Internal Revenue Code:Sec. 5053. Exemptions

From TaxAlmanac

Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
       CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
        Subchapter A - Gallonage and Occupational Taxes
         PART I - GALLONAGE TAXES
          Subpart D - Beer
        

Statute

    Sec. 5053. Exemptions
 
    (a) Removals for export
      Beer may be removed from the brewery, without payment of tax, for
    export, in such containers and under such regulations, and on the
    giving of such notices, entries, and bonds and other security, as
    the Secretary may by regulations prescribe.
    (b) Removals when unfit for beverage use
      When beer has become sour or damaged, so as to be incapable of
    use as such, a brewer may remove the same from his brewery without
    payment of tax, for manufacturing purposes, under such regulations
    as the Secretary may prescribe.
    (c) Removals for laboratory analysis
      Beer may be removed from the brewery, without payment of tax, for
    laboratory analysis, subject to such limitations and under such
    regulations as the Secretary may prescribe.
    (d) Removals for research, development, or testing
      Under such conditions and regulations as the Secretary may
    prescribe, beer may be removed from the brewery without payment of
    tax for use in research, development, or testing (other than
    consumer testing or other market analysis) of processes, systems,
    materials, or equipment relating to beer or brewery operations.
    (e) Beer for personal or family use
      Subject to regulation prescribed by the Secretary, any adult may,
    without payment of tax, produce beer for personal or family use and
    not for sale.  The aggregate amount of beer exempt from tax under
    this subsection with respect to any household shall not exceed -
        (1) 200 gallons per calendar year if there are 2 or more adults
      in such household, or
        (2) 100 gallons per calendar year if there is only 1 adult in
      such household.
    For purposes of this subsection, the term ''adult'' means an
    individual who has attained 18 years of age, or the minimum age (if
    any) established by law applicable in the locality in which the
    household is situated at which beer may be sold to individuals,
    whichever is greater.
    (f) Removal for use as distilling material
      Subject to such regulations as the Secretary may prescribe, beer
    may be removed from a brewery without payment of tax to any
    distilled spirits plant for use as distilling material.
    (g) Removals for use of foreign embassies, legations, etc.
      (1) In general
        Subject to such regulations as the Secretary may prescribe -
          (A) beer may be withdrawn from the brewery without payment of
        tax for transfer to any customs bonded warehouse for entry
        pending withdrawal therefrom as provided in subparagraph (B),
        and
          (B) beer entered into any customs bonded warehouse under
        subparagraph (A) may be withdrawn for consumption in the United
        States by, and for the official and family use of, such foreign
        governments, organizations, and individuals as are entitled to
        withdraw imported beer from such warehouses free of tax.
      Beer transferred to any customs bonded warehouse under
      subparagraph (A) shall be entered, stored, and accounted for in
      such warehouse 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 beer.
      (2) Other rules to apply
        Rules similar to the rules of paragraphs (2) and (3) of section
      5362(e) shall apply for purposes of this subsection.
    (h) Removals for destruction
      Subject to such regulations as the Secretary may prescribe, beer
    may be removed from the brewery without payment of tax for
    destruction.
    (i) Removal as supplies for certain vessels and aircraft
          For exemption as to supplies for certain vessels and
        aircraft, see section 309 of the Tariff Act of 1930, as amended
        (19 U.S.C. 1309).
 

Sources

    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1334; amended Pub. L. 89-44, title VIII, Sec. 807(b), June 21,
    1965, 79 Stat. 164; Pub. L. 91-673, Sec. 2, Jan. 12, 1971, 84 Stat.
    2056; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
    90 Stat. 1834; Pub. L. 95-458, Sec. 2(b)(1), Oct. 14, 1978, 92
    Stat. 1255; Pub. L. 105-34, title XIV, Sec. 1414(b), 1418(a),
    1419(a), Aug. 5, 1997, 111 Stat. 1047-1049.)
 

Miscellaneous

                              PRIOR PROVISIONS
      A prior section 5053, act Aug. 16, 1954, ch. 736, 68A Stat. 612,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
                                 AMENDMENTS
      1997 - Subsec. (f). Pub. L. 105-34, Sec. 1414(b), added subsec.
    (f). Former subsec. (f) redesignated (i).
      Subsec. (g). Pub. L. 105-34, Sec. 1418(a), added subsec. (g).
      Subsec. (h). Pub. L. 105-34, Sec. 1419(a), added subsec. (h).
      Subsec. (i). Pub. L. 105-34, Sec. 1414(b), redesignated subsec.
    (f) as (i).
      1978 - Subsecs. (e), (f). Pub. L. 95-458 added subsec. (e) and
    redesignated former subsec. (e) as (f).
      1976 - Subsecs. (a) to (d). Pub. L. 94-455 struck out ''or his
    delegate'' after ''Secretary'' wherever appearing.
      1971 - Subsecs. (d), (e). Pub. L. 91-673 added subsec. (d) and
    redesignated former subsec. (d) as (e).
      1965 - Subsec. (a). Pub. L. 89-44 struck out ''to a foreign
    country'' after ''export''.
                      EFFECTIVE DATE OF 1997 AMENDMENT
      Section 1414(d) of Pub. L. 105-34 provided that: ''The amendments
    made by this section (amending this section and sections 5056 and
    5222 of this title) shall take effect on the 1st day of the 1st
    calendar quarter that begins at least 180 days after the date of
    the enactment of this Act (Aug. 5, 1997).''
      Section 1418(b) of Pub. L. 105-34 provided that: ''The amendment
    made by subsection (a) (amending this section) shall take effect on
    the 1st day of the 1st calendar quarter that begins at least 180
    days after the date of the enactment of this Act (Aug. 5, 1997).''
      Section 1419(b) of Pub. L. 105-34 provided that: ''The amendment
    made by subsection (a) (amending this section) shall take effect on
    the 1st day of the 1st calendar quarter that begins at least 180
    days after the date of the enactment of this Act (Aug. 5, 1997).''
                      EFFECTIVE DATE OF 1978 AMENDMENT
      Amendment by Pub. L. 95-458 effective on first day of first
    calendar month beginning more than 90 days after Oct. 14, 1978, see
    section 2(c) of Pub. L. 95-458, set out as a note under section
    5042 of this title.
                      EFFECTIVE DATE OF 1971 AMENDMENT
      Amendment by Pub. L. 91-673 effective on first day of first
    calendar month which begins more than 90 days after Jan. 12, 1971,
    see section 5 of Pub. L. 91-673, set out as a note under section
    5056 of this title.
                      EFFECTIVE DATE OF 1965 AMENDMENT
      Amendment by Pub. L. 89-44 effective July 1, 1965, see section
    807(c) of Pub. L. 89-44, set out as a note under section 5002 of
    this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 5051, 5054, 5092, 5222,
    5401, 5674 of this title.