US (United States) Code. Title 26. Subtitle E: Alcohol, tobacco, and certain other Excise Taxes. Chapter 51

Codificación normativa de EEUU (Estados Unidos) Legislación Federal estadounidense # Internal revenue code. Distilled spirits, wines and beer

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-CITE-

26 USC Subpart C - Manufacturers of Stills 01/06/03

-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.

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 01/06/03

-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."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5179, 5615 of this title.

-End-

-CITE-

26 USC Sec. 5102 01/06/03

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5002 of this title.

-End-

-CITE-

26 USC Subpart D - Wholesale Dealers 01/06/03

-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.

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 01/06/03

-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.)

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5113, 5123, 5182 of this

title.

-End-

-CITE-

26 USC Sec. 5112 01/06/03

-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.)

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5002, 5691 of this title.

-End-

-CITE-

26 USC Sec. 5113 01/06/03

-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.)

-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."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5093, 5123, 5681 of this

title.

-End-

-CITE-

26 USC Sec. 5114 01/06/03

-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.)

-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 01/06/03

-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. Pub. L. 105-34, title XIV, Sec. 1415(a), Aug.

5, 1997, 111 Stat. 1047]

-MISC1-

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 01/06/03

-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.)

-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 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 01/06/03

-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

-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.)

-MISC1-

AMENDMENTS

1976 - Subsecs. (b), (c). Pub. L. 94-455 added subsec. (b) and

redesignated former subsec. (b) as (c).

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5113, 5125 of this title.

-End-

-CITE-

26 USC Subpart E - Retail Dealers 01/06/03

-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.

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.

-SECREF-

SUBPART REFERRED TO IN OTHER SECTIONS

This subpart is referred to in section 5112 of this title.

-End-

-CITE-

26 USC Sec. 5121 01/06/03

-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.)

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5113, 5123, 5182 of this

title.

-End-

-CITE-

26 USC Sec. 5122 01/06/03

-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.)

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5002, 5113 of this title.

-End-

-CITE-

26 USC Sec. 5123 01/06/03

-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.)

-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 01/06/03

-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.)

-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.

-End-

-CITE-

26 USC Sec. 5125 01/06/03

-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.)

-End-

-CITE-

26 USC Subpart F - Nonbeverage Domestic Drawback

Claimants 01/06/03

-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.

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.

-SECREF-

SUBPART REFERRED TO IN OTHER SECTIONS

This subpart is referred to in section 7652 of this title.

-End-

-CITE-

26 USC Sec. 5131 01/06/03

-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.)

-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 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5142, 7652 of this title.

-End-

-CITE-

26 USC Sec. 5132 01/06/03

-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.)

-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 01/06/03

-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.)

-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 01/06/03

-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.)

-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]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5010 of this title.

-End-

-CITE-

26 USC Subpart G - General Provisions 01/06/03

-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. Cross references.

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

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".

-SECREF-

SUBPART REFERRED TO IN OTHER SECTIONS

This subpart is referred to in sections 5112, 5276, 5731 of this

title.

-End-

-CITE-

26 USC Sec. 5141 01/06/03

-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.)

-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 01/06/03

-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.)

-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 5148(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 01/06/03

-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.)

-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".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5093 of this title.

-End-

-CITE-

26 USC [Sec. 5144 01/06/03

-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. Pub. L. 94-455, title XIX, Sec.

1905(b)(3)(D)(i), Oct. 4, 1976, 90 Stat. 1822]

-MISC1-

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 01/06/03

-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.)

-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 01/06/03

-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.)

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5114, 5124 of this title.

-End-

-CITE-

26 USC Sec. 5147 01/06/03

-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.)

-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 01/06/03

-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. 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; amended Pub. L. 94-455, title XIX, Sec. 1905(b)(3)(E), Oct.

4, 1976, 90 Stat. 1822.)

-MISC1-

PRIOR PROVISIONS

A 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.

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

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 01/06/03

-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.

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 5002, 5601 of this

title.

-FOOTNOTE-

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

-End-

-CITE-

26 USC Sec. 5171 01/06/03

-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."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5172, 5178, 5601, 5681 of

this title.

-End-

-CITE-

26 USC Sec. 5172 01/06/03

-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 01/06/03

-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."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5005, 5175, 5176, 5177,

5213 of this title.

-End-

-CITE-

26 USC [Sec. 5174 01/06/03

-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. Pub. L. 96-39, title VIII, Sec. 807(a)(14),

July 26, 1979, 93 Stat. 282]

-MISC1-

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 01/06/03

-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."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5176, 5177, 5214 of this

title.

-End-

-CITE-

26 USC Sec. 5176 01/06/03

-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 01/06/03

-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 01/06/03

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5511, 5601 of this title.

-End-

-CITE-

26 USC Sec. 5179 01/06/03

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5505, 5511, 5601, 5615 of

this title.

-End-

-CITE-

26 USC Sec. 5180 01/06/03

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5681 of this title.

-End-

-CITE-

26 USC Sec. 5181 01/06/03

-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]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5081, 5214, 5601, 6103 of

this title.

-End-

-CITE-

26 USC Sec. 5182 01/06/03

-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.)

-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 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 01/06/03

-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 01/06/03

-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".

-SECREF-

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in section 5216 of this title.

-End-

-CITE-

26 USC Sec. 5201 01/06/03

-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 01/06/03

-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 01/06/03

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5505, 5511, 5604 of this

title.

-End-

-CITE-

26 USC Sec. 5204 01/06/03

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5206 of this title.

-End-

-CITE-

26 USC [Sec. 5205 01/06/03

-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. Pub. L. 98-369, div. A, title IV, Sec.

454(a), July 18, 1984, 98 Stat. 820]

-MISC1-

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 01/06/03

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5116, 5604 of this title.

-End-

-CITE-

26 USC Sec. 5207 01/06/03

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5114, 5615 of this title.

-End-

-CITE-

26 USC PART II - OPERATIONS ON BONDED PREMISES 01/06/03

-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 01/06/03

-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 01/06/03

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5231 of this title.

-End-

-CITE-

26 USC Sec. 5212 01/06/03

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5005, 5181 of this title.

-End-

-CITE-

26 USC Sec. 5213 01/06/03

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5006 of this title.

-End-

-CITE-

26 USC Sec. 5214 01/06/03

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5001, 5002, 5003, 5004,

5005, 5008, 5066, 5173, 5181, 5211, 5244, 5271, 5273, 5275, 5314,

5607 of this title.

-End-

-CITE-

26 USC Sec. 5215 01/06/03

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5008, 5612 of this title.

-End-

-CITE-

26 USC Sec. 5216 01/06/03

-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 01/06/03

-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 01/06/03

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5601, 5615 of this title.

-End-

-CITE-

26 USC Sec. 5222 01/06/03

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5056, 5412 of this title.

-End-

-CITE-

26 USC Sec. 5223 01/06/03

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5004, 5005, 5211, 5607 of

this title.

-End-

-CITE-

26 USC Subpart C - Storage 01/06/03

-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 01/06/03

-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 01/06/03

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5001, 5003, 5007 of this

title.

-End-

-CITE-

26 USC [Sec. 5233 01/06/03

-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. Pub. L. 96-39, title VIII, Sec. 807(a)(34),

July 26, 1979, 93 Stat. 286]

-MISC1-

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 01/06/03

-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. Pub. L. 96-39, title VIII, Sec. 807(a)(35),

July 26, 1979, 93 Stat. 286]

-MISC1-

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 01/06/03

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5178, 5212 of this title.

-End-

-CITE-

26 USC Sec. 5236 01/06/03

-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 01/06/03

-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 01/06/03

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5214 of this title.

-End-

-CITE-

26 USC Sec. 5242 01/06/03

-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,