Internal Revenue Code:Sec. 5178. Premises of distilled spirits plants
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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 B - Qualification Requirements for Distilled Spirits
Plants
Statute
Sec. 5178. Premises of distilled spirits plants
(a) Location, construction, and arrangement
(1) General
(A) The premises of a distilled spirits plant shall be as
described in the application required by section 5171(c). The
Secretary shall prescribe such regulations relating to the
location, construction, arrangement, and protection of distilled
spirits plants as he deems necessary to facilitate inspection and
afford adequate security to the revenue.
(B) No distilled spirits plant for the production of distilled
spirits shall be located in any dwelling house, in any shed,
yard, or inclosure connected with any dwelling house, or on board
any vessel or boat, or on premises where beer or wine is made or
produced, or liquors of any description are retailed, or on
premises where any other business is carried on (except when
authorized under subsection (b)).
(C) Notwithstanding any other provision of this chapter
relating to distilled spirits plants the Secretary may approve
the location, construction, arrangement, and method of operation
of any establishment which was qualified to operate on the date
preceding the effective date of this section if he deems that
such location, construction, arrangement, and method of operation
will afford adequate security to the revenue.
(2) Production operations
(A) Any person establishing a distilled spirits plant may, as
described in his application for registration, produce distilled
spirits from any source or substance.
(B) The distilling system shall be continuous and shall be so
designed and constructed and so connected as to prevent the
unauthorized removal of distilled spirits before their production
gauge.
(C) The Secretary is authorized to order and require -
(i) such identification of, changes of, and additions to,
distilling apparatus, connecting pipes, pumps, tanks, and any
machinery connected with or used in or on the premises, and
(ii) such fastenings, locks, and seals to be part of any of
the stills, tubs, pipes, tanks, and other equipment, as he may
deem necessary to facilitate inspection and afford adequate
security to the revenue.
(3) Warehousing operations
(A) Any person establishing a distilled spirits plant for the
production of distilled spirits may, as described in the
application for registration, warehouse bulk distilled spirits on
the bonded premises of such plant.
(B) Distilled spirits plants for the bonded warehousing of bulk
distilled spirits elsewhere than as described in subparagraph (A)
may be established at the discretion of the Secretary by
proprietors referred to in subparagraph (A) or by other persons
under such regulations as the Secretary shall prescribe.
(4) Processing operations
Any person establishing a distilled spirits plant may, as
described in the application for registration, process distilled
spirits on the bonded premises of such plant.
(b) Use of premises for other businesses
The Secretary may authorize the carrying on of such other
businesses (not specifically prohibited by section 5601(a)(6)) on
premises of distilled spirits plants, as he finds will not
jeopardize the revenue. Such other businesses shall not be carried
on until an application to carry on such business has been made to
and approved by the Secretary.
(c) Cross references
(1) For provisions authorizing the Secretary to require
installation of meters, tanks, and other apparatus, see section
5552.
(2) For penalty for distilling on prohibited premises, see
section 5601(a)(6).
(3) For provisions relating to the bottling of distilled
spirits labeled as alcohol, see section 5235.
(4) For provisions relating to the unauthorized use of
distilled spirits in any manufacturing process, see section
5601(a)(9).
Sources
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1353; amended Pub. L. 91-659, Sec. 5, Jan. 8, 1971, 84 Stat. 1966;
Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90
Stat. 1834; Pub. L. 95-176, Sec. 2(b), Nov. 14, 1977, 91 Stat.
1364; Pub. L. 96-39, title VIII, Sec. 805(b)(1), 807(a)(18), July
26, 1979, 93 Stat. 275, 283.)
Miscellaneous
PRIOR PROVISIONS
A prior section 5178, act Aug. 16, 1954, ch. 736, 68A Stat. 631,
related to plan of distillery, prior to the general revision of
this chapter by Pub. L. 85-859. See sections 5171(a) and 5172 of
this title.
Provisions similar to those comprising subsecs. (a)(1)(A), (B),
(2)(A) to (C), (3), (4)(A), (B), (D), (5), (b), (c)(1), (2), (4) 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:
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Present subsecs.: Prior sections
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(a)(1)(A) 5172, 5173(a), 5231, 5271(a),
5273(a), 5305.
(a)(1)(B) 5171(a).
(a)(2)(A) 5307.
(a)(2)(B) 5173(b).
(a)(2)(C) 5173(a), (c).
(a)(3) 5231, 5243(a), 5302.
(a)(4)(A) 5243(a).
(a)(4)(B), (D) 5271(a), 5273(a).
(a)(5) 5303, 5305, 5331(a)(1).
(b) 5171(a).
(c)(1) 5173(d)(1), 5273(b)(1).
(c)(2) 5171(b).
(c)(4) 5216(b).
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The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 627, 628, 641, 643, 645, 650, 654, 655, 657, 661.
AMENDMENTS
1979 - Subsec. (a)(1)(A). Pub. L. 96-39, Sec. 807(a)(18),
substituted ''section 5171(c)'' for ''section 5171(a)''.
Subsec. (a)(2). Pub. L. 96-39, Sec. 805(b)(1), substituted in
heading ''operations'' for ''facilities'' and in subpar. (A)
''produce'' for ''provided facilities which may be used for the
production of'' and struck out in subpar. (B) ''closed at all
points where potable or readily recoverable spirits are present and
the distilling apparatus'' after ''shall be continuous and''.
Subsec. (a)(3). Pub. L. 96-39, Sec. 805(b)(1), substituted in
heading ''Warehousing operations'' for ''Bonded warehousing
facilities'' and in subpar. (A) ''the application'' for ''his
application'' and ''warehouse bulk distilled spirits'' for
''establish warehousing facilities'' and struck out subpar. (C)
which related to facilities for the storage on bonded premises of
distilled spirits in casks, packages, cases, or similar portable
approved containers and subpar. (D), which related to the
establishment of a portion of the premises established under
subpar. (C) as an export storage facility for the storage of
distilled spirits returned to bonded premises under section
5215(b).
Subsec. (a)(4). Pub. L. 96-39, Sec. 805(b)(1), substituted
provisions relating to processing operations for provisions
relating to bottling facilities.
Subsec. (a)(5). Pub. L. 96-39, Sec. 805(b)(1), struck out par.
(5) which related to arrangement and segregation of denaturing
facilities by regulation of the Secretary.
1977 - Subsec. (a)(3)(D). Pub. L. 95-176 added subpar. (D).
1976 - Pub. L. 94-455 struck out ''or his delegate'' after
''Secretary'' wherever appearing.
1971 - Subsec. (a)(4)(A). Pub. L. 91-659 substantially reenacted
existing provisions and added cl. (ii) and the following sentence.
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 1977 AMENDMENT
Amendment by Pub. L. 95-176 effective on first day of first
calendar month beginning more than 90 days after Nov. 14, 1977, see
section 7 of Pub. L. 95-176, set out as a note under section 5003
of this title.
EFFECTIVE DATE OF 1971 AMENDMENT
Amendment by Pub. L. 91-659 effective on first day of first
calendar month which begins more than 90 days after Jan. 8, 1971,
see section 6 of Pub. L. 91-659, set out as an Effective Date note
under section 5066 of this title.
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5511, 5601 of this title.
