An Act to amend certain provisions of the Internal Revenue Code of 1954 relating to distilled spirits, and for other purposes
PL 91-659 (H.R.10517), enacted 10/08/1971

1964 
PUBLIC LAW 91-659-JAN. 8, 1971 
[84 STAT. 
"Former 
President." 
u s e prec. 
title 1. 
''(f) As used in this section, the term 'former President' means a 
person— 
"(1) who shall have held the office of President of the United 
States of America; 
"(2) whose service in such office shall have terminated other 
than Dy removal pursuant to section 4 of article I I of the Consti-
tution of the United States of America; and 
''(3) who does not then currently hold such office,". 
Approved January 8, 1971. 
January 
[H. R. 
Taxes. 
Distille 
spirits. 
7 2 Stat. 
26 use 
8, 1971 
10517] 
d 
1323. 
5008. 
72 Stat. 1314; 
79 Stat. 150. 
72 Stat. 1364; 
79 Stat. 161. 
Public Law 91-659 
AN ACT 
To amend certain provisions of the Internal Revenue Code of 1954 relating 
distilled spirits, and for other purposes. 
to 
Be it enacted hy the Senate and House of Rejyresentatives of the 
United Sates of America in Congress assembled. That section 5008(c) 
(1) (A) of the Internal Revenue Code of 1954 is amended by striking 
out '•; or"' and inserting in lieu thereof '", or (iii) by reason of acci-
dent while on the distilled spirits plant premises and amounts to 10 
proof gallons or more in respect of any one accident; or". 
SEC. 2. (a)(1) The first sentence of section 5008(b)(2) of the 
Internal Revenue Code of 1954 is amended to read as follows: "Any 
distilled spirits withdrawn from bond on payment or determination 
of tax for rectification or bottling may, before removal from the 
bottling premises of the distilled spirits plant to which removed 
from bond or after return to such bottling premises, on application 
to the Secretary or his delegate, be destroyed after such gauge and 
under such supervision as the Secretary or his delegate may by regu-
lations prescribe." 
(2) The second sentence of such section 5008(b)(2) is amended 
by striking out "the tax imposed under section 5001(a)(1)" and 
inserting in lieu thereof "the taxes imposed under section 5001(a) (1) 
or under subpart B or this part". 
(b) Section 5008(c)(5) of such Code is amended to read as 
follows: 
"(5) 
DISTILLED SPIRITS RETURNED TO BOTTLING PREMISES.—Dis-
tilled spirits withdrawn from bond on payment or determination 
of tax for rectification or bottling which are removed from bot-
tling premises and subsequently returned to the premises from 
which removed may be dumped and gauged after such return 
under such regulations as the Secretary or his delegate may pre-
scribe, and subsequent to such gauge shall be eligible for allowance 
of loss under this subsection as though they had not been removed 
from such bottling premises." 
(c) (1) Section 5215(a) of such Code is amended to read as follows: 
"(a) GENERAL.—On such application and under such regulations 
as the Secretary or his delegate may prescribe, distilled spirits with-
drawn from bonded premises on payment or determination of tax 
(other than products to which any alcoholic ingredients other than 
such distilled spirits have been added) may be returned to the bonded 
premises of a distilled spirits plant. Such returned distilled spirits 
shall be destroyed, denatured, or redistilled, or shall be mingled as 
authorized in section 5234(a)(1) 
(other than subparagraph (C) 
thereof). 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." 
72 Stat. 1366. 
84 STAT. ] 
PUBLIC LAW 91-659-JAN. 8, 1971 
196; 
(2) Section 5215(b) is repealed. 
^ 
Repeal. 
(3) Subsection (c) of section 5215 is redesignated as subsection (b). 
^ J*|^- g
^
^
^
^
^
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SEC. 3. (a) Subpart E of part 1 of subchapter A of chapter 51 of 
the Internal Revenue Code of 1954 is amended by redesignating sec-
tion 5066 as section 5067 and by inserting after section 5065 the 
following new section: 
"SEC. 5066. DISTILLED SPIRITS FOR USE OF FOREIGN EMBASSIES, 
LEGATIONS, ETC. 
"(a) 
ENTRY INTO CUSTOMS BONDED WAREHOUSES.— 
"(1) 
DISTILLED SPIRITS BOTTLED IN BOND FOR EXPORT.—Under 
such regulations as the Secretary or his delegate may prescribe, 
distilled spirits bottled in bond for export under the provisions 
of section 5233 may be withdrawn from bonded premises as pro-
vided in section 5214(a) (4) for transfer to customs bonded ware-
houses 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 BENE-
FIT OF DRAWBACK.—Under such regulations as the Secretary or 
his delegate may prescribe, distilled spirits stamped or restamped, 
and 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 pro-
vided in this subsection shall be deemed exported at the time so 
entered. 
'"(b) 
WITHDRAWAL FROM 
CUSTOMS BONDED WAREHOUSES.—Not 
withstanding any other provisions of law, distilled spirits entered into 
customs bonded warehouses under the provisions of subsection (a) or 
domestic distilled spirits transferred to customs bonded warehouses 
under section 5521(d)(2) may, under such regulations as the Sec-
retary or his delegate may prescribe, be withdrawn from such ware-
houses for consumption in the LTnited States by and for the official or 
family use of such foreign governments, organizations, and indi-
viduals 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 regu-
lations and bonds as the Secretary or his delegate 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 with-
drawn therefrom for domestic use, in which event they shall be treated 
as American goods exported and returned. 
82 Stat. 1328. 
1966 
PUBLIC LAW 91-659-JAN. 8, 1971 
[84 STAT. 
"(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 author-
ized 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. 
72 Stat. 1314. 
-j^lie provisions of section 5001(a) (5) are hereby extended and made 
use 5001. 
applicable to any person selling, disposing of, or possessing any dis-
tilled spirits in violation of the preceding sentence, and to the distilled 
spirits mvolved in any such violation." 
(b) The table of sections for such subpart E is amended by striking 
out— 
"Sec. 5066. Cross reference." 
and inserting in lieu thereof 
"Sec. 5066. Distilled spirits for use of foreign embassies, legations, etc. 
"Sec. 5067. Cross reference." 
SEC. 4. (a) Section 5173(b) of the Internal Revenue Code of 1954 
is amended by adding at the end thereof the following new 
paragraph: 
"(4) INVOLUNTARY LIEN.—In the case of a judgment, or other 
lien imposed on the property subject to lien under section 5004 
(b) (1) without the consent of the distiller, the distiller may file 
bond, approved by the Secretary or his delegate, in the amount 
of such judgment or other lien to indemnify the United States 
for any loss resulting from such encumbrance." 
(b) Section 5173(b) (1) of such Code is amended by inserting "or 
to any judgment or other lien covered by a bond given under para-
graph (4)" after "bond given under subparagraph (C)" in the first 
parenthetical matter. 
(c) Section 5173(b) (2) of such Code is amended by inserting "or 
(4)" after "paragraph (1) (C)". 
SEC. 5. Section 5178(a)(4)(A) of the Internal Revenue Code of 
1954 is amended to read as follows: 
"(A) The proprietor of a distilled spirits plant authorized to 
store distilled spirits in casks, packages, cases, or similar portable 
approved containers on bonded premises— 
"(i) may establish a separate portion of such premises 
for the bottling in bond of distilled spirits under section 5233 
prior to payment or determination of tax, or 
"(ii) may elect to use facilities on his bottling premises 
established under subparagraph (B) or (C) for bottling in 
accordance with the conditions and requirements of section 
5233 and under the supervision provided for in section 5202 
(g), but after determination of tax. 
Distilled spirits bottled after determination of the internal reve-
nue tax under clause (ii) shall be stamped and labeled in the same 
manner as distilled spirits bottled before determination of tax 
under clause (i)." 
Effective date. 
ggc. 6. This Act shall take effect on the first day of the first cal-
endar month which begins more than 90 days after the date of the 
enactment of this Act. 
84 STAT. ] 
PUBLIC LAW 91-660-JAN. 8, 1971 
19e;7 
SEC. 7. AMENDMENTS OF SECTION 5232. 
(a) The first sentence of section 52S2(a) (relating to transfer of 
26 use 523^2" 
imported distilled spirits) is amended to read as follows: "Distilled 
spirits imported or brought into the United States in bulk containers 
may, under such regulations as the Secretary shall prescribe, be with-
drawn from customs custody and transferred in such bulk containers 
or by pipeline to the bonded premises of a distilled spirits plant with-
out payment of the internal revenue tax imposed on such distilled 
spirits." 
(b) Section 5232(b) (relating to withdrawals) is amended by strik-
ing out "Imported distilled spirits" and inserting in lieu thereof 
"Distilled spirits". 
Approved January 8, 1971. 
Public Law 91-660 
AN ACT 
To provide for the establishment of the Gulf Islands National Seashore, in 
[H. R. 10874] 
the States of Florida and Mississippi, for the recognition of certain historic 
values at Fort San Carlos, Fort Redoubt, Fort Barrancas, and Fort Pickens 
in Florida, and Fort Massachusetts in Mississippi, and for other purposes. 
Gulf Islands 
National 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That, in order to 
preserve for public use and enjoyment certain areas possessing out- seashore. 
standing natural, historic, and recreational values, the Secretary of 
Establishment. 
the Interior (hereinafter referred to as the "Secretary") may estab-
lish and administer the Gulf Islands National Seashore (hereinafter 
referred to as the "seashore"). The seashore shall comprise the follow-
ing gulf coast islands and mainland areas, together with adjacent 
water areas as generally depicted on the drawing entitled "Proposed 
Boundary Plan, Proposed Gulf Islands National Seashore," num-
bered N S - G I - T I O O J , and dated December 1970: 
(1) Ship, Petit Bois, and Horn Islands in Mississippi; 
(2) the eastern portion of Perdido Key in Florida; 
(3) Santa Rosa Island in Florida; 
(4) the Naval Live Oaks Reservation in Florida; 
(5) Fort Pickens and the Fort Pickens State Park in Florida; 
and 
(6) a tract of land in the Pensacola Naval Air Station in Flor-
ida that includes the Coast Guard Station and Lighthouse, Fort 
San Carlos, Fort Barrancas, and Fort Redoubt and sufficient sur-
rounding land for proper administration and protection of the 
historic resources. 
SEC. 2, (a) Within the boundaries of the seashore, the Secretary 
Lands, waters, 
may acquire lands, waters, and interests therein by donation, purchase acquisition. 
with donated or appropriated funds, or exchange, except that prop-
erty owned by a State or any political subdivision thereof may be 
acquired only with the consent of the owner. The Secretary may 
acquire by any of the above methods not more than one hundred 
thirty-five acres of land or interests therein outside of the seashore 
boundaries on the mainland in the vicinity of Biloxi-Gulfport, Missis-
sippi, for an administrative site and related facilities for access to the 
seashore. With the concurrence of the agency having custody thereof, 
any Federal property within the seashore and mainland site may be 
transferred without consideration to the administrative jurisdiction 
of the Secretary for the purposes of the seashore.