Subchapter E—General Provisions Relating to Distilled Spirits
Editorial Notes
Prior Provisions
A prior subchapter E, Industrial Alcohol Plants, Bonded Warehouses, Denaturing Plants, and Denaturation, consisted of part I, Industrial Alcohol Plants, Bonded Warehouses, and Denaturing Plants and part II, Denaturation, and consisted of sections 5301 to 5320 and 5331 to 5334, respectively, prior to the general revision of this chapter by
PART I—RETURN OF MATERIALS USED IN THE MANUFACTURE OR RECOVERY OF DISTILLED SPIRITS
Editorial Notes
Prior Provisions
A prior part I, Industrial Alcohol Plants, Bonded Warehouses, and Denaturing Plants, consisted of sections 5301 to 5320, prior to the general revision of this chapter by
§5291. General
(a) Requirement
Every person disposing of any substance of the character used in the manufacture of distilled spirits, or disposing of denatured distilled spirits or articles from which distilled spirits may be recovered, shall, when required by the Secretary, 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 quantity so disposed of or other information which the Secretary may require as to each such disposition, as will enable the Secretary to determine whether all taxes due with respect to any distilled spirits manufactured or recovered from any such substance, denatured, distilled spirits, or articles, have been paid. 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.
(b) Cross references
(1) For the definition of distilled spirits, see section 5002(a)(8).
(2) For the definition of articles, see section 5002(a)(14).
(3) For penalty for violation of subsection (a), see section 5605.
(Added
Editorial Notes
Prior Provisions
Provisions similar to those comprising this section were contained in prior section 5213, act Aug. 16, 1954, ch. 736,
Amendments
1979—Subsec. (b)(1).
Subsec. (b)(2).
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
PART II—REGULATION OF TRAFFIC IN CONTAINERS OF DISTILLED SPIRITS
Editorial Notes
Prior Provisions
A prior part II, Denaturation, consisted of section 5331 to 5334, prior to the general revision of this chapter by
§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
Editorial Notes
Prior Provisions
A prior section 5301, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising subsecs. (a), (c), and (d) of this section were contained in prior section 5214, act Aug. 16, 1954, ch. 736,
A prior section 5302, act Aug. 16, 1954, ch. 736,
A prior section 5303, act Aug. 16, 1954, ch. 736,
A prior section 5304, act Aug. 16, 1954, ch. 736,
A prior section 5305, act Aug. 16, 1954, ch. 736,
A prior section 5306, act Aug. 16, 1954, ch. 736,
A prior section 5307, act Aug. 16, 1954, ch. 736,
A prior section 5308, act Aug. 16, 1954, ch. 736,
A prior section 5309, act Aug. 16, 1954, ch. 736,
A prior section 5310, act Aug. 16, 1954, ch. 736,
Amendments
1984—Subsec. (c).
Subsec. (d).
1979—Subsec. (a)(1).
1976—Subsecs. (a) to (c).
Statutory Notes and Related Subsidiaries
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1979 Amendment
Amendment by
Effective Date
Section effective July 1, 1959, see section 210(a)(1) of
PART III—MISCELLANEOUS PROVISIONS
Editorial Notes
Amendments
1976—
§5311. Detention of containers
It shall be lawful for any internal revenue officer to detain any container, containing or supposed to contain, distilled spirits, wines, or beer, when he has reason to believe that the tax imposed by law on such distilled spirits, wines, or beer has not been paid or determined as required by law, or that such container is being removed in violation of law; and every such container may be held by him at a safe place until it shall be determined whether the property so detained is liable by law to be proceeded against for forfeiture; but such summary detention shall not continue in any case longer than 72 hours without process of law or intervention of the officer to whom such detention is to be reported.
(Added
Editorial Notes
Prior Provisions
A prior section 5311, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising this section were contained in prior section 5211, act Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Effective Date
Section effective July 1, 1959, see section 210(a)(1) of
§5312. Production and use of distilled spirits for experimental research
(a) Scientific institutions and colleges of learning
Under such regulations as the Secretary may prescribe and on the filing of such bonds and applications as he may require, any scientific university, college of learning, or institution of scientific research may produce, receive, blend, treat, test, and store distilled spirits, without payment of tax, for experimental or research use but not for consumption (other than organoleptic tests) or sale, in such quantities as may be reasonably necessary for such purposes.
(b) Experimental distilled spirits plants
Under such regulations as the Secretary may prescribe and on the filing of such bonds and applications as he may require, experimental distilled spirits plants may, at the discretion of the Secretary, be established and operated for specific and limited periods of time solely for experimentation in, or development of—
(1) sources of materials from which distilled spirits may be produced;
(2) processes by which distilled spirits may be produced or refined; or
(3) industrial uses of distilled spirits.
(c) Authority to exempt
The Secretary may by regulations provide for the waiver of any provision of this chapter (other than this section) to the extent he deems necessary to effectuate the purposes of this section, except that he may not waive the payment of any tax on distilled spirits removed from any such university, college, institution, or plant.
(Added
Editorial Notes
Prior Provisions
A prior section 5312, act Aug. 16, 1954, ch. 736,
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) | 5215. |
| (b) | 5305. |
| (c) | 5215, 5306. |
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
Amendments
1976—Subsecs. (a) to (c).
§5313. Withdrawal of distilled spirits from customs custody free of tax for use of the United States
Distilled spirits may be withdrawn free of tax from customs custody by the United States or any governmental agency thereof for its own use for nonbeverage purposes, under such regulations as may be prescribed by the Secretary.
(Added
Editorial Notes
Prior Provisions
A prior section 5313, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising this section were contained in prior section 5310(b), act Aug. 16, 1954, ch. 736,
Amendments
1976—
§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)(9) 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—
(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
Editorial Notes
Prior Provisions
A prior section 5314, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising subsec. (a)(2) of this section were contained in prior section 5318, act Aug. 16, 1954, ch. 736,
Amendments
2018—Subsec. (a)(2).
1976—Subsec. (a)(2).
Subsec. (b)(2), (3).
Statutory Notes and Related Subsidiaries
Effective Date of 1976 Amendment
Amendment by section 1905(a)(18) of
[§5315. Repealed. Pub. L. 94–455, title XIX, §1905(a)(19), Oct. 4, 1976, 90 Stat. 1820 ]
Section 5315, added
A prior section 5316, act Aug. 16, 1954, ch. 736,
A prior section 5317, act Aug. 16, 1954, ch. 736,
A prior section 5318, act Aug. 16, 1954, ch. 736,
A prior section 5319, act Aug. 16, 1954, ch. 736,
A prior section 5320, act Aug. 16, 1954, ch. 736,
A prior section 5331, act Aug. 16, 1954, ch. 736,
A prior section 5332, act Aug. 16, 1954, ch. 736,
A prior section 5333, act Aug. 16, 1954, ch. 736,
A prior section 5334, act Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective on first day of first month which begins more than 90 days after Oct. 4, 1976, see section 1905(d) of