Withdrawal of distilled spirits from bonded premises free of tax or without payment of tax

26 U.S.C. § 5214

• Title: 26 — Internal Revenue Code
• Chapter: Subchapter C—Operation of Distilled Spirits Plants
• Part: Subpart A—General

Text

(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revenue tax has not been paid or determined may, subject to such regulations as the Secretary shall prescribe, be withdrawn from the bonded premises of any distilled spirits plant in approved containers—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); or
(14) with respect to distilled spirits removed after December 31, 2019, and before January 1, 2021, free of tax for use in or contained in hand sanitizer produced and distributed in a manner consistent with any guidance issued by the Food and Drug Administration that is related to the outbreak of virus SARS–CoV–2 or coronavirus disease 2019 (COVID–19).
(b) Cross references

History

(Added Pub. L. 85–859, title II, §201, Sept. 2, 1958, 72 Stat. 1362; amended Pub. L. 91–172, title I, §101(j)(29), Dec. 30, 1969, 83 Stat. 529; Pub. L. 94–455, title XIX, §§1905(c)(2), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823, 1834; Pub. L. 95–176, §§3(a), (d), 4(a), Nov. 14, 1977, 91 Stat. 1365; Pub. L. 96–39, title VIII, §807(a)(28), July 26, 1979, 93 Stat. 285; Pub. L. 96–223, title II, §232(e)(2)(B), Apr. 2, 1980, 94 Stat. 280; Pub. L. 98–369, div. A, title IV, §455(a), July 18, 1984, 98 Stat. 823; Pub. L. 116–136, div. A, title II, §2308(a), Mar. 27, 2020, 134 Stat. 359.)

Editorial Notes

(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.

Editorial Notes

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:
The prior sections, act Aug. 16, 1954, ch. 736, are set out in 68A Stat. 646–648, 658, 661, 662, 667.

Amendments
2020—Subsec. (a)(14). Pub. L. 116–136 added par. (14).
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, §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, §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, §807(a)(28)(C), (D), substituted "distilled spirits operations" for "distillery operations".
Subsec. (a)(11). Pub. L. 96–39, §807(a)(28)(D), added par. (11).
Subsec. (b)(4) to (8). Pub. L. 96–39, §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, §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, §4(a), added par. (10).
Subsec. (b)(7). Pub. L. 95–176, §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)".

Statutory Notes and Related Subsidiaries

Effective Date of 2020 Amendment
Pub. L. 116–136, div. A, title II, §2308(b), Mar. 27, 2020, 134 Stat. 359, provided that: "The amendments made by this section [amending this section] shall apply to distilled spirits removed after December 31, 2019."

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.

Application of Other Laws
Pub. L. 116–136, div. A, title II, §2308(c), Mar. 27, 2020, 134 Stat. 359, provided that: "Any distilled spirits or product described in paragraph (14) of section 5214(a) of the Internal Revenue Code of 1986 (as added by this section) shall not be subject to any requirements related to labeling or bulk sales under—
"(1) section 105 or 106 of the Federal Alcohol Administration Act (27 U.S.C. 205, 206); or
"(2) section 204 of the Alcoholic Beverage Labeling Act of 1988 (27 U.S.C. 215)."