     EFFECTIVE DATE OF 1965 AMENDMENT                 
      Section 806(d)(2) of Pub. L. 89-44 provided that: "The amendments
    made by subsections (b) and (c) [amending this section and sections
    5382, 5384, 5385, and 5392] shall take effect on January 1, 1966."

-End-



-CITE-
    26 USC Sec. 5384                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART III - CELLAR TREATMENT AND CLASSIFICATION OF WINE

-HEAD-
    Sec. 5384. Amelioration and sweetening limitations for natural
      fruit and berry wines

-STATUTE-
    (a) In general
      To natural wine made from berries or fruit other than grapes,
    pure dry sugar or liquid sugar may be added to the juice in the
    fermenter, or to the wine after fermentation; but only if such wine
    has not more than 14 percent alcohol by volume after complete
    fermentation, or after complete fermentation and sweetening, and a
    total solids content not in excess of 21 percent by weight; and
    except that the use under this subsection of liquid sugar shall be
    limited so that the resultant volume will not exceed the volume
    which could result from the maximum authorized use of pure dry
    sugar only.
    (b) Ameliorated fruit and berry wines
      (1) Any natural fruit or berry wine (other than grape wine) of a
    winemaker's own production may, if not made under subsection (a) of
    this section, be ameliorated to correct high acid content.
    Ameliorating material calculations and accounting shall be separate
    for wines made from each different kind of fruit.
      (2) Pure dry sugar or liquid sugar may be used in the production
    of wines under this subsection for the purpose of correcting
    natural deficiencies, but not to such an extent as would reduce the
    natural fixed acid in the corrected juice or wine to five parts per
    thousand. The quantity of sugar so used shall not exceed the
    quantity which would have been required to adjust the juice, prior
    to fermentation, to a total solids content of 25 degrees (Brix).
    Such sugar shall be added prior to the completion of fermentation
    of the wine. After such addition of the sugar, the wine or juice
    shall be treated and accounted for as provided in section 5383(b),
    covering the production of high acid grape wines, except that - 
        (A) Natural fixed acid shall be calculated as malic acid for
      apple wine and as citric acid for other fruit and berry wines,
      instead of tartaric acid;
        (B) Juice adjusted with pure dry sugar or liquid sugar as
      provided in this paragraph shall be treated in the same manner as
      original natural juice under the provisions of section 5383(b);
      except that if liquid sugar is used, the volume of water
      contained therein must be deducted from the volume of
      ameliorating material authorized;
        (C) Wines made under this subsection shall have a total solids
      content of not more than 21 percent by weight, whether or not
      wine spirits have been added; and
        (D) Wines made exclusively from any fruit or berry with a
      natural fixed acid of 20 parts per thousand or more (before any
      correction of such fruit or berry) shall be entitled to a volume
      of ameliorating material not in excess of 60 percent (in lieu of
      35 percent).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1385; amended Pub. L. 89-44, title VIII, Sec. 806(b)(2), (c)(2),
    (3), June 21, 1965, 79 Stat. 163, 164; Pub. L. 90-619, Sec. 3(b),
    Oct. 22, 1968, 82 Stat. 1237; Pub. L. 105-34, title XIV, Sec.
    1417(a), Aug. 5, 1997, 111 Stat. 1048.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5384, act Aug. 16, 1954, ch. 736, 68A Stat. 670,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1997 - Subsec. (b)(2)(D). Pub. L. 105-34 substituted "any fruit
    or berry with a natural fixed acid of 20 parts per thousand or more
    (before any correction of such fruit or berry)" for "loganberries,
    currants, or gooseberries,".
      1968 - Subsec. (a). Pub. 90-619 substituted "not more than 14
    percent" for "less than 14 percent".
      1965 - Subsec. (a). Pub. L. 89-44, Sec. 806(b)(2)(A), authorized
    addition of liquid sugar provided resultant volume will not exceed
    volume which could result from maximum authorized use of pure dry
    sugar only.
      Subsec. (b). Pub. L. 89-44, Sec. 806(c)(3), substituted
    "Ameliorated" for "Reserve" in heading.
      Subsec. (b)(1). Pub. L. 89-44, Sec. 806(b)(2)(B), struck out
    references to reserves and reserve inventories.
      Subsec. (b)(2). Pub. L. 89-44, Sec. 806(b)(2)(C), amended first
    sentence by authorizing use of liquid sugar but limiting use of any
    sugar if it reduced natural fixed acid in corrected juice or wine
    to five parts per thousand.
      Pub. L. 89-44, Sec. 806(c)(2), struck out "reserved" after
    "covering the production of" in fourth sentence.
      Subsec. (b)(2)(B). Pub. L. 89-44, Sec. 806(b)(2)(D), required
    that, if liquid sugar is used, the volume of water contained
    therein be deducted from the volume of ameliorating material
    authorized.
      Subsec. (b)(2)(C). Pub. L. 89-44, Sec. 806(b)(2)(E), substituted
    "shall have" for "may be withdrawn from reserve inventory with".

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Section 1417(b) of Pub. L. 105-34 provided that: "The amendment
    made by this section [amending this section] shall take effect on
    the 1st day of the 1st calendar quarter that begins at least 180
    days after the date of the enactment of this Act [Aug. 5, 1997]."

                     EFFECTIVE DATE OF 1968 AMENDMENT                 
      Amendment by Pub. L. 90-619 effective on first day of first month
    which begins 90 days or more after Oct. 22, 1968, see section 6 of
    Pub. 90-619, set out as a note under section 5373 of this title.

                     EFFECTIVE DATE OF 1965 AMENDMENT                 
      Amendment by Pub. L. 89-44 effective Jan. 1, 1966, see section
    806(d)(2) of Pub. L. 89-44, set out as a note under section 5383 of
    this title.

-End-



-CITE-
    26 USC Sec. 5385                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART III - CELLAR TREATMENT AND CLASSIFICATION OF WINE

-HEAD-
    Sec. 5385. Specially sweetened natural wines

-STATUTE-
    (a) Definition
      Specially sweetened natural wine is the product made by adding to
    natural wine of the winemaker's own production a sufficient
    quantity of pure dry sugar, or juice or concentrated juice from the
    same kind of fruit, separately or in combination, to produce a
    finished product having a total solids content in excess of 17
    percent by weight and an alcoholic content of not more than 14
    percent by volume, and shall include extra sweet kosher wine and
    similarly heavily sweetened wines.
    (b) Cellar treatment
      Specially sweetened natural wines may be blended with each other,
    or with natural wine or heavy bodied blending wine in the further
    production of specially sweetened natural wine only, if the wines
    so blended are made from the same kind of fruit. Wines produced
    under this section may be cellar treated under the provisions of
    section 5382(a) and (c). Wine spirits may not be added to specially
    sweetened natural wine.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1386; amended Pub. L. 89-44, title VIII, Sec. 806(c)(4), June 21,
    1965, 79 Stat. 164; Pub. L. 90-619, Secs. 3(b), 4, Oct. 22, 1968,
    82 Stat. 1237.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5385, act Aug. 16, 1954, ch. 736, 68A Stat. 671,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1968 - Subsec. (a). Pub. L. 90-619, Sec. 3(b), substituted "not
    more than 14 percent" for "less than 14 percent".
      Subsec. (b). Pub. L. 90-619, Sec. 4, authorized cellar treatment
    of specially sweetened natural wines, special natural wines, and
    agricultural wines.
      1965 - Subsec. (a). Pub. L. 89-44 substituted "total solids
    content in excess of 17" for "sugar solids content in excess of
    15".

                     EFFECTIVE DATE OF 1968 AMENDMENT                 
      Amendment by Pub. L. 90-619 effective on first day of first month
    which begins 90 days or more after Oct. 22, 1968, see section 6 of
    Pub. L. 90-619, set out as a note under section 5373 of this title.

                     EFFECTIVE DATE OF 1965 AMENDMENT                 
      Amendment by Pub. L. 89-44 effective Jan. 1, 1966, see section
    806(d)(2) of Pub. L. 89-44, set out as a note under section 5383 of
    this title.

-End-



-CITE-
    26 USC Sec. 5386                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART III - CELLAR TREATMENT AND CLASSIFICATION OF WINE

-HEAD-
    Sec. 5386. Special natural wines

-STATUTE-
    (a) In general
      Special natural wines are the products made, pursuant to a
    formula approved under this section, from a base of natural wine
    (including heavy-bodied blending wine) exclusively, with the
    addition, before, during or after fermentation, of natural herbs,
    spices, fruit juices, aromatics, essences, and other natural
    flavorings in such quantities or proportions as to enable such
    products to be distinguished from any natural wine not so treated,
    and with or without carbon dioxide naturally or artificially added,
    and with or without the addition, separately or in combination, of
    pure dry sugar or a solution of pure dry sugar and water, or
    caramel. No added wine spirits or alcohol or other spirits shall be
    used in any wine under this section except as may be contained in
    the natural wine (including heavy-bodied blending wine) used as a
    base or except as may be necessary in the production of approved
    essences or similar approved flavorings. The Brix degree of any
    solution of pure dry sugar and water used may be limited by
    regulations prescribed by the Secretary in accordance with good
    commercial practice.
    (b) Cellar treatment
      Special natural wines may be cellar treated under the provisions
    of section 5382(a) and (c).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1386; amended Pub. L. 90-619, Sec. 5, Oct. 22, 1968, 82 Stat. 1237;
    Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90
    Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5386, act Aug. 16, 1954, ch. 736, 68A Stat. 671,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.
      1968 - Subsec. (b). Pub. L. 90-619 inserted reference to subsec.
    (a) of section 5382.

                     EFFECTIVE DATE OF 1968 AMENDMENT                 
      Amendment by Pub. L. 90-619 effective on first day of first month
    which begins 90 days or more after Oct. 22, 1968, see section 6 of
    Pub. L. 90-619, set out as a note under section 5373 of this title.

-End-



-CITE-
    26 USC Sec. 5387                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART III - CELLAR TREATMENT AND CLASSIFICATION OF WINE

-HEAD-
    Sec. 5387. Agricultural wines

-STATUTE-
    (a) In general
      Wines made from agricultural products other than the juice of
    fruit shall be made in accordance with good commercial practice as
    may be prescribed by the Secretary by regulations. Wines made in
    accordance with such regulations shall be classed as "standard
    agricultural wines". Wines made under this section may be cellar
    treated under the provisions of section 5382(a) and (c).
    (b) Limitations
      No wine spirits may be added to wines produced under this
    section, nor shall any coloring material or herbs or other
    flavoring material (except hops in the case of honey wine) be used
    in their production.
    (c) Restriction on blending
      Wines from different agricultural commodities shall not be
    blended together.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1386; amended Pub. L. 90-619, Sec. 5, Oct. 22, 1968, 82 Stat. 1237;
    Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90
    Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5387, act Aug. 16, 1954, ch. 736, 68A Stat. 671,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.
      1968 - Subsec. (a). Pub. L. 90-619 inserted reference to subsec.
    (a) of section 5382.

                     EFFECTIVE DATE OF 1968 AMENDMENT                 
      Amendment by Pub. L. 90-619 effective on first day of first month
    which begins 90 days or more after Oct. 22, 1968, see section 6 of
    Pub. L. 90-619, set out as a note under section 5373 of this title.

-End-



-CITE-
    26 USC Sec. 5388                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART III - CELLAR TREATMENT AND CLASSIFICATION OF WINE

-HEAD-
    Sec. 5388. Designation of wines

-STATUTE-
    (a) Standard wines
      Standard wines may be removed from premises subject to the
    provisions of this subchapter and be marked, transported, and sold
    under their proper designation as to kind and origin, or, if there
    is no such designation known to the trade or consumers, then under
    a truthful and adequate statement of composition.
    (b) Other wines
      Wines other than standard wines may be removed for consumption or
    sale and be marked, transported, or sold only under such
    designation as to kind and origin as adequately describes the true
    composition of such products and as adequately distinguish them
    from standard wines, as regulations prescribed by the Secretary
    shall provide.
    (c) Use of semi-generic designations
      (1) In general
        Semi-generic designations may be used to designate wines of an
      origin other than that indicated by such name only if - 
          (A) there appears in direct conjunction therewith an
        appropriate appellation of origin disclosing the true place of
        origin of the wine, and
          (B) the wine so designated conforms to the standard of
        identity, if any, for such wine contained in the regulations
        under this section or, if there is no such standard, to the
        trade understanding of such class or type.
      (2) Determination of whether name is semi-generic
        (A) In general
          Except as provided in subparagraph (B), a name of geographic
        significance, which is also the designation of a class or type
        of wine, shall be deemed to have become semi-generic only if so
        found by the Secretary.
        (B) Certain names treated as semi-generic
          The following names shall be treated as semi-generic:
        Angelica, Burgundy, Claret, Chablis, Champagne, Chianti,
        Malaga, Marsala, Madeira, Moselle, Port, Rhine Wine or Hock,
        Sauterne, Haut Sauterne, Sherry, Tokay.
      (3) Special rule for use of certain semi-generic designations
        (A) In general
          In the case of any wine to which this paragraph applies - 
            (i) paragraph (1) shall not apply,
            (ii) in the case of wine of the European Community,
          designations referred to in subparagraph (C)(i) may be used
          for such wine only if the requirement of subparagraph (B)(ii)
          is met, and
            (iii) in the case any other wine bearing a brand name, or
          brand name and fanciful name, semi-generic designations may
          be used for such wine only if the requirements of clauses
          (i), (ii), and (iii) of subparagraph (B) are met.
        (B) Requirements
          (i) The requirement of this clause is met if there appears in
        direct conjunction with the semi-generic designation an
        appropriate appellation of origin disclosing the origin of the
        wine.
          (ii) The requirement of this clause is met if the wine
        conforms to the standard of identity, if any, for such wine
        contained in the regulations under this section or, if there is
        no such standard, to the trade understanding of such class or
        type.
          (iii) The requirement of this clause is met if the person, or
        its successor in interest, using the semi-generic designation
        held a Certificate of Label Approval or Certificate of
        Exemption from Label Approval issued by the Secretary for a
        wine label bearing such brand name, or brand name and fanciful
        name, before March 10, 2006, on which such semi-generic
        designation appeared.
        (C) Wines to which paragraph applies
          (i) In general
            Except as provided in clause (ii), this paragraph shall
          apply to any grape wine which is designated as Burgundy,
          Claret, Chablis, Champagne, Chianti, Malaga, Marsala,
          Madeira, Moselle, Port, Retsina, Rhine Wine or Hock,
          Sauterne, Haut Sauterne, Sherry, or Tokay.
          (ii) Exception
            This paragraph shall not apply to wine which - 
              (I) contains less than 7 percent or more than 24 percent
            alcohol by volume,
              (II) is intended for sale outside the United States, or
              (III) does not bear a brand name.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1387; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 105-34, title IX, Sec. 910(a), Aug.
    5, 1997, 111 Stat. 877; Pub. L. 109-432, div. A, title IV, Sec.
    422(a), Dec. 20, 2006, 120 Stat. 2972.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5388, act Aug. 16, 1954, ch. 736, 68A Stat. 672,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      2006 - Subsec. (c)(3). Pub. L. 109-432 added par. (3).
      1997 - Subsec. (c). Pub. L. 105-34 added subsec. (c).
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-432, div. A, title IV, Sec. 422(b), Dec. 20, 2006,
    120 Stat. 2973, provided that: "The amendments made by this section
    [amending this section] shall apply to wine imported or bottled in
    the United States on or after the date of enactment of this Act
    [Dec. 20, 2006]."

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Section 910(b) of Pub. L. 105-34 provided that: "The amendment
    made by this section [amending this section] shall take effect on
    the date of the enactment of this Act [Aug. 5, 1997]."

-End-


-CITE-
    26 USC PART IV - GENERAL                                    01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART IV - GENERAL

-HEAD-
                             PART IV - GENERAL                         

-MISC1-
    Sec.                                                     
    5391.       Exemption from distilled spirits taxes.               
    5392.       Definitions.                                          

                             PRIOR PROVISIONS                         
      A prior part IV consisted of sections 5391 and 5392 of this
    title, prior to the general revision of this chapter by Pub. L. 85-
    859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.

                                AMENDMENTS                            
      1979 - Pub. L. 96-39, title VIII, Sec. 807(b)(8), July 26, 1979,
    93 Stat. 290, substituted "Exemption from distilled spirits taxes"
    for "Exemption from rectifying and spirits taxes" in item 5391.

-End-



-CITE-
    26 USC Sec. 5391                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART IV - GENERAL

-HEAD-
    Sec. 5391. Exemption from distilled spirits taxes

-STATUTE-
      Notwithstanding any other provision of law, the tax imposed by
    section 5001 on distilled spirits shall not, except as provided in
    this subchapter, be assessed, levied, or collected from the
    proprietor of any bonded wine cellar with respect to his use of
    wine spirits in wine production, in such premises; except that,
    whenever wine or wine spirits are used in violation of this
    subchapter, the applicable tax imposed by section 5001 shall be
    collected unless the proprietor satisfactorily shows that such wine
    or wine spirits were not knowingly used in violation of law.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1387; amended Pub. L. 96-39, title VIII, Sec. 807(a)(49), July 26,
    1979, 93 Stat. 288.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5391, act Aug. 16, 1954, ch. 736, 68A Stat. 672,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1979 - Pub. L. 96-39 substituted "distilled" for "rectifying and"
    in section catchline and struck out provisions relating to
    exemption from taxes imposed on rectified spirits and wines and the
    status of any proprietor of a bonded wine cellar as a rectifier of
    such spirits in text.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5392                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter F - Bonded and Taxpaid Wine Premises
    PART IV - GENERAL

-HEAD-
    Sec. 5392. Definitions

-STATUTE-
    (a) Standard wine
      For purposes of this subchapter the term "standard wine" means
    natural wine, specially sweetened natural wine, special natural
    wine, and standard agricultural wine, produced in accordance with
    the provisions of sections 5381, 5385, 5386, and 5387,
    respectively.
    (b) Heavy bodied blending wine
      For purposes of this subchapter the term "heavy bodied blending
    wine" means wine made from fruit without added sugar, and with or
    without added wine spirits, and conforming to the definition of
    natural wine in all respects except as to maximum total solids
    content.
    (c) Pure sugar
      For purposes of this subchapter the term "pure sugar" means pure
    refined sugar, suitable for human consumption, having a dextrose
    equivalent of not less than 95 percent on a dry basis, and produced
    from cane, beets, or fruit, or from grain or other sources of
    starch. Invert sugar syrup produced from such pure sugar by
    recognized methods of inversion may be used to prepare any sugar
    syrup, or solution of water and pure sugar, authorized in this
    subchapter.
    (d) Total solids
      For purposes of this subchapter the term "total solids", in the
    case of wine, means the degrees Brix of the dealcoholized wine.
    (e) Same kind of fruit
      For purposes of this subchapter the term "same kind of fruit"
    includes, in the case of grapes, all of the several species and
    varieties of grapes. In the case of fruits other than grapes, this
    term includes all of the several species and varieties of any given
    kind; except that this shall not preclude a more precise
    identification of the composition of the product for the purpose of
    its designation.
    (f) Own production
      For purposes of this subchapter the term "own production", when
    used with reference to wine in a bonded wine cellar, means wine
    produced by fermentation in the same bonded wine cellar, whether or
    not produced by a predecessor in interest at such bonded wine
    cellar. This term may also include, under regulations, wine
    produced by fermentation in bonded wine cellars owned or controlled
    by the same or affiliated persons or firms when located within the
    same State; the term "affiliated" shall be deemed to include any
    one or more bonded wine cellar proprietors associated as members of
    any farm cooperative, or any one or more bonded wine cellar
    proprietors affiliated within the meaning of section 17(a)(5) of
    the Federal Alcohol Administration Act, as amended (27 U.S.C.
    211).(!1)

    (g) Liquid sugar
      For purposes of this subchapter the term "liquid sugar" means a
    substantially colorless pure sugar and water solution containing
    not less than 60 percent pure sugar by weight (60 degrees Brix.)

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1387; amended Pub. L. 89-44, title VIII, Sec. 806(b)(3), June 21,
    1965, 79 Stat. 163; Pub. L. 94-455, title XIX, Sec. 1905(a)(21),
    Oct. 4, 1976, 90 Stat. 1820.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 17(a)(5) of the Federal Alcohol Administration Act, as
    amended (27 U.S.C. 211), referred to in subsec. (f), was renumbered
    section 117(a)(5) of the Federal Alcohol Administration Act by Pub.
    L. 100-690, title VIII, Sec. 8001(a)(2), Nov. 18, 1988, 102 Stat.
    4517, and is classified to section 211(a)(5) of Title 27,
    Intoxicating Liquors.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5392, act Aug. 16, 1954, ch. 736, 68A Stat. 672,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Subsec. (f). Pub. L. 94-455 struck out "49 Stat. 990;"
    before "27 U.S.C. 211".
      1965 - Subsec. (c). Pub. L. 89-44, Sec. 806(b)(3)(A), added
    fruit, grain, or other sources of starch to cane and beets as
    sources of "pure sugar".
      Subsec. (g). Pub. L. 89-44, Sec. 806(b)(3)(B), added subsec. (g).

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-455 effective on first day of first month
    which begins more than 90 days after Oct. 4, 1976, see section
    1905(d) of Pub. L. 94-455, set out as a note under section 5005 of
    this title.

                     EFFECTIVE DATE OF 1965 AMENDMENT                 
      Amendment by Pub. L. 89-44 effective Jan. 1, 1966, see section
    806(d)(2) of Pub. L. 89-44, set out as a note under section 5383 of
    this title.

-FOOTNOTE-               

    (!1) See References in Text note below.


-End-


-CITE-
    26 USC Subchapter G - Breweries                             01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter G - Breweries

-HEAD-
                         SUBCHAPTER G - BREWERIES                     

-MISC1-
    Part                                                     
    I.          Establishment.                                        
    II.         Operations.                                           

                             PRIOR PROVISIONS                         
      A prior subchapter G consisted of parts I and II, contained
    sections 5401 to 5403 and 5411 to 5416, respectively, prior to the
    general revision of this chapter by Pub. L. 85-859, title II, Sec.
    201, Sept. 2, 1958, 72 Stat. 1313.

-End-


-CITE-
    26 USC PART I - ESTABLISHMENT                               01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter G - Breweries
    PART I - ESTABLISHMENT

-HEAD-
                          PART I - ESTABLISHMENT                      

-MISC1-
    Sec.                                                     
    5401.       Qualifying documents.                                 
    5402.       Definitions.                                          
    5403.       Cross references.                                     

                             PRIOR PROVISIONS                         
      A prior part I consisted of sections 5401 to 5403 of this title,
    prior to the general revision of this chapter by Pub. L. 85-859,
    title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.

-End-



-CITE-
    26 USC Sec. 5401                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter G - Breweries
    PART I - ESTABLISHMENT

-HEAD-
    Sec. 5401. Qualifying documents

-STATUTE-
    (a) Notice
      Every brewer shall, before commencing or continuing business,
    file with the officer designated for that purpose by the Secretary
    a notice in writing, in such form and containing such information
    as the Secretary shall by regulations prescribe as necessary to
    protect and insure collection of the revenue.
    (b) Bonds
      Every brewer, on filing notice as provided by subsection (a) of
    his intention to commence business, shall execute a bond to the
    United States in such reasonable penal sum as the Secretary shall
    by regulation prescribe as necessary to protect and insure
    collection of the revenue. The bond shall be conditioned (1) that
    the brewer shall pay, or cause to be paid, as herein provided, the
    tax required by law on all beer, including all beer removed for
    transfer to the brewery from other breweries owned by him as
    provided in section 5414; (2) that he shall pay or cause to be paid
    the tax on all beer removed free of tax for export as provided in
    section 5053(a), which beer is not exported or returned to the
    brewery; and (3) that he shall in all respects faithfully comply,
    without fraud or evasion, with all requirements of law relating to
    the production and sale of any beer aforesaid. Once in every 4
    years, or whenever required so to do by the Secretary, the brewer
    shall execute a new bond or a continuation certificate, in the
    penal sum prescribed in pursuance of this section, and conditioned
    as above provided, which bond or continuation certificate shall be
    in lieu of any former bond or bonds, or former continuation
    certificate or certificates, of such brewer in respect to all
    liabilities accruing after its approval. If the contract of surety
    between the brewer and the surety on an expiring bond or
    continuation certificate is continued in force between the parties
    for a succeeding period of not less than 4 years, the brewer may
    submit, in lieu of a new bond, a certificate executed, under
    penalties of perjury, by the brewer and the surety attesting to
    continuation of the bond, which certificate shall constitute a bond
    subject to all provisions of law applicable to bonds given pursuant
    to this section.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1388; amended Pub. L. 91-673, Sec. 3(a), Jan. 12, 1971, 84 Stat.
    2056; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
    90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5401, act Aug. 16, 1954, ch. 736, 68A Stat. 674,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.
      1971 - Subsec. (b). Pub. L. 91-673 permitted bonding requirement
    to be satisfied by continuation of an existing bond, with such
    continuation being subject to Government approval in the same
    manner as a new bond and required that the continuation certificate
    be executed by both the brewer and the surety, under penalties of
    perjury.

                     EFFECTIVE DATE OF 1971 AMENDMENT                 
      Amendment by Pub. L. 91-673 effective on first day of first
    calendar month which begins more than 90 days after Jan. 12, 1971,
    see section 5 of Pub. L. 91-673, set out as a note under section
    5056 of this title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5402                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter G - Breweries
    PART I - ESTABLISHMENT

-HEAD-
    Sec. 5402. Definitions

-STATUTE-
    (a) Brewery
      The brewery shall consist of the land and buildings described in
    the brewer's notice. The continuity of the brewery must be unbroken
    except where separated by public passageways, streets, highways,
    waterways, or carrier rights-of-way, or partitions; and if parts of
    the brewery are so separated they must abut on the dividing medium
    and be adjacent to each other. Notwithstanding the preceding
    sentence, facilities under the control of the brewer for case
    packing, loading, or storing which are located within reasonable
    proximity to the brewery packaging facilities may be approved by
    the Secretary as a part of the brewery if the revenue will not be
    jeopardized thereby.
    (b) Brewer
          For definition of brewer, see section 5092.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1389; amended Pub. L. 91-673, Sec. 3(b), Jan. 12, 1971, 84 Stat.
    2057; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
    90 Stat. 1834; Pub. L. 109-59, title XI, Sec. 11125(b)(17), Aug.
    10, 2005, 119 Stat. 1956.)


-STATAMEND-
                        AMENDMENT OF SUBSECTION (B)                    
      Pub. L. 109-59, title XI, Sec. 11125(b)(17), (c), Aug. 10, 2005,
    119 Stat. 1956, 1957, provided that, effective July 1, 2008, but
    inapplicable to taxes imposed for periods before such date,
    subsection (b) of this section is amended by substituting "section
    5052(d)" for "section 5092".


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5402, act Aug. 16, 1954, ch. 736, 68A Stat. 674,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".
      1971 - Subsec. (a). Pub. L. 91-673 inserted proviso to definition
    of "Brewery" that the continuity of the brewery must be unbroken
    except where separated by public passageways, streets, highways,
    waterways, or carrier rights-of-way, or partitions, with the
    exception that the Secretary approve facilities under the control
    of the brewer for case packing, loading, or storing, which are
    located within reasonable proximity to the brewery as a part of the
    brewery if the revenue will not be jeopardized thereby.

                     EFFECTIVE DATE OF 2005 AMENDMENT                 
      Amendment by Pub. L. 109-59 effective July 1, 2008, but
    inapplicable to taxes imposed for periods before such date, see
    section 11125(c) of Pub. L. 109-59, set out as a note under section
    5002 of this title.

                     EFFECTIVE DATE OF 1971 AMENDMENT                 
      Amendment by Pub. L. 91-673 effective on first day of first
    calendar month which begins more than 90 days after Jan. 12, 1971,
    see section 5 of Pub. L. 91-673, set out as a note under section
    5056 of this title.

-End-



-CITE-
    26 USC Sec. 5403                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter G - Breweries
    PART I - ESTABLISHMENT

-HEAD-
    Sec. 5403. Cross references

-STATUTE-
          (1) For authority of Secretary to disapprove brewers' bonds,
        see section 5551.
          (2) For authority of Secretary to require the installation
        and use of meters, tanks, and other apparatus, see section
        5552.
          (3) For deposit of United States bonds or notes in lieu of
        sureties, see section 9303 of title 31, United States Code.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1389; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 97-258, Sec. 3(f)(3), Sept. 13,
    1982, 96 Stat. 1064.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5403, act Aug. 16, 1954, ch. 736, 68A Stat. 674,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1982 - Par. (3). Pub. L. 97-258 substituted "section 9303 of
    title 31, United States Code" for "6 U.S.C. 15".
      1976 - Par. (1). Pub. L. 94-455 struck out "or his delegate"
    after "Secretary".

-End-


-CITE-
    26 USC PART II - OPERATIONS                                 01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter G - Breweries
    PART II - OPERATIONS

-HEAD-
                           PART II - OPERATIONS                       

-MISC1-
    Sec.                                                     
    5411.       Use of brewery.                                       
    5412.       Removal of beer in containers or by pipeline.         
    5413.       Brewers procuring beer from other brewers.            
    5414.       Removals from one brewery to another belonging to the
                 same brewer.                                         
    5415.       Records and returns.                                  
    5416.       Definitions of package and packaging.                 
    5417.       Pilot brewing plants.                                 
    5418.       Beer imported in bulk.                                

                             PRIOR PROVISIONS                         
      A prior part II consisted of sections 5411 to 5416, prior to the
    general revision of this chapter by Pub. L. 85-859, title II, Sec.
    201, Sept. 2, 1958, 72 Stat. 1313.

                                AMENDMENTS                            
      1997 - Pub. L. 105-34, title XIV, Sec. 1421(b), Aug. 5, 1997, 111
    Stat. 1049, added item 5418.
      1971 - Pub. L. 91-673, Sec. 4(b), Jan. 12, 1971, 84 Stat. 2058,
    substituted "Definitions of package and packaging" for "Definitions
    of bottle and bottling" in item 5416 and added item 5417.

-End-



-CITE-
    26 USC Sec. 5411                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter G - Breweries
    PART II - OPERATIONS

-HEAD-
    Sec. 5411. Use of brewery

-STATUTE-
      The brewery shall be used under regulations prescribed by the
    Secretary only for the purpose of producing, packaging, and storing
    beer, cereal beverages containing less than one-half of 1 percent
    of alcohol by volume, vitamins, ice, malt, malt sirup, and other
    byproducts and of soft drinks; for the purpose of processing spent
    grain, carbon dioxide, and yeast; and for such other purposes as
    the Secretary by regulation may find will not jeopardize the
    revenue.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1389; amended Pub. L. 91-673, Sec. 3(c), Jan. 12, 1971, 84 Stat.
    2057; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
    90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5411, act Aug. 16, 1954, ch. 736, 68A Stat. 675,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.
      1971 - Pub. L. 91-673 struck out requirement of separate
    facilities for bottling of beer and cereal beverages and permitted
    use of brewery for packaging and storing beer and other cereal
    beverages.

                     EFFECTIVE DATE OF 1971 AMENDMENT                 
      Amendment by Pub. L. 91-673 effective on first day of first
    calendar month which begins more than 90 days after Jan. 12, 1971,
    see section 5 of Pub. L. 91-673, set out as a note under section
    5056 of this title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5412                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter G - Breweries
    PART II - OPERATIONS

-HEAD-
    Sec. 5412. Removal of beer in containers or by pipeline

-STATUTE-
      Beer may be removed from the brewery for consumption or sale only
    in hogsheads, packages, and similar containers, marked, branded, or
    labeled in such manner as the Secretary may by regulation require,
    except that beer may be removed from the brewery by pipeline to
    contiguous distilled spirits plants under section 5222.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1389; amended Pub. L. 91-673, Sec. 3(d), Jan. 12, 1971, 84 Stat.
    2057; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
    90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5412, act Aug. 16, 1954, ch. 736, 68A Stat. 675,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".
      1971 - Pub. L. 91-673 substituted "packages," for "barrels, kegs,
    bottles,".

                     EFFECTIVE DATE OF 1971 AMENDMENT                 
      Amendment by Pub. L. 91-673 effective on first day of first
    calendar month which begins more than 90 days after Jan. 12, 1971,
    see section 5 of Pub. L. 91-673, set out as a note under section
    5056 of this title.

-End-



-CITE-
    26 USC Sec. 5413                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter G - Breweries
    PART II - OPERATIONS

-HEAD-
    Sec. 5413. Brewers procuring beer from other brewers

-STATUTE-
      A brewer, under such regulations as the Secretary shall
    prescribe, may obtain beer in his own hogsheads, barrels, and kegs,
    marked with his name and address, from another brewer, with
    taxpayment thereof to be by the producer in the manner prescribed
    by section 5054.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1389; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5413, act Aug. 16, 1954, ch. 736, 68A Stat. 675,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

-End-



-CITE-
    26 USC Sec. 5414                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter G - Breweries
    PART II - OPERATIONS

-HEAD-
    Sec. 5414. Removals from one brewery to another belonging to the
      same brewer

-STATUTE-
      Beer may be removed from one brewery to another brewery belonging
    to the same brewer, without payment of tax, and may be mingled with
    beer at the receiving brewery, subject to such conditions,
    including payment of the tax, and in such containers, as the
    Secretary by regulations shall prescribe. The removal from one
    brewery to another brewery belonging to the same brewer shall be
    deemed to include any removal from a brewery owned by one
    corporation to a brewery owned by another corporation when (1) one
    such corporation owns the controlling interest in the other such
    corporation, or (2) the controlling interest in each such
    corporation is owned by the same person or persons.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1389; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5414, act Aug. 16, 1954, ch. 736, 68A Stat. 675,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

-End-



-CITE-
    26 USC Sec. 5415                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter G - Breweries
    PART II - OPERATIONS

-HEAD-
    Sec. 5415. Records and returns

-STATUTE-
    (a) Records
      Every brewer shall keep records, in such form and containing such
    information as the Secretary shall prescribe by regulations as
    necessary for protection of the revenue. These records shall be
    preserved by the person required to keep such records for such
    period as the Secretary shall by regulations prescribe, and shall
    be available during business hours for examination and taking of
    abstracts therefrom by any internal revenue officer.
    (b) Returns
      Every brewer shall make true and accurate returns of his
    operations and transactions in the form, at the times, and for such
    periods as the Secretary shall by regulation prescribe.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1390; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5415, act Aug. 16, 1954, ch. 736, 68A Stat. 675,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary" wherever appearing.

-End-



-CITE-
    26 USC Sec. 5416                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter G - Breweries
    PART II - OPERATIONS

-HEAD-
    Sec. 5416. Definitions of package and packaging

-STATUTE-
      For purposes of this subchapter, the term "package" means a
    bottle, can, keg, barrel, or other original consumer container, and
    the term "packaging" means the filling of any package.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1390; amended Pub. L. 91-673, Sec. 3(e), Jan. 12, 1971, 84 Stat.
    2057.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5416, act Aug. 16, 1954, ch. 736, 68A Stat. 676,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1971 - Pub. L. 91-673 substituted definitions of package and
    packaging for definitions of bottle and bottling.

                     EFFECTIVE DATE OF 1971 AMENDMENT                 
      Amendment by Pub. L. 91-673 effective on first day of first
    calendar month which begins more than 90 days after Jan. 12, 1971,
    see section 5 of Pub. L. 91-673, set out as a note under section
    5056 of this title.

-End-



-CITE-
    26 USC Sec. 5417                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter G - Breweries
    PART II - OPERATIONS

-HEAD-
    Sec. 5417. Pilot brewing plants

-STATUTE-
      Under such regulations as the Secretary may prescribe, and on the
    filing of such bonds and applications as he may require, pilot
    brewing plants may, at the discretion of the Secretary be
    established and operated off the brewery premises for research,
    analytical, experimental, or development purposes with regard to
    beer or brewery operations. Nothing in this section shall be
    construed as authority to waive the filing of any bond or the
    payment of any tax provided for in this chapter.

-SOURCE-
    (Added Pub. L. 91-673, Sec. 4(a), Jan. 12, 1971, 84 Stat. 2057;
    amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4,
    1976, 90 Stat. 1834.)


-MISC1-
                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.

                              EFFECTIVE DATE                          
      Section effective on first day of first calendar month which
    begins more than 90 days after Jan. 12, 1971, see section 5 of Pub.
    L. 91-673, set out as an Effective Date of 1971 Amendment note
    under section 5056 of this title.

-End-



-CITE-
    26 USC Sec. 5418                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter G - Breweries
    PART II - OPERATIONS

-HEAD-
    Sec. 5418. Beer imported in bulk

-STATUTE-
      Beer imported or brought into the United States in bulk
    containers may, under such regulations as the Secretary may
    prescribe, be withdrawn from customs custody and transferred in
    such bulk containers to the premises of a brewery without payment
    of the internal revenue tax imposed on such beer. The proprietor of
    a brewery to which such beer is transferred shall become liable for
    the tax on the beer withdrawn from customs custody under this
    section upon release of the beer from customs custody, and the
    importer, or the person bringing such beer into the United States,
    shall thereupon be relieved of the liability for such tax.

-SOURCE-
    (Added Pub. L. 105-34, title XIV, Sec. 1421(a), Aug. 5, 1997, 111
    Stat. 1049.)


-MISC1-
                              EFFECTIVE DATE                          
      Section 1421(c) of Pub. L. 105-34 provided that: "The amendments
    made by this section [enacting this section] shall take effect on
    the 1st day of the 1st calendar quarter that begins at least 180
    days after the date of the enactment of this Act [Aug. 5, 1997]."

-End-


-CITE-
    26 USC Subchapter H - Miscellaneous Plants and Warehouses    01/03/2007 

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter H - Miscellaneous Plants and Warehouses

-HEAD-
            SUBCHAPTER H - MISCELLANEOUS PLANTS AND WAREHOUSES        

-MISC1-
    Part                                                     
    I.          Vinegar plants.                                       
    II.         Volatile fruit-flavor concentrate plants.             
    [III.       Repealed.]                                            

                             PRIOR PROVISIONS                         
      A prior subchapter H consisted of parts I to III, prior to the
    general revision of this chapter by Pub. L. 85-859, title II, Sec.
    201, Sept. 2, 1958, 72 Stat. 1313.

                                AMENDMENTS                            
      1979 - Pub. L. 96-39, title VIII, Sec. 807(b)(9), July 26, 1979,
    93 Stat. 291, struck out item relating to Part III "Manufacturing
    bonded warehouses" in table of Parts comprising Subchapter H.

-End-


-CITE-
    26 USC PART I - VINEGAR PLANTS                              01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter H - Miscellaneous Plants and Warehouses
    PART I - VINEGAR PLANTS

-HEAD-
                          PART I - VINEGAR PLANTS                      

-MISC1-
    Sec.                                                     
    5501.       Establishment.                                        
    5502.       Qualification.                                        
    5503.       Construction and equipment.                           
    5504.       Operation.                                            
    5505.       Applicability of provisions of this chapter.          

                             PRIOR PROVISIONS                         
      A prior part I consisted of sections 5501 and 5502, prior to the
    general revision of this chapter by Pub. L. 85-859, title II, Sec.
    201, Sept. 2, 1958, 72 Stat. 1313.

-End-



-CITE-
    26 USC Sec. 5501                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter H - Miscellaneous Plants and Warehouses
    PART I - VINEGAR PLANTS

-HEAD-
    Sec. 5501. Establishment

-STATUTE-
      Plants for the production of vinegar by the vaporizing process,
    where distilled spirits of not more than 15 percent of alcohol by
    volume are to be produced exclusively for use in the manufacture of
    vinegar on the premises, may be established under this part.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1390.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5501, act Aug. 16, 1954, ch. 736, 68A Stat. 677,
    made a cross reference to provisions pertaining to establishment
    and operation of vinegar factories, prior to the general revision
    of this chapter by Pub. L. 85-859.
      Provisions similar to those comprising this section were
    contained in prior section 5216(a)(1), act Aug. 16, 1954, ch. 736,
    68A Stat. 640, prior to the general revision of this chapter by
    Pub. L. 85-859.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5502                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter H - Miscellaneous Plants and Warehouses
    PART I - VINEGAR PLANTS

-HEAD-
    Sec. 5502. Qualification

-STATUTE-
    (a) Requirements
      Every person, before commencing the business of manufacturing
    vinegar by the vaporizing process, and at such other times as the
    Secretary may by regulations prescribe, shall make application to
    the Secretary for the registration of his plant and receive
    permission to operate. No application required under this section
    shall be approved until the applicant has complied with all
    requirements of law, and regulations prescribed by the Secretary,
    in relation to such business. With respect to any change in such
    business after approval of an application, the Secretary may by
    regulations authorize the filing of written notice of such change
    or require the filing of an application to make such change.
    (b) Form of application
      The application required by subsection (a) shall be in such form
    and contain such information as the Secretary shall by regulations
    prescribe to enable him to determine the identity of the applicant,
    the location and extent of the premises, the type of operations to
    be conducted on such premises, and whether the operations will be
    in conformity with law and regulations.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1390; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5502, act Aug. 16, 1954, ch. 736, 68A Stat. 677,
    related to distilled vinegar, prior to the general revision of this
    chapter by Pub. L. 85-859.
      Provisions similar to those comprising subsec. (a) of this
    section were contained in prior section 5216(a)(1), act Aug. 16,
    1954, ch. 736, 68A Stat. 640, prior to the general revision of this
    chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary" wherever appearing.

-End-



-CITE-
    26 USC Sec. 5503                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter H - Miscellaneous Plants and Warehouses
    PART I - VINEGAR PLANTS

-HEAD-
    Sec. 5503. Construction and equipment

-STATUTE-
      Plants established under this part for the manufacture of vinegar
    by the vaporizing process shall be constructed and equipped in
    accordance with such regulations as the Secretary shall prescribe.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1391; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising this section were
    contained in prior sections 5216(a)(1) and 5552, act Aug. 16, 1954,
    ch. 736, 68A Stat. 640, 680, prior to the general revision of this
    chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

-End-



-CITE-
    26 USC Sec. 5504                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter H - Miscellaneous Plants and Warehouses
    PART I - VINEGAR PLANTS

-HEAD-
    Sec. 5504. Operation

-STATUTE-
    (a) General
      Any manufacturer of vinegar qualified under this part may, under
    such regulations as the Secretary shall prescribe, separate by a
    vaporizing process the distilled spirits from the mash produced by
    him, and condense the vapor by introducing it into the water or
    other liquid used in making vinegar in his plant.
    (b) Removals
      No person shall remove, or cause to be removed, from any plant
    established under this part any vinegar or other fluid or material
    containing a greater proportion than 2 percent of proof spirits.
    (c) Records
      Every person manufacturing vinegar by the vaporizing process
    shall keep such records and file such reports as the Secretary
    shall by regulations prescribe of the kind and quantity of
    materials received on his premises and fermented or mashed, the
    quantity of low wines produced, the quantity of such low wines used
    in the manufacture of vinegar, the quantity of vinegar produced,
    the quantity of vinegar removed from the premises, and such other
    information as may by regulations be required. Such records, and a
    copy of such reports, shall be preserved as regulations shall
    prescribe, and shall be kept available for inspection by any
    internal revenue officer during business hours.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1391; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising subsecs. (a) and (b) of
    this section were contained in prior section 5216(a)(1)(2), act
    Aug. 16, 1954, ch. 736, 68A Stat. 640, prior to the general
    revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Subsecs. (a), (c). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary" wherever appearing.

-End-



-CITE-
    26 USC Sec. 5505                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter H - Miscellaneous Plants and Warehouses
    PART I - VINEGAR PLANTS

-HEAD-
    Sec. 5505. Applicability of provisions of this chapter

-STATUTE-
    (a) Tax
      The taxes imposed by subchapter A shall be applicable to any
    distilled spirits produced in violation of section 5501 or removed
    in violation of section 5504(b).
    (b) Prohibited premises
      Plants established under this part shall not be located on any
    premises where distilling is prohibited under section 5601(a)(6).
    (c) Entry and examination of premises
      The provisions of section 5203(b), (c), and (d), relating to
    right of entry and examination, furnishing facilities and
    assistance, and authority to break up grounds or walls, shall be
    applicable to all premises established under this part, and to all
    proprietors thereof, and their workmen or other persons employed by
    them.
    (d) Registration of stills
      Stills on the premises of plants established under this part
    shall be registered as provided in section 5179.
    (e) Installation of meters, tanks, and other apparatus
      The provisions of section 5552 relating to the installation of
    meters, tanks, and other apparatus shall be applicable to plants
    established under this part.
    (f) Assignment of internal revenue officers
      The provisions of section 5553(a) relating to the assignment of
    internal revenue officers shall be applicable to plants established
    under this part.
    (g) Authority to waive records, statements, and returns
      The provisions of section 5555(b) relating to the authority of
    the Secretary to waive records, statements, and returns shall be
    applicable to records, statements, or returns required by this
    part.
    (h) Regulations
      The provisions of section 5556 relating to the prescribing of
    regulations shall be applicable to this part.
    (i) Penalties
      The penalties and forfeitures provided in sections 5601(a)(1),
    (6), and (12), 5603, 5615(1) and (4), 5686, and 5687 shall be
    applicable to this part.
    (j) Other provisions
      This chapter (other than this part and the provisions referred to
    in subsection (a), (b), (c), (d), (e), (f), (g), (h), (i) shall not
    be applicable with respect to plants established or operations
    conducted under this part.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1391; amended Pub. L. 94-455, title XIX, Sec. 1905(b)(6)(E), Oct.
    4, 1976, 90 Stat. 1823.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising subsecs. (a) to (i) of
    this section were contained in prior sections of act Aug. 16, 1954,
    prior to the general revision of this chapter by Pub. L. 85-859, as
    follows:


        Present subsecs.:                    Prior sections             
    --------------------------------------------------------------------
    (a)                         5216(a)(1).                             
    (b)                         5171.                                   
    (c)                         5216(a)(3).                             
    (d)                         5174.                                   
    (e)                         5552.                                   
    (f)                         5553(a).                                
    (g)                         5555(b).                                
    (h)                         5556.                                   
    (i)                         5601, 5607, 5608, 5686(b).              
    --------------------------------------------------------------------

      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 627, 630, 640, 680, 681, 683-685, 700.

                                AMENDMENTS                            
      1976 - Subsec. (i). Pub. L. 94-455 struck out "5601(b)(1)," after
    "5601(a)(1), (6), and (12),".

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-455 effective on first day of first month
    which begins more than 90 days after Oct. 4, 1976, see section
    1905(d) of Pub. L. 94-455, set out as a note under section 5005 of
    this title.

-End-


-CITE-
    26 USC PART II - VOLATILE FRUIT-FLAVOR CONCENTRATE PLANTS    01/03/2007 

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter H - Miscellaneous Plants and Warehouses
    PART II - VOLATILE FRUIT-FLAVOR CONCENTRATE PLANTS

-HEAD-
            PART II - VOLATILE FRUIT-FLAVOR CONCENTRATE PLANTS        

-MISC1-
    Sec.                                                     
    5511.       Establishment and operation.                          
    5512.       Control of products after manufacture.                

                             PRIOR PROVISIONS                         
      A prior part II consisted of sections 5511 and 5512, prior to the
    general revision of this chapter by Pub. L. 85-859, title II, Sec.
    201, Sept. 2, 1958, 72 Stat. 1313.

-End-



-CITE-
    26 USC Sec. 5511                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter H - Miscellaneous Plants and Warehouses
    PART II - VOLATILE FRUIT-FLAVOR CONCENTRATE PLANTS

-HEAD-
    Sec. 5511. Establishment and operation

-STATUTE-
      This chapter (other than sections 5178(a)(2)(C), 5179, 5203(b),
    (c), and (d), and 5552) shall not be applicable with respect to the
    manufacture, by any process which includes evaporations from the
    mash or juice of any fruit, of any volatile fruit-flavor
    concentrate if - 
        (1) such concentrate, and the mash or juice from which it is
      produced, contains no more alcohol than is reasonably unavoidable
      in the manufacture of such concentrate; and
        (2) such concentrate is rendered unfit for use as a beverage
      before removal from the place of manufacture, or (in the case of
      a concentrate which does not exceed 24 percent alcohol by volume)
      such concentrate is transferred to a bonded wine cellar for use
      in production of natural wine as provided in section 5382; and
        (3) the manufacturer thereof makes such application, keeps such
      records, renders such reports, files such bonds, and complies
      with such other requirements with respect to the production,
      removal, sale, transportation, and use of such concentrate and of
      the mash or juice from which such concentrate is produced, as the
      Secretary may by regulations prescribe as necessary for the
      protection of the revenue.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1392; amended Pub. L. 88-653, Sec. 3, Oct. 13, 1964, 78 Stat. 1085;
    Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90
    Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5511, act Aug. 16, 1954, ch. 736, 68A Stat. 677,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Par. (3). Pub. L. 94-455 struck out "or his delegate"
    after "Secretary".
      1964 - Par. (2). Pub. L. 88-653 inserted "or (in the case of a
    concentrate which does not exceed 24 percent alcohol by volume)
    such concentrate is transferred to a bonded wine cellar for use in
    production of natural wine as provided in section 5382".

                     EFFECTIVE DATE OF 1964 AMENDMENT                 
      Amendment by Pub. L. 88-653 effective on first day of second
    month which begins more than 10 days after Oct. 13, 1964, see
    section 4 of Pub. L. 88-653, set out as a note under section 5383
    of this title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5512                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter H - Miscellaneous Plants and Warehouses
    PART II - VOLATILE FRUIT-FLAVOR CONCENTRATE PLANTS

-HEAD-
    Sec. 5512. Control of products after manufacture

-STATUTE-
          For applicability of all provisions of this chapter
        pertaining to distilled spirits and wines, including those
        requiring payment of tax, to volatile fruit-flavor concentrates
        sold, transported, or used in violation of law or regulations,
        see section 5001(a)(7).(!1)


-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1392.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 5001(a)(7), referred to in text, was redesignated section
    5001(a)(6) by Pub. L. 103-465, title I, Sec. 136(a), Dec. 8, 1994,
    108 Stat. 4841.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5512, act Aug. 16, 1954, ch. 736, 68A Stat. 677,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

-FOOTNOTE-               

    (!1) See References in Text note below.


-End-


-CITE-
    26 USC [PART III - REPEALED]                                01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter H - Miscellaneous Plants and Warehouses
    [PART III - REPEALED]

-HEAD-
                           [PART III - REPEALED]                       

-End-



-CITE-
    26 USC Secs. 5521 to 5523                                   01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter H - Miscellaneous Plants and Warehouses
    [PART III - REPEALED]

-HEAD-
    Secs. 5521 to 5523. Repealed.

-MISC1-
    [Secs. 5521 to 5523. Repealed. Pub. L. 96-39, title VIII, Sec.
      807(a)(50), July 26, 1979, 93 Stat. 288].
      Section 5521, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
    1958, 72 Stat. 1392; amended Pub. L. 94-455, title XIX, Sec.
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, related to
    establishment and operation of manufacturing bonded warehouses.
      A prior section 5521, act Aug. 16, 1954, ch. 736, 68A Stat. 678,
    related to establishment and operation of manufacturing bonded
    warehouses, prior to the general revision of this chapter by Pub.
    L. 85-859.
      Section 5522, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
    1958, 72 Stat. 1393; amended Pub. L. 94-455, title XIX, Sec.
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, related to withdrawal
    of distilled spirits to manufacturing bonded warehouses.
      A prior section 5522, act Aug. 16, 1954, ch. 736, 68A Stat. 679,
    related to withdrawal of distilled spirits to manufacturing bonded
    warehouses, prior to general revision of this chapter by Pub. L. 85-
    859. See sections 5008(f)(2) and 5214(a) of this title.
      Section 5523, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
    1958, 72 Stat. 1394; amended Pub. L. 94-455, title XIX, Sec.
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, made special provision
    for distilled spirits and wines rectified in manufacturing bonded
    warehouses.
      A prior section 5523, act Aug. 16, 1954, ch. 736, 68A Stat. 679,
    made special provision for distilled spirits and wines rectified in
    manufacturing bonded warehouses, prior to general revision of this
    chapter by Pub. L. 85-859.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective Jan. 1, 1980, see section 810 of Pub. L. 96-39,
    set out as an Effective Date of 1979 Amendment note under section
    5001 of this title.

-End-


-CITE-
    26 USC Subchapter I - Miscellaneous General Provisions      01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter I - Miscellaneous General Provisions

-HEAD-
              SUBCHAPTER I - MISCELLANEOUS GENERAL PROVISIONS          

-MISC1-
    Sec.                                                     
    5551.       General provisions relating to bonds.                 
    5552.       Installation of meters, tanks, and other apparatus.   
    5553.       Supervision of premises and operations.               
    5554.       Pilot operations.                                     
    5555.       Records, statements, and returns.                     
    5556.       Regulations.                                          
    5557.       Officers and agents authorized to investigate, issue
                 search warrants, and prosecute for violations.       
    5558.       Authority of enforcement officers.                    
    5559.       Determinations.                                       
    5560.       Other provisions applicable.                          
    5561.       Exemptions to meet the requirements of the national
                 defense.                                             
    5562.       Exemptions from certain requirements in cases of
                 disaster.                                            

                             PRIOR PROVISIONS                         
      A prior subchapter I consisted of sections 5551 to 5557, prior to
    the general revision of this chapter by Pub. L. 85-859, title II,
    Sec. 201, Sept. 2, 1958, 72 Stat. 1313.

-End-



-CITE-
    26 USC Sec. 5551                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter I - Miscellaneous General Provisions

-HEAD-
    Sec. 5551. General provisions relating to bonds

-STATUTE-
    (a) Approval as condition to commencing business
      No individual, firm, partnership, corporation, or association,
    intending to commence or to continue the business of a distiller,
    warehouseman, processor, brewer, or winemaker, shall commence or
    continue the business of a distiller, warehouseman, processor,
    brewer, or winemaker until all bonds in respect of such a business,
    required by any provision of law, have been approved by the
    Secretary of the Treasury or the officer designated by him.
    (b) Disapproval
      The Secretary of the Treasury or any officer designated by him
    may disapprove any such bond or bonds if the individual, firm,
    partnership, or corporation, or association giving such bond or
    bonds, or owning, controlling, or actively participating in the
    management of the business of the individual, firm, partnership,
    corporation, or association giving such bond or bonds, shall have
    been previously convicted, in a court of competent jurisdiction, of
    - 
        (1) any fraudulent noncompliance with any provision of any law
      of the United States, if such provision related to internal
      revenue or customs taxation of distilled spirits, wines, or beer,
      or if such an offense shall have been compromised with the
      individual, firm, partnership, corporation, or association on
      payment of penalties or otherwise, or
        (2) any felony under a law of any State, or the District of
      Columbia, or the United States, prohibiting the manufacture,
      sale, importation, or transportation of distilled spirits, wine,
      beer, or other intoxicating liquor.
    (c) Appeal from disapproval
      In case the disapproval is by an officer designated by the
    Secretary of the Treasury to approve or disapprove such bonds, the
    individual, firm, partnership, corporation, or association giving
    the bond may appeal from such disapproval to the Secretary of the
    Treasury or an officer designated by him to hear such appeals, and
    the disapproval of the bond by the Secretary of the Treasury or
    officer designated to hear such appeals shall be final.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1394; amended Pub. L. 94-455, title XIX, Secs. 1905(c)(5),
    1906(b)(13)(B), Oct. 4, 1976, 90 Stat. 1823, 1834; Pub. L. 96-39,
    title VIII, Sec. 807(a)(51), July 26, 1979, 93 Stat. 288.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5551, act Aug. 16, 1954, ch. 736, 68A Stat. 680,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      Provisions similar to those comprising subsec. (c) of this
    section were contained in prior section 5177(c), act Aug. 16, 1954,
    ch. 736, 68A Stat. 630, prior to the general revision of this
    chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1979 - Subsec. (a). Pub. L. 96-39 substituted "warehouseman,
    processor" for "bonded warehouseman, rectifier" in two places.
      1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(B),
    substituted "Secretary of the Treasury" for "Secretary".
      Subsec. (b). Pub. L. 94-455, Secs. 1905(c)(5), 1906(b)(13)(B),
    substituted "Secretary of the Treasury" for "Secretary" in
    provisions preceding par. (1) and struck out "Territory, or" after
    "State," in par. (2).
      Subsec. (c). Pub. L. 94-455, Sec. 1906(b)(13)(B), substituted
    "Secretary of the Treasury" for "Secretary".

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by section 1905(c)(5) of Pub. L. 94-455 effective on
    first day of first month which begins more than 90 days after Oct.
    4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note
    under section 5005 of this title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5552                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter I - Miscellaneous General Provisions

-HEAD-
    Sec. 5552. Installation of meters, tanks, and other apparatus

-STATUTE-
      The Secretary is authorized to require at distilled spirits
    plants, breweries, and at any other premises established pursuant
    to this chapter as in his judgment may be deemed advisable, the
    installation of meters, tanks, pipes, or any other apparatus for
    the purpose of protecting the revenue, and such meters, tanks, and
    pipes and all necessary labor incident thereto shall be at the
    expense of the person on whose premises the installation is
    required. Any such person refusing or neglecting to install such
    apparatus when so required by the Secretary shall not be permitted
    to conduct business on such premises.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1395; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5552, act Aug. 16, 1954, ch. 736, 68A Stat. 680,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      For application to vinegar plants of provisions of prior section
    5552 relating to installation of meters, tanks, and other
    apparatus, see also sections 5503 and 5505(e) of this title.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.

-End-



-CITE-
    26 USC Sec. 5553                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter I - Miscellaneous General Provisions

-HEAD-
    Sec. 5553. Supervision of premises and operations

-STATUTE-
    (a) Assignment of internal revenue officers
      The Secretary is authorized to assign to any premises established
    under the provisions of this chapter such number of internal
    revenue officers as may be deemed necessary.
    (b) Functions of internal revenue officer
      When used in this chapter, the term "internal revenue officer
    assigned to the premises" means the internal revenue officer
    assigned by the Secretary to duties at premises established and
    operated under the provisions of this chapter.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1395; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5553, act Aug. 16, 1954, ch. 736, 68A Stat. 681,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      For application to vinegar plants of provisions of prior section
    5553(a) relating to assignment of storekeeper-gaugers, see also
    section 5505(f) of this title.

                                AMENDMENTS                            
      1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary" wherever appearing.

-End-



-CITE-
    26 USC Sec. 5554                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter I - Miscellaneous General Provisions

-HEAD-
    Sec. 5554. Pilot operations

-STATUTE-
      For the purpose of facilitating the development and testing of
    improved methods of governmental supervision (necessary for the
    protection of the revenue) over distilled spirits plants
    established under this chapter, the Secretary is authorized to
    waive any regulatory provisions of this chapter for temporary pilot
    or experimental operations. Nothing in this section shall be
    construed as authority to waive the filing of any bond or the
    payment of any tax provided for in this chapter.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1395; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5554, act Aug. 16, 1954, ch. 736, 68A Stat. 681,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

-End-



-CITE-
    26 USC Sec. 5555                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter I - Miscellaneous General Provisions

-HEAD-
    Sec. 5555. Records, statements, and returns

-STATUTE-
    (a) General
      Every person liable to any tax imposed by this chapter, or for
    the collection thereof, shall keep such records, render such
    statements, make such returns, and comply with such rules and
    regulations as the Secretary may prescribe.
    (b) Authority to waive
      Whenever in this chapter any record is required to be made or
    kept, or statement or return is required to be made by any person,
    the Secretary may by regulation waive, in whole or in part, such
    requirement when he deems such requirement to no longer serve a
    necessary purpose. This subsection shall not be construed as
    authorizing the waiver of the payment of any tax.
    (c) Photographic copies
      Whenever in this chapter any record is required to be made and
    preserved by any person, the Secretary may by regulations authorize
    such person to record, copy, or reproduce by any photographic,
    photostatic, microfilm, microcard, miniature photographic, or other
    process, which accurately reproduces or forms a durable medium for
    so reproducing the original of such record and to retain such
    reproduction in lieu of the original. Every person who is
    authorized to retain such reproduction in lieu of the original
    shall, under such regulations as the Secretary may prescribe,
    preserve such reproduction in conveniently accessible files and
    make provision for examining, viewing, and using such reproduction
    the same as if it were the original. Such reproduction shall be
    treated and considered for all purposes as though it were the
    original record and all provisions of law applicable to the
    original shall be applicable to such reproduction. Such
    reproduction, or enlargement or facsimile thereof, shall be
    admissible in evidence in the same manner and under the same
    conditions as provided for the admission of reproductions,
    enlargements, or facsimiles of records made in the regular course
    of business under section 1732(b) of title 28 of the United States
    Code.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1395; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834; Pub. L. 98-369, div. A, title IV, Sec.
    454(c)(10), July 18, 1984, 98 Stat. 821.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5555, act Aug. 16, 1954, ch. 736, 68A Stat. 681,
    consisted of provisions similar to those comprising subsecs. (a)
    and (b) of this section, prior to the general revision of this
    chapter by Pub. L. 85-859.
      Prior section 5555(a), relating to general provisions respecting
    records, statements, and returns, is also incorporated in section
    5207(b) to (d) of this title.
      Prior section 5555(b), relating to authority to waive records,
    statements, and returns, is also incorporated in section 5505(g) of
    this title.

                                AMENDMENTS                            
      1984 - Subsec. (a). Pub. L. 98-369 struck out "or for the
    affixing of any stamp required to be affixed by this chapter,"
    after "the collection thereof,".
      1976 - Subsecs. (a) to (c). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary" wherever appearing.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective July 1, 1985, see section
    456(b) of Pub. L. 98-369, set out as an Effective Date note under
    section 5101 of this title.

-End-



-CITE-
    26 USC Sec. 5556                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter I - Miscellaneous General Provisions

-HEAD-
    Sec. 5556. Regulations

-STATUTE-
      The regulations prescribed by the Secretary for enforcement of
    this chapter may make such distinctions in requirements relating to
    construction, equipment, or methods of operation as he deems
    necessary or desirable due to differences in materials or
    variations in methods used in production, processing, or storage of
    distilled spirits.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1396; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5556, act Aug. 16, 1954, ch. 736, 68A Stat. 681,
    authorized the Secretary to prescribe regulations, prior to the
    general revision of this chapter by Pub. L. 85-859.
      For application to vinegar plants of regulatory provisions of
    prior section 5556, see also section 5505(h) of this title.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

                  APPLICABILITY OF RULES AND REGULATIONS              
      Section 210(e) of title II of Pub. L. 85-859 provided that:
    "Until regulations are promulgated under any provision of this
    title [enacting sections 5849, 5854, 5855, and 7608 of this title,
    amending this chapter, chapter 52 of this title and sections 5801,
    5811, 5814, 5821, 5843, 5848, 5851, 6071, 6207, 6422, 7214, 7272,
    7301, 7324 to 7326, 7609, 7652 and 7655 of this title, and enacting
    notes set out under sections 5001, 5006, 5025, 5064, 5175, 5304 and
    5601 of this title] which depends for its application upon the
    promulgation of regulations (or which is to be applied in such
    manner as may be prescribed by regulations) all instructions,
    rules, or regulations which are in effect immediately prior to the
    effective date of such provision shall, to the extent such
    instructions, rules, or regulations could be prescribed as
    regulations under authority of such provision, be applied as is
    promulgated as regulations under such provision."

-End-



-CITE-
    26 USC Sec. 5557                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter I - Miscellaneous General Provisions

-HEAD-
    Sec. 5557. Officers and agents authorized to investigate, issue
      search warrants, and prosecute for violations

-STATUTE-
    (a) General
      The Secretary shall investigate violations of this subtitle and
    in any case in which prosecution appears warranted the Secretary
    shall report the violation to the United States Attorney for the
    district in which such violation was committed, who is hereby
    charged with the duty of prosecuting the offenders, subject to the
    direction of the Attorney General, as in the case of other offenses
    against the laws of the United States; and the Secretary may swear
    out warrants before United States magistrate judges or other
    officers or courts authorized to issue warrants for the
    apprehension of such offenders, and may, subject to the control of
    such United States Attorney, conduct the prosecution at the
    committing trial for the purpose of having the offenders held for
    the action of a grand jury. Section 3041 of title 18 of the United
    States Code is hereby made applicable in the enforcement of this
    subtitle.
    (b) Cross reference
          For provisions relating to the issuance of search warrants,
        see the Federal Rules of Criminal Procedure.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1396; amended Pub. L. 90-578, title IV, Sec. 402(b)(2), Oct. 17,
    1968, 82 Stat. 1118; Pub. L. 94-455, title XIX, Sec.
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 101-650, title
    III, Sec. 321, Dec. 1, 1990, 104 Stat. 5117.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Federal Rules of Criminal Procedure, referred to in subsec.
    (b), are set out in the Appendix of Title 18, Crimes and Criminal
    Procedure.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5557, act Aug. 16, 1954, ch. 736, 68A Stat. 681,
    related to applicability of other provisions, prior to the general
    revision of this chapter by Pub. L. 85-859. See section 5560 of
    this title.
      Provisions similar to those comprising this section were
    contained in prior section 5314, act Aug. 16, 1954, ch. 736, 68A
    Stat. 659, prior to the general revision of this chapter by Pub. L.
    85-859.

                                AMENDMENTS                            
      1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
    after "Secretary" wherever appearing.

-CHANGE-
                              CHANGE OF NAME                          
      "United States magistrate judges" substituted for "United States
    magistrates" in subsec. (a) pursuant to section 321 of Pub. L. 101-
    650, set out as a note under section 631 of Title 28, Judiciary
    and Judicial Procedure. Previously, "United States magistrates"
    substituted for "United States commissioners" pursuant to Pub. L.
    90-578. See chapter 43 (Sec. 631 et seq.) of Title 28.

-End-



-CITE-
    26 USC Sec. 5558                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter I - Miscellaneous General Provisions

-HEAD-
    Sec. 5558. Authority of enforcement officers

-STATUTE-
          For provisions relating to the authority of internal revenue
        enforcement officers, see section 7608.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1396.)

-End-



-CITE-
    26 USC Sec. 5559                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter I - Miscellaneous General Provisions

-HEAD-
    Sec. 5559. Determinations

-STATUTE-
      Whenever the Secretary is required or authorized, in this
    chapter, to make or verify any quantitative determination, such
    determination or verification may be made by actual count, weight,
    or measurement, or by the application of statistical methods, or by
    other means, under such regulations as the Secretary may prescribe.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1396; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.

-End-



-CITE-
    26 USC Sec. 5560                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter I - Miscellaneous General Provisions

-HEAD-
    Sec. 5560. Other provisions applicable

-STATUTE-
      All provision of subtitle F, insofar as applicable and not
    inconsistent with the provisions of this subtitle, are hereby
    extended to and made a part of this subtitle.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1396.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising this section were
    contained in prior section 5557, act Aug. 16, 1954, ch. 736, 68A
    Stat. 681, prior to the general revision of this chapter by Pub. L.
    85-859.

-End-



-CITE-
    26 USC Sec. 5561                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter I - Miscellaneous General Provisions

-HEAD-
    Sec. 5561. Exemptions to meet the requirements of the national
      defense

-STATUTE-
      The Secretary may temporarily exempt proprietors of distilled
    spirits plants from any provision of the internal revenue laws
    relating to distilled spirits, except those requiring payment of
    the tax thereon, whenever in his judgment it may seem expedient to
    do so to meet the requirements of the national defense. Whenever
    the Secretary shall exercise the authority conferred by this
    section he may prescribe such regulations as may be necessary to
    accomplish the purpose which caused him to grant the exemption.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1397; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising this section were
    contained in prior section 5217(b), act Aug. 16, 1954, ch. 736, 68A
    Stat. 641, prior to the general revision of this chapter by Pub. L.
    85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" wherever appearing.

-End-



-CITE-
    26 USC Sec. 5562                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter I - Miscellaneous General Provisions

-HEAD-
    Sec. 5562. Exemptions from certain requirements in cases of
      disaster

-STATUTE-
      Whenever the Secretary finds that it is necessary or desirable,
    by reason of disaster, to waive provisions of internal revenue law
    with regard to distilled spirits, he may temporarily exempt
    proprietors of distilled spirits plants from any provision of the
    internal revenue laws relating to distilled spirits, except those
    requiring payment of the tax thereon, to the extent he may deem
    necessary or desirable.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1397; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those comprising this section were
    contained in prior section 5215, act Aug. 16, 1954, ch. 736, 68A
    Stat. 640, prior to the general revision of this chapter by Pub. L.
    85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary".

-End-


-CITE-
    26 USC Subchapter J - Penalties, Seizures, and
           Forfeitures Relating to Liquors                 01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     

-HEAD-
      SUBCHAPTER J - PENALTIES, SEIZURES, AND FORFEITURES RELATING TO
                                  LIQUORS

-MISC1-
    Part                                                     
    I.          Penalty, seizure, and forfeiture provisions applicable
                 to distilling, rectifying, and distilled and
                 rectified products.                                  
    II.         Penalty and forfeiture provisions applicable to wine
                 and wine production.                                 
    III.        Penalty, seizure, and forfeiture provisions applicable
                 to beer and brewing.                                 
    IV.         Penalty, seizure, and forfeiture provisions common to
                 liquors.                                             
    V.          Penalties applicable to occupational taxes.           


-STATAMEND-
                           AMENDMENT OF ANALYSIS                       
      Pub. L. 109-59, title XI, Sec. 11125(b)(19)(B), (c), Aug. 10,
    2005, 119 Stat. 1956, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date, the
    table of parts is amended by striking out the item for part V.


-MISC2-
                             PRIOR PROVISIONS                         
      A prior subchapter J consisted of parts I to V, prior to the
    general revision of this chapter by Pub. L. 85-859, title II, Sec.
    201, Sept. 2, 1958, 72 Stat. 1313.

-End-


-CITE-
    26 USC PART I - PENALTY, SEIZURE, AND FORFEITURE
                     PROVISIONS APPLICABLE TO
                     DISTILLING, RECTIFYING, AND
                     DISTILLED AND RECTIFIED PRODUCTS      01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
              DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
              PRODUCTS                                

-HEAD-
    PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
       DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED PRODUCTS

-MISC1-
    Sec.                                                     
    5601.       Criminal penalties.                                   
    5602.       Penalty for tax fraud by distiller.                   
    5603.       Penalty relating to records, returns, and reports.(!1) 
    5604.       Penalties relating to marks, brands, and containers.  
    5605.       Penalty relating to return of materials used in the
                 manufacture of distilled spirits, or from which
                 distilled spirits may be recovered.                  
    5606.       Penalty relating to containers of distilled spirits.  
    5607.       Penalty and forfeiture for unlawful use, recovery, or
                 concealment of denatured distilled spirits, or
                 articles.                                            
    5608.       Penalty and forfeiture for fraudulent claims for
                 export drawback or unlawful relanding.               
    5609.       Destruction of unregistered stills, distilling
                 apparatus, equipment, and materials.                 
    5610.       Disposal of forfeited equipment and material for
                 distilling.                                          
    5611.       Release of distillery before judgment.                
    5612.       Forfeiture of taxpaid distilled spirits remaining on
                 bonded premises.                                     
    5613.       Forfeiture of distilled spirits not closed, marked, or
                 branded as required by law.                          
    5614.       Burden of proof in cases of seizure of spirits.       
    5615.       Property subject to forfeiture.                       

                             PRIOR PROVISIONS                         
      A prior part I consisted of sections 5601 to 5650, prior to the
    general revision of this chapter by Pub. L. 85-859, title II, Sec.
    201, Sept. 2, 1958, 72 Stat. 1313.

                                AMENDMENTS                            
      1984 - Pub. L. 98-369, div. A, title IV, Sec. 454(c)(11)(B),
    (12)(C), July 18, 1984, 98 Stat. 822, struck out "stamps," in item
    5604, and substituted "closed" for "stamped" in item 5613.

-FOOTNOTE-
    (!1) So in original. Does not conform to section catchline.


-End-



-CITE-
    26 USC Sec. 5601                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
              DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
              PRODUCTS                                

-HEAD-
    Sec. 5601. Criminal penalties

-STATUTE-
    (a) Offenses
      Any person who - 
      (1) Unregistered stills
        has in his possession or custody, or under his control, any
      still or distilling apparatus set up which is not registered, as
      required by section 5179(a); or
      (2) Failure to file application
        engages in the business of a distiller or processor without
      having filed application for and received notice of registration,
      as required by section 5171(c); or
      (3) False or fraudulent application
        engages, or intends to engage, in the business of distiller,
      warehouseman, or processor of distilled spirits, and files a
      false or fraudulent application under section 5171; or
      (4) Failure or refusal of distiller, warehouseman, or processor
        to give bond
        carries on the business of a distiller, warehouseman, or
      processor without having given bond as required by law; or
      (5) False, forged, or fraudulent bond
        engages, or intends to engage, in the business of distiller,
      warehouseman, or processor of distilled spirits, and gives any
      false, forged, or fraudulent bond, under subchapter B; or
      (6) Distilling on prohibited premises
        uses, or possesses with intent to use, any still, boiler, or
      other utensil for the purpose of producing distilled spirits, or
      aids or assists therein, or causes or procures the same to be
      done, in any dwelling house, or in any shed, yard, or inclosure
      connected with such dwelling house (except as authorized under
      section 5178(a)(1)(C)), or on board any vessel or boat, or on any
      premises where beer or wine is made or produced, or where liquors
      of any description are retailed, or on premises where any other
      business is carried on (except when authorized under section
      5178(b)); or
      (7) Unlawful production, removal, or use of material fit for
        production of distilled spirits
        except as otherwise provided in this chapter, makes or ferments
      mash, wort, or wash, fit for distillation or for the production
      of distilled spirits, in any building or on any premises other
      than the designated premises of a distilled spirits plant
      lawfully qualified to produce distilled spirits, or removes,
      without authorization by the Secretary, any mash, wort, or wash,
      so made or fermented, from the designated premises of such
      lawfully qualified plant before being distilled; or
      (8) Unlawful production of distilled spirits
        not being a distiller authorized by law to produce distilled
      spirits, produces distilled spirits by distillation or any other
      process from any mash, wort, wash, or other material; or
      (9) Unauthorized use of distilled spirits in manufacturing
        processes
        except as otherwise provided in this chapter, uses distilled
      spirits in any process of manufacture unless such spirits - 
          (A) have been produced in the United States by a distiller
        authorized by law to produce distilled spirits and withdrawn in
        compliance with law; or
          (B) have been imported (or otherwise brought into the United
        States) and withdrawn in compliance with law; or
      (10) Unlawful processing
        engages in or carries on the business of a processor - 
          (A) with intent to defraud the United States of any tax on
        the distilled spirits processed by him; or
          (B) with intent to aid, abet, or assist any person or persons
        in defrauding the United States of the tax on any distilled
        spirits; or
      (11) Unlawful purchase, receipt, or processing of distilled
        spirits
        purchases, receives, or processes any distilled spirits,
      knowing or having reasonable grounds to believe that any tax due
      on such spirits has not been paid or determined as required by
      law; or
      (12) Unlawful removal or concealment of distilled spirits
        removes, other than as authorized by law, any distilled spirits
      on which the tax has not been paid or determined, from the place
      of manufacture or storage, or from any instrument of
      transportation, or conceals spirits so removed; or
      (13) Creation of fictitious proof
        adds, or causes to be added, any ingredient or substance (other
      than ingredients or substances authorized by law to be added) to
      any distilled spirits before the tax is paid thereon, or
      determined as provided by law, for the purpose of creating
      fictitious proof; or
      (14) Distilling after notice of suspension
        after the time fixed in the notice given under section 5221(a)
      to suspend operations as a distiller, carries on the business of
      a distiller on the premises covered by the notice of suspension,
      or has mash, wort, or beer on such premises, or on any premises
      connected therewith, or has in his possession or under his
      control any mash, wort, or beer, with intent to distill the same
      on such premises; or
      (15) Unauthorized withdrawal, use, sale, or distribution of
        distilled spirits for fuel use
        Withdraws,(!1) uses, sells, or otherwise disposes of distilled
      spirits produced under section 5181 for other than fuel use;


    shall be fined not more than $10,000, or imprisoned not more than 5
    years, or both, for each such offense.
    (b) Presumptions
      Whenever on trial for violation of subsection (a)(4) the
    defendant is shown to have been at the site or place where, and at
    the time when, the business of a distiller or processor was so
    engaged in or carried on, such presence of the defendant shall be
    deemed sufficient evidence to authorize conviction, unless the
    defendant explains such presence to the satisfaction of the jury
    (or of the court when tried without jury).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1398; amended Pub. L. 94-455, title XIX, Secs. 1905(a)(22),
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1820, 1834; Pub. L. 96-39,
    title VIII, Sec. 807(a)(52), July 26, 1979, 93 Stat. 288; Pub. L.
    96-223, title II, Sec. 232(e)(2)(A), Apr. 2, 1980, 94 Stat. 280.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5601, act Aug. 16, 1954, ch. 736, 68A Stat. 683,
    consisted of provisions similar to those comprising subsec. (a)(1)
    of this section, and also related to forfeiture for possession of
    unregistered still or distilling apparatus, prior to the general
    revision of this chapter by Pub. L. 85-859. See section 5615(1) of
    this title.
      Provisions similar to those comprising subsecs. (a)(2) to (8),
    (9)(A), (10) to (14) of this section were contained in prior
    sections of act Aug. 16, 1954, prior to the general revision of
    this chapter by Pub. L. 85-859, as follows:


      Present subd. of subsec.                 Prior sections           
                (a):                                                    
    --------------------------------------------------------------------
    (2)                             5172, 5603.                         
    (3)                             5603.                               
    (4)                             5172, 5604, 5606.                   
    (5)                             5604.                               
    (6)                             5171, 5607.                         
    (7)                             5216(a)(1), (4), 5608(a).           
    (8)                             5216(a)(1), 5608(a).                
    (9)                             5216(a)(1), 5608(a).                
    (10)                            5628, 5629.                         
    (11)                            5629.                               
    (12)                            5608(a), 5631, 5632, 5643, 5647.    
    (13)                            5634.                               
    (14)                            5650.                               
    --------------------------------------------------------------------

      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 627, 640, 641, 684, 685, 689, 690, 692, 693, 695.

                                AMENDMENTS                            
      1980 - Subsec. (a)(15). Pub. L. 96-223 added par. (15).
      1979 - Subsec. (a)(2). Pub. L. 96-39, Sec. 807(a)(52)(A), struck
    out "distiller or rectifier" in heading and substituted "processor"
    for "rectifier" and "section 5171(c)" for "section 5171(a)" in
    text.
      Subsec. (a)(3). Pub. L. 96-39, Sec. 807(a)(52)(B), substituted
    "warehouseman, or processor" for "bonded warehouseman, rectifier,
    or bottler".
      Subsec. (a)(4). Pub. L. 96-39, Sec. 807(a)(52)(C), substituted
    "warehouseman, or processor" for "or rectifier" in heading and in
    text.
      Subsec. (a)(5). Pub. L. 96-39, Sec. 807(a)(52)(B), substituted
    "warehouseman, or processor" for "bonded warehouseman, rectifier,
    or bottler".
      Subsec. (a)(10). Pub. L. 96-39, Sec. 807(a)(52)(D), substituted
    "processing" for "rectifying or bottling" in par. (10) heading,
    "processor" for "rectifier, or a bottler of distilled spirits" in
    text preceding subpar. (A), and "processed" for "rectified or
    bottled" in subpar. (A).
      Subsec. (a)(11). Pub. L. 96-39, Sec. 807(a)(52)(E), substituted
    "or processing" for "rectification, or bottling" in heading and "or
    processes" for "rectifies, or bottles" in text.
      Subsec. (b). Pub. L. 96-39, Sec. 807(a)(52)(F), substituted
    "processor" for "rectifier".
      1976 - Subsec. (a)(7). Pub. L. 94-455, Sec. 1906(b)(13)(A),
    struck out "or his delegate" after "Secretary".
      Subsec. (b). Pub. L. 94-455, Sec. 1905(a)(22), struck out par.
    (1) relating to presumptions in the matter of unregistered stills,
    par. (3) relating to presumptions in the matter of unlawful
    production, removal, or use of material fit for production of
    distilled spirits, and par. (4) relating to presumptions in the
    matter of unlawful production of distilled spirits, and struck out
    the number designation "(2)" and heading for former par. (2),
    leaving only the text for former par. (2) relating to presumptions
    in the matter of failure or refusal of distiller or rectifier to
    give bond.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-223 effective on first day of first
    calendar month beginning more than 60 days after Apr. 2, 1980, see
    section 232(h)(3) of Pub. L. 96-223, set out as an Effective Date
    note under section 5181 of this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-455 effective on first day of first month
    which begins more than 90 days after Oct. 4, 1976, see section
    1905(d) of Pub. L. 94-455, set out as a note under section 5005 of
    this title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

     PROSECUTION AND PUNISHMENT OF OFFENSES COMMITTED AND PENALTIES OR
                  FORFEITURES INCURRED; SAVINGS PROVISION
      Section 210(c) of title II of Pub. L. 85-859 provided that: "All
    offenses committed, and all penalties or forfeitures incurred,
    under any provision of law amended by this title [enacting sections
    5849, 5854, 5855 and 7608 of this title, amending this chapter,
    chapter 52 of this title and sections 5801, 5811, 5814, 7272, 7301,
    7224 to 7326, 7609, 7652 and 7655 of this title, and enacting notes
    set out under this section and sections 5001, 5006, 5025, 5064,
    5175, and 5304 of this title], may be prosecuted and punished in
    the same manner and with the same effect as if this title had not
    been enacted."

-FOOTNOTE-
    (!1) So in original. Probably should not be capitalized.


-End-



-CITE-
    26 USC Sec. 5602                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
              DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
              PRODUCTS                                

-HEAD-
    Sec. 5602. Penalty for tax fraud by distiller

-STATUTE-
      Whenever any person engaged in or carrying on the business of a
    distiller defrauds, attempts to defraud, or engages in such
    business with intent to defraud the United States of the tax on the
    spirits distilled by him, or of any part thereof, he shall be fined
    not more than $10,000, or imprisoned not more than 5 years, or
    both. No discontinuance or nolle prosequi of any prosecution under
    this section shall be allowed without the permission in writing of
    the Attorney General.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1400.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5602, act Aug. 16, 1954, ch. 736, 68A Stat. 863,
    related to penalty and forfeiture for setting up still without a
    permit, prior to the general revision of this chapter by Pub. L. 85-
    859. See sections 5615(2) and 5687 of this title.
      Provisions similar to those comprising this section were
    contained in prior sections 5606, 5626, act Aug. 16, 1954, ch. 736,
    68A Stat. 684, 688, prior to the general revision of this chapter
    by Pub. L. 85-859.

-End-



-CITE-
    26 USC Sec. 5603                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
              DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
              PRODUCTS                                

-HEAD-
    Sec. 5603. Penalty relating to records, returns and reports

-STATUTE-
    (a) Fraudulent noncompliance
      Any person required by this chapter (other than subchapters F and
    G) or regulations issued pursuant thereto to keep or file any
    record, return, report, summary, transcript, or other document,
    who, with intent to defraud the United States, shall - 
        (1) fail to keep any such document or to make required entries
      therein; or
        (2) make any false entry in such document; or
        (3) cancel, alter, or obliterate any part of such document or
      any entry therein, or destroy any part of such document or any
      entry therein; or
        (4) hinder or obstruct any internal revenue officer from
      inspecting any such document or taking any abstracts therefrom;
      or
        (5) fail or refuse to preserve or produce any such document, as
      required by this chapter or regulations issued pursuant thereto;

    or who shall, with intent to defraud the United States, cause or
    procure the same to be done, shall be fined not more than $10,000,
    or imprisoned not more than 5 years, or both, for each such
    offense.
    (b) Failure to comply
      Any person required by this chapter (other than subchapters F and
    G) or regulations issued pursuant thereto to keep or file any
    record, return, report, summary, transcript, or other document,
    who, otherwise than with intent to defraud the United States, shall
    - 
        (1) fail to keep any such document or to make required entries
      therein; or
        (2) make any false entry in such document; or
        (3) cancel, alter, or obliterate any part of such document or
      any entry therein, or destroy any part of such document, or any
      entry therein, except as provided by this title or regulations
      issued pursuant thereto; or
        (4) hinder or obstruct any internal revenue officer from
      inspecting any such document or taking any abstracts therefrom;
      or
        (5) fail to refuse to preserve or produce any such document, as
      required by this chapter or regulations issued pursuant thereto;

    or who shall, otherwise than with intent to defraud the United
    States, cause or procure the same to be done, shall be fined not
    more than $1,000, or imprisoned not more than 1 year, or both, for
    each such offense.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1400.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5603, act Aug. 16, 1954, ch. 736, 68A Stat. 684,
    related to penalty for failure or refusal of distiller or rectifier
    to give notice of intention to engage in such business, prior to
    the general revision of this chapter by Pub. L. 85-859. See section
    5601(a)(2), (3) of this title.
      Provisions similar to those comprising this section were
    contained in prior sections 5610, 5611, 5620, 5621, 5692, act Aug.
    16, 1954, ch. 736, 68A Stat. 685 to 687, 703, prior to the general
    revision of this chapter by Pub. L. 85-859.

-End-



-CITE-
    26 USC Sec. 5604                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
              DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
              PRODUCTS                                

-HEAD-
    Sec. 5604. Penalties relating to marks, brands, and containers

-STATUTE-
    (a) In general
      Any person who shall - 
        (1) transport, possess, buy, sell, or transfer any distilled
      spirits unless the immediate container bears the type of closure
      or other device required by section 5301(d),
        (2) with intent to defraud the United States, empty a container
      bearing the closure or other device required by section 5301(d)
      without breaking such closure or other device,
        (3) empty, or cause to be emptied, any distilled spirits from
      an immediate container bearing any mark or brand required by law
      without effacing and obliterating such mark or brand as required
      by section 5206(d),
        (4) place any distilled spirits in any bottle, or reuse any
      bottle for the purpose of containing distilled spirits, which has
      once been filled and fitted with a closure or other device under
      the provisions of this chapter, without removing and destroying
      such closure or other device,
        (5) willfully and unlawfully remove, change, or deface any
      mark, brand, label, or seal affixed to any case of distilled
      spirits, or to any bottle contained therein,
        (6) with intent to defraud the United States, purchase, sell,
      receive with intent to transport, or transport any empty cask or
      package having thereon any mark or brand required by law to be
      affixed to any cask or package containing distilled spirits, or
        (7) change or alter any mark or brand on any cask or package
      containing distilled spirits, or put into any cask or package
      spirits of greater strength than is indicated by the inspection
      mark thereon, or fraudulently use any cask or package having any
      inspection mark thereon, for the purpose of selling other
      spirits, or spirits of quantity or quality different from the
      spirits previously inspected,

    shall be fined not more than $10,000 or imprisoned not more than 5
    years, or both, for each such offense.
    (b) Cross references
          For provisions relating to the authority of internal revenue
        officers to enforce provisions of this section, see sections
        5203, 5557, and 7608.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1401; amended Pub. L. 96-39, title VIII, Sec. 807(a)(53), July 26,
    1979, 93 Stat. 289; Pub. L. 98-369, div. A, title IV, Sec.
    454(c)(11)(A), July 18, 1984, 98 Stat. 821.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5604, act Aug. 16, 1954, ch. 736, 68A Stat. 684,
    related to penalty and forfeiture for failure or refusal of
    distiller to give bond, prior to the general revision of this
    chapter by Pub. L. 85-859. See sections 5601(a)(4), (5) and 5615(3)
    of this title.
      Provisions similar to those comprising this section were
    contained in prior sections of act Aug. 16, 1954, prior to the
    general revision of this chapter by Pub. L. 85-859, as follows:


        Present subsecs.:                    Prior sections             
    --------------------------------------------------------------------
    (a)(1)                      5008(b)(1), 5642.                       
    (a)(2), (3)                 5636.                                   
    (a)(4), (5)                 5642, 5644.                             
    (a)(6)                      5642.                                   
    (a)(7) to (9)               5636.                                   
    (a)(10)                     5642, 5644.                             
    (a)(11)                     5643.                                   
    (a)(12)                     5642, 5643.                             
    (a)(13) to (15)             5642.                                   
    (a)(16)                     5643.                                   
    (a)(17)                     5635, 5636.                             
    (a)(18)                     5637.                                   
    (a)(19)                     5638.                                   
    (b)                         5642.                                   
    --------------------------------------------------------------------

      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 602, 690 to 693.

                                AMENDMENTS                            
      1984 - Subsec. (a). Pub. L. 98-369, Sec. 454(c)(11)(A), in
    amending subsec. (a) generally, struck out references to stamps in
    pars. (1) to (3), redesignated pars. (12), (16), (17), (18) as
    pars. (4)-(7), respectively, in pars. (4) to (7) as so
    redesignated, struck out all references to stamps, and struck out
    former pars. (4) to (11), (13) to (15), and (19), which had
    consisted of additional provisions concerning penalties relating to
    stamps, marks, brands and containers.
      Subsec. (b). Pub. L. 98-369, Sec. 454(c)(11)(A), in amending
    subsec. (b) generally, substituted provisions relating to cross
    references for provisions relating to officers authorized to
    enforce this section.
      1979 - Subsec. (a)(1). Pub. L. 96-39, Sec. 807(a)(53)(A),
    substituted "section 5205(a)(1)" for "section 5205(a)(2)".
      Subsec. (a)(2). Pub. L. 96-39, Sec. 807(a)(53)(B), substituted
    "section 5205(a)(1)" for "section 5205(a)(1) or (2)" and "section
    5205(a)(2)" for "section 5205(a)(3)".
      Subsec. (a)(3). Pub. L. 96-39, Sec. 807(a)(53)(C), substituted
    "section 5205(f)" for "section 5205(g)".
      Subsec. (a)(6). Pub. L. 96-39, Sec. 807(a)(53)(D), substituted
    "section 5205(a)(2)" for "section 5205(a)(3)".
      Subsec. (a)(13). Pub. L. 96-39, Sec. 807(a)(53)(E), substituted
    "section 5205(a)" for "section 5205(a)(2) and (3)".

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective July 1, 1985, see section
    456(b) of Pub. L. 98-369, set out as an Effective Date note under
    section 5101 of this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

-End-



-CITE-
    26 USC Sec. 5605                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
              DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
              PRODUCTS                                

-HEAD-
    Sec. 5605. Penalty relating to return of materials used in the
      manufacture of distilled spirits, or from which distilled spirits
      may be recovered

-STATUTE-
      Any person who willfully violates any provision of section
    5291(a), or of any regulation issued pursuant thereto, and any
    officer, director, or agent of any such person who knowingly
    participates in such violation, shall be fined not more than
    $1,000, or imprisoned not more than 2 years, or both.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1402.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5605, act Aug. 16, 1954, ch. 736, 68A Stat. 684,
    related to penalty for improper approval of distiller's bond, prior
    to the general revision of this chapter by Pub. L. 85-859. See
    section 7214 of this title.
      Provisions similar to those comprising this section were
    contained in prior section 5609, act Aug. 16, 1954, ch. 736, 68A
    Stat. 685, prior to the general revision of this chapter by Pub. L.
    85-859.

-End-



-CITE-
    26 USC Sec. 5606                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
              DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
              PRODUCTS                                

-HEAD-
    Sec. 5606. Penalty relating to containers of distilled spirits

-STATUTE-
      Whoever violates any provision of section 5301, or of any
    regulation issued pursuant thereto, or the terms or conditions of
    any permit issued pursuant to the authorization contained in such
    section, and any officer, director, or agent of any corporation who
    knowingly participates in such violation, shall, upon conviction,
    be fined not more than $1,000, or imprisoned not more than 1 year,
    or both, for each such offense.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1402.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5606, act Aug. 16, 1954, ch. 736, 68A Stat. 684,
    related to penalty and forfeiture for distilling without giving
    bond, prior to the general revision of this chapter by Pub. L. 85-
    859. See sections 5601(a)(4), 5602, and 5615(3) of this title.
      Provisions similar to those comprising this section were
    contained in prior section 5641, act Aug. 16, 1954, ch. 736, 68A
    Stat. 692, prior to the general revision of this chapter by Pub. L.
    85-859.

-End-



-CITE-
    26 USC Sec. 5607                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
              DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
              PRODUCTS                                

-HEAD-
    Sec. 5607. Penalty and forfeiture for unlawful use, recovery, or
      concealment of denatured distilled spirits, or articles

-STATUTE-
      Any person who - 
        (1) uses denatured distilled spirits withdrawn free of tax
      under section 5214(a)(1) in the manufacture of any medicinal
      preparation or flavoring extract in violation of the provisions
      of section 5273(b)(1) or knowingly sells, or offers for sale, any
      such medicinal preparation or flavoring extract in violation of
      section 5273(b)(2); or
        (2) knowingly withdraws any denatured distilled spirits free of
      tax under section 5214(a)(1) for beverage purposes; or
        (3) knowingly sells any denatured distilled spirits withdrawn
      free of tax under section 5214(a)(1), or any articles containing
      such denatured distilled spirits, for beverage purposes; or
        (4) recovers or attempts to recover by redistillation or by any
      other process or means (except as authorized in section 5223 or
      in section 5273(c)) any distilled spirits from any denatured
      distilled spirits withdrawn free of tax under section 5214(a)(1),
      or from any articles manufactured therefrom, or knowingly uses,
      sells, conceals, or otherwise disposes of distilled spirits so
      recovered or redistilled;

    shall be fined not more than $10,000, or imprisoned not more than 5
    years, or both, for each such offense; and all personal property
    used in connection with his business, together with the buildings
    and ground constituting the premises on which such unlawful acts
    are performed or permitted to be performed shall be forfeited to
    the United States.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1402.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5607, act Aug. 16, 1954, ch. 736, 68A Stat. 684,
    related to penalty for distilling on prohibited premises, prior to
    the general revision of this chapter by Pub. L. 85-859. See
    sections 5505(i) and 5601(a)(6) of this title.
      Provisions similar to those comprising this section were
    contained in prior section 5647, act Aug. 16, 1954, ch. 736, 68A
    Stat. 693, prior to the general revision of this chapter by Pub. L.
    85-859.

-End-



-CITE-
    26 USC Sec. 5608                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
              DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
              PRODUCTS                                

-HEAD-
    Sec. 5608. Penalty and forfeiture for fraudulent claims for export
      drawback or unlawful relanding

-STATUTE-
    (a) Fraudulent claim for drawback
      Every person who fraudulently claims, or seeks, or obtains an
    allowance of drawback on any distilled spirits, or fraudulently
    claims any greater allowance or drawback than the tax actually paid
    or determined thereon, shall forfeit and pay to the Government of
    the United States triple the amount wrongfully and fraudulently
    sought to be obtained, and shall be imprisoned not more than 5
    years; and every owner, agent, or master of any vessel or other
    person who knowingly aids or abets in the fraudulent collection or
    fraudulent attempts to collect any drawback upon, or knowingly aids
    or permits any fraudulent change in the spirits so shipped, shall
    be fined not more than $5,000, or imprisoned not more than 3 years,
    or both, and the ship or vessel on board of which such shipment was
    made or pretended to be made shall be forfeited to the United
    States, whether a conviction of the master or owner be had or
    otherwise, and proceedings may be had in admiralty by libel for
    such forfeiture.
    (b) Unlawful relanding
      Every person who, with intent to defraud the United States,
    relands within the jurisdiction of the United States any distilled
    spirits which have been shipped for exportation under the
    provisions of this chapter, or who receives such relanded distilled
    spirits, and every person who aids or abets in such relanding or
    receiving of such spirits, shall be fined not more than $5,000, or
    imprisoned not more than 3 years, or both; and all distilled
    spirits so relanded, together with the vessel from which the same
    were relanded within the jurisdiction of the United States, and all
    vessels, vehicles, or aircraft used in relanding and removing such
    distilled spirits, shall be forfeited to the United States.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1403; amended Pub. L. 89-44, title VIII, Sec. 805(e), June 21,
    1965, 79 Stat. 161.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5608, act Aug. 16, 1954, ch. 736, 68A Stat. 685,
    related to penalty for making or fermenting mash on unauthorized
    premises, illegal use of spirits, unlawful removal of vinegar,
    etc., prior to the general revision of this chapter by Pub. L. 85-
    859. See sections 5505(i), 5601(a)(7), (8), (9)(A), (12), 5615(4),
    and 5687 of this title.
      Provisions similar to those comprising this section were
    contained in prior section 5648, act Aug. 16, 1954, ch. 736, 68A
    Stat. 694, prior to the general revision of this chapter by Pub. L.
    85-859.

                                AMENDMENTS                            
      1965 - Subsec. (b). Pub. L. 89-44 substituted ", with intent to
    defraud the United States," for "intentionally" after "Every person
    who".

                     EFFECTIVE DATE OF 1965 AMENDMENT                 
      Amendment by Pub. L. 89-44 effective July 1, 1965, see section
    805(g)(1) of Pub. L. 89-44, set out as a note under section 5008 of
    this title.

-End-



-CITE-
    26 USC Sec. 5609                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
              DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
              PRODUCTS                                

-HEAD-
    Sec. 5609. Destruction of unregistered stills, distilling
      apparatus, equipment, and materials

-STATUTE-
    (a) General
      In the case of seizure elsewhere than on premises qualified under
    this chapter of any unregistered still, distilling or fermenting
    equipment or apparatus, or distilling or fermenting material, for
    any offense involving forfeiture of the same, where it shall be
    impracticable to remove the same to a place of safe storage from
    the place where seized, the seizing officer is authorized to
    destroy the same. In the case of seizure, other than on premises
    qualified under this chapter or in transit thereto or therefrom, of
    any distilled spirits on which the tax has not been paid or
    determined, for any offense involving forfeiture of the same, the
    seizing officer is authorized to destroy the distilled spirits
    forthwith. Any destruction under this subsection shall be in the
    presence of at least one credible witness. The seizing officer
    shall make such report of said seizure and destruction and take
    such samples as the Secretary may require.
    (b) Claims
      Within 1 year after destruction made pursuant to subsection (a)
    the owner of, including any person having an interest in, the
    property so destroyed may make application to the Secretary for
    reimbursement of the value of such property. If the claimant
    establishes to the satisfaction of the Secretary that - 
        (1) such property had not been used in violation of law; or
        (2) any unlawful use of such property had been without his
      consent or knowledge,

    the Secretary shall make an allowance to such claimant not
    exceeding the value of the property destroyed.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1403; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5609, act Aug. 16, 1954, ch. 736, 68A Stat. 685,
    related to penalty in connection to return of materials used in the
    manufacture of distilled spirits, prior to the general revision of
    this chapter by Pub. L. 85-859. See section 5605 of this title.
      Provisions similar to those comprising this section were
    contained in prior section 5623, act Aug. 16, 1954, ch. 736, 68A
    Stat. 687, prior to the general revision of this chapter by Pub. L.
    85-859.

                                AMENDMENTS                            
      1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary" wherever appearing.

-End-



-CITE-
    26 USC Sec. 5610                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
              DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
              PRODUCTS                                

-HEAD-
    Sec. 5610. Disposal of forfeited equipment and material for
      distilling

-STATUTE-
      All boilers, stills, or other vessels, tools and implements, used
    in distilling or processing, and forfeited under any of the
    provisions of this chapter, and all condemned material, together
    with any engine or other machinery connected therewith, and all
    empty barrels, and all grain or other material suitable for
    fermentation or distillation, shall be sold at public auction or
    otherwise disposed of as the court in which forfeiture was
    recovered shall in its discretion direct.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1404; amended Pub. L. 96-39, title VIII, Sec. 807(a)(54), July 26,
    1979, 93 Stat. 289.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5610, act Aug. 16, 1954, ch. 736, 68A Stat. 685,
    related to penalty for using unregistered materials for producing
    spirits, prior to the general revision of this chapter by Pub. L.
    85-859. See section 5603 of this title.
      Provisions similar to those comprising this section were
    contained in prior section 5622, act Aug. 16, 1954, ch. 736, 68A
    Stat. 687, prior to the general revision of this chapter by Pub. L.
    85-859.

                                AMENDMENTS                            
      1979 - Pub. L. 96-39 substituted "or processing" for "or
    rectifying".

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

-End-



-CITE-
    26 USC Sec. 5611                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
              DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
              PRODUCTS                                

-HEAD-
    Sec. 5611. Release of distillery before judgment

-STATUTE-
      Any distillery or distilling apparatus seized on any premises
    qualified under this chapter, for any violation of law, may, in the
    discretion of the court, be released before final judgment to a
    receiver appointed by the court to operate such distillery or
    apparatus. Such receiver shall give bond, which shall be approved
    in open court, with corporate surety, for the full appraised value
    of all the property seized, to be ascertained by three competent
    appraisers designated and appointed by the court. Funds obtained
    from such operation shall be impounded as the court shall direct
    pending such final judgment.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1404.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5611, act Aug. 16, 1954, ch. 736, 68A Stat. 685,
    related to penalty for using false weights and measures, prior to
    the general revision of this chapter by Pub. L. 85-859. See section
    5603 of this title.
      Provisions similar to those comprising this section were
    contained in prior section 5624, act Aug. 16, 1954, ch. 736, 68A
    Stat. 688, prior to the general revision of this chapter by Pub. L.
    85-859.

-End-



-CITE-
    26 USC Sec. 5612                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
              DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
              PRODUCTS                                

-HEAD-
    Sec. 5612. Forfeiture of taxpaid distilled spirits remaining on
      bonded premises

-STATUTE-
    (a) General
      No distilled spirits on which tax has been paid or determined
    shall be stored or allowed to remain on the bonded premises of any
    distilled spirits plant, under the penalty of forfeiture of all
    spirits so found.
    (b) Exceptions
      Subsection (a) shall not apply in the case of - 
        (1) distilled spirits in the process of prompt removal from
      bonded premises on payment or determination of the tax; or
        (2) distilled spirits returned to bonded premises in accordance
      with the provisions of section 5215.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1404; amended Pub. L. 96-39, title VIII, Sec. 807(a)(55), July 26,
    1979, 93 Stat. 289.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5612, act Aug. 16, 1954, ch. 736, 68A Stat. 685,
    related to penalty for using material or removing spirits without
    supervision, prior to the general revision of this chapter by Pub.
    L. 85-859. See section 5687 of this title.
      Provisions similar to those comprising subsec. (a) of this
    section were contained in prior section 5625, act Aug. 16, 1954,
    ch. 736, 68A Stat. 688, prior to the general revision of this
    chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1979 - Subsec. (b). Pub. L. 96-39 redesignated subpars. (2) and
    (3) as (1) and (2), respectively, and struck out former subpars.
    (1) and (4) which excepted distilled spirits which were bottled in
    bond under section 5233 of this title and which were returned to
    bonded premises for rebottling, relabeling, or restamping in
    accordance with subsec. (d) of section 5233, and excepted such
    spirits, held on bonded premises, on which the tax had become
    payable by operation of law, but on which the tax had not been
    paid.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                 SUSPENSION OF SUBSECTION (A) DURING 1980             
      Pub. L. 96-39, title VIII, Sec. 808(c)(1), July 26, 1979, 93
    Stat. 291, set out as a note under section 5061 of this title,
    provided that subsec. (a) of this section was not to apply during
    1980.

-End-



-CITE-
    26 USC Sec. 5613                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
              DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
              PRODUCTS                                

-HEAD-
    Sec. 5613. Forfeiture of distilled spirits not closed, marked, or
      branded as required by law

-STATUTE-
    (a) Unmarked or unbranded casks or packages
      All distilled spirits found in any cask or package required by
    this chapter or any regulation issued pursuant thereto to bear a
    mark, brand, or identification, which cask or package is not
    marked, branded, or identified in compliance with this chapter and
    regulations issued pursuant thereto, shall be forfeited to the
    United States.
    (b) Containers without closures
      All distilled spirits found in any container which is required by
    this chapter to bear a closure or other device and which does not
    bear a closure or other device in compliance with this chapter
    shall be forfeited to the United States.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 21, 1958, 72 Stat.
    1404; amended Pub. L. 98-369, div. A, title IV, Sec. 454(c)(12)(A),
    (B), July 18, 1984, 98 Stat. 822.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5613, act Aug. 16, 1954, ch. 736, 68A Stat. 685,
    related to penalty for distilling during prohibited hours, prior to
    the general revision of this chapter by Pub. L. 85-859. See section
    5687 of this title.
      Provisions similar to those comprising this section were
    contained in prior sections 5639 and 5640, act Aug. 16, 1954, ch.
    736, 68A Stat. 691, prior to the general revision of this chapter
    by Pub. L. 85-859.

                                AMENDMENTS                            
      1984 - Pub. L. 98-369, Sec. 454(c)(12)(B), substituted "closed"
    for "stamped" in section catchline.
      Subsec. (b). Pub. L. 98-369, Sec. 454(c)(12)(A), amended subsec.
    (b) generally, substituting provisions relating to forfeitures of
    containers without closures for provisions relating to forfeitures
    of unstamped containers.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective July 1, 1985, see section
    456(b) of Pub. L. 98-369, set out as an Effective Date note under
    section 5101 of this title.

-End-



-CITE-
    26 USC Sec. 5614                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
              DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
              PRODUCTS                                

-HEAD-
    Sec. 5614. Burden of proof in cases of seizure of spirits

-STATUTE-
      Whenever seizure is made of any distilled spirits found elsewhere
    than on the premises of a distilled spirits plant, or than in any
    warehouse authorized by law, or than in the store or place of
    business of a wholesale liquor dealer, or than in transit from any
    one of said places; or of any distilled spirits found in any one of
    the places aforesaid, or in transit therefrom, which have not been
    received into or sent out therefrom in conformity to law, or in
    regard to which any of the entries required by law, or regulations
    issued pursuant thereto, to be made in respect of such spirits,
    have not been made at the time or in the manner required, or in
    respect to which any owner or person having possession, control, or
    charge of said spirits, has omitted to do any act required to be
    done, or has done or committed any act prohibited in regard to said
    spirits, the burden of proof shall be upon the claimant of said
    spirits to show that no fraud has been committed, and that all the
    requirements of the law in relation to the payment of the tax have
    been complied with.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1405.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5614, act Aug. 16, 1954, ch. 736, 68A Stat. 685,
    related to penalty and forfeiture for removal of spirits during
    prohibited hours, prior to the general revision of this chapter by
    Pub. L. 85-859. See sections 5687 and 7301 of this title.
      Provisions similar to those comprising this section were
    contained in prior section 5649, act Aug. 16, 1954, ch. 736, 68A
    Stat. 694, prior to the general revision of this chapter by Pub. L.
    85-859.

-End-



-CITE-
    26 USC Sec. 5615                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
              DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
              PRODUCTS                                

-HEAD-
    Sec. 5615. Property subject to forfeiture

-STATUTE-
      The following property shall be forfeited to the United States:
      (1) Unregistered still or distilling apparatus
        Every still or distilling apparatus not registered as required
      by section 5179, together with all personal property in the
      possession or custody or under the control of the person required
      by section 5179 to register the still or distilling apparatus,
      and found in the building or in any yard or inclosure connected
      with the building in which such still or distilling apparatus is
      set up; and
      (2) Distilling apparatus removed without notice or set up without
        notice
        Any still, boiler, or other vessel to be used for the purpose
      of distilling - 
          (A) which is removed without notice having been given when
        required by section 5101(a)(1), or
          (B) which is set up without notice having been given when
        required by section 5101(a)(2); and
      (3) Distilling without giving bond or with intent to defraud
        Whenever any person carries on the business of a distiller
      without having given bond as required by law or gives any false,
      forged, or fraudulent bond; or engages in or carries on the
      business of a distiller with intent to defraud the United States
      of the tax on the distilled spirits distilled by him, or any part
      thereof; or after the time fixed in the notice declaring his
      intention to suspend work, filed under section 5221(a), carries
      on the business of a distiller on the premises covered by such
      notice, or has mash, wort, or beer on such premises, or on any
      premises connected therewith, or has in his possession or under
      his control any mash, wort, or beer, with intent to distill the
      same on such premises - 
          (A) all distilled spirits or wines, and all stills or other
        apparatus fit or intended to be used for the distillation or
        rectification of spirits, or for the compounding of liquors,
        owned by such person, wherever found; and
          (B) all distilled spirits, wines, raw materials for the
        production of distilled spirits, and personal property found in
        the distillery or in any building, room, yard, or inclosure
        connected therewith and used with or constituting a part of the
        premises; and
          (C) all the right, title, and interest of such person in the
        lot or tract of land on which the distillery is situated; and
          (D) all the right, title, and interest in the lot or tract of
        land on which the distillery is located of every person who
        knowingly has suffered or permitted the business of a distiller
        to be there carried on, or has connived at the same; and
          (E) all personal property owned by or in possession of any
        person who has permitted or suffered any building, yard, or
        inclosure, or any part thereof, to be used for purposes of
        ingress or egress to or from the distillery, which shall be
        found in any such building, yard, or inclosure; and
          (F) all the right, title, and interest of every person in any
        premises used for ingress or egress to or from the distillery
        who knowingly has suffered or permitted such premises to be
        used for such ingress or egress; and
      (4) Unlawful production and removals from vinegar plants
        (A) all distilled spirits in excess of 15 percent of alcohol by
      volume produced on the premises of a vinegar plant; and
        (B) all vinegar or other fluid or other material containing a
      greater proportion than 2 percent of proof spirits removed from
      any vinegar plant; and
      (5) False or omitted entries in records, returns, and reports
        Whenever any person required by section 5207 to keep or file
      any record, return, report, summary, transcript, or other
      document, shall, with intent to defraud the United States - 
          (A) fail to keep any such document or to make required
        entries therein; or
          (B) make any false entry in such document; or
          (C) cancel, alter, or obliterate any part of such document,
        or any entry therein, or destroy any part of such document, or
        entry therein; or
          (D) hinder or obstruct any internal revenue officer from
        inspecting any such document or taking any abstracts therefrom;
        or
          (E) fail or refuse to preserve or produce any such document,
        as required by this chapter or regulations issued pursuant
        thereto; or
          (F) permit any of the acts described in the preceding
        subparagraphs to be performed;

      all interest of such person in the distilled spirits plant where
      such acts or omissions occur, and in the equipment thereon, and
      in the lot or tract of land on which such distilled spirits plant
      stands, and in all personal property on the premises of the
      distilled spirits plant where such acts or omissions occur, used
      in the business there carried on; and
      (6) Unlawful removal of distilled spirits
        All distilled spirits on which the tax has not been paid or
      determined which have been removed, other than as authorized by
      law, from the place of manufacture, storage, or instrument of
      transportation; and
      (7) Creation of fictitious proof
        All distilled spirits on which the tax has not been paid or
      determined as provided by law to which any ingredient or
      substance has been added for the purpose of creating fictitious
      proof.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1405; amended Pub. L. 96-39, title VIII, Sec. 807(a)(56), July 26,
    1979, 93 Stat. 289; Pub. L. 98-369, div. A, title IV, Sec.
    451(b)(2), July 18, 1984, 98 Stat. 819.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5615, act Aug. 16, 1954, ch. 736, 68A Stat. 686,
    related to penalty for refusal or neglect of distillers and
    rectifiers to give assistance to officers, prior to the general
    revision of this chapter by Pub. L. 85-859. See sections 5203(e)
    and 5687 of this title.
      Provisions similar to those comprising this section were
    contained in prior sections of act Aug. 16, 1954, prior to the
    general revision of this chapter by Pub. L. 85-859, as follows:


         Present subds.:                     Prior sections             
    --------------------------------------------------------------------
    (1)                         5601.                                   
    (2)                         5602.                                   
    (3)                         5604, 5606, 5626, 5650.                 
    (4)                         5608(b).                                
    (5)                         5620.                                   
    (6)                         5631, 5632, 5643, 5647.                 
    (7)                         5634.                                   
    --------------------------------------------------------------------

      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 683 to 690, 692, 693, 695.
      A prior section 5616, act Aug. 16, 1954, ch. 736, 68A Stat. 686,
    related to penalty for obstructing or refusing to admit officer to
    distillery premises, prior to the general revision of this chapter
    by Pub. L. 85-859. See section 5687 of this title.
      A prior section 5617, act Aug. 16, 1954, ch. 736, 68A Stat. 686,
    related to penalty for failure to keep distillery accessible, prior
    to the general revision of this chapter by Pub. L. 85-859. See
    section 5687 of this title.
      A prior section 5618, act Aug. 16, 1954, ch. 736, 68A Stat. 686,
    related to penalty for failure of distiller to identify fixed
    pipes, prior to the general revision of this chapter by Pub. L. 85-
    859. See section 5687 of this title.
      A prior section 5619, act Aug. 16, 1954, ch. 736, 68A Stat. 686,
    related to penalty for refusal or neglect to draw off water and
    clean condensers or worm tanks, prior to the general revision of
    this chapter by Pub. L. 85-859. See section 5687 of this title.
      A prior section 5620, act Aug. 16, 1954, ch. 736, 68A Stat. 686,
    related to penalty and forfeiture for false or omitted entries in
    distiller's books and records, prior to the general revision of
    this chapter by Pub. L. 85-859. See sections 5603 and 5615(5) of
    this title.
      A prior section 5621, act Aug. 16, 1954, ch. 736, 68A Stat. 687,
    related to penalty concerning records and returns of distiller as
    wholesale dealers, rectifiers, prior to the general revision of
    this chapter by Pub. L. 85-859. See section 5603 of this title.
      A prior section 5622, act Aug. 16, 1954, ch. 736, 68A Stat. 687,
    related to disposal of forfeited equipment and material for
    distilling, prior to the general revision of this chapter by Pub.
    L. 85-859. See section 5610 of this title.
      A prior section 5623, act Aug. 16, 1954, ch. 736, 68A Stat. 687,
    related to destruction of distilling apparatus, prior to the
    general revision of this chapter by Pub. L. 85-859. See section
    5609 of this title.
      A prior section 5624, act Aug. 16, 1954, ch. 736, 68A Stat. 688,
    related to release of distillery before judgment, prior to the
    general revision of this chapter by Pub. L. 85-859. See section
    5611 of this title.
      A prior section 5625, act Aug. 16, 1954, ch. 736, 68A Stat. 688,
    related to forfeiture of tax-paid distilled spirits remaining on
    distillery premises, prior to the general revision of this chapter
    by Pub. L. 85-859. See section 5612(a) of this title.
      A prior section 5626, act Aug. 16, 1954, ch. 736, 68A Stat. 688,
    related to penalty and forfeiture for tax fraud by distiller, prior
    to the general revision of this chapter by Pub. L. 85-859. See
    sections 5602 and 5615(3) of this title.
      A prior section 5627, act Aug. 16, 1954, ch. 736, 68A Stat. 689,
    related to penalty for unlawful use of rectifying premises, prior
    to the general revision of this chapter by Pub. L. 85-859. See
    section 5687 of this title.
      A prior section 5628, act Aug. 16, 1954, ch. 736, 68A Stat. 689,
    related to penalty for rectification without payment of tax,
    increasing volume, etc., prior to the general revision of this
    chapter by Pub. L. 85-859. See section 5601(a)(10) and 5687 of this
    title.
      A prior section 5629, act Aug. 16, 1954, ch. 736, 68A Stat. 689,
    related to penalty for unlawful rectifying, prior to the general
    revision of this chapter by Pub. L. 85-859. See section
    5601(a)(10), (11) of this title.
      A prior section 5630, act Aug. 16, 1954, ch. 736, 68A Stat. 689,
    related to penalty for noncompliance by rectifiers with provisions
    relating to rectifying, gauging, branding, and stamping, prior to
    the general revision of this chapter by Pub. L. 85-859. See section
    5687 of this title.
      A prior section 5631, act Aug. 16, 1954, ch. 736, 68A Stat. 689,
    related to penalty and forfeiture for failure to comply with
    warehousing and removal requirements, prior to the general revision
    of this chapter by Pub. L. 85-859. See sections 5601(a)(12),
    5615(6), and 5687 of this title.
      A prior section 5632, act Aug. 16, 1954, ch. 736, 68A Stat. 690,
    related to penalty or forfeiture for unlawful removal or
    concealment of spirits, prior to the general revision of this
    chapter by Pub. L. 85-859. See sections 5601 and 5615 of this
    title.
      A prior section 5633, act Aug. 16, 1954, ch. 736, 68A Stat. 690,
    related to penalty of officer in charge of warehouse for unlawful
    removal of spirits, prior to the general revision of this chapter
    by Pub. L. 85-859. See section 7214 of this title.
      A prior section 5634, act Aug. 16, 1954, ch. 736, 68A Stat. 690,
    related to penalty and forfeiture for creation of fictitious proof,
    prior to the general revision of this chapter by Pub. L. 85-859.
    See sections 5601 and 5615 of this title.
      A prior section 5635, act Aug. 16, 1954, ch. 736, 68A Stat. 690,
    related to penalty for buying or selling used casks bearing
    inspection marks, prior to the general revision of this chapter by
    Pub. L. 85-859. See section 5604 of this title.
      A prior section 5636, act Aug. 16, 1954, ch. 736, 68A Stat. 690,
    related to penalty and forfeiture for failure to efface, etc.,
    stamps and brands on emptied packages, prior to the general
    revision of this chapter by Pub. L. 85-859. See sections 5604 and
    7301 of this title.
      A prior section 5637, act Aug. 16, 1954, ch. 736, 68A Stat. 691,
    related to penalty for changing stamps or shifting spirits, prior
    to the general revision of this chapter by Pub. L. 85-859. See
    section 5604 of this title.
      A prior section 5638, act Aug. 16, 1954, ch. 736, 68A Stat. 691,
    related to penalty and forfeiture for affixing imitation stamps on
    packages of distilled spirits, prior to the general revision of
    this chapter by Pub. L. 85-859. See sections 5604, 5613, 7301, and
    7302 of this title.
      A prior section 5639, act Aug. 16, 1954, ch. 736, 68A Stat. 691,
    related to forfeiture of distilled spirits in unstamped casks or
    packages, prior to the general revision of this chapter by Pub. L.
    85-859. See section 5613 of this title.
      A prior section 5640, act Aug. 16, 1954, ch. 736, 68A Stat. 691,
    related to forfeiture of spirits in unstamped containers, prior to
    the general revision of this chapter by Pub. L. 85-859. See section
    5613 of this title.
      A prior section 5641, act Aug. 16, 1954, ch. 736, 68A Stat. 692,
    related to penalty and forfeiture relating to containers of
    distilled spirits, prior to the general revision of this chapter by
    Pub. L. 85-859. See sections 5606, 5613, 7301, 7302, and 7321 to
    7323 of this title.
      A prior section 5642, act Aug. 16, 1954, ch. 736, 68A Stat. 692,
    related to penalties for transporting, possessing, etc., distilled
    spirits in unstamped containers or counterfeiting of stamps, etc.,
    prior to the general revision of this chapter by Pub. L. 85-859.
    See section 5604 of this title.
      A prior section 5643, act Aug. 16, 1954, ch. 736, 68A Stat. 692,
    related to penalty and forfeiture for reuse of stamps or bottles,
    tampering and unlawful removal, prior to the general revision of
    this chapter by Pub. L. 85-859. See sections 5601, 5604, 5613,
    5615, 5687, 7301 and 7302 of this title.
      A prior section 5644, act Aug. 16, 1954, ch. 736, 68A Stat. 693,
    related to penalty for counterfeiting bottled in bond stamps, prior
    to the general revision of this chapter by Pub. L. 85-859. See
    section 5604 of this title.
      A prior section 5645, act Aug. 16, 1954, ch. 736, 68A Stat. 693,
    related to penalty for unlawful affixing, canceling, or issue of
    stamps by officer, prior to the general revision of this chapter by
    Pub. L. 85-859. See section 7214 of this title.
      A prior section 5646, act Aug. 16, 1954, ch. 736, 68A Stat. 693,
    related to penalty for evasion of distilled spirits tax, prior to
    the general revision of this chapter by Pub. L. 85-859.
      A prior section 5647, act Aug. 16, 1954, ch. 736, 68A Stat. 693,
    related to penalty and forfeiture for unlawful use or concealment
    of denatured alcohol, prior to the general revision of this chapter
    by Pub. L. 85-859. See sections 5273, 5601, 5607, and 5615 of this
    title.
      A prior section 5648, act Aug. 16, 1954, ch. 736, 68A Stat. 694,
    related to penalty and forfeiture for fraudulent claims for export
    drawback or unlawful relanding, prior to the general revision of
    this chapter by Pub. L. 85-859. See section 5608 of this title.
      A prior section 5649, act Aug. 16, 1954, ch. 736, 68A Stat. 694,
    related to burden of proof in cases of seizure of spirits, prior to
    the general revision of this chapter by Pub. L. 85-859. See section
    5614 of this title.
      A prior section 5650, act Aug. 16, 1954, ch. 736, 68A Stat. 695,
    related to penalty and forfeiture for operating distillery after
    giving notice of suspension, prior to the general revision of this
    chapter by Pub. L. 85-859. See sections 5601 and 5615 of this
    title.

                                AMENDMENTS                            
      1984 - Par. (2). Pub. L. 98-369 amended par. (2) generally. Prior
    to amendment, par. (2) read as follows: "Any still, boiler, or
    other vessel to be used for the purpose of distilling which is
    removed without notice having been given as required by section
    5105(a) or which is set up without permit first having been
    obtained as required by such section; and".
      1979 - Par. (5). Pub. L. 96-39 substituted "distilled spirits
    plant" for "distillery, bonded warehouse, or rectifying or bottling
    establishment" in three places.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective on first day of first
    calendar month which begins more than 90 days after July 18, 1984,
    see section 456(a) of Pub. L. 98-369, set out as an Effective Date
    note under section 5101 of this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

-End-


-CITE-
    26 USC PART II - PENALTY AND FORFEITURE PROVISIONS
           APPLICABLE TO WINE AND WINE PRODUCTION          01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART II - PENALTY AND FORFEITURE PROVISIONS APPLICABLE TO WINE AND
               WINE PRODUCTION                       

-HEAD-
    PART II - PENALTY AND FORFEITURE PROVISIONS APPLICABLE TO WINE AND
                              WINE PRODUCTION

-MISC1-
    Sec.                                                     
    5661.       Penalty and forfeiture for violation of laws and
                 regulations relating to wine.                        
    5662.       Penalty for alteration of wine labels.                
    5663.       Cross reference.                                      

                             PRIOR PROVISIONS                         
      A prior part II consisted of sections 5661 to 5663 of this title,
    prior to the general revision of this chapter by Pub. L. 85-859,
    title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.

-End-



-CITE-
    26 USC Sec. 5661                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART II - PENALTY AND FORFEITURE PROVISIONS APPLICABLE TO WINE AND
               WINE PRODUCTION                       

-HEAD-
    Sec. 5661. Penalty and forfeiture for violation of laws and
      regulations relating to wine

-STATUTE-
    (a) Fraudulent offenses
      Whoever, with intent to defraud the United States, fails to pay
    any tax imposed upon wine or violates, or fails to comply with, any
    provision of subchapter F or subpart C of part I of subchapter A,
    or regulations issued pursuant thereto, or recovers or attempts to
    recover any spirits from wine, shall be fined not more than $5,000,
    or imprisoned not more than 5 years, or both, for each such
    offense, and all products and materials used in any such violation
    shall be forfeited to the United States.
    (b) Other offenses
      Any proprietor of premises subject to the provisions of
    subchapter F, or any employee or agent of such proprietor, or any
    other person, who otherwise than with intent to defraud the United
    States violates or fails to comply with any provision of subchapter
    F or subpart C of part I of subchapter A, or regulations issued
    pursuant thereto, or who aids or abets in any such violation, shall
    be fined not more than $1,000, or imprisoned not more than 1 year,
    or both, for each such offense.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1407.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5661, act Aug. 16, 1954, ch. 736, 68A Stat. 695,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      Prior section 5661(a) also provided for an additional penalty "of
    double the tax due, to be assessed, levied and collected in the
    same manner as taxes are collected". See section 6651 et seq. of
    this title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5662                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART II - PENALTY AND FORFEITURE PROVISIONS APPLICABLE TO WINE AND
               WINE PRODUCTION                       

-HEAD-
    Sec. 5662. Penalty for alteration of wine labels

-STATUTE-
      Any person who, without the permission of the Secretary, so
    alters as to materially change the meaning of any mark, brand, or
    label required to appear upon any wine upon its removal from
    premises subject to the provisions of subchapter F, or from customs
    custody, or who, after such removal, represents any wine, whether
    in its original containers or otherwise, to be of an identity or
    origin other than its proper identity or origin as shown by such
    stamp, mark, brand, or label, or who, directly or indirectly, and
    whether by manner of packaging or advertising or any other form of
    representation, represents any still wine to be an effervescent
    wine or a substitute for an effervescent wine, shall be fined not
    more than $1,000, or imprisoned not more than 1 year, or both, for
    each such offense.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1407; amended Pub. L. 94-455, title XIX, Secs. 1905(b)(2)(D),
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1822, 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5662, act Aug. 16, 1954, ch. 736, 68A Stat. 695,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455 struck out "or his delegate" after
    "Secretary" and "stamp," before "mark,".

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by section 1905(b)(2)(D) of Pub. L. 94-455 effective on
    first day of first month which begins more than 90 days after Oct.
    4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note
    under section 5005 of this title.

-End-



-CITE-
    26 USC Sec. 5663                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART II - PENALTY AND FORFEITURE PROVISIONS APPLICABLE TO WINE AND
               WINE PRODUCTION                       

-HEAD-
    Sec. 5663. Cross reference

-STATUTE-
          For penalties of common application pertaining to liquors,
        including wines, see part IV.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1407; amended Pub. L. 96-39, title VIII, Sec. 807(a)(57), July 26,
    1979, 93 Stat. 289.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5663, act Aug. 16, 1954, ch. 736, 68A Stat. 695,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1979 - Pub. L. 96-39 struck out reference to penalties for
    rectified products under part I of this subchapter.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

-End-


-CITE-
    26 USC PART III - PENALTY, SEIZURE, AND FORFEITURE
           PROVISIONS APPLICABLE TO BEER AND BREWING       01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART III - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
                BEER AND BREWING                    

-HEAD-
     PART III - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE
                            TO BEER AND BREWING

-MISC1-
    Sec.                                                     
    5671.       Penalty and forfeiture for evasion of beer tax and
                 fraudulent noncompliance with requirements.          
    5672.       Penalty for failure of brewer to comply with
                 requirements and to keep records and file returns.   
    5673.       Forfeiture for flagrant and willful removal of beer
                 without taxpayment.                                  
    5674.       Penalty for unlawful production or removal of beer.   
    5675.       Penalty for intentional removal or defacement of
                 brewer's marks and brands.                           
    [5676.      Repealed.]                                            

                             PRIOR PROVISIONS                         
      A prior part III consisted of sections 5671 to 5676 of this
    title, prior to the general revision of this chapter by Pub. L. 85-
    859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.

                                AMENDMENTS                            
      1978 - Pub. L. 95-458, Sec. 2(b)(5)(B), Oct. 14, 1978, 92 Stat.
    1257, substituted "production or removal" for "removal" in item
    5674.
      1976 - Pub. L. 94-455, title XIX, Sec. 1905(b)(1)(B), Oct. 4,
    1976, 90 Stat. 1822, struck out item 5676 "Penalties relating to
    beer stamps".

-End-



-CITE-
    26 USC Sec. 5671                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART III - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
                BEER AND BREWING                    

-HEAD-
    Sec. 5671. Penalty and forfeiture for evasion of beer tax and
      fraudulent noncompliance with requirements

-STATUTE-
      Whoever evades or attempts to evade any tax imposed by section
    5051 or 5091, or with intent to defraud the United States fails or
    refuses to keep and file true and accurate records and returns as
    required by section 5415 and regulations issued pursuant thereto,
    shall be fined not more than $5,000, or imprisoned not more than 5
    years, or both, for each such offense, and shall forfeit all beer
    made by him or for him, and all the vessels, utensils, and
    apparatus used in making the same.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1408; amended Pub. L. 109-59, title XI, Sec. 11125(b)(18), Aug. 10,
    2005, 119 Stat. 1956.)


-STATAMEND-
                           AMENDMENT OF SECTION                       
      Pub. L. 109-59, title XI, Sec. 11125(b)(18), (c), Aug. 10, 2005,
    119 Stat. 1956, 1957, provided that, effective July 1, 2008, but
    inapplicable to taxes imposed for periods before such date, this
    section is amended by striking out "or 5091".


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5671, act Aug. 16, 1954, ch. 736, 68A Stat. 696,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                     EFFECTIVE DATE OF 2005 AMENDMENT                 
      Amendment by Pub. L. 109-59 effective July 1, 2008, but
    inapplicable to taxes imposed for periods before such date, see
    section 11125(c) of Pub. L. 109-59, set out as a note under section
    5002 of this title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5672                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART III - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
                BEER AND BREWING                    

-HEAD-
    Sec. 5672. Penalty for failure of brewer to comply with
      requirements and to keep records and file returns

-STATUTE-
      Every brewer who, otherwise than with intent to defraud the
    United States, fails or refuses to keep the records and file the
    returns required by section 5415 and regulations issued pursuant
    thereto, or refuses to permit any internal revenue officer to
    inspect his records in the manner provided, or violates any of the
    provisions of subchapter G or regulations issued pursuant thereto
    shall be fined not more than $1,000, or imprisoned not more than 1
    year, or both, for each such offense.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1408.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5672, act Aug. 16, 1954, ch. 736, 68A Stat. 696,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

-End-



-CITE-
    26 USC Sec. 5673                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART III - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
                BEER AND BREWING                    

-HEAD-
    Sec. 5673. Forfeiture for flagrant and willful removal of beer
      without taxpayment

-STATUTE-
      For flagrant and willful removal of taxable beer for consumption
    or sale, with intent to defraud the United States of the tax
    thereon, all the right, title, and interest of each person who
    knowingly has suffered or permitted such removal, or has connived
    at the same, in the lands and buildings constituting the brewery
    shall be forfeited by a proceeding in rem in the District Court of
    the United States having jurisdiction thereof.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1408.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5673, act Aug. 16, 1954, ch. 736, 68A Stat. 696,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

-End-



-CITE-
    26 USC Sec. 5674                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART III - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
                BEER AND BREWING                    

-HEAD-
    Sec. 5674. Penalty for unlawful production or removal of beer

-STATUTE-
    (a) Unlawful production
      Any person who brews beer or produces beer shall be fined not
    more than $1,000, or imprisoned not more than 1 year, or both,
    unless such beer is brewed or produced in a brewery qualified under
    subchapter G or such production is exempt from tax under section
    5053(e) (relating to beer for personal or family use).
    (b) Unlawful removal
      Any brewer or other person who removes or in any way aids in the
    removal from any brewery of beer without complying with the
    provisions of this chapter or regulations issued pursuant thereto
    shall be fined not more than $1,000, or imprisoned not more than 1
    year, or both.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1408; amended Pub. L. 95-458, Sec. 2(b)(5)(A), Oct. 14, 1978, 92
    Stat. 1256.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5674, act Aug. 16, 1954, ch. 736, 68A Stat. 696,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1978 - Pub. L. 95-458 substituted "production or removal" for
    "removal" in section catchline, redesignated existing provision as
    subsec. (b), and added subsec. (a).

                     EFFECTIVE DATE OF 1978 AMENDMENT                 
      Amendment by Pub. L. 95-458 effective on first day of first
    calendar month beginning more than 90 days after Oct. 14, 1978, see
    section 2(c) of Pub. L. 95-458, set out as a note under section
    5042 of this title.

-End-



-CITE-
    26 USC Sec. 5675                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART III - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
                BEER AND BREWING                    

-HEAD-
    Sec. 5675. Penalty for intentional removal or defacement of
      brewer's marks and brands

-STATUTE-
      Every person other than the owner, or his agent authorized so to
    do, who intentionally removes or defaces any mark, brand, or label
    required by section 5412 and regulations issued pursuant thereto
    shall be liable to a penalty of $50 for each barrel or other
    container from which such mark, brand, or label is so removed or
    defaced.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1408.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5675, act Aug. 16, 1954, ch. 736, 68A Stat. 696,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

-End-



-CITE-
    26 USC Sec. 5676                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART III - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
                BEER AND BREWING                    

-HEAD-
    Sec. 5676. Repealed.

-MISC1-
    [Sec. 5676. Repealed. Pub. L. 94-455, title XIX, Sec.
      1905(b)(1)(A), Oct. 4, 1976, 90 Stat. 1822].
      Section, added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958,
    72 Stat. 1408, set out the penalties for selling, removing, or
    receiving beer without a proper stamp or device, withdrawing beer
    from an improperly stamped container or without destroying the
    stamp, and counterfeiting stamps or devices or trafficking in used
    stamps or devices, and provided for the forfeiture of unstamped
    containers, and the penalties for removal or defacement of stamps,
    devices, or labels.
      A prior section 5676, act Aug. 16, 1954, ch. 736, 68A Stat. 697,
    consisted of provisions similar to those comprising this section
    prior to repeal by Pub. L. 94-455, prior to the general revision of
    this chapter by Pub. L. 85-859.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective on first day of first month which begins more
    than 90 days after Oct. 4, 1976, see section 1905(d) of Pub. L. 94-
    455, set out as an Effective Date of 1976 Amendment note under
    section 5005 of this title.

-End-


-CITE-
    26 USC PART IV - PENALTY, SEIZURE, AND FORFEITURE
           PROVISIONS COMMON TO LIQUORS                    01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
               LIQUORS                               

-HEAD-
      PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
                                  LIQUORS

-MISC1-
    Sec.                                                     
    5681.       Penalty relating to signs.                            
    5682.       Penalty for breaking locks or gaining access.         
    5683.       Penalty and forfeiture for removal of liquors under
                 improper brands.                                     
    5684.       Penalties relating to the payment and collection of
                 liquor taxes.                                        
    5685.       Penalty and forfeiture relating to possession of
                 devices for emitting gas, smoke, etc., explosives and
                 firearms, when violating liquor laws.                
    5686.       Penalty for having, possessing, or using liquor or
                 property intended to be used in violating provisions
                 of this chapter.                                     
    5687.       Penalty for offenses not specifically covered.        
    5688.       Disposition and release of seized property.           
    [5689.      Repealed.]                                            
    5690.       Definition of the term "person".                      

                             PRIOR PROVISIONS                         
      A prior part IV consisted of sections 5681 to 5690 of this title,
    prior to the general revision of this chapter by Pub. L. 85-859,
    title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.

                                AMENDMENTS                            
      1976 - Pub. L. 94-455, title XIX, Sec. 1905(b)(2)(E)(ii), Oct. 4,
    1976, 90 Stat. 1822, struck out item 5689 "Penalty and forfeiture
    for tampering with a stamp machine".

-End-



-CITE-
    26 USC Sec. 5681                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
               LIQUORS                               

-HEAD-
    Sec. 5681. Penalty relating to signs

-STATUTE-
    (a) Failure to post required sign
      Every person engaged in distilled spirits operations who fails to
    post the sign required by section 5180(a) shall be fined not more
    than $1,000, or imprisoned not more than 1 year, or both.
    (b) Posting or displaying false sign
      Every person, other than a distiller, warehouseman, or processor
    of distilled spirits who has received notice of registration of his
    plant under the provisions of section 5171(c), or other than a
    wholesale dealer in liquors who has paid the special tax (or who is
    exempt from payment of such special tax by reason of the provisions
    of section 5113(a)), who puts up or keeps up any sign indicating
    that he may lawfully carry on the business of a distiller,
    warehouseman, or processor of distilled spirits, or wholesale
    dealer in liquors, as the case may be, shall be fined not more than
    $1,000, or imprisoned not more than 1 year, or both.
    (c) Premises where no sign is placed or kept
      Every person who works in any distilled spirits plant on which no
    sign required by section 5180(a) is placed or kept, and every
    person who knowingly receives at, or carries or conveys any
    distilled spirits to or from any such distilled spirits plant or
    who knowingly carries or delivers any grain, molasses, or other raw
    material to any distilled spirits plant on which such a sign is not
    placed and kept, shall forfeit all vehicles, aircraft, or vessels
    used in carrying or conveying such property and shall be fined not
    more than $1,000, or imprisoned not more than 1 year, or both.
    (d) Presumption
      Whenever on trial for violation of subsection (c) by working in a
    distilled spirits plant on which no sign required by section
    5180(a) is placed or kept, the defendant is shown to have been
    present at such premises, such presence of the defendant shall be
    deemed sufficient evidence to authorize conviction, unless the
    defendant explains such presence to the satisfaction of the jury
    (or of the court when tried without jury).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1410; amended Pub. L. 96-39, title VIII, Sec. 807(a)(58), July 26,
    1979, 93 Stat. 289; Pub. L. 105-34, title XIV, Sec. 1415(b)(1),
    (2), Aug. 5, 1997, 111 Stat. 1047.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5681, act Aug. 16, 1954, ch. 736, 68A Stat. 698,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1997 - Subsec. (a). Pub. L. 105-34, Sec. 1415(b)(1), struck out
    ", and every wholesale dealer in liquors," after "spirits
    operations" and "section 5115(a) or" after "sign required by".
      Subsec. (c). Pub. L. 105-34, Sec. 1415(b)(2), substituted "on
    which no sign required by" for "or wholesale liquor establishment,
    on which no sign required by section 5115(a) or" and substituted
    "or who" for "or wholesale liquor establishment, or who".
      1979 - Subsec. (a). Pub. L. 96-39, Sec. 807(a)(58)(A),
    substituted "distilled spirits operations" for "distilling,
    warehousing of distilled spirits, rectifying, or bottling of
    distilled spirits".
      Subsec. (b). Pub. L. 96-39, Sec. 807(a)(58)(B), substituted
    "other than a distiller, warehouseman, or processor of distilled
    spirits" for "other than a distiller, warehouseman of distilled
    spirits, rectifier, or bottler of distilled spirits", "section
    5171(c)" for "section 5171(a)", and "business of a distiller,
    warehouseman, or processor of distilled spirits" for "business of a
    distiller, bonded warehouseman, rectifier, bottler of distilled
    spirits".
      Subsec. (c). Pub. L. 96-39, Sec. 807(a)(58)(C), substituted "in
    any distilled spirits plant" for "in any distillery, or in any
    rectifying, distilled spirits bottling", "such distilled spirits
    plant" for "such distillery, or to or from any such rectifying,
    distilled spirits bottling", and "to any distilled spirits plant"
    for "to any distillery".
      Subsec. (d). Pub. L. 96-39, Sec. 807(a)(58)(D), substituted
    "distilled spirits plant" for "distillery or rectifying
    establishment".

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Section 1415(c) of Pub. L. 105-34 provided that: "The amendments
    made by this section [amending this section and repealing section
    5115 of this title] shall take effect on the date of the enactment
    of this Act [Aug. 5, 1997]."

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5682                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
               LIQUORS                               

-HEAD-
    Sec. 5682. Penalty for breaking locks or gaining access

-STATUTE-
      Every person, who destroys, breaks, injures, or tampers with any
    lock or seal which may be placed on any room, building, tank,
    vessel, or apparatus, by any authorized internal revenue officer or
    any approved lock or seal placed thereon by a distilled spirits
    plant proprietor, or who opens said lock, seal, room, building,
    tank, vessel, or apparatus, or in any manner gains access to the
    contents therein, in the absence of the proper officer, or
    otherwise than as authorized by law, shall be fined not more than
    $5,000, or imprisoned not more than 3 years, or both.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1410; amended Pub. L. 96-39, title VIII, Sec. 807(a)(59), July 26,
    1979, 93 Stat. 290.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5682, act Aug. 16, 1954, ch. 736, 68A Stat. 698,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1979 - Pub. L. 96-39 expanded penalty provisions to include
    persons tampering with locks or seals affixed by distilled spirits
    plant proprietors.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

-End-



-CITE-
    26 USC Sec. 5683                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
               LIQUORS                               

-HEAD-
    Sec. 5683. Penalty and forfeiture for removal of liquors under
      improper brands

-STATUTE-
      Whenever any person ships, transports, or removes any distilled
    spirits, wines, or beer, under any other than the proper name or
    brand known to the trade as designating the kind and quality of the
    contents of the casks or packages containing the same, or causes
    such act to be done, he shall be fined not more than $1,000, or
    imprisoned not more than 1 year, or both, and shall forfeit such
    distilled spirits, wines, or beer, and casks or packages.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1410.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5683, act Aug. 16, 1954, ch. 736, 68A Stat. 699,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

-End-



-CITE-
    26 USC Sec. 5684                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
               LIQUORS                               

-HEAD-
    Sec. 5684. Penalties relating to the payment and collection of
      liquor taxes

-STATUTE-
    (a) Failure to pay tax
      Whoever fails to pay any tax imposed by part I of subchapter A at
    the time prescribed shall, in addition to any other penalty
    provided in this title, be liable to a penalty of 5 percent of the
    tax due but unpaid.
    (b) Applicability of section 6665
      The penalties imposed by subsection (a) shall be assessed,
    collected, and paid in the same manner as taxes, as provided in
    section 6665(a).
    (c) Cross references
          (1) For provisions relating to interest in the case of taxes
        not paid when due, see section 6601.
          (2) For penalty for failure to file tax return or pay tax,
        see section 6651.
          (3) For additional penalties for failure to pay tax, see
        section 6653.
          (4) For penalty for failure to make deposits or for
        overstatement of deposits, see section 6656.
          (5) For penalty for attempt to evade or defeat any tax
        imposed by this title, see section 7201.
          (6) For penalty for willful failure to file return, supply
        information, or pay tax, see section 7203.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1410; amended Pub. L. 91-172, title IX, Sec. 943(c)(4), Dec. 30,
    1969, 83 Stat. 728; Pub. L. 97-34, title VII, Secs. 722(a)(3),
    724(b)(4), Aug. 13, 1981, 95 Stat. 342, 345; Pub. L. 98-369, div.
    A, title VII, Secs. 714(h)(1), 722(a)(5), July 18, 1984, 98 Stat.
    962, 973; Pub. L. 101-239, title VII, Sec. 7721(c)(3), Dec. 19,
    1989, 103 Stat. 2399.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5684, act Aug. 16, 1954, ch. 736, 68A Stat. 699,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
    See section 5687 of this title and criminal and civil penalties of
    subtitle F of this title.

                                AMENDMENTS                            
      1989 - Subsec. (b). Pub. L. 101-239 substituted "6665" for "6662"
    in heading and "6665(a)" for "6662(a)" in text.
      1984 - Subsec. (b). Pub. L. 98-369, Sec. 714(h)(1), substituted
    in heading "6662" for "6660" and in text "6662(a)" for "6660(a)".
      Pub. L. 98-369, Sec. 722(a)(5), substituted "subsection (a)" for
    "subsections (a) and (b)".
      1981 - Subsec. (b). Pub. L. 97-34, Sec. 724(b)(4)(A),
    redesignated subsec. (c) as (b). Former subsec. (b), which related
    to penalties for failure to make deposit of taxes, was struck out.
      Subsec. (c). Pub. L. 97-34, Sec. 724(b)(4), redesignated subsec.
    (d) as (c), added par. (4), and redesignated pars. (5) and (6) as
    (4) and (5), respectively. Former subsec. (c) redesignated (b).
      Pub. L. 97-34, Sec. 722(a)(3), substituted "6660" for "6659" in
    heading and text.
      Subsec. (d). Pub. L. 97-34, Sec. 724(b)(4), redesignated subsec.
    (d) as (c).
      1969 - Subsec. (d)(2). Pub. L. 91-172 inserted "or pay tax" after
    "tax return".

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 applicable to returns the due date
    for which (determined without regard to extensions) is after Dec.
    31, 1989, see section 7721(d) of Pub. L. 101-239, set out as a note
    under section 461 of this title.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by section 714(h)(1) of Pub. L. 98-369 effective as if
    included in the provision of the Tax Equity and Fiscal
    Responsibility Act of 1982, Pub. L. 97-248, to which such amendment
    relates, see section 715 of Pub. L. 98-369, set out as a note under
    section 31 of this title.
      Amendment by section 722(a)(5) of Pub. L. 98-369 effective as if
    included in the provisions of the Technical Corrections Act of
    1984, Pub. L. 97-448, to which such amendment relates, see section
    722(a)(6) of Pub. L. 98-369, set out as a note under section 172 of
    this title.

                     EFFECTIVE DATE OF 1981 AMENDMENT                 
      Section 722(a)(4) of Pub. L. 97-34 provided that: "The amendments
    made by this subsection [enacting section 6659 of this title and
    amending this section and section 5761 of this title] shall apply
    to returns filed after December 31, 1981."
      Amendment by section 724(b)(4) of Pub. L. 97-34 applicable to
    returns filed after Aug. 13, 1981, see section 724(c) of Pub. L. 97-
    34, set out as a note under section 6656 of this title.

                     EFFECTIVE DATE OF 1969 AMENDMENT                 
      Amendment by Pub. L. 91-172 applicable with respect to tax
    returns the date prescribed by law for filing of which is after
    Dec. 31, 1969, see section 943(d) of Pub. L. 91-172, set out as a
    note under section 6651 of this title.

-End-



-CITE-
    26 USC Sec. 5685                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
               LIQUORS                               

-HEAD-
    Sec. 5685. Penalty and forfeiture relating to possession of devices
      for emitting gas, smoke, etc., explosives and firearms, when
      violating liquor laws

-STATUTE-
    (a) Penalty for possession of devices for emitting gas, smoke, etc.
      Whoever, when violating any law of the United States, or of any
    possession of the United States, or of the District of Columbia, in
    regard to the manufacture, taxation, or transportation of or
    traffic in distilled spirits, wines, or beer, or when aiding in any
    such violation, has in his possession or in his control any device
    capable of causing emission of gas, smoke, or fumes, and which may
    be used for the purpose of hindering, delaying, or preventing
    pursuit or capture, any explosive, or any firearm (as defined in
    section 5845), except a machine gun, or a shotgun having a barrel
    or barrels less than 18 inches in length, or a rifle having a
    barrel or barrels less than 16 inches in length, shall be fined not
    more than $5,000, or imprisoned not more than 10 years, or both,
    and all persons engaged in any such violation or in aiding in any
    such violation shall be held to be in possession or control of such
    device, firearm, or explosive.
    (b) Penalty for possession of machine gun, etc.
      Whoever, when violating any such law, has in his possession or in
    his control a machine gun, or any shotgun having a barrel or
    barrels less than 18 inches in length, or a rifle having a barrel
    or barrels less than 16 inches in length, shall be imprisoned not
    more than 20 years; and all persons engaged in any such violation
    or in aiding in any such violation shall be held to be in
    possession and control of such machine gun, shotgun, or rifle.
    (c) Forfeiture of firearms, devices, etc.
      Every such firearm or device for emitting gas, smoke, or fumes,
    and every such explosive, machine gun, shotgun, or rifle, in the
    possession or control of any person when violating any such law,
    shall be seized and shall be forfeited and disposed of in the
    manner provided by section 5872.
    (d) Definition of machine gun
      As used in this section the term "machine gun" means a machine
    gun as defined in section 5845(b).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1411; amended Pub. L. 86-478, Sec. 4, June 1, 1960, 74 Stat. 150;
    Pub. L. 94-455, title XIX, Sec. 1905(a)(23), (c)(6), Oct. 4, 1976,
    90 Stat. 1821, 1823.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5685, act Aug. 16, 1954, ch. 736, 68A Stat. 699,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Subsec. (a). Pub. L. 94-455, Sec. 1905(a)(23)(A), (c)(6),
    struck out "Territory or" after "United States, or of any" and
    substituted "section 5845" for "section 5848".
      Subsec. (c). Pub. L. 94-455, Sec. 1905(a)(23)(B), substituted
    "section 5872" for "section 5862".
      Subsec. (d). Pub. L. 94-455, Sec. 1905(a)(23)(C), substituted
    "means a machinegun as defined in section 5845(b)" for "means any
    weapon which shoots, or is designed to shoot, automatically or
    semiautomatically, more than one shot, without manual reloading, by
    a single function of the trigger".
      1960 - Subsecs. (a), (b). Pub. L. 86-478 substituted "shotgun
    having a barrel or barrels less than 18 inches in length, or a
    rifle having a barrel or barrels less than 16 inches in length" for
    "shotgun or rifle having a barrel or barrels less than 18 inches in
    length".

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-455 effective on first day of first month
    which begins more than 90 days after Oct. 4, 1976, see section
    1905(d) of Pub. L. 94-455, set out as a note under section 5005 of
    this title.

                     EFFECTIVE DATE OF 1960 AMENDMENT                 
      Amendment by Pub. L. 86-478 effective on first day of first month
    which begins more than 10 days after June 1, 1960, see section 5 of
    Pub. L. 86-478.

-End-



-CITE-
    26 USC Sec. 5686                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
               LIQUORS                               

-HEAD-
    Sec. 5686. Penalty for having, possessing, or using liquor or
      property intended to be used in violating provisions of this
      chapter

-STATUTE-
    (a) General
      It shall be unlawful to have or possess any liquor or property
    intended for use in violating any provision of this chapter or
    regulations issued pursuant thereto, or which has been so used, and
    every person so having or possessing or using such liquor or
    property, shall be fined not more than $5,000, or imprisoned not
    more than 1 year, or both.
    (b) Cross reference
          For seizure and forfeiture of liquor and property had,
        possessed, or used in violation of subsection (a), see section
        7302.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1411.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5686, act Aug. 16, 1954, ch. 736, 68A Stat. 700,
    consisted in subsecs. (b) and (c) of provisions similar to those
    comprising this section, prior to the general revision of this
    chapter by Pub. L. 85-859.
      Prior section 5686(a) related to offenses as to operation of
    industrial alcohol or denaturing plants or unlawful withdrawal of
    taxable alcohol. See section 5687 of this title.

-End-



-CITE-
    26 USC Sec. 5687                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
               LIQUORS                               

-HEAD-
    Sec. 5687. Penalty for offenses not specifically covered

-STATUTE-
      Whoever violates any provision of this chapter or regulations
    issued pursuant thereto, for which a specific criminal penalty is
    not prescribed by this chapter, shall be fined not more than
    $1,000, or imprisoned not more than 1 year, or both, for each such
    offense.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1412.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5687, act Aug. 16, 1954, ch. 736, 68A Stat. 700,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      Prior section 5687 also related to forfeitures applicable to
    distillers, rectifiers, and wholesale liquor dealers for offenses
    not specifically covered. See sections 7301 and 7302 of this title.
      Provisions similar to those comprising this section were
    contained in prior sections 5602, 5608(c), 5612 to 5619, 5627,
    5628, 5630, 5631, 5643, 5684(a) and 5686(a), act Aug. 16, 1954, ch.
    736, 68A Stat. 683, 685, 686, 689, 692, 693, 699, 700, prior to the
    general revision of this chapter by Pub. L. 85-859.

-End-



-CITE-
    26 USC Sec. 5688                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
               LIQUORS                               

-HEAD-
    Sec. 5688. Disposition and release of seized property

-STATUTE-
    (a) Forfeiture
      (1) Delivery
        All distilled spirits, wines, and beer forfeited, summarily or
      by order of court, under any law of the United States, shall be
      delivered to the Administrator of General Services to be disposed
      of as hereinafter provided.
      (2) Disposal
        The Administrator of General Services shall dispose of all
      distilled spirits, wines, and beer which have been delivered to
      him pursuant to paragraph (1) - 
          (A) by delivery to such Government agencies as, in his
        opinion, have a need for such distilled spirits, wines, or beer
        for medicinal, scientific, or mechanical purposes, or for any
        other official purpose for which appropriated funds may be
        expended by a Government agency; or
          (B) by gifts to such eleemosynary institutions as, in his
        opinion, have a need for such distilled spirits, wines, or beer
        for medicinal purposes; or
          (C) by destruction.
      (3) Limitation on disposal
        Except as otherwise provided by law, no distilled spirits,
      wines, or beer which have been seized under any law of the United
      States may be disposed of in any manner whatsoever except after
      forfeiture and as provided in this subsection.
      (4) Regulations
        The Administrator of General Services is authorized to make all
      rules and regulations necessary to carry out the provisions of
      this subsection.
      (5) Remission or mitigation of forfeitures
        Nothing in this section shall affect the authority of the
      Secretary, under the customs or internal revenue laws, to remit
      or mitigate the forfeiture, or alleged forfeiture, of such
      distilled spirits, wines, or beer, or the authority of the
      Secretary, to compromise any civil or criminal case in respect of
      such distilled spirits, wines, or beer prior to commencement of
      suit thereon, or the authority of the Secretary to compromise any
      claim under the customs laws in respect to such distilled
      spirits, wines, or beer.
    (b) Distraint or judicial process
      Except as provided in section 5243, all distilled spirits sold by
    order of court, or under process of distraint, shall be sold
    subject to tax; and the purchaser shall immediately, and before he
    takes possession of said spirits, pay the tax thereon, pursuant to
    the applicable provisions of this chapter and in accordance with
    regulations to be prescribed by the Secretary.
    (c) Release of seized vessels or vehicles by courts
      Notwithstanding any provisions of law relating to the return on
    bond of any vessel or vehicle seized for the violation of any law
    of the United States, the court having jurisdiction of the subject
    matter may, in its discretion and upon good cause shown by the
    United States, refuse to order such return of any such vessel or
    vehicle to the claimant thereof. As used in this subsection, the
    word "vessel" includes every description of watercraft used, or
    capable of being used, as a means of transportation in water or in
    water and air; and the word "vehicle" includes every animal and
    description of carriage or other contrivance used, or capable of
    being used, as a means of transportation on land or through the
    air.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1412; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
    4, 1976, 90 Stat. 1834.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5688, act Aug. 16, 1954, ch. 736, 68A Stat. 701,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

                                AMENDMENTS                            
      1976 - Subsecs. (a)(5), (b). Pub. L. 94-455 struck out "or his
    delegate" after "Secretary" wherever appearing.

-End-



-CITE-
    26 USC Sec. 5689                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
               LIQUORS                               

-HEAD-
    Sec. 5689. Repealed.

-MISC1-
    [Sec. 5689. Repealed. Pub. L. 94-455, title XIX, Sec.
      1905(b)(2)(E)(i), Oct. 4, 1976, 90 Stat. 1822].
      Section, added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958,
    72 Stat. 1413, provided for penalty and forfeiture for tampering
    with a stamp machine.
      A prior section 5689, act Aug. 16, 1954, ch. 736, 68A Stat. 702,
    related to penalty and forfeiture for tampering with a stamp
    machine, prior to the general revision of this chapter by Pub. L.
    85-859.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective on first day of first month which begins more
    than 90 days after Oct. 4, 1976, see section 1905(d) of Pub. L. 94-
    455, set out as an Effective Date of 1976 Amendment note under
    section 5005 of this title.

-End-



-CITE-
    26 USC Sec. 5690                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
               LIQUORS                               

-HEAD-
    Sec. 5690. Definition of the term "person"

-STATUTE-
      The term "person", as used in this subchapter, includes an
    officer or employee of a corporation or a member or employee of a
    partnership, who as such officer, employee, or member is under a
    duty to perform the act in respect of which the violation occurs.

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1413.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5690, act Aug. 16, 1954, ch. 736, 68A Stat. 702,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.

-End-


-CITE-
    26 USC PART V - PENALTIES APPLICABLE TO OCCUPATIONAL
                     TAXES                                 01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART V - PENALTIES APPLICABLE TO OCCUPATIONAL TAXES

-HEAD-
            PART V - PENALTIES APPLICABLE TO OCCUPATIONAL TAXES        

-MISC1-
    Sec.                                                     
    5691.       Penalties for nonpayment of special taxes.            
    [5692.      Repealed.]                                            


-STATAMEND-
                              REPEAL OF PART                          
      Pub. L. 109-59, title XI, Sec. 11125(b)(19)(A), (c), Aug. 10,
    2005, 119 Stat. 1956, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date,
    this part is repealed.


-MISC2-
                             PRIOR PROVISIONS                         
      A prior part V consisted of sections 5691 to 5693, prior to the
    general revision of this chapter by Pub. L. 85-859, title II, Sec.
    201, Sept. 2, 1958, 72 Stat. 1313.

                                AMENDMENTS                            
      1987 - Pub. L. 100-203, title X, Sec. 10512(a)(1)(B)(iii), Dec.
    22, 1987, 101 Stat. 1330-448, struck out "relating to liquors"
    after "taxes" in item 5691.
      1968 - Pub. L. 90-618, title II, Sec. 206(b), Oct. 22, 1968, 82
    Stat. 1235, struck out item 5692 "Penalties relating to posting of
    special tax stamps".

-End-



-CITE-
    26 USC Sec. 5691                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART V - PENALTIES APPLICABLE TO OCCUPATIONAL TAXES

-HEAD-
    Sec. 5691. Penalties for nonpayment of special taxes

-STATUTE-
    (a) General
      Any person who shall carry on a business subject to a special tax
    imposed by part II of subchapter A or section 5276 (relating to
    occupational taxes) and willfully fail to pay the special tax as
    required by law, shall be fined not more than $5,000, or imprisoned
    not more than 2 years, or both, for each such offense.
    (b) Presumption in case of the sale of 20 wine gallons or more
      For the purposes of this chapter, the sale, or offer for sale, of
    distilled spirits, wines, or beer, in quantities of 20 wine gallons
    or more to the same person at the same time, shall be presumptive
    evidence that the person making such sale, or offer for sale, is
    engaged in or carrying on the business of a wholesale dealer in
    liquors or a wholesale dealer in beer, as the case may be. Such
    presumption may be overcome by evidence satisfactorily showing that
    such sale, or offer for sale, was made to a person other than a
    dealer, as defined in section 5112(a).

-SOURCE-
    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1413; amended Pub. L. 96-39, title VIII, Sec. 807(a)(60), July 26,
    1979, 93 Stat. 290; Pub. L. 98-369, div. A, title IV, Sec.
    451(b)(3), July 18, 1984, 98 Stat. 819; Pub. L. 100-203, title X,
    Sec. 10512(a)(1)(B)(i), (ii), Dec. 22, 1987, 101 Stat. 1330-447,
    1330-448.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 109-59, title XI, Sec. 11125(b)(19)(A), (c), Aug. 10,
    2005, 119 Stat. 1956, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date,
    this section is repealed.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5691, act Aug. 16, 1954, ch. 736, 68A Stat. 702,
    consisted of provisions similar to those comprising subsec. (a) of
    this section, prior to the general revision of this chapter by Pub.
    L. 85-859.
      Prior section 5691 also related to forfeitures for nonpayment of
    special taxes relating to liquors. See sections 5607, 5613, 5615,
    5661(a), 5671, 5673, 5676(4), 5683, 7301, and 7302 of this title.

                                AMENDMENTS                            
      1987 - Pub. L. 100-203 struck out "relating to liquors" after "of
    special taxes" in section catchline and substituted "a business
    subject to a special tax imposed by part II of subchapter A or
    section 5276 (relating to occupational taxes)" for "the business of
    a brewer, wholesale dealer in liquors, retail dealer in liquors,
    wholesale dealer in beer, retail dealer in beer, or limited retail
    dealer," in subsec. (a).
      1984 - Subsec. (a). Pub. L. 98-369 substituted "or limited retail
    dealer" for "limited retail dealer, or manufacturer of stills".
      1979 - Subsec. (a). Pub. L. 96-39 eliminated persons employed as
    rectifiers from the penalties imposed by this section.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-203 effective Jan. 1, 1988, see section
    10512(h) of Pub. L. 100-203, set out as an Effective Date note
    under section 5081 of this title.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective on first day of first
    calendar month which begins more than 90 days after July 18, 1984,
    see section 456(a) of Pub. L. 98-369, set out as an Effective Date
    note under section 5101 of this title.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.

                              EFFECTIVE DATE                          
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.

-End-



-CITE-
    26 USC Sec. 5692                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors                     
    PART V - PENALTIES APPLICABLE TO OCCUPATIONAL TAXES

-HEAD-
    Sec. 5692. Repealed.

-MISC1-
    [Sec. 5692. Repealed. Pub. L. 90-618, title II, Sec. 206(a), Oct.
      22, 1968, 82 Stat. 1235].
      Section, added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958,
    72 Stat. 1413, set forth a cross reference to section 7273(a),
    relating to penalties for failure to post special tax stamps.
      A prior section 5692, act Aug. 16, 1954, ch. 736, 68A Stat. 703,
    related to penalty relating to records of retail liquor dealers,
    prior to the general revision of this chapter by Pub. L. 85-859,
    title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.
      A prior section 5693, act Aug. 16, 1954, ch. 736, 68A Stat. 703,
    consisted of provisions similar to those comprising section 5692,
    prior to the general revision of this chapter by Pub. L. 85-859.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective Oct. 22, 1968, see section 207 of Pub. L. 90-
    618, set out as an Effective Date note under section 5801 of this
    title.

-End-