Internal Revenue Code:Sec. 5214. Withdrawal of distilled spirits from bonded premises free of tax or without payment of tax
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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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart A - General
Statute
Sec. 5214. Withdrawal of distilled spirits from bonded premises
free of tax or without payment of tax
(a) Purposes
Distilled spirits on which the internal revenue tax has not been
paid or determined may, subject to such regulations as the
Secretary shall prescribe, be withdrawn from the bonded premises of
any distilled spirits plant in approved containers -
(1) free of tax after denaturation of such spirits in the
manner prescribed by law for -
(A) exportation;
(B) use in the manufacture of ether, chloroform, or other
definite chemical substance where such distilled spirits are
changed into some other chemical substance and do not appear in
the finished product; or
(C) any other use in the arts and industries (except for uses
prohibited by section 5273(b) or (d)) and for fuel, light, and
power; or
(2) free of tax by, and for the use of, the United States or
any governmental agency thereof, any State, any political
subdivision of a State, or the District of Columbia, for
nonbeverage purposes; or
(3) free of tax for nonbeverage purposes and not for resale or
use in the manufacture of any product for sale -
(A) for the use of any educational organization described in
section 170(b)(1)(A)(ii) which is exempt from income tax under
section 501(a), or for the use of any scientific university or
college of learning;
(B) for any laboratory for use exclusively in scientific
research;
(C) for use at any hospital, blood bank, or sanitarium),
(including use in making any analysis or test at such hospital,
blood bank, or sanitarium), or at any pathological laboratory
exclusively engaged in making analyses, or tests, for hospitals
or sanitariums; or
(D) for the use of any clinic operated for charity and not
for profit (including use in the compounding of bona fide
medicines for treatment outside of such clinics of patients
thereof); or
(4) without payment of tax for exportation, after making such
application and entries, filing such bonds as are required by
section 5175, and complying with such other requirements as may
by regulations be prescribed; or
(5) without payment of tax for use in wine production, as
authorized by section 5373; or
(6) without payment of tax for transfer to manufacturing bonded
warehouses for manufacturing in such warehouses for export, as
authorized by law; or
(7) without payment of tax for use of certain vessels and
aircraft, as authorized by law; or
(8) without payment of tax for transfer to foreign-trade zones,
as authorized by law; or
(9) without payment of tax, for transfer (for the purpose of
storage pending exportation) to any customs bonded warehouse from
which distilled spirits may be exported, and distilled spirits
transferred to a customs bonded warehouse under this paragraph
shall be entered, stored, and accounted for under such
regulations and bonds as the Secretary may prescribe; or
(10) without payment of tax by a proprietor of bonded premises
for use in research, development, or testing (other than consumer
testing or other market analysis) of processes, systems,
materials, or equipment, relating to distilled spirits or
distilled spirits operations, under such limitations and
conditions as to quantities, use, and accountability as the
Secretary may by regulations require for the protection of the
revenue; or
(11) free of tax when contained in an article (within the
meaning of section 5002(a)(14)); or
(12) free of tax in the case of distilled spirits produced
under section 5181; or
(13) without payment of tax for use on bonded wine cellar
premises in the production of wine or wine products which will be
rendered unfit for beverage use and removed pursuant to section
5362(d).
(b) Cross references
(1) For provisions relating to denaturation, see sections
5241 and 5242.
(2) For provisions requiring permit for users of distilled
spirits withdrawn free of tax and for users of specially
denatured distilled spirits, see section 5271.
(3) For provisions relating to withdrawal of distilled
spirits without payment of tax for use of certain vessels and
aircraft, as authorized by law, see 19 U.S.C. 1309.
(4) For provisions relating to withdrawal of distilled
spirits without payment of tax for manufacture in manufacturing
bonded warehouse, see 19 U.S.C. 1311.
(5) For provisions relating to foreign-trade zones, see 19
U.S.C. 81c.
(6) For provisions authorizing regulations for withdrawal of
distilled spirits free of tax for use of the United States, see
section 7510.
(7) For provisions authorizing removal of distillates to
bonded wine cellars for use in the production of distilling
material, see section 5373(c).
(8) For provisions relating to distilled spirits for use of
foreign embassies, legations, etc., see section 5066.
Sources
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1362; amended Pub. L. 91-172, title I, Sec. 101(j)(29), Dec. 30,
1969, 83 Stat. 529; Pub. L. 94-455, title XIX, Sec. 1905(c)(2),
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823, 1834; Pub. L. 95-176,
Sec. 3(a), (d), 4(a), Nov. 14, 1977, 91 Stat. 1365; Pub. L. 96-39,
title VIII, Sec. 807(a)(28), July 26, 1979, 93 Stat. 285; Pub. L.
96-223, title II, Sec. 232(e)(2)(B), Apr. 2, 1980, 94 Stat. 280;
Pub. L. 98-369, div. A, title IV, Sec. 455(a), July 18, 1984, 98
Stat. 823.)
Miscellaneous
PRIOR PROVISIONS
A prior section 5214, act Aug. 16, 1954, ch. 736, 68A Stat. 639,
related to regulation of traffic in containers of distilled
spirits, prior to the general revision of this chapter by Pub. L.
85-859. See section 5301(a), (c), (d) of this title.
Provisions similar to those comprising subsecs. (a)(1) to (4),
(9) and (b)(3) to (5) 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) 5243(e), 5247, 5310(a)-(c), 5331
(a)(1), (b), 5373(b)(4),
5522(a).
(a)(1) 5310(a), 5331(a)(1), (b).
(a)(2), (3) 5310(b), (c).
(a)(4) 5243(e), 5247.
(a)(9) 5373(b)(4).
(b)(3) 5248(2).
(b)(4) 5248(4).
(b)(5) 5248(3).
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The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 646-648, 658, 661, 662, 667.
AMENDMENTS
1984 - Subsec. (a)(13). Pub. L. 98-369 added par. (13).
1980 - Subsec. (a)(12). Pub. L. 96-223 added par. (12).
1979 - Subsec. (a)(6). Pub. L. 96-39, Sec. 807(a)(28)(A),
inserted ''for manufacturing in such warehouses for export'' after
''bonded warehouses'' and substituted ''by law'' for ''by section
5522(a)''.
Subsec. (a)(9). Pub. L. 96-39, Sec. 807(a)(28)(B), struck out
''in the case of distilled spirits bottled in bond for export under
section 5233 or distilled spirits returned to bonded premises under
section 5215(b),'' after ''payment of tax,''.
Subsec. (a)(10). Pub. L. 96-39, Sec. 807(a)(28)(C), (D),
substituted ''distilled spirits operations'' for ''distillery
operations''.
Subsec. (a)(11). Pub. L. 96-39, Sec. 807(a)(28)(D), added par.
(11).
Subsec. (b)(4) to (8). Pub. L. 96-39, Sec. 807(a)(28)(E), added
par. (4) and redesignated former pars. (4) to (7) as (5) to (8),
respectively.
1977 - Subsec. (a)(9). Pub. L. 95-176, Sec. 3(a), substituted
provisions for withdrawal of distilled spirits from bonded premises
without payment of tax where the distilled spirits are bottled in
bond for export or are returned to bonded premises for transfer
(for the purpose of storage pending exportation) to any customs
bonded warehouse for exportation and requiring the transferred
distilled spirits to be entered, stored, and accounted for, for
prior provision for tax free withdrawals for use as samples in
making tests or laboratory analyses.
Subsec. (a)(10). Pub. L. 95-176, Sec. 4(a), added par. (10).
Subsec. (b)(7). Pub. L. 95-176, Sec. 3(d), added par. (7).
1976 - Subsec. (a). Pub. L. 94-455 struck out ''or his delegate''
after ''Secretary'' in introductory provisions and struck out ''or
Territory'' after ''State'' in par. (2).
1969 - Subsec. (a)(3)(A). Pub. L. 91-172 substituted ''section
170(b)(1)(A)(ii)'' for ''section 503(b)(2)''.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 18, 1984, see section
456(c) of Pub. L. 98-369, set out as an Effective Date note under
section 5101 of this title.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-223 effective on first day of first
calendar month beginning more than 60 days after Apr. 2, 1980, see
section 232(h)(3) of Pub. L. 96-223, set out as an Effective Date
note under section 5181 of this title.
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 1976 AMENDMENT
Amendment by section 1905(c)(2) 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 1969 AMENDMENT
Amendment by Pub. L. 91-172 effective Jan. 1, 1970, see section
101(k)(1) of Pub. L. 91-172, set out as an Effective Date note
under section 4940 of this title.
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5001, 5002, 5003, 5004,
5005, 5008, 5066, 5173, 5181, 5211, 5244, 5271, 5273, 5275, 5314,
5607 of this title.
