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[Document not affected by Public Laws enacted between
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[CITE: 19USC1309]
TITLE 19--CUSTOMS DUTIES
CHAPTER 4--TARIFF ACT OF 1930
SUBTITLE II--SPECIAL PROVISIONS
Part I--Miscellaneous
Sec. 1309. Supplies for certain vessels and aircraft
(a) Exemption from customs duties and internal-revenue tax
Articles of foreign or domestic origin may be withdrawn, under such
regulations as the Secretary of the Treasury may prescribe, from any
customs bonded warehouse, from continuous customs custody elsewhere than
in a bonded warehouse, or from a foreign-trade zone free of duty and
internal-revenue tax, or from any internal-revenue bonded warehouse,
from any brewery, or from any winery premises or bonded premises for the
storage of wine, free of internal-revenue tax--
(1) for supplies (not including equipment) of (A) vessels or
aircraft operated by the United States, (B) vessels of the United
States employed in the fisheries or in the whaling business, or
actually engaged in foreign trade or trade between the Atlantic and
Pacific ports of the United States or between the United States and
any of its possessions, or between Hawaii and any other part of the
United States, or between Alaska and any other part of the United
States, or (C) aircraft registered in the United States and actually
engaged in foreign trade or trade between the United States and any
of its possessions, or between Hawaii and any other part of the
United States or between Alaska and any other part of the United
States; or
(2) for supplies (including equipment) or repair of (A) vessels
of war of any foreign nation, or (B) foreign vessels employed in the
fisheries or in the whaling business, or actually engaged in foreign
trade or trade between the United States and any of its possessions,
or between Hawaii and any other part of the United States or between
Alaska and any other part of the United States, where such trade by
foreign vessels is permitted; or
(3) for supplies (including equipment), ground equipment,
maintenance, or repair of aircraft registered in any foreign country
and actually engaged in foreign trade or trade between the United
States and any of its possessions, or between Hawaii and any other
part of the United States or between Alaska and any other part of
the United States, where trade by foreign aircraft is permitted.
With respect to articles for ground equipment, the exemption
hereunder shall apply only to duties and to taxes imposed upon or by
reason of importation.
The provisions for free withdrawals made by this subsection shall
not apply to petroleum products for vessels or aircraft in voyages or
flights exclusively between Hawaii or Alaska and any airport or Pacific
coast seaport of the United States.
(b) Drawback
Articles withdrawn from bonded warehouses, bonded manufacturing
warehouses, continuous customs custody elsewhere than in a bonded
warehouse, or from a foreign-trade zone, imported articles, and articles
of domestic manufacture or production, laden as supplies upon any such
vessel or aircraft of the United States or laden as supplies (including
equipment) upon, or used in the maintenance or repair of, any such
foreign vessel or aircraft, shall be considered to be exported within
the meaning of the drawback provisions of this chapter.
(c) Articles removed in, or returned to, the United States
Any article exempted from duty or tax, or in respect of which
drawback has been allowed, under this section or section 1317 of this
title and thereafter removed in the United States from any vessel or
aircraft, or otherwise returned to the United States, shall be treated
as an importation from a foreign country.
(d) Reciprocal privileges
The privileges granted by this section and section 1317 of this
title in respect of aircraft registered in a foreign country shall be
allowed only if the Secretary of the Treasury shall have been advised by
the Secretary of Commerce that he has found that such foreign country
allows, or will allow, substantially reciprocal privileges in respect of
aircraft registered in the United States. If the Secretary of Commerce
shall advise the Secretary of the Treasury that he has found that a
foreign country has discontinued, or will discontinue, the allowance of
such privileges, the privileges granted by this section and such section
1317 shall not apply thereafter in respect of aircraft registered in
that foreign country.
(June 17, 1930, ch. 497, title III, Sec. 309, 46 Stat. 690; June 25,
1938, ch. 679, Sec. 5(a), 52 Stat. 1080; July 22, 1941, ch. 314, Sec. 3,
55 Stat. 602; Aug. 8, 1953, ch. 397, Sec. 11(a), 67 Stat. 514; Pub. L.
86-606, Sec. 5(a), July 7, 1960, 74 Stat. 361; Pub. L. 101-382, title
III, Sec. 484A(b), Aug. 20, 1990, 104 Stat. 708.)
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[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 26USC5055]
TITLE 26--INTERNAL REVENUE CODE
Subtitle E--Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51--DISTILLED SPIRITS, WINES, AND BEER
Subchapter A--Gallonage and Occupational Taxes
PART I--GALLONAGE TAXES
Subpart D--Beer
Sec. 5055. Drawback of tax
On the exportation of beer, brewed or produced in the United States,
the brewer thereof shall be allowed a drawback equal in amount to the
tax paid on such beer if there is such proof of exportation as the
Secretary may by regulations require. For the purpose of this section,
exportation shall include delivery for use as supplies on the vessels
and aircraft described in section 309 of the Tariff Act of 1930, as
amended (19 U.S.C. 1309).
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1335;
amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90
Stat. 1834; Pub. L. 105-34, title XIV, Sec. 1420(a), Aug. 5, 1997, 111
Stat. 1049.)
Prior Provisions
A prior section 5055, act Aug. 16, 1954, ch. 736, 68A Stat. 613,
related to ``determination and collection of tax on beer'', prior to the
general revision of this chapter by Pub. L. 85-859. See section
5054(a)(1), (2), (c), (d) of this title.
Provisions similar to those comprising this section were contained
in prior section 5056, act Aug. 16, 1954, ch. 736, 68A Stat. 613, prior
to the general revision of this chapter by Pub. L. 85-859.
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[CITE: 26USC5056]
TITLE 26--INTERNAL REVENUE CODE
Subtitle E--Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51--DISTILLED SPIRITS, WINES, AND BEER
Subchapter A--Gallonage and Occupational Taxes
PART I--GALLONAGE TAXES
Subpart D--Beer
Sec. 5056. Refund and credit of tax, or relief from liability
(a) Beer returned or voluntarily destroyed
Any tax paid by any brewer on beer removed for consumption or sale
may be refunded or credited to the brewer, without interest, or if the
tax has not been paid, the brewer may be relieved of liability therefor,
under such regulations as the Secretary may prescribe, if such beer is
returned to any brewery of the brewer or is destroyed under the
supervision required by such regulations. In determining the amount of
tax due on beer removed on any day, the quantity of beer returned to the
same brewery from which removed shall be allowed, under such regulations
as the Secretary may prescribe, as an offset against or deduction from
the total quantity of beer removed from that brewery on the day of such
return.
(b) Beer lost by fire, theft, casualty, or act of God
Subject to regulations prescribed by the Secretary, the tax paid by
any brewer on beer removed for consumption or sale may be refunded or
credited to the brewer, without interest, or if the tax has not been
paid, the brewer may be relieved of liability therefor, if such beer is
lost, whether by theft or otherwise, or is destroyed or otherwise
rendered unmerchantable by fire, casualty, or act of God before the
transfer of title thereto to any other person. In any case in which beer
is lost or destroyed, whether by theft or otherwise, the Secretary may
require the brewer to file a claim for relief from the tax and submit
proof as to the cause of such loss. In every case where it appears that
the loss was by theft, the first sentence shall not apply unless the
brewer establishes to the satisfaction of the Secretary that such theft
occurred before removal from the brewery and occurred without
connivance, collusion, fraud, or negligence on the part of the brewer,
consignor, consignee, bailee, or carrier, or the employees or agents of
any of them.
(c) Beer received at a distilled spirits plant
Any tax paid by any brewer on beer removed for consumption or sale
may be refunded or credited to the brewer, without interest, or if the
tax has not been paid, the brewer may be relieved of liability therefor,
under regulations as the Secretary may prescribe, if such beer is
received on the bonded premises of a distilled spirits plant pursuant to
the provisions of section 5222(b)(2), for use in the production of
distilled spirits.
(d) Limitations
No claim under this section shall be allowed (1) unless filed within
6 months after the date of the return, loss, destruction, rendering
unmerchantable, or receipt on the bonded premises of a distilled spirits
plant or (2) if the claimant was indemnified by insurance or otherwise
in respect of the tax.
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1335;
amended Pub. L. 91-673, Sec. 1(a), Jan. 12, 1971, 84 Stat. 2056; Pub. L.
94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834;
Pub. L. 105-34, title XIV, Sec. 1414(c), Aug. 5, 1997, 111 Stat. 1047;
Pub. L. 105-206, title VI, Sec. 6014(a)(3), July 22, 1998, 112 Stat.
820.)
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[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 26USC5062]
TITLE 26--INTERNAL REVENUE CODE
Subtitle E--Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51--DISTILLED SPIRITS, WINES, AND BEER
Subchapter A--Gallonage and Occupational Taxes
PART I--GALLONAGE TAXES
Subpart E--General Provisions
Sec. 5062. Refund and drawback in case of exportation
(a) Refund
Under such regulations as the Secretary may prescribe, the amount of
any internal revenue tax erroneously or illegally collected in respect
to exported articles may be refunded to the exporter of the article,
instead of to the manufacturer, if the manufacturer waives any claim for
the amount so to be refunded.
(b) Drawback
On the exportation of distilled spirits or wines manufactured,
produced, bottled, or packaged in casks or other bulk containers in the
United States on which an internal revenue tax has been paid or
determined, and which are contained in any cask or other bulk container,
or in bottles packed in cases or other containers, there shall be
allowed, under regulations prescribed by the Secretary, a drawback equal
in amount to the tax found to have been paid or determined on such
distilled spirits or wines. In the case of distilled spirits, the
preceding sentence shall not apply unless the claim for drawback is
filed by the bottler or packager of the spirits and unless such spirits
have been marked, especially for export, under regulations prescribed by
the Secretary. The Secretary is authorized to prescribe regulations
governing the determination and payment or crediting of drawback of
internal revenue tax on spirits and wines eligible for drawback under
this subsection, including the requirements of such notices, bonds,
bills of lading, and other evidence indicating payment or determination
of tax and exportation as shall be deemed necessary.
(c) Exportation of imported liquors
(1) Allowance of tax
Upon the exportation of imported distilled spirits, wines, and
beer upon which the duties and internal revenue taxes have been paid
or determined incident to their importation into the United States,
and which have been found after entry to be unmerchantable or not to
conform to sample or specifications, and which have been returned to
customs custody, the Secretary shall, under such regulations as he
shall prescribe, refund, remit, abate, or credit, without interest,
to the importer thereof, the full amount of the internal revenue
taxes paid or determined with respect to such distilled spirits,
wines, or beer.
(2) Destruction in lieu of exportation
At the option of the importer, such imported distilled spirits,
wines, and beer, after return to customs custody, may be destroyed
under customs supervision and the importer thereof granted relief in
the same manner and to the same extent as provided in this
subsection upon exportation.
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1336;
amended Pub. L. 88-539, Sec. 1, Aug. 31, 1964, 78 Stat. 746; Pub. L. 89-
44, title VIII, Sec. 805(f)(6), June 21, 1965, 79 Stat. 161; Pub. L. 90-
630, Sec. 2(a), Oct. 22, 1968, 82 Stat. 1328; Pub. L. 94-455, title XIX,
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-176,
Sec. 1, Nov. 14, 1977, 91 Stat. 1363; Pub. L. 98-369, div. A, title IV,
Sec. 454(c)(1), July 18, 1984, 98 Stat. 820.)
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[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 26USC5214]
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
Sec. 5214. Withdrawal of distilled spirits from bonded premises
free of tax or without payment of tax
(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.
(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.)
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[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 26USC5223]
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
Sec. 5223. Redistillation of spirits, articles, and residues
(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.
(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.)
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[Laws in effect as of January 24, 2002]
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January 24, 2002 and December 19, 2002]
[CITE: 26USC5301]
TITLE 26--INTERNAL REVENUE CODE
Subtitle E--Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51--DISTILLED SPIRITS, WINES, AND BEER
Subchapter E--General Provisions Relating to Distilled Spirits
PART II--REGULATION OF TRAFFIC IN CONTAINERS OF DISTILLED SPIRITS
Sec. 5301. General
(a) Requirements
Whenever in his judgment such action is necessary to protect the
revenue, the Secretary is authorized, by the regulations prescribed by
him and permits issued thereunder if required by him--
(1) to regulate the kind, size, branding, marking, sale, resale,
possession, use, and reuse of containers (of a capacity of not more
than 5 wine gallons) designed or intended for use for the sale of
distilled spirits (within the meaning of such term as it is used in
section 5002(a)(8) for other than industrial use; and
(2) to require, of persons manufacturing, dealing in, or using
any such containers, the submission to such inspection, the keeping
of such records, and the filing of such reports as may be deemed by
him reasonably necessary in connection therewith.
Any requirements imposed under this section shall be in addition to any
other requirements imposed by, or pursuant to, law and shall apply as
well to persons not liable for tax under the internal revenue laws as to
persons so liable.
(b) Disposition
Every person disposing of containers of the character used for the
packaging of distilled spirits shall, when required by the Secretary for
protection of the revenue, render a correct return, in such form and
manner as the Secretary may by regulations prescribe, showing the name
and address of the person to whom each disposition was made, with such
details as to the quantities so disposed of or other information which
the Secretary may require as to each such disposition. Every person
required to render a return under this section shall keep such records
as will enable such person to render a correct return. Such records
shall be preserved for such period as the Secretary shall by regulations
prescribe, and shall be kept available for inspection by any internal
revenue officer during business hours.
(c) Refilling of liquor bottles
No person who sells, or offers for sale, distilled spirits, or agent
or employee of such person, shall--
(1) place in any liquor bottle any distilled spirits whatsoever
other than those contained in such bottle at the time of tax
determination under the provisions of this chapter; or
(2) possess any liquor bottle in which any distilled spirits
have been placed in violation of the provisions of paragraph (1); or
(3) by the addition of any substance whatsoever to any liquor
bottle, in any manner alter or increase any portion of the original
contents contained in such bottle at the time of tax determination
under the provisions of this chapter; or
(4) possess any liquor bottle, any portion of the contents of
which has been altered or increased in violation of the provisions
of paragraph (3);
except that the Secretary may by regulations authorize the reuse of
liquor bottles, under such conditions as he may by regulations
prescribe. When used in this subsection the term ``liquor bottle'' shall
mean a liquor bottle or other container which has been used for the
bottling or packaging of distilled spirits under regulations issued
pursuant to subsection (a).
(d) Closures
The immediate container of distilled spirits withdrawn from bonded
premises, or from customs custody, on determination of tax shall bear a
closure or other device which is designed so as to require breaking in
order to gain access to the contents of such container. The preceding
sentence shall not apply to containers of bulk distilled spirits.
(e) Penalty
For penalty for violation of this section, see section 5606.
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1374;
amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90
Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(41), July 26, 1979,
93 Stat. 287; Pub. L. 98-369, div. A, title IV, Sec. 454(b), (c)(9),
July 18, 1984, 98 Stat. 820, 821.)
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[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 26USC5314]
TITLE 26--INTERNAL REVENUE CODE
Subtitle E--Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51--DISTILLED SPIRITS, WINES, AND BEER
Subchapter E--General Provisions Relating to Distilled Spirits
PART III--MISCELLANEOUS PROVISIONS
Sec. 5314. Special applicability of certain provisions
(a) Puerto Rico
(1) Applicability
The provisions of this subsection shall not apply to the
Commonwealth of Puerto Rico unless the Legislative Assembly of the
Commonwealth of Puerto Rico expressly consents thereto in the manner
prescribed in the constitution of the Commonwealth of Puerto Rico,
for the enactment of a law.
(2) In general
Distilled spirits for the purposes authorized in section
5214(a)(2) and (3), denatured distilled spirits, and articles, as
described in this paragraph, produced or manufactured in Puerto
Rico, may be brought into the United States free of any tax imposed
by section 5001(a)(10) \1\ or 7652(a)(1) for disposal under the same
conditions as like spirits, denatured spirits, and articles,
produced or manufactured in the United States; and the provisions of
this chapter and regulations promulgated thereunder (and all other
provisions of the internal revenue laws applicable to the
enforcement thereof, including the penalties of special application
thereto) relating to the production, bonded warehousing, and
denaturation of distilled spirits, to the withdrawal of distilled
spirits or denatured distilled spirits, and to the manufacture of
articles from denatured distilled spirits, shall, insofar as
applicable, extend to and apply in Puerto Rico in respect of--
---------------------------------------------------------------------------
\1\ See References in Text note below.
---------------------------------------------------------------------------
(A) distilled spirits for shipment to the United States for
the purposes authorized in section 5214(a)(2) and (3);
(B) distilled spirits for denaturation;
(C) denatured distilled spirits for shipment to the United
States;
(D) denatured distilled spirits for use in the manufacture
of articles for shipment to the United States; and
(E) articles, manufactured from denatured distilled spirits,
for shipment to the United States.
(3) Withdrawals authorized by Puerto Rico
Distilled spirits (including denatured distilled spirits) may be
withdrawn from the bonded premises of a distilled spirits plant in
Puerto Rico pursuant to authorization issued under the laws of the
Commonwealth of Puerto Rico; such spirits so withdrawn, and products
containing such spirits so withdrawn, may not be brought into the
United States free of tax.
(4) Costs of administration
Any expenses incurred by the Treasury Department in connection
with the enforcement in Puerto Rico of the provisions of this
subtitle and section 7652(a), and regulations promulgated
thereunder, shall be charged against and retained out of taxes
collected under this title in respect of commodities of Puerto Rican
manufacture brought into the United States. The funds so retained
shall be deposited as a reimbursement to the appropriation to which
such expenses were originally charged.
(b) Virgin Islands
(1) In general
Distilled spirits for the purposes authorized in section
5214(a)(2) and (3), denatured distilled spirits, and articles, as
described in this paragraph, produced or manufactured in the Virgin
Islands, may be brought into the United States free of any tax
imposed by section 7652(b)(1) for disposal under the same conditions
as like spirits, denatured spirits, and articles, produced or
manufactured in the United States; and the provisions of this
chapter and regulations promulgated thereunder (and all other
provisions of the internal revenue laws applicable to the
enforcement thereof, including the penalties of special application
thereto) relating to the production, bonded warehousing, and
denaturation of distilled spirits, to the withdrawal of distilled
spirits or denatured distilled spirits, and to the manufacture of
articles from denatured distilled spirits, shall, insofar as
applicable, extend to and apply in the Virgin Islands in respect
of--
(A) distilled spirits for shipment to the United States for
the purposes authorized in section 5214(a)(2) and (3);
(B) distilled spirits for denaturation;
(C) denatured distilled spirits for shipment to the United
States;
(D) denatured distilled spirits for use in the manufacture
of articles for shipment to the United States; and
(E) articles, manufactured from denatured distilled spirits,
for shipment to the United States.
(2) Advance of funds
The insular government of the Virgin Islands shall advance to
the Treasury of the United States such funds as may be required from
time to time by the Secretary for the purpose of defraying all
expenses incurred by the Treasury Department in connection with the
enforcement in the Virgin Islands of paragraph (1) and regulations
promulgated thereunder. The funds so advanced shall be deposited in
a separate trust fund in the Treasury of the United States and shall
be available to the Treasury Department for the purposes of this
subsection.
(3) Regulations issued by Virgin Islands
The Secretary may authorize the Governor of the Virgin Islands,
or his duly authorized agents, to issue or adopt such regulations,
to approve such bonds, and to issue, suspend, or revoke such
permits, as are necessary to carry out the provisions of this
subsection. When regulations have been issued or adopted under this
paragraph with concurrence of the Secretary he may exempt the Virgin
Islands from any provisions of law and regulations otherwise made
applicable by the provisions of paragraph (1), except that denatured
distilled spirits, articles and distilled spirits for tax-free
purposes which are brought into the United States from the Virgin
Islands under the provisions of this subsection shall in all
respects conform to the requirements of law and regulations imposed
on like products of domestic manufacture.
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1375;
amended Pub. L. 94-455, title XIX, Secs. 1905(a)(18), 1906(b)(13)(A),
Oct. 4, 1976, 90 Stat. 1820, 1834.)
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and February 12, 2003]
[CITE: 26USC5362]
TITLE 26--INTERNAL REVENUE CODE
Subtitle E--Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51--DISTILLED SPIRITS, WINES, AND BEER
Subchapter F--Bonded and Taxpaid Wine Premises
PART II--OPERATIONS
Sec. 5362. Removals of wine from bonded wine cellars
(a) Withdrawals on determination of tax
Wine may be withdrawn from bonded wine cellars on payment or
determination of the tax thereon, under such regulations as the
Secretary shall prescribe.
(b) Transfers of wine between bonded premises
(1) In general
Wine on which the tax has not been paid or determined may, under
such regulations as the Secretary shall prescribe, be transferred in
bond between bonded premises.
(2) Wine transferred to a distilled spirits plant may not be
removed for consumption or sale as wine
Any wine transferred to the bonded premises of a distilled
spirits plant--
(A) may be used in the manufacture of a distilled spirits
product, and
(B) may not be removed from such bonded premises for
consumption or sale as wine.
(3) Continued liability for tax
The liability for tax on wine transferred to the bonded premises
of a distilled spirits plant pursuant to paragraph (1) shall (except
as otherwise provided by law) continue until the wine is used in a
distilled spirits product.
(4) Transfer in bond not treated as removal for consumption
or sale
For purposes of this chapter, the removal of wine for transfer
in bond between bonded premises shall not be treated as a removal
for consumption or sale.
(5) Bonded premises
For purposes of this subsection, the term ``bonded premises''
means a bonded wine cellar or the bonded premises of a distilled
spirits plant.
(c) Withdrawals of wine free of tax or without payment of tax
Wine on which the tax has not been paid or determined may, under
such regulations and bonds as the Secretary may deem necessary to
protect the revenue, be withdrawn from bonded wine cellars--
(1) without payment of tax for export by the proprietor or by
any authorized exporter;
(2) without payment of tax for transfer to any foreign-trade
zone;
(3) without payment of tax for use of certain vessels and
aircraft as authorized by law;
(4) without payment of tax for transfer to any customs bonded
warehouse;
(5) without payment of tax for use in the production of vinegar;
(6) without payment of tax for use in distillation in any
distilled spirits plant authorized to produce distilled spirits;
(7) free of tax for experimental or research purposes by any
scientific university, college of learning, or institution of
scientific research;
(8) free of tax for use by or for the account of the proprietor
or his agents for analysis or testing, organoleptic or otherwise;
and
(9) free of tax for use by the United States or any agency
thereof, and for use for analysis, testing, research, or
experimentation by the governments of the several States and the
District of Columbia or of any political subdivision thereof or by
any agency of such governments. No bond shall be required of any
such government or agency under this paragraph.
(d) Withdrawal free of tax of wine and wine products unfit for beverage
use
Under such regulations as the Secretary may deem necessary to
protect the revenue, wine, or wine products made from wine, when
rendered unfit for beverage use, on which the tax has not been paid or
determined, may be withdrawn from bonded wine cellars free of tax. The
wine or wine products to be so withdrawn may be treated with methods or
materials which render such wine or wine products suitable for their
intended use. No wine or wine products so withdrawn shall contain more
than 21 percent of alcohol by volume, or be used in the compounding of
distilled spirits or wine for beverage use or in the manufacture of any
product intended to be used in such compounding.
(e) Withdrawal from customs bonded warehouses for use of foreign
embassies, legations, etc.
(1) In general
Notwithstanding any other provision of law, wine entered into
customs bonded warehouses under subsection (c)(4) may, under such
regulations as the Secretary may prescribe, be withdrawn from such
warehouses for consumption in the United States by and for the
official or family use of such foreign governments, organizations,
and individuals who are entitled to withdraw imported wines from
such warehouses free of tax. Wines transferred to customs bonded
warehouses under subsection (c)(4) shall be entered, stored, and
accounted for in such warehouses under such regulations and bonds as
the Secretary may prescribe, and may be withdrawn therefrom by such
governments, organizations, and individuals free of tax under the
same conditions and procedures as imported wines.
(2) Withdrawal for domestic use
Wine entered into customs bonded warehouses under subsection
(c)(4) for purposes of removal under paragraph (1) may be withdrawn
therefrom for domestic use. Wines so withdrawn shall be treated as
American goods exported and returned.
(3) Sale or unauthorized use prohibited
Wine withdrawn from customs bonded warehouses or otherwise
brought into the United States free of tax for the official or
family use of foreign governments, organizations, or individuals
authorized to obtain wine free of tax shall not be sold and shall
not be disposed of or possessed for any use other than an authorized
use. The provisions of paragraphs (1)(B) and (3) of section 5043(a)
are hereby extended and made applicable to any person selling,
disposing of, or possessing any wine in violation of the preceding
sentence, and to the wine involved in any such violation.
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1380;
amended Pub. L. 90-73, Sec. 1(a), Aug. 29, 1967, 81 Stat. 175; Pub. L.
94-455, title XIX, Secs. 1905(c)(4), 1906(b)(13)(A), Oct. 4, 1976, 90
Stat. 1823, 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(44), July 26,
1979, 93 Stat. 287; Pub. L. 96-601, Sec. 2(a), (b), Dec. 24, 1980, 94
Stat. 3495.)
| File Type | application/msword |
| File Title | From the U |
| Author | TTB |
| Last Modified By | TTB |
| File Modified | 2006-07-12 |
| File Created | 2006-07-12 |