US Laws, Codes, Statutes & Cases

From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
  January 7, 2003 and December 19, 2003]
[CITE: 26USC5362]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
      Subtitle E--Alcohol, Tobacco, and Certain Other Excise Taxes
 
             CHAPTER 51--DISTILLED SPIRITS, WINES, AND BEER
 
             Subchapter F--Bonded and Taxpaid Wine Premises
 
                           PART II--OPERATIONS
 
Sec. 5362. Removals of wine from bonded wine cellars


(a) Withdrawals on determination of tax

    Wine may be withdrawn from bonded wine cellars on payment or 
determination of the tax thereon, under such regulations as the 
Secretary shall prescribe.

(b) Transfers of wine between bonded premises

                           (1) In general

        Wine on which the tax has not been paid or determined may, under 
    such regulations as the Secretary shall prescribe, be transferred in 
    bond between bonded premises.

    (2) Wine transferred to a distilled spirits plant may not be 
                   removed for consumption or sale as wine

        Any wine transferred to the bonded premises of a distilled 
    spirits plant--
            (A) may be used in the manufacture of a distilled spirits 
        product, and
            (B) may not be removed from such bonded premises for 
        consumption or sale as wine.

                   (3) Continued liability for tax

        The liability for tax on wine transferred to the bonded premises 
    of a distilled spirits plant pursuant to paragraph (1) shall (except 
    as otherwise provided by law) continue until the wine is used in a 
    distilled spirits product.

    (4) Transfer in bond not treated as removal for consumption 
                                   or sale

        For purposes of this chapter, the removal of wine for transfer 
    in bond between bonded premises shall not be treated as a removal 
    for consumption or sale.

                         (5) Bonded premises

        For purposes of this subsection, the term ``bonded premises'' 
    means a bonded wine cellar or the bonded premises of a distilled 
    spirits plant.

(c) Withdrawals of wine free of tax or without payment of tax

    Wine on which the tax has not been paid or determined may, under 
such regulations and bonds as the Secretary may deem necessary to 
protect the revenue, be withdrawn from bonded wine cellars--
        (1) without payment of tax for export by the proprietor or by 
    any authorized exporter;
        (2) without payment of tax for transfer to any foreign-trade 
    zone;
        (3) without payment of tax for use of certain vessels and 
    aircraft as authorized by law;
        (4) without payment of tax for transfer to any customs bonded 
    warehouse;
        (5) without payment of tax for use in the production of vinegar;
        (6) without payment of tax for use in distillation in any 
    distilled spirits plant authorized to produce distilled spirits;
        (7) free of tax for experimental or research purposes by any 
    scientific university, college of learning, or institution of 
    scientific research;
        (8) free of tax for use by or for the account of the proprietor 
    or his agents for analysis or testing, organoleptic or otherwise; 
    and
        (9) free of tax for use by the United States or any agency 
    thereof, and for use for analysis, testing, research, or 
    experimentation by the governments of the several States and the 
    District of Columbia or of any political subdivision thereof or by 
    any agency of such governments. No bond shall be required of any 
    such government or agency under this paragraph.

(d) Withdrawal free of tax of wine and wine products unfit for beverage 
        use

    Under such regulations as the Secretary may deem necessary to 
protect the revenue, wine, or wine products made from wine, when 
rendered unfit for beverage use, on which the tax has not been paid or 
determined, may be withdrawn from bonded wine cellars free of tax. The 
wine or wine products to be so withdrawn may be treated with methods or 
materials which render such wine or wine products suitable for their 
intended use. No wine or wine products so withdrawn shall contain more 
than 21 percent of alcohol by volume, or be used in the compounding of 
distilled spirits or wine for beverage use or in the manufacture of any 
product intended to be used in such compounding.

(e) Withdrawal from customs bonded warehouses for use of foreign 
        embassies, legations, etc.

                           (1) In general

        Notwithstanding any other provision of law, wine entered into 
    customs bonded warehouses under subsection (c)(4) may, under such 
    regulations as the Secretary may prescribe, be withdrawn from such 
    warehouses for consumption in the United States by and for the 
    official or family use of such foreign governments, organizations, 
    and individuals who are entitled to withdraw imported wines from 
    such warehouses free of tax. Wines transferred to customs bonded 
    warehouses under subsection (c)(4) shall be entered, stored, and 
    accounted for in such warehouses under such regulations and bonds as 
    the Secretary may prescribe, and may be withdrawn therefrom by such 
    governments, organizations, and individuals free of tax under the 
    same conditions and procedures as imported wines.

                   (2) Withdrawal for domestic use

        Wine entered into customs bonded warehouses under subsection 
    (c)(4) for purposes of removal under paragraph (1) may be withdrawn 
    therefrom for domestic use. Wines so withdrawn shall be treated as 
    American goods exported and returned.

               (3) Sale or unauthorized use prohibited

        Wine withdrawn from customs bonded warehouses or otherwise 
    brought into the United States free of tax for the official or 
    family use of foreign governments, organizations, or individuals 
    authorized to obtain wine free of tax shall not be sold and shall 
    not be disposed of or possessed for any use other than an authorized 
    use. The provisions of paragraphs (1)(B) and (3) of section 5043(a) 
    are hereby extended and made applicable to any person selling, 
    disposing of, or possessing any wine in violation of the preceding 
    sentence, and to the wine involved in any such violation.

(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1380; 
amended Pub. L. 90-73, Sec. 1(a), Aug. 29, 1967, 81 Stat. 175; Pub. L. 
94-455, title XIX, Secs. 1905(c)(4), 1906(b)(13)(A), Oct. 4, 1976, 90 
Stat. 1823, 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(44), July 26, 
1979, 93 Stat. 287; Pub. L. 96-601, Sec. 2(a), (b), Dec. 24, 1980, 94 
Stat. 3495.)


                            Prior Provisions

    A prior section 5362, act Aug. 16, 1954, ch. 736, 68A Stat. 665, 
consisted of provisions similar to those comprising this section, prior 
to the general revision of this chapter by Pub. L. 85-859.


                               Amendments

    1980--Subsec. (c)(4). Pub. L. 96-601, Sec. 2(a), substituted 
``customs bonded'' for ``class 6 customs manufacturing''.
    Subsec. (e). Pub. L. 96-601, Sec. 2(b), added subsec. (e).
    1979--Subsec. (b). Pub. L. 96-39 substituted references to bonded 
premises for references to bonded wine cellars and inserted provisions 
relating to wine transferred in bond to a distilled spirits plant which 
may not be removed for consumption or sale as wine, provisions relating 
to continued liability for tax on wine transferred to bonded premises, 
and provisions defining ``bonded premises''.
    1976--Subsecs. (a) to (c). Pub. L. 94-455, Sec. 1906(b)(13)(A), 
struck out ``or his delegate'' after ``Secretary'' wherever appearing.
    Subsec. (c)(9). Pub. L. 94-455, Sec. 1905(c)(4), struck out ``and 
Territories'' after ``the several States''.
    Subsec. (d). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ``or 
his delegate'' after ``Secretary''.
    1967--Subsec. (d). Pub. L. 90-73 added subsec. (d).


                    Effective Date of 1980 Amendment

    Section 2(c) of Pub. L. 96-601 provided that: ``The amendments made 
by this section [amending this section] shall take effect on the first 
day of the first calendar month which begins more than 90 days after the 
date of the enactment of this Act [Dec. 24, 1980].''


                    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(c)(4) 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 of 1967 Amendment

    Section 1(b) of Pub. L. 90-73 provided that: ``The amendment made by 
subsection (a) [amending this section] shall become effective on the 
first day of the first month which begins 90 days or more after the date 
of the enactment of this Act [Aug. 29, 1967].''

                  Section Referred to in Other Sections

    This section is referred to in sections 5042, 5043, 5053, 5214, 5222 
of this title.