1513-0075
26 U.S.C.
Sec. 5001. Imposition, rate, and attachment of tax
(a) Rate of tax
(1) General
There is hereby imposed on all distilled spirits produced in or
imported into the United States a tax at the rate of $13.50 on each
proof gallon and a proportionate tax at the like rate on all
fractional parts of a proof gallon.
(2) Products containing distilled spirits
All products of distillation, by whatever name known, which
contain distilled spirits, on which the tax imposed by law has not
been paid, and any alcoholic ingredient added to such products,
shall be considered and taxed as distilled spirits.
(3) Wines containing more than 24 percent alcohol by volume
Wines containing more than 24 percent of alcohol by volume shall
be taxed as distilled spirits.
(4) Distilled spirits withdrawn free of tax
Any person who removes, sells, transports, or uses distilled
spirits, withdrawn free of tax under section 5214(a) or section
7510, in violation of laws or regulations now or hereafter in force
pertaining thereto, and all such distilled spirits shall be subject
to all provisions of law relating to distilled spirits subject to
tax, including those requiring payment of the tax thereon; and the
person so removing, selling, transporting, or using the distilled
spirits shall be required to pay such tax.
(5) Denatured distilled spirits or articles
Any person who produces, withdraws, sells, transports, or uses
denatured distilled spirits or articles in violation of laws or
regulations now or hereafter in force pertaining thereto, and all
such denatured distilled spirits or articles shall be subject to all
provisions of law pertaining to distilled spirits that are not
denatured, including those requiring the payment of tax thereon; and
the person so producing, withdrawing, selling, transporting, or
using the denatured distilled spirits or articles shall be required
to pay such tax.
(6) Fruit-flavor concentrates
If any volatile fruit-flavor concentrate (or any fruit mash or
juice from which such concentrate is produced) containing one-half
of 1 percent or more of alcohol by volume, which is manufactured
free from tax under section 5511, is sold, transported, or used by
any person in violation of the provisions of this chapter or
regulations promulgated thereunder, such person and such
concentrate, mash, or juice shall be subject to all provisions of
this chapter pertaining to distilled spirits and wines, including
those requiring the payment of tax thereon; and the person so
selling, transporting, or using such concentrate, mash, or juice
shall be required to pay such tax.
(7) Imported liqueurs and cordials
Imported liqueurs and cordials, or similar compounds, containing
distilled spirits, shall be taxed as distilled spirits.
(8) Imported distilled spirits withdrawn for beverage
purposes
There is hereby imposed on all imported distilled spirits
withdrawn from customs custody under section 5232 without payment of
the internal revenue tax, and thereafter withdrawn from bonded
premises for beverage purposes, an additional tax equal to the duty
which would have been paid had such spirits been imported for
beverage purposes, less the duty previously paid thereon.
(9) Alcoholic compounds from Puerto Rico
Except as provided in section 5314, upon bay rum, or any article
containing distilled spirits, brought from Puerto Rico into the
United States for consumption or sale there is hereby imposed a tax
on the spirits contained therein at the rate imposed on distilled
spirits produced in the United States.
(b) Time of attachment on distilled spirits
The tax shall attach to distilled spirits as soon as this substance
is in existence as such, whether it be subsequently separated as pure or
impure spirits, or be immediately, or at any subsequent time,
transferred into any other substance, either in the process of original
production or by any subsequent process.
(c) Cross reference
For provisions relating to the tax on shipments to the
United States of taxable articles from Puerto Rico and the
Virgin Islands, see section 7652.
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1314;
amended Pub. L. 86-75, Sec. 3(a)(2), (3), June 30, 1959, 73 Stat. 157;
Pub. L. 86-564, title II, Sec. 202(a)(4), (5), June 30, 1960, 74 Stat.
290; Pub. L. 87-72, Sec. 3(a)(4), (5), June 30, 1961, 75 Stat. 193; Pub.
L. 87-508, Sec. 3(a)(3), (4), June 28, 1962, 76 Stat. 114; Pub. L. 88-
52, Sec. 3(a)(4), (5), June 29, 1963, 77 Stat. 72; Pub. L. 88-348,
Sec. 2(a)(4), (5), June 30, 1964, 78 Stat. 237; Pub. L. 89-44, title V,
Sec. 501(a), June 21, 1965, 79 Stat. 150; Pub. L. 96-39, title VIII,
Secs. 802, 805(d), July 26, 1979, 93 Stat. 273, 278; Pub. L. 98-369,
div. A, title I, Sec. 27(a)(1), July 18, 1984, 98 Stat. 507; Pub. L.
101-508, title XI, Sec. 11201(a)(1), Nov. 5, 1990, 104 Stat. 1388-415;
Pub. L. 103-465, title I, Sec. 136(a), Dec. 8, 1994, 108 Stat. 4841.)
Sec. 5041. Imposition and rate of tax
(a) Imposition
There is hereby imposed on all wines (including imitation,
substandard, or artificial wine, and compounds sold as wine) having not
in excess of 24 percent of alcohol by volume, in bond in, produced in,
or imported into, the United States, taxes at the rates shown in
subsection (b), such taxes to be determined as of the time of removal
for consumption or sale. All wines containing more than 24 percent of
alcohol by volume shall be classed as distilled spirits and taxed
accordingly. Still wines shall include those wines containing not more
than 0.392 gram of carbon dioxide per hundred milliliters of wine;
except that the Secretary may by regulations prescribe such tolerances
to this maximum limitation as may be reasonably necessary in good
commercial practice.
(b) Rates of tax
(1) On still wines containing not more than 14 percent of alcohol by
volume, $1.07 per wine gallon;
(2) On still wines containing more than 14 percent and not exceeding
21 percent of alcohol by volume, $1.57 per wine gallon;
(3) On still wines containing more than 21 percent and not exceeding
24 percent of alcohol by volume, $3.15 per wine gallon;
(4) On champagne and other sparkling wines, $3.40 per wine gallon;
(5) On artificially carbonated wines, $3.30 per wine gallon; and
(6) On hard cider which is a still wine derived primarily from
apples or apple concentrate and water, containing no other fruit
product, and containing at least one-half of 1 percent and less than 7
percent alcohol by volume, 22.6 cents per wine gallon.
(c) Credit for small domestic producers
(1) Allowance of credit
Except as provided in paragraph (2), in the case of a person who
produces not more than 250,000 wine gallons of wine during the
calendar year, there shall be allowed as a credit against any tax
imposed by this title (other than chapters 2, 21, and 22) of 90
cents per wine gallon on the 1st 100,000 wine gallons of wine (other
than wine described in subsection (b)(4)) which are removed during
such year for consumption or sale and which have been produced at
qualified facilities in the United States. In the case of wine
described in subsection (b)(6), the preceding sentence shall be
applied by substituting ``5.6 cents'' for ``90 cents''.
(2) Reduction in credit
The credit allowable by paragraph (1) shall be reduced (but not
below zero) by 1 percent for each 1,000 wine gallons of wine
produced in excess of 150,000 wine gallons of wine during the
calendar year.
(3) Time for determining and allowing credit
The credit allowable by paragraph (1)--
(A) shall be determined at the same time the tax is
determined under subsection (a) of this section, and
(B) shall be allowable at the time any tax described in
paragraph (1) is payable as if the credit allowable by this
subsection constituted a reduction in the rate of such tax.
(4) Controlled groups
Rules similar to rules of section 5051(a)(2)(B) shall apply for
purposes of this subsection.
(5) Denial of deduction
Any deduction under subtitle A with respect to any tax against
which a credit is allowed under this subsection shall only be for
the amount of such tax as reduced by such credit.
(6) Credit for transferee in bond
If--
(A) wine produced by any person would be eligible for any
credit under paragraph (1) if removed by such person during the
calendar year,
(B) wine produced by such person is removed during such
calendar year by any other person (hereafter in this paragraph
referred to as the ``transferee'') to whom such wine was
transferred in bond and who is liable for the tax imposed by
this section with respect to such wine, and
(C) such producer holds title to such wine at the time of
its removal and provides to the transferee such information as
is necessary to properly determine the transferee's credit under
this paragraph,
then, the transferee (and not the producer) shall be allowed the
credit under paragraph (1) which would be allowed to the producer if
the wine removed by the transferee had been removed by the producer
on that date.
(7) Regulations
The Secretary may prescribe such regulations as may be necessary
to carry out the purposes of this subsection, including
regulations--
(A) to prevent the credit provided in this subsection from
benefiting any person who produces more than 250,000 wine
gallons of wine during a calendar year, and
(B) to assure proper reduction of such credit for persons
producing more than 150,000 wine gallons of wine during a
calendar year.
(d) Wine gallon
For the purpose of this chapter, the term ``wine gallon'' means a
United States gallon of liquid measure equivalent to the volume of 231
cubic inches. On lesser quantities the tax shall be paid proportionately
(fractions of less than one-tenth gallon being converted to the nearest
one-tenth gallon, and five-hundredths gallon being converted to the next
full one-tenth gallon).
(e) Tolerances
Where the Secretary finds that the revenue will not be endangered
thereby, he may by regulation prescribe tolerances (but not greater than
\1/2\ of 1 percent) for bottles and other containers, and, if such
tolerances are prescribed, no assessment shall be made and no tax shall
be collected for any excess in any case where the contents of a bottle
or other container are within the limit of the applicable tolerance
prescribed.
(f) Illegally produced wine
Notwithstanding subsection (a), any wine produced in the United
States at any place other than the bonded premises provided for in this
chapter shall (except as provided in section 5042 in the case of tax-
free production) be subject to tax at the rate prescribed in subsection
(b) at the time of production and whether or not removed for consumption
or sale.
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1331;
amended Pub. L. 86-75, Sec. 3(a)(5), June 30, 1959, 73 Stat. 157; Pub.
L. 86-564, title II, Sec. 202(a)(7), June 30, 1960, 74 Stat. 290; Pub.
L. 87-72, Sec. 3(a)(7), June 30, 1961, 75 Stat. 193; Pub. L. 87-508,
Sec. 3(a)(6), June 28, 1962, 76 Stat. 114; Pub. L. 88-52, Sec. 3(a)(7),
June 29, 1963, 77 Stat. 72; Pub. L. 88-348, Sec. 2(a)(7), June 30, 1964,
78 Stat. 237; Pub. L. 89-44, title V, Sec. 501(c), title VIII,
Sec. 806(a), June 21, 1965, 79 Stat. 150, 162; Pub. L. 93-490,
Sec. 6(a), Oct. 26, 1974, 88 Stat. 1468; Pub. L. 94-455, title XIX,
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 100-647, title
VI, Sec. 6101(a), Nov. 10, 1988, 102 Stat. 3710; Pub. L. 101-508, title
XI, Sec. 11201(b)(1), (2), Nov. 5, 1990, 104 Stat. 1388-415, 1388-416;
Pub. L. 104-188, title I, Sec. 1702(b)(5), Aug. 20, 1996, 110 Stat.
1868; Pub. L. 105-34, title IX, Sec. 908(a), (b), Aug. 5, 1997, 111
Stat. 876; Pub. L. 105-206, title VI, Sec. 6009(a), July 22, 1998, 112
Stat. 812.)
Sec. 5051. Imposition and rate of tax
(a) Rate of tax
(1) In general
A tax is hereby imposed on all beer brewed or produced, and
removed for consumption or sale, within the United States, or
imported into the United States. Except as provided in paragraph
(2), the rate of such tax shall be $18 for every barrel containing
not more than 31 gallons and at a like rate for any other quantity
or for fractional parts of a barrel.
(2) Reduced rate for certain domestic production
(A) $7 a barrel rate
In the case of a brewer who produces not more than 2,000,000
barrels of beer during the calendar year, the per barrel rate of
the tax imposed by this section shall be $7 on the first 60,000
barrels of beer which are removed in such year for consumption
or sale and which have been brewed or produced by such brewer at
qualified breweries in the United States.
(B) Controlled groups
In the case of a controlled group, the 2,000,000 barrel
quantity specified in subparagraph (A) shall be applied to the
controlled group, and the 60,000 barrel quantity specified in
subparagraph (A) shall be apportioned among the brewers who are
component members of such group in such manner as the Secretary
or his delegate shall by regulations prescribed. For purposes of
the preceding sentence, the term ``controlled group'' has the
meaning assigned to it by subsection (a) of section 1563, except
that for such purposes the phrase ``more than 50 percent'' shall
be substituted for the phrase ``at least 80 percent'' in each
place it appears in such subsection. Under regulations
prescribed by the Secretary or his delegate, principles similar
to the principles of the preceding two sentences shall be
applied to a group of brewers under common control where one or
more of the brewers is not a corporation.
(C) Regulations
The Secretary may prescribe such regulations as may be
necessary to prevent the reduced rates provided in this
paragraph from benefiting any person who produces more than
2,000,000 barrels of beer during a calendar year.
(3) Tolerances
Where the Secretary or his delegate finds that the revenue will
not be endangered thereby, he may by regulations prescribe
tolerances for barrels and fractional parts of barrels, and, if such
tolerances are prescribed, no assessment shall be made and no tax
shall be collected for any excess in any case where the contents of
a barrel or a fractional part of a barrel are within the limit of
the applicable tolerance prescribed.
(b) Assessment on materials used in production in case of fraud
Nothing contained in this subpart or subchapter G shall be construed
to authorize an assessment on the quantity of materials used in
producing or purchased for the purpose of producing beer, nor shall the
quantity of materials so used or purchased be evidence, for the purpose
of taxation, of the quantity of beer produced; but the tax on all beer
shall be paid as provided in section 5054, and not otherwise; except
that this subsection shall not apply to cases of fraud, and nothing in
this subsection shall have the effect to change the rules of law
respecting evidence in any prosecution or suit.
(c) Illegally produced beer
The production of any beer at any place in the United States shall
be subject to tax at the rate prescribed in subsection (a) and such tax
shall be due and payable as provided in section 5054(a)(3) unless--
(1) such beer is produced in a brewery qualified under the
provisions of subchapter G, or
(2) such production is exempt from tax under section 5053(e)
(relating to beer for personal or family use).
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1333;
amended Pub. L. 86-75, Sec. 3(a)(6), June 30, 1959, 73 Stat. 157; Pub.
L. 86-564, title II, Sec. 202(a)(8), June 30, 1960, 74 Stat. 290; Pub.
L. 87-72, Sec. 3(a)(8), June 30, 1961, 75 Stat. 193; Pub. L. 87-508,
Sec. 3(a)(7), June 28, 1962, 76 Stat. 114; Pub. L. 88-52, Sec. 3(a)(8),
June 29, 1963, 77 Stat. 72; Pub. L. 88-348, Sec. 2(a)(8), June 30, 1964,
78 Stat. 237; Pub. L. 89-44, title V, Sec. 501(d), June 21, 1965, 79
Stat. 150; Pub. L. 94-529, Sec. 1, Oct. 17, 1976, 90 Stat. 2485; Pub. L.
95-458, Sec. 2(b)(2)(A), Oct. 14, 1978, 92 Stat. 1256; Pub. L. 101-508,
title XI, Sec. 11201(c), Nov. 5, 1990, 104 Stat. 1388-416.)
Sec. 5053. Exemptions
(a) Removals for export
Beer may be removed from the brewery, without payment of tax, for
export, in such containers and under such regulations, and on the giving
of such notices, entries, and bonds and other security, as the Secretary
may by regulations prescribe.
(b) Removals when unfit for beverage use
When beer has become sour or damaged, so as to be incapable of use
as such, a brewer may remove the same from his brewery without payment
of tax, for manufacturing purposes, under such regulations as the
Secretary may prescribe.
(c) Removals for laboratory analysis
Beer may be removed from the brewery, without payment of tax, for
laboratory analysis, subject to such limitations and under such
regulations as the Secretary may prescribe.
(d) Removals for research, development, or testing
Under such conditions and regulations as the Secretary may
prescribe, beer may be removed from the brewery without payment of tax
for use in research, development, or testing (other than consumer
testing or other market analysis) of processes, systems, materials, or
equipment relating to beer or brewery operations.
(e) Beer for personal or family use
Subject to regulation prescribed by the Secretary, any adult may,
without payment of tax, produce beer for personal or family use and not
for sale. The aggregate amount of beer exempt from tax under this
subsection with respect to any household shall not exceed--
(1) 200 gallons per calendar year if there are 2 or more adults
in such household, or
(2) 100 gallons per calendar year if there is only 1 adult in
such household.
For purposes of this subsection, the term ``adult'' means an individual
who has attained 18 years of age, or the minimum age (if any)
established by law applicable in the locality in which the household is
situated at which beer may be sold to individuals, whichever is greater.
(f) Removal for use as distilling material
Subject to such regulations as the Secretary may prescribe, beer may
be removed from a brewery without payment of tax to any distilled
spirits plant for use as distilling material.
(g) Removals for use of foreign embassies, legations, etc.
(1) In general
Subject to such regulations as the Secretary may prescribe--
(A) beer may be withdrawn from the brewery without payment
of tax for transfer to any customs bonded warehouse for entry
pending withdrawal therefrom as provided in subparagraph (B),
and
(B) beer entered into any customs bonded warehouse under
subparagraph (A) may be withdrawn for consumption in the United
States by, and for the official and family use of, such foreign
governments, organizations, and individuals as are entitled to
withdraw imported beer from such warehouses free of tax.
Beer transferred to any customs bonded warehouse under subparagraph
(A) shall be entered, stored, and accounted for in such warehouse
under such regulations and bonds as the Secretary may prescribe, and
may be withdrawn therefrom by such governments, organizations, and
individuals free of tax under the same conditions and procedures as
imported beer.
(2) Other rules to apply
Rules similar to the rules of paragraphs (2) and (3) of section
5362(e) shall apply for purposes of this subsection.
(h) Removals for destruction
Subject to such regulations as the Secretary may prescribe, beer may
be removed from the brewery without payment of tax for destruction.
(i) Removal as supplies for certain vessels and aircraft
For exemption as to supplies for certain vessels and
aircraft, see section 309 of the Tariff Act of 1930, as amended
(19 U.S.C. 1309).
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1334;
amended Pub. L. 89-44, title VIII, Sec. 807(b), June 21, 1965, 79 Stat.
164; Pub. L. 91-673, Sec. 2, Jan. 12, 1971, 84 Stat. 2056; Pub. L. 94-
455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub.
L. 95-458, Sec. 2(b)(1), Oct. 14, 1978, 92 Stat. 1255; Pub. L. 105-34,
title XIV, Secs. 1414(b), 1418(a), 1419(a), Aug. 5, 1997, 111 Stat.
1047-1049.)
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.)
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.)
27 CFR
Sec. 28.45 Retention of records.
File copies of forms required by this part to be retained by any
proprietor or claimant, and all records, documents, or copies of records and documents supporting such forms, shall be preserved by such
proprietor or claimant for a period of not less than two years, and
during such period shall be available, during business hours, for inspection and the taking of abstracts therefrom by appropriate TTB officers.
(Approved by the Office of Management and Budget under control number
1513-0075)
(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, as amended, 1381, as amended,
1390, as amended, 1395, as amended (26 U.S.C. 5114, 5367, 5415, 5555);
sec. 807, Pub. L. 96-39, 93 Stat. 283 (26 U.S.C. 5207))
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-62, 44 FR 71721, Dec. 11, 1979; T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]
| File Type | application/msword |
| File Title | From the U |
| Author | ATF |
| Last Modified By | TTB |
| File Modified | 2008-07-14 |
| File Created | 2008-06-30 |