An Act to provide for the withdrawal of wine from bonded wine cellars without payment of tax, when rendered unfit for beverage use
PL 90-73 (H.R.1282), enacted 08/29/1967

81 STAT.] 
PUBLIC LAW 90-73-AUG. 29, 1967 
175 
Public Law 90-73 
AN ACT 
To provide for the withdrawal of wine from bonded wine cellars without payment 
of tax when rendered unfit for beverage use, and for other purposes. 
August 29, 1967 
[H. R. 1282] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled^ That (a) section 5362. 
of the Internal Eevenue Code of 1954 (relating to removal of wine 
from bonded wine cellars) is amended by adding at the end thereof the 
following new subsection: 
"(d) WITHDRAWAL FREE or TAX OF W I N E AND W I N E PRODUCTS UNFIT 
F
O
R BEVERAGE USE.—Under such regulations as the Secretary or his 
delegate may deem necessary to protect the revenue, wine, or wine 
products made from w'ine, w^hen rendered unfit for beverage use, on 
which the tax has not been paid or determined, may be withdraw^n 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withdrawn may be treated with methods or materials -which render 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 
w4ne products so withdrawn shall contain more than 21 percent of 
alcohol by volume, or be used in the compounding of distilled spirits or 
Avine for beverage use or in the manufacture of any product intended to 
be used in such compounding." 
(b) The amendment made by subsection (a) 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. 
SEC. 2. (a) Section 4918(b) of the Internal Revenue Code of 1954 
is amended by adding at the end thereof the following new paragraph: 
" (3) CERTAIN ACQUISITIONS BY DEALERS.—For purposes of para-
graph (1), if the person acquiring the stock or debt obligation 
is a participating firm acting for its own account and if such 
participating firm would be entitled to issue a written confirma-
tion referred to in paragraph (1) (B) if it were acting as a broker 
in effecting such acquisition for the account of a customer, such 
participating firm shall be treated as having received a w^ritten 
confirmation referred to in paragraph (1) (B) wdth respect to such 
acquisition." 
(b) Section 4918(e) of such Code is amended— 
(1) by striking out so much of the text of such section as pre-
cedes paragraph (1) and inserting in lieu thereof "A participating 
firm selling, or effecting the sale of, stock of a foreign issuer or a 
debt obligation of a foreign obligor may issue a written com-
parison or broker-dealer confirmation, which indicates the exemp-
tion for prior American ownership and compliance provided in 
subsection (a) applies to the acquisition of such stock or debt 
obligation, only if such participating firm (or another partici-
pating firm for which the sale is t^ing effected) has in its possession 
(except in the case of a sale by a participating firm selling for its 
own account and in the case of a sale for another participating 
firm or a participating custodian to which paragraph (4) applies) 
a statement, upon which such participating finn (or such other 
participating firm) relies in gooli faith, executed under penalty of 
perjury by the person making the sale, establishing that such per-
son is a United States person and is the owner of all stock of 
foreign issuers and debt obligations of foreign obligors carried 
in the records of such participating firm (or such other partici-
pating firm) for the account of such person; and such partici-
pating firm (or such other participating firm) either—"; 
(2) by inserting after "July 14, 1967" in paragraph (^2) the 
following: ", acquired such stock or debt obligation for its own 
Taxes. 
Wine unfit for 
beverage use, tax-
free withdrawal. 
72 Stat. 1380. 
26 u s e 5362. 
Effective date. 
Interest equali-
zation tax, prior 
American owner-
ship, exemption. 
Ante, 
p. 149. 
85-622 0-68—14 
176 
PUBLIC LAW 90-74-AUG. 29, 1967 
[81 STAT. 
Ante, p. 
Ante, 
p. 
175. 
152. 
"Seller. 
Ante, 
p. 153. 
Ante, 
p. 
Ante, 
p. 
Effectivi 
155. 
156. 
account, if the exemption for prior American ownership and 
compliance provided in subsection (a) applied to such acquisition 
by reason of subsection (b) (3), or"; 
(3) by striking out "or" at the end of paragraph (6), by strik-
ing out the period at the end of paragraph (7) and inserting in 
lieu thereof "; or", and by inserting after paragraph (7) the fol-
lowing new paragraph: 
"(8) conditions set forth in regulations prescribed by the Sec-
retary or his delegate are met."; and 
(4) by adding at the end of such section the following new sen-
tence: "For purposes of paragraphs (2), (3), (5), and (7), the 
term 'seller' does not include a participating firm selling for its 
own account." 
(c) Section 4918(h) (2) of such Code is amended by striking out 
"it has in its possession a statement, upon which it relies" in the matter 
preceding subparagraph (A) and inserting in lieu thereof "such par-
ticipating firm or pa.rticipating custodian (or another participating 
firm or participating custodian for which the delivery is being effected) 
has in its possession a statement upon which such participating firm 
or participating custodian (or such other participating firm or partici-
pating custodian) relies". 
(d) Section 6681(a) of such Code is amended by inserting "or 
4918 (h)" after "section 4918 (e)". 
(e) Section 7241(b) of such Code is amended by inserting "or 4918 
(h)" after "section 4918 (e)". 
(f) The amendments made by this section (other than by subsec-
tions (d) and (e)) shall apply with respect to acquisitions of stock 
find debt obligations made after July 14,1967. The amendments made 
by subsections (d) and (e) shall take effect on the date of the enact-
ment of this Act. 
Approved August 29, 1967. 
August 29, 1967 
[H. R. 7362] 
Public Law 90-74 
AN ACT 
'I'o uuthorize the Swivtary of the Interior to acHjuire certain proi)erties within 
the Colonial National Historical Park, in Yorktown, Virginia, and for other 
purposes. 
Colonial 
National Histori-
cal Park, Va. 
Acquisition of 
property. 
49 Stat. 1483. 
16 u s e 8 If. 
Be it enacted by the /Seriate arid House of RepreHentatlves of the 
rnlted 
States of Amerlra in (Umgre-sH aju^emhled. That, in order to 
permit acquisition of the Thomas Nelson House, the Edmund Smith 
House, the .John Ballard House, and the Thomas Pate House, all of 
which are located within the boundaries of the (^olonial National His-
torical Park on lots numbered 42A, 44 through 55, 84, 85, and 120 
through 129, and known as the George Waller Blow Estate, the appro-
])riation authorization in section 4 of the Act of July 3, 1930, as 
amended (46 Stat. 1490), is amended bv deleting "$2,000,000" and sub-
stituting'-$2,777,000". 
Approved August 29, 1967.