US Laws, Codes, Statutes & Cases

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[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
  January 7, 2003 and December 19, 2003]
[CITE: 26USC5171]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
      Subtitle E--Alcohol, Tobacco, and Certain Other Excise Taxes
 
             CHAPTER 51--DISTILLED SPIRITS, WINES, AND BEER
 
  Subchapter B--Qualification Requirements for Distilled Spirits Plants
 
Sec. 5171. Establishment


(a) Certain operations may be conducted only on bonded premises

    Except as otherwise provided by law, operations as a distiller, 
warehouseman, or processor may be conducted only on the bonded premises 
of a distilled spirits plant by a person who is qualified under this 
subchapter.

(b) Establishment of distilled spirits plant

    A distilled spirits plant may be established only by a person who 
intends to conduct at such plant operations as a distiller, as a 
warehouseman, or as both.

(c) Registration

                           (1) In general

        Each person shall, before commencing operations at a distilled 
    spirits plant (and at such other times as the Secretary may by 
    regulations prescribe), make application to the Secretary for, and 
    receive notice of, the registration of such plant.

       (2) Application required where new operations are added

        No operation in addition to those set forth in the application 
    made pursuant to paragraph (1) may be conducted at a distilled 
    spirits plant until the person has made application to the Secretary 
    for, and received notice of, the registration of such additional 
    operation.

     (3) Secretary may establish minimum capacity and level of 
                            activity requirements

        The Secretary may by regulations prescribe for each type of 
    operation minimum capacity and level of activity requirements for 
    qualifying premises as a distilled spirits plant.

         (4) Applicant must comply with law and regulations

        No plant (or additional operation) shall be registered under 
    this section until the applicant has complied with the requirements 
    of law and regulations in relation to the qualification of such 
    plant (or additional operation).

(d) Permits

                          (1) Requirements

        Each person required to file an application for registration 
    under subsection (c) whose distilled spirits operations (or any part 
    thereof) are not required to be covered by a basic permit under the 
    Federal Alcohol Administration Act (27 U.S.C. secs. 203 and 204) 
    shall, before commencing the operations (or part thereof) not so 
    covered, apply for and obtain a permit under this subsection from 
    the Secretary to engage in such operations (or part thereof). 
    Subsections (b), (c), (d), (e), (f), (g), and (h) of section 5271 
    are hereby made applicable to persons filing applications and 
    permits required by or issued under this subsection.

        (2) Exceptions for agencies of a State or political 
                                subdivisions

        Paragraph (1) shall not apply to any agency of a State or 
    political subdivision thereof or to any officer or employee of any 
    such agency, and no such agency, officer, or employee shall be 
    required to obtain a permit thereunder.

(e) Cross references

            (1) For penalty for failure of a distiller or processor to 
        file application for registration as required by this section, 
        see section 5601(a)(2).
            (2) For penalty for the filing of a false application by a 
        distiller, warehouseman, or processor of distilled spirits, see 
        section 5601(a)(3).

(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1349; 
amended Pub. L. 94-455, title XIX, Secs. 1905(a)(13), 1906(b)(13)(A), 
Oct. 4, 1976, 90 Stat. 1820, 1834; Pub. L. 96-39, title VIII, 
Sec. 805(a), July 26, 1979, 93 Stat. 274.)

                       References in Text

    The Federal Alcohol Administration Act, referred to in subsec. 
(d)(1), is act Aug. 29, 1935, ch. 814, 49 Stat. 977, as amended, which 
is classified generally to subchapter I (Sec. 201 et seq.) of chapter 8 
of Title 27, Intoxicating Liquors. The basic permit is covered by 
sections 203 and 204 of Title 27. For complete classification of this 
Act to the Code, see section 201 of Title 27 and Tables.


                            Prior Provisions

    A prior section 5171, act Aug. 16, 1954, ch. 736, 68A Stat. 627, 
related to ``premises prohibited for distilling'', prior to the general 
revision of this chapter by Pub. L. 85-859. See sections 5178(a)(1)(B), 
(b), (c)(2), and 5505(b) of this title.
    Provisions similar to those comprising subsecs. (a), (b)(1) and (c) 
of this section were contained in prior sections of act Aug. 16, 1954, 
prior to the general revision of this chapter by Pub. L. 85-859, as 
follows:

------------------------------------------------------------------------
      Present subsecs.:                      Prior sections
------------------------------------------------------------------------
(a)..........................  5172, 5175(a), 5177(a), 5178, 5231,
                                5243(a), 5271(a), 5301-5303, 5305,
                                5331(a)(1).
(b)(1).......................  5301-5303, 5304(a)(1).
(c)..........................  5175(b), 5271(b).
------------------------------------------------------------------------

    The prior sections, act Aug. 16, 1954, ch. 736, are set out in 68A 
Stat. 627 to 631, 643, 645, 650, 654, 655.


                               Amendments

    1979--Subsecs. (a), (b). Pub. L. 96-39 added subsecs. (a) and (b) 
and redesignated former subsecs. (a) and (b) as (c) and (d), 
respectively.
    Subsec. (c). Pub. L. 96-39 redesignated former subsec. (a) as (c) 
and inserted provisions relating to an application requirement where new 
operations are added and permitting the Secretary to establish minimum 
capacity and level of activity requirements. Former subsec. (c) 
redesignated (e).
    Subsec. (d). Pub. L. 96-39 redesignated former subsec. (b) as (d) 
and substituted reference to subsection (c) for reference to subsection 
(a) and struck out reference to section 5274.
    Subsec. (e). Pub. L. 96-39 redesignated former subsec. (c) as (e) 
and substituted reference to processor for reference to rectifier and 
reference to warehouseman for reference to bonded warehouseman and 
struck out reference to bottler.
    1976--Subsec. (b)(1). Pub. L. 94-455, Secs. 1905(a)(13)(A), 
1906(b)(13)(A), struck out ``49 Stat. 978;'' before ``27 U.S.C. 203, 
204'' in parenthetical provisions after ``Federal Alcohol Administration 
Act'' and struck out ``or his delegate'' after ``Secretary''.
    Subsec. (b)(3). Pub. L. 94-455, Sec. 1905(a)(13)(B), struck out par. 
(3) under which persons who were qualified on June 30, 1959, to perform 
operations for which a permit was required covering operations not 
required to be covered by a basic permit under the Federal Alcohol 
Administration Act had been allowed to continue operations pending a 
reasonable opportunity to make application for a permit.


                    Effective Date of 1979 Amendment

    Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 
of Pub. L. 96-39, set out as a note under section 5001 of this title.


                    Effective Date of 1976 Amendment

    Amendment by section 1905(a)(13) of Pub. L. 94-455 effective on 
first day of first month which begins more than 90 days after Oct. 4, 
1976, see section 1905(d) of Pub. L. 94-455, set out as a note under 
section 5005 of this title.


                             Effective Date

    Section effective July 1, 1959, see section 210(a)(1) of Pub. L. 85-
859, set out as a note under section 5001 of this title.


            Transitional Rules Relating to All-In-Bond Method

    Section 809(a), (b) of Pub. L. 96-39, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
    ``(a) New Application Required.--
        ``(1) In general.--For purposes of section 5171 of the Internal 
    Revenue Code of 1986 [formerly I.R.C. 1954] (relating to 
    establishment of distilled spirits plants), each person who intends 
    to continue any distilled spirits operation at a premises after 
    December 31, 1979, shall be treated as intending to establish a 
    distilled spirits plant on such premises on January 1, 1980.
        ``(2) Current registration to remain in effect.--Notwithstanding 
    paragraph (1), the registration of any person under section 5171 of 
    the Internal Revenue Code of 1986 which is in effect on December 31, 
    1979, shall remain in effect until final action on the application 
    required by paragraph (1).
    ``(b) Continuing Operations at Existing Premises.--With respect to 
any operation which was permitted to be conducted on May 1, 1979, at 
premises which were registered on such date under section 5171 of the 
Internal Revenue Code of 1986, the determination of whether such 
premises qualify for registration under such section as a distilled 
spirits plant shall be made without regard to whether or not--
        ``(1) the person engaged in operations at such premises is 
    registered under such section with respect to such premises as a 
    distiller or warehouseman, and
        ``(2) such premises meet the minimum capacity and level of 
    activity requirements for that type of operation.''

                  Section Referred to in Other Sections

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