Internal Revenue Code:Sec. 5223. Redistillation of spirits, articles, and residues

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 C - Operation of Distilled Spirits Plants
         PART II - OPERATIONS ON BONDED PREMISES
          Subpart B - Production
        

Statute

    Sec. 5223. Redistillation of spirits, articles, and residues
 
    (a) Spirits on bonded premises
      The proprietor of a distilled spirits plant authorized to produce
    distilled spirits may, under such regulations as the Secretary
    shall prescribe, redistill any distilled spirits which have not
    been withdrawn from bonded premises.
    (b) Distilled spirits returned for redistillation
      Distilled spirits which have been lawfully removed from bonded
    premises free of tax or without payment of tax may, under such
    regulations as the Secretary may prescribe, be returned for
    redistillation to the bonded premises of a distilled spirits plant
    authorized to produce distilled spirits.
    (c) Redistillation of articles and residues
      Articles, containing denatured distilled spirits, which were
    manufactured under the provisions of subchapter D or on the bonded
    premises of a distilled spirits plant, and the spirits residues of
    manufacturing processes related thereto, may be received, and the
    distilled spirits therein recovered by redistillation, on the
    bonded premises of a distilled spirits plant authorized to produce
    distilled spirits, under such regulations as the Secretary may
    prescribe.
    (d) Denatured distilled spirits, articles, and residues
      Distilled spirits recovered by the redistillation of denatured
    distilled spirits, or by the redistillation of the articles or
    residues described in subsection (c), may not be withdrawn from
    bonded premises except for industrial use or after denaturation
    thereof in the manner prescribed by law.
    (e) Products of redistillation
      All distilled spirits redistilled on bonded premises subsequent
    to production gauge shall be treated the same as if such spirits
    had been originally produced by the redistiller and all provisions
    of this chapter applicable to the original production of distilled
    spirits shall be applicable thereto.  Any prior obligation as to
    taxes, liens, and bonds with respect to such distilled spirits
    shall be extinguished on redistillation.  Nothing in this
    subsection shall be construed as affecting any provision of law
    relating to the labeling of distilled spirits or as limiting the
    authority of the Secretary to regulate the marking, branding, or
    identification of distilled spirits redistilled under this section.
 

Sources

    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1365; amended Pub. L. 89-44, title VIII, Sec. 805(d), (f)(8), (10),
    June 21, 1965, 79 Stat. 161, 162; Pub. L. 94-455, title XIX, Sec.
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-39, title
    VIII, Sec. 807(a)(31), July 26, 1979, 93 Stat. 286.)
 

Miscellaneous

                              PRIOR PROVISIONS
      Provisions similar to those comprising subsecs. (a) and (d) 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:
 
    ---------------------------------------------------------------------
    Present subsecs.:                  Prior sections
    ---------------------------------------------------------------------
    (a)                                5194(f), 5217(a), 5305, 5308.
    (d)                                5194(f).
                     -------------------------------
      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 635, 641, 657.
                                 AMENDMENTS
      1979 - Subsec. (c). Pub. L. 96-39, Sec. 807(a)(31)(A), inserted
    ''or on the bonded premises of a distilled spirits plant'' after
    ''subchapter D,''.
      Subsec. (e). Pub. L. 96-39, Sec. 807(a)(31)(B), struck out
    provisions relating to the treatment of the processing of distilled
    spirits, subsequent to production gauge, in the manufacture of
    vodka in the production facilities of a distilled spirits plant as
    a redistillation of the spirits for purposes of this subsection,
    subsection (a), and sections 5025(d) and 5215.
      1976 - Subsecs. (a) to (c), (e). Pub. L. 94-455 struck out ''or
    his delegate'' after ''Secretary'' wherever appearing.
      1965 - Pub. L. 89-44, Sec. 805(f)(8), substituted ''spirits,
    articles, and residues'' for ''spirits'' in section catchline.
      Subsec. (c). Pub. L. 89-44, Sec. 805(d), added subsec. (c).
    Former subsecs. (c) redesignated (d).
      Subsec. (d). Pub. L. 89-44, Sec. 805(d), (f)(10), redesignated
    subsec. (c) as (d), inserted '', articles, and residues'' after
    ''distilled spirits'' in heading, and inserted '', or by the
    redistillation of the articles or residues described in subsection
    (c),'' after ''denatured distilled spirits'' in text.  Former
    subsec. (d) redesignated (e).
      Subsec. (e). Pub. L. 89-11, Sec. 805(d), redesignated former
    subsec. (d) as (e).
                      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 1965 AMENDMENT
      Amendment by Pub. L. 89-44 effective Oct. 1, 1965, see section
    805(g)(2) of Pub. L. 89-44, set out as a note under section 5004 of
    this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 5004, 5005, 5211, 5607 of
    this title.