26 U.S.C. § 5362 : US Code - Section 5362: Removals of wine from bonded wine cellars

Search 26 U.S.C. § 5362 : US Code - Section 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Wine may be withdrawn from bonded wine cellars on payment or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protect the revenue, be withdrawn from bonded wine cellars -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.