Subchapter C—Operation of Distilled Spirits Plants
Editorial Notes
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
Amendments
1979—
PART I—GENERAL PROVISIONS
Editorial Notes
Prior Provisions
A prior part I, Establishment, consisted of sections 5231 to 5233, prior to the general revision of this chapter by
Amendments
1984—
§5201. Regulation of operations
(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.
(Added
Editorial Notes
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
| 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
Amendments
1979—Subsec. (a).
1976—Subsecs. (a) to (d).
Statutory Notes and Related Subsidiaries
Effective Date of 1979 Amendment
Amendment by
Effective Date
Section effective July 1, 1959, see section 210(a)(1) of
§5202. Supervision of operations
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.
(Added
Editorial Notes
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
| 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
Amendments
1979—
1976—Subsecs. (a) to (g).
Statutory Notes and Related Subsidiaries
Effective Date of 1979 Amendment
Amendment by
§5203. Entry and examination of premises
(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.
(Added
Editorial Notes
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
| 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
Amendments
1979—Subsec. (b).
Subsec. (c).
Subsec. (d).
1976—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 1979 Amendment
Amendment by
§5204. Gauging
(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.
(Added
Editorial Notes
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
| 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
Amendments
1984—Subsec. (c).
1979—Subsec. (a).
1976—Subsecs. (a) to (c).
Statutory Notes and Related Subsidiaries
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1979 Amendment
Amendment by
[§5205. Repealed. Pub. L. 98–369, div. A, title IV, §454(a), July 18, 1984, 98 Stat. 820 ]
Section, added
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective July 1, 1985, see section 456(b) of
§5206. Containers
(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 (
(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.
(Added
Editorial Notes
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
| 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
Amendments
1996—Subsec. (f)(2).
1984—Subsecs. (d) to (f).
1976—Subsecs. (a) to (c).
Statutory Notes and Related Subsidiaries
Effective Date of 1984 Amendment
Amendment by
§5207. Records and reports
(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).
(Added
Editorial Notes
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
| 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
Amendments
1997—Subsec. (c).
1984—Subsec. (a)(4)(D).
1979—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsecs. (d), (e).
1977—Subsec. (a)(10), (11).
1976—Subsecs. (a) to (d). Pub. L. 94—455 struck out "or his delegate" after "Secretary" wherever appearing.
Statutory Notes and Related Subsidiaries
Effective Date of 1997 Amendment
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1979 Amendment
Amendment by
Effective Date of 1977 Amendment
Amendment by
PART II—OPERATIONS ON BONDED PREMISES
Editorial Notes
Prior Provisions
A prior part II, Operation, consisted of sections 5241 to 5252, prior to the general revision of this chapter by
Subpart A—General
§5211. Production and entry of distilled spirits
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.
(Added
Editorial Notes
Prior Provisions
A prior section 5211, act Aug. 16, 1954, ch. 736,
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,
Amendments
1979—Pars. (1), (5).
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 1979 Amendment
Amendment by
Effective Date
Section effective July 1, 1959, see section 210(a)(1) of
§5212. Transfer of distilled spirits between bonded premises
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. In the case of distilled spirits transferred in bond after December 31, 2017, between bonded premises belonging to the same person or members of the same controlled group (within the meaning of section 5001(c)(2)) this section shall be applied without regard to whether distilled spirits are bulk distilled spirits. In the case of distilled spirits transferred in bond from the person who distilled or processed such distilled spirits (hereinafter referred to as "transferor") to another person for bottling or storage of such distilled spirits, and returned to the transferor for removal, this section shall be applied without regard to whether distilled spirits are bulk distilled spirits, but only if the transferor retains title during the entire period between such distillation, or processing, and removal.
(Added
Editorial Notes
Prior Provisions
A prior section 5212, act Aug. 16, 1954, ch. 736,
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,
Amendments
2020—
2019—
2017—
1980—
1979—
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Effective Date of 2019 Amendment
Effective Date of 2017 Amendment
Effective Date of 1979 Amendment
Amendment by
§5213. Withdrawal of distilled spirits from bonded premises on determination of tax
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.
(Added
Editorial Notes
Prior Provisions
A prior section 5213, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising this section were contained in prior sections 5194(a), (e) and 5244, act Aug. 16, 1954, ch. 736,
Amendments
1979—
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 1979 Amendment
Amendment by
§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); or
(14) with respect to distilled spirits removed after December 31, 2019, and before January 1, 2021, free of tax for use in or contained in hand sanitizer produced and distributed in a manner consistent with any guidance issued by the Food and Drug Administration that is related to the outbreak of virus SARS–CoV–2 or coronavirus disease 2019 (COVID–19).
(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
(4) For provisions relating to withdrawal of distilled spirits without payment of tax for manufacture in manufacturing bonded warehouse, see
(5) For provisions relating to foreign-trade zones, see
(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
Editorial Notes
Prior Provisions
A prior section 5214, act Aug. 16, 1954, ch. 736,
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
| 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
Amendments
2020—Subsec. (a)(14).
1984—Subsec. (a)(13).
1980—Subsec. (a)(12).
1979—Subsec. (a)(6).
Subsec. (a)(9).
Subsec. (a)(10).
Subsec. (a)(11).
Subsec. (b)(4) to (8).
1977—Subsec. (a)(9).
Subsec. (a)(10).
Subsec. (b)(7).
1976—Subsec. (a).
1969—Subsec. (a)(3)(A).
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1979 Amendment
Amendment by
Effective Date of 1977 Amendment
Amendment by
Effective Date of 1976 Amendment
Amendment by section 1905(c)(2) of
Effective Date of 1969 Amendment
Amendment by
Application of Other Laws
"(1) section 105 or 106 of the Federal Alcohol Administration Act (
"(2) section 204 of the Alcoholic Beverage Labeling Act of 1988 (
§5215. Return of tax determined distilled spirits to bonded premises
(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).
(Added
Editorial Notes
Prior Provisions
A prior section 5215, act Aug. 16, 1954, ch. 736,
Amendments
1984—Subsec. (c).
1979—
1977—Subsec. (a).
Subsecs. (b), (c).
Subsec. (d).
Subsec. (e).
1976—Subsec. (a).
1971—Subsec. (a).
Subsec. (b).
1965—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1979 Amendment
Amendment by
Effective Date of 1977 Amendment
Amendment by
Effective Date of 1971 Amendment
Amendment by
Effective Date of 1965 Amendment
Amendment by
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
§5216. Regulation of operations
For general provisions relating to operations on bonded premises see part I of this subchapter.
(Added
Editorial Notes
Prior Provisions
A prior section 5216, act Aug. 16, 1954, ch. 736,
A prior section 5217, acts Aug. 16, 1954, ch. 736,
Subpart B—Production
Editorial Notes
Amendments
1965—
§5221. Commencement, suspension, and resumption of operations
(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).
(Added
Editorial Notes
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,
Amendments
1979—Subsec. (a).
1976—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 1979 Amendment
Amendment by
Effective Date
Section effective July 1, 1959, see section 210(a)(1) of
§5222. Production, receipt, removal, and use of distilling materials
(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).
(Added
Editorial Notes
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
| 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
Amendments
1997—Subsec. (b)(2).
1979—Subsec. (c).
1978—Subsec. (a)(2)(C).
1976—Subsecs. (a)(1), (b), (c).
Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 1997 Amendment
Amendment by
Effective Date of 1979 Amendment
Amendment by
Effective Date of 1978 Amendment
Amendment by
Effective Date of 1976 Amendment
Amendment by section 1905(b)(6)(D) of
§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
Editorial Notes
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
| 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
Amendments
1979—Subsec. (c).
Subsec. (e).
1976—Subsecs. (a) to (c), (e).
1965—
Subsec. (c).
Subsec. (d).
Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 1979 Amendment
Amendment by
Effective Date of 1965 Amendment
Amendment by
Subpart C—Storage
Editorial Notes
Amendments
1979—
§5231. Entry for deposit
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.
(Added
Editorial Notes
Prior Provisions
A prior section 5231, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising this section were contained in prior section 5242(a), (b)(5), act Aug. 16, 1954, ch. 736,
Amendments
1979—
1976—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 1979 Amendment
Amendment by
Effective Date
Section effective July 1, 1959, see section 210(a)(1) of
§5232. Imported distilled spirits
(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.
(Added
Editorial Notes
Prior Provisions
A prior section 5232, acts Aug. 16, 1954, ch. 736,
Provisions similar to those comprising this section were contained in prior section 5311, act Aug. 16, 1954, ch. 736,
Amendments
1979—Subsec. (b).
1976—Subsec. (a).
1971—Subsec. (a).
Subsec. (b).
1968—
Statutory Notes and Related Subsidiaries
Effective Date of 1979 Amendment
Amendment by
Effective Date of 1976 Amendment
Amendment by
Effective Date of 1971 Amendment
Amendment by
Effective Date of 1968 Amendment
Amendment by
[§5233. Repealed. Pub. L. 96–39, title VIII, §807(a)(34), July 26, 1979, 93 Stat. 286 ]
Section, added
A prior section 5233, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising subsecs. (a) to (d) and (e)(1) of section 5233 added by
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective Jan. 1, 1980, see section 810 of
[§5234. Repealed. Pub. L. 96–39, title VIII, §807(a)(35), July 26, 1979, 93 Stat. 286 ]
Section, added
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
| 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
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective Jan. 1, 1980, see section 810 of
§5235. Bottling of alcohol for industrial purposes
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.
(Added
Editorial Notes
Prior Provisions
Provisions similar to those comprising this section were contained in prior section 5305, act Aug. 16, 1954, ch. 736,
Amendments
1984—
1979—
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1979 Amendment
Amendment by
§5236. Discontinuance of storage facilities and transfer of distilled spirits
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.
(Added
Editorial Notes
Prior Provisions
Provisions similar to those comprising this section were contained in prior section 5252, act Aug. 16, 1954, ch. 736,
Amendments
1976—
Subpart D—Denaturation
§5241. Authority to denature
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.
(Added
Editorial Notes
Prior Provisions
A prior section 5241, act Aug. 16, 1954, ch. 736,
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,
Amendments
1979—
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 1979 Amendment
Amendment by
Effective Date
Section effective July 1, 1959, see section 210(a)(1) of
§5242. Denaturing materials
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.
(Added
Editorial Notes
Prior Provisions
A prior section 5242, acts Aug. 16, 1954, ch. 736,
Provisions similar to those comprising this section were contained in prior sections 5303, 5310(a) and 5331(a)(1), (2), act Aug. 16, 1954, ch. 736,
Amendments
1976—
§5243. Sale of abandoned spirits for denaturation without collection of tax
Notwithstanding any other provision of law, any distilled spirits abandoned to the United States may be sold, in such cases as the Secretary may by regulation provide, to the proprietor of any distilled spirits plant for denaturation, or redistillation and denaturation, without the payment of the internal revenue tax thereon.
(Added
Editorial Notes
Prior Provisions
A prior section 5243, acts Aug. 16, 1954, ch. 736,
Provisions similar to those comprising this section were contained in prior section 5333, act Aug. 16, 1954, ch. 736,
Amendments
1976—
§5244. Cross references
(1) For provisions authorizing the withdrawal from the bonded premises of a distilled spirits plant of denatured distilled spirits, see section 5214(a)(1).
(2) For provisions requiring a permit to procure specially denatured distilled spirits, see section 5271.
(Added
Editorial Notes
Prior Provisions
A prior section 5244, act Aug. 16, 1954, ch. 736,
[PART III—REPEALED]
[§§5251, 5252. Repealed. Pub. L. 96–39, title VIII, §807(a)(38), July 26, 1979, 93 Stat. 286 ]
Section 5251, added
A prior section 5251, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising
Section 5252, added
A prior section 5252, act Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective Jan. 1, 1980, see section 810 of