bottling, of distilled spirits withdrawn from bond prior to July 1, 1959, and such spirits shall be considered as having been withdrawn from bond on payment or determination of tax by the proprietor of the bottling premises at which the spirits are dumped for rectification or bottling.

(d) Distilled spirits returned to bonded premises. (1) Allowance of tax.

Whenever any distilled spirits withdrawn from bonded premises, on or after July 1, 1959, on payment or determination of tax are returned under section 5215 to the bonded premises of a distilled spirits plant, the Secretary or his delegate shall abate, remit, or (without interest) credit or refund the tax imposed under section 5001 (a) (1) on the spirits so returned.

(2) Limitation.

No allowance under paragraph (1) shall be made unless a claim is filed, under such regulations as the Secretary or his delegate may prescribe, by the proprietor of the distilled spirits plant to which the distilled spirits are returned, within 6 months of the date of return; and no claim shall be allowed in respect of any distilled spirits withdrawn from the bonded premises of a distilled spirits plant more than 6 months prior to the date of such return.

(e) Samples for use by the United States.

The Secretary or his delegate shall, under such regulations as he may prescribe, without interest, credit or refund to the proprietor the tax on any samples of distilled spirits removed from the premises of a distilled spirits plant for analysis or testing by the United States.

(f) Distilled spirits withdrawn without payment of tax.

The provision of subsection (a) shall be applicable to loss of distilled spirits occurring during transportation from bonded premises of a distilled spirits plant to

(1) the port of export, in case of withdrawal under section 5214 (a) (4);

(2) the customs manufacturing bonded warehouse, in case of withdrawal under section 5214 (a) (6);

(3) the vessel or aircraft, in case of withdrawal under section 5214 (a) (7); and

(4) the foreign-trade zone, in case of withdrawal under section 5214 (a) (8).

(g) Other laws applicable.

All provisions of law, including penalties, applicable in respect of the internal revenue tax on distilled spirits, shall, insofar as applicable and not inconsistent with subsections (b) (2), (c), and (d), be applicable to the credits or refunds provided for under such subsections to the same extent as if such credits or refunds constituted credits or refunds of such tax.

(h) Cross reference.

For provisions relating to allowance for loss in case of wine spirits withdrawn for use in wine production, see section 5373 (b) (3).

(Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1323.)

CODIFICATION

A prior section 5008, act Aug. 16, 1954, ch. 736, 68A Stat. 602, related to "strip stamps for distilled spirits". See sections 5205 (a), (g) and 5604(a)(1) of this title.

Provisions similar to those comprising subsecs. (a) (1)-(4) and (f) (1), (2) of this section were contained in former sections 5011(a) (1-4), 5023, 5247(e) and 5522 (b), act Aug. 16, 1954, ch. 736, 68A Stat. 604, 606, 648, 679, prior to the general revision of this chapter by Pub. L. 85-859.

EFFECTIVE DATE

Section effective July 1, 1959, see section 210(a) (1) of Pub. L. 85-859, set out as a note under section 5001 of this title.

§ 5009. Drawback.

(a) Drawback on exportation of distilled spirits in casks or packages.

On the exportation of distilled spirits in casks or packages containing not less than 20 wine gallons each, filled in internal revenue bond, drawback of the internal revenue tax paid or determined may be allowed, under such regulations, and on the filing of such bonds, reports, returns, and applications, and the keeping of such records, as the Secretary or his delegate may prescribe. The drawback shall be paid or credited in an amount equal to such tax on the quantity of distilled spirits exported, as ascertained prior to exportation by such gauge as the Secretary or his delegate may by regulations prescribe. The drawback shall be paid or credited only after all requirements of law and regulations have been complied with and on the filing, with the Secretary or his delegate, of a proper claim and evidence satisfactory to the Secretary or his delegate that the tax on such distilled spirits has been paid or determined and that the distilled spirits have been exported.

(b) Cross references.

(1) For provisions relating to drawback on distilled spirits packaged or bottled especially for export, see section 5062 (b). (2) For provisions relating to drawback on designated nonbeverage products, see sections 5131 through 5134.

(3) For drawback on distilled spirits used in flavoring extracts or medical or toilet preparations exported, see section 313 (d) of the Tariff Act of 1930 (46 Stat. 694; 19 U. S. C. 1313).

(4) For drawback on articles removed to foreign-trade zones, see 19 U. S. C. 81c.

(5) For drawback on shipments from the United States to Puerto Rico, the Virgin Islands, Guam, or American Samoa, Bee section 7653 (c).

(Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1327.)

CODIFICATION

A prior section 5009, act Aug. 16, 1954, ch. 736, 68A Stat. 603, related to "stamps for distilled spirits withdrawn for exportation". See sections 5205 (c)(1), (f), (1) (4) and 5206 (c) of this title.

Provisions similar to those comprising this section were contained in former section 5012, act Aug. 16, 1954, ch. 736, 68A Stat. 605, prior to the general revision of this chapter by Pub. L. 85-859.

CODIFICATION

Prior to the general revision by Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1313, of the provisions of former chapter 51 as enacted Aug. 16, 1954, ch. 736, 68A Stat. 595, and amended thereafter, this subpart consisted of sections 5021-5028.

See

Section 5027, act Aug. 16, 1954, ch. 736, 68A Stat. 609, related to "Stamp provisions applicable to rectifiers". sections 5061 and 5205 of this title.

Section 5028, act Aug. 16, 1954, ch. 736, 68A Stat. 609, was a cross reference to penalty provisions applicable to this subpart.

§ 5021. Imposition and rate of tax.

In addition to the tax imposed by this chapter on distilled spirits and wines, there is hereby imposed (except as otherwise provided in this chapter) a tax of 30 cents on each proof gallon and a proportionate tax at a like rate on all fractional parts of such proof gallon on all distilled spirits or wines rectified, purified, or refined in such manner, and on all mixtures produced in such manner, that the person so rectifying, purifying, refining, or mixing the same is a rectifier (as defined in section 5082). Spirits or wines shall not twice be subjected to tax under this section because of separate acts of rectification, pursuant to approved formula, between the time such spirits or wines are received on the bottling premises and the time they are removed therefrom. (Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1328.)

CODIFICATION

Provisions similar to those comprising the first sentence of this section were contained in a prior section 5021(a), act Aug. 16, 1954, ch. 736, 68A Stat. 606.

Former section 5021(b) related to "change in proof or volume" and has been omitted from the Code.

EFFECTIVE DATE

Section effective July 1, 1959, see section 210(a) (1) of Pub. L. 85-859, set out as a note under section 5001 of this title.

CROSS REFERENCES

Refund and drawback in case of exportation, see section 5062 of this title.

§ 5022. Tax on cordials and liqueurs containing wine. On all liqueurs, cordials, or similar compounds produced in the United States and not produced for sale as wine, wine specialties, or cocktails, which contain more than 21⁄2 percent by volume of wine of an alcoholic content in excess of 14 percent by volume, there shall be paid, in lieu of the tax imposed by section 5021, a tax at the rate of $1.92 per wine gallon and a proportionate tax at a like rate on all fractional parts of such wine gallon until July 1, 1965, and on or after July 1, 1965, at the rate of $1.60 per wine gallon and a proportionate tax at a like rate on all fractional parts of such wine gallon. The last sentence of section 5021 shall not be construed to limit the imposition of tax under this section. All other provisions of law applicable to rectification shall apply to the products subject to tax under this section. (Added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1323, and amended Pub. L. 86-75, § 3(a) (4), June 30, 1959, 73 Stat. 157; Pub. L. 86-564, title II, § 202(a) (6), June 30, 1960, 74 Stat. 290; Pub. L. 87-72, § 3(a) (6), June 30, 1961, 75 Stat. 193; Pub. L. 87-508, § 3 (a) (5), June 28, 1962, 76 Stat. 114; Pub. L. 88-52, § 3(a) (6), June 29, 1963, 77 Stat. 72; Pub. L. 88-348, § 2 (a) (6), June 30, 1964, 72 Stat. 237.)

CODIFICATION

Provisions similar to those comprising this section were contained in a prior section 5022, act Aug. 16, 1954, ch. 736, 68A Stat. 606, as amended by acts Mar. 30, 1955, ch. 18, § 3(a) (6), 69 Stat. 14; Mar. 29, 1956, ch. 115, § 3(a) (6), 70 Stat. 66; Mar. 29, 1957, Pub. L. 85-12, § 3(a) (4), 71 Stat. 9; June 30, 1958, Pub. L. 85-475, § 3(a) (4), 72 Stat. 259. AMENDMENTS

1964 Pub. L. 88-348 substituted "July 1, 1965" for "July 1, 1964" in two instances.

1963-Pub. L. 88-52 substituted “July 1, 1964" for "July 1, 1963" in two instances.

1962-Pub. L. 87-508 substituted "July 1, 1963" for "July 1, 1962" in two instances.

1961-Pub. L. 87-72 substituted "July 1, 1962" for "July 1, 1961" in two instances.

1960-Pub. L. 86-564 substituted "July 1, 1961" for "July 1, 1960" in two instances. 1959-Pub. L. 86-75 substituted "July 1, 1960" for "July 1, 1959" in two places.

EFFECTIVE DATE

Section effective July 1, 1959, see section 210(a) (1) of Pub. L. 85-859, set out as a note under section 5001 of this title.

§ 5023. Tax on blending of beverage rums or brandies. In the case of rums or fruit brandies mixed or blended pursuant to section 5234 (c), in addition to the tax imposed by this chapter on the production of distilled spirits, there shall, except in the case of such rums or brandies which have been aged in wood at least 2 years at the time of their first blending or mixing, be paid a tax of 30 cents as to each proof gallon (and a proportionate tax at a like rate on all fractional parts of such proof gallon) of rums or brandies so mixed or blended and withdrawn from bonded premises, except when such rums or brandies are withdrawn under section 5214 or section 7510. (Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1328.)

CODIFICATION

Provisions similar to those comprising this section were contained in a prior section 5023, act Aug. 16, 1954, ch. 736, 68A Stat. 606.

Former section 5023 also related to the blending of beverage brandies, exemption from rectification tax and refund of taxes for loss of blended brandies. See sections 5008 (a), 5025(e)(4) and 5234 (c) of this title.

EFFECTIVE DATE

Section effective July 1, 1959, see section 210(a) (1) of Pub. L. 85-859, set out as a note under section 5001 of this title.

§ 5024. Definitions.

(1) For definition of "rectifier", see section 5082. (2) For definition of “products of rectification" as "distilled spirits" for certain purposes, see section 5002 (a) (6) (B).

(3) For other definitions relating to distilled spirits, see section 5002.

(4) For definitions of general application to this title, see chapter 79.

(Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1328.)

CODIFICATION

Provisions similar to those comprising subds. (1) and (2) of this section were contained in a prior section 5024, act Aug. 16, 1954, ch. 736, 68A Stat. 607.

EFFECTIVE DATE

Section effective July 1, 1959, see section 210(a) (1) of Pub. L. 85-859, set out as a note under section 5001 of this title.

§ 5025. Exemption from rectification tax. (a) Absolute alcohol.

The process of extraction of water from highproof distilled spirits for the production of absolute

alcohol shall not be deemed to be rectification within the meaning of sections 5081 and 5082, and absolute alcohol shall not be subject to the tax imposed by section 5021, but the production of such absolute alcohol shall be under such regulations as the Secretary or his delegate may prescribe.

(b) Production of gin and vodka.

The tax imposed by section 5021 shall not apply to gin produced on bottling premises of distilled spirits plants by the redistillation of a pure spirit over juniper berries and other natural aromatics or to vodka produced on bottling promises of distilled spirits plants from pure spirits in the manner authorized on bonded premises of distilled spirits plants.

(c) Refining spirits in course of original distillation.

The purifying or refining of distilled spirits, in the course of original and continuous distillation or other original and continuous processing, through any material which will not remain incorporated with such spirits when the production thereof is complete shall not be held to be rectification within the meaning of sections 5021, 5081, or 5082, nor shall these sections be held to prohibit such purifying or refining.

(d) Redistillation of distilled spirits on bonded premises.

Sections 5021, 5081, and 5082 shall not apply to the redistillation of distilled spirits under section 5223.

(e) Mingling of distilled spirits.

Sections 5021, 5081, and 5082 shall not apply to—

(1) the mingling on bonded premises of spirits distilled at 190 degrees or more of proof; or

(2) the mingling of distilled spirits on bonded premises, or in the course of removal therefrom, for redistillation, storage, or any other purpose, incident to the requirements of the national defense; or

(3) the mingling in bulk gauging tanks on bonded premises of heterogeneous distilled spirits for immediate removal to bottling premises, exclusively for use in taxable rectification, or in rectification under subsection (f); or

(4) the blending on bonded premises of beverage brandies or rums, under the provisions of section 5234 (c); or

(5) the mingling of homogeneous distilled spirits; or

(6) the mingling on bonded premises of distilled spirits for immediate redistillation, immediate denaturation, or immediate removal from such premises free of tax under section 5214 (a) (1), (2), or (3), or section 7510; or

(7) the mingling on bonded premises of distilled spirits for further storage in bond as authorized by section 5234 (a) (2).

(f) Blending straight whiskies, rums, fruit brandies, or wines.

The taxes imposed by this subpart shall not attach

(1) to blends made exclusively of two or more pure straight whiskies aged in wood for a period not less than 4 years and without the addition of coloring or flavoring matter or any other sub

stance than pure water and if not reduced below 80 proof; or

(2) to blends made exclusively of two or more pure fruit brandies distilled from the same kind of fruit, aged in wood for a period not less than 2 years and without the addition of coloring or flavoring matter (other than caramel) or any other substance than pure water and if not reduced below 80 proof; or

(3) to the mixing and blending of wines, where such blending is for the sole purpose of perfecting such wines according to commercial standards; or

(4) to blends made exclusively of two or more rums aged in wood for a period not less than 2 years and without the addition of coloring or flavoring matter (other than caramel) or any other substance than pure water and if not reduced below 80 proof.

Such blended whiskies, blended rums, and blended fruit brandies shall be exempt from tax under this subpart only when blended in such tanks and under such conditions and supervision as the Secretary or his delegate may by regulations prescribe. (g) Addition of caramel to brandy or rum.

The addition of caramel to commercial brandy or rum on the bonded premises of a distilled spirits plant, pursuant to regulations prescribed by the Secretary or his delegate, shall not be deemed to be rectification within the meaning of sections 5021. 5081, and 5082.

(h) Apothecaries.

The taxes imposed by this subpart and by part II of this subchapter shall not be imposed on apothecaries as to wines or distilled spirits which they use exclusively in the preparation or making up of medicines unfit for use for beverage purposes.

(i) Manufacturer recovering distilled spirits for reuse in products unfit for beverage purposes. The taxes imposed by this subpart and by part II of this subchapter shall not be imposed on any manufacturer for recovering distilled spirits, on which the tax has been paid or determined, from dregs or marc of percolation or extraction, or from medicines, medicinal preparations, food products, flavors, or flavoring extracts, which do not meet the manufacturer's standards, if such recovered distilled spirits are used by such manufacturer in the manufacture of medicines, medicinal preparations, food products, flavors, or flavoring extracts, which are unfit for use for beverage purposes.

(j) Stabilization of distilled spirits.

The removal, on the premises of a distilled spirits plant, of extraneous insoluble materials from distilled spirits, and minor changes in the soluble color or soluble solids of distilled spirits, which occur solely as a result of such filtrations or other physical treatments (which do not involve the addition of any substance which will remain incorporated in the completed product) at the time of, or preparatory to, the bottling of distilled spirits, as may be necessary or desirable to produce a stable product, shall not be deemed to be rectification within the meaning of sections 5021, 5081, and 5082, if such changes do not exceed maximum limitations which the Secretary or his delegate may by regulations provide.

(k) Addition of tracer elements.

The authorized addition of tracer elements to distilled spirits under provisions of section 5201 (d) shall not be deemed to be rectification within the meaning of sections 5021, 5081, and 5082.

(1) Cross references.

(1) For provisions exempting distilled spirits and wines rectified in customs manufacturing bonded warehouses, see section 5523.

(2) For provisions exempting winemakers in the use or treatment of wines or wine spirits, see section 5391.

(3) For provisions exempting the manufacture of volatile fruit-flavor concentrates, see section 5511. (Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1328.)

CODIFICATION

Provisions similar to those comprising subsecs. (a)—(d), (f)—(1) and (1) of this section were contained in a prior section 5025, act Aug. 16, 1954, ch. 736, 68A Stat. 607. Provisions similar to those comprising subsec. (e) (1), (2), (4) of this section were contained in former sections 5023, 5217(a) and 5306, act Aug. 16, 1954, ch. 736, 68A Stat. 606, 641, 657, prior to the general revision of this chapter by Pub. L. 85-859.

EFFECTIVE DATE

Section as effective July 1, 1959, see section 210(a)(1) of Pub. L. 85-859, set out as a note under section 5001 of this title.

EXCEPTION TO EFFECTIVE DATE Section 210(a) (2) of Pub. L. 85-859 provided that: "Provisions having the effect of

"(A) section 5025 (e) (7) [section 5234 (a) (2) of this title] (exemption from laws pertaining to rectification), and

"(B) section 5234 (a) (2) (permitting the mingling of distilled spirits for further storage in bond)

of the Internal Revenue Code of 1954 (as such sections are included in chapter 51 of such Code as amended by section 201 of this Act) [this chapter] shall be deemed to be included in the Internal Revenue Code of 1954, effective on the day following the date of the enactment of this Act [September 2, 1958]. In applying the provisions of such sections 5025 (e) (7) and 5234 (a) (2) during the period beginning on the day following the date of the enactment of this Act [September 2, 1958] and ending at the close of June 30, 1959, references to bonded premises shall be treated as references to internal revenue bonded warehouses."

§ 5026. Determination and collection of rectification tax.

(a) Determination of tax.

(1) General.

The taxes imposed by sections 5021 and 5022 shall be determined upon the completion of the process of rectification by such means as the Secretary or his delegate shall by regulations prescribe and with the use of such devices and apparatus (including but not limited to storage, gauging, and bottling tanks, and pipelines) as the Secretary or his delegate may by regulations prescribe. (2) Unauthorized rectification.

In the case of taxable rectification on premises other than premises on which rectification is authorized, the tax imposed by section 5021 or 5022 shall be due and payable at the time of such rectification.

(b) Payment of tax.

Except as provided in subsection (a) (2), the taxes imposed by sections 5021, 5022, and 5023, shall be paid in accordance with section 5061. (Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1330.)

5043. Collection of taxes on wines.

5044. Refund of tax on unmerchantable wine. 5045. Cross references.

§ 5041. Imposition and rate of tax. (a) Imposition.

There is hereby imposed on all wines (including imitation, substandard, or artificial wine, and compounds sold as wine) having not in excess of 24 percent of alcohol by volume, in bond in, produced in, or imported into, the United States, taxes at the rates shown in subsection (b), such taxes to be determined as of the time of removal for consumption or sale. All wines containing more than 24 percent of alcohol by volume shall be classed as distilled spirits and taxed accordingly. Still wines shall include those wines containing not more than 0.256 gram of carbon dioxide per hundred milliliters of wine; except that the Secretary or his delegate may by regulations prescribe such tolerances to this maximum limitation as may be reasonably necessary in good commercial practice.

(b) Rates of tax.

(1) On still wines containing not more than 14 percent of alcohol by volume, 17 cents per wine gallon, except that on and after July 1, 1965, the rate shall be 15 cents per wine gallon.

(2) On still wines containing more than 14 percent and not exceeding 21 percent of alcohol by volume, 67 cents per wine gallon, except that on and after July 1, 1965, the rate shall be 60 cents a wine gallon;

(3) On still wines containing more than 21 percent and not exceeding 24 percent of alcohol by volume, $2.25 per wine gallon, except that on and after July 1, 1965, the rate shall be $2.00 per wine gallon;

(4) On champagne and other sparkling wines, $3.40 per wine gallon, except that on and after July 1, 1965, the rate shall be $3.00 per wine gallon; and

(5) On artificially carbonated wines, $2.40 per wine gallon, except that on and after July 1, 1965, the rate shall be $2.00 per wine gallon. (c) Wine gallon.

For the purpose of this chapter, the term "wine gallon" means a United States gallon of liquid measure equivalent to the volume of 231 cubic inches. On lesser quantities the tax shall be paid proportionately (fractions of less than one-tenth gallon being converted to the nearest one-tenth gallon, and five-hundredths gallon being converted to the next full one-tenth gallon).

(d) Illegally produced wine.

Nothwithstanding subsection (a), any wine produced in the United States at any place other than

the bonded premises provided for in this chapter shall (except as provided in section 5042 in the case of tax-free production) be subject to tax at the rate prescribed in subsection (b) at the time of production and whether or not removed for consumption or sale. (Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1331, and amended Pub. L. 86-75, § 3(a) (5), June 30, 1959, 73 Stat. 157; Pub. L. 86564, title II, § 202(a) (7), June 30, 1960, 74 Stat. 290; Pub. L. 87-72, § 3(a) (7), June 30, 1961, 75 Stat. 193; Pub. L. 87-508, § 3(a) (6), June 28, 1962, 76 Stat. 114; Pub. L. 88-52, § 3(a) (7), June 29, 1963, 77 Stat. 72; Pub. L. 88-348, § 2(a) (7), June 30, 1964, 78 Stat. 237.)

CODIFICATION

Provisions similar to those comprising this section were contained in a prior section 5041, act Aug. 16, 1954, ch. 736, 68A Stat. 609, as amended by acts Mar. 30, 1955, ch. 18, § 3(a) (7), 69 Stat. 14; Mar. 29, 1956, ch. 115, § 3(a) (7), 70 Stat. 66; Mar. 29, 1957, Pub. L. 85-12, § 3(a)(5), 71 Stat. 9; June 30, 1958, Pub. L. 85-475, § 3(a) (5), 72 Stat. 259.

AMENDMENTS

1964 Subsec. (b). Pub. L. 88-348 substituted "July 1, 1965" for "July 1, 1964" in five instances.

1963 Subsec. (b). Pub. L. 88-52 substituted "July 1, 1964" for "July 1, 1963" in five instances.

1962 Subsec. (b). Pub. L. 87-508 substituted "July 1, 1963" for "July 1, 1962" in five instances.

1961-Subsec. (b). Pub. L. 87-72 substituted "July 1, 1962" for "July 1, 1961" in five instances.

1960 Subsec. (b). Pub. L. 86-564 substituted "July 1, 1961" for "July 1, 1960" in five places.

1959-Subsec. (b). Pub. L. 86-75 substituted "July 1, 1960" for "July 1, 1959" in five places.

EFFECTIVE DATE

Section effective July 1, 1959, see section 210(a) (1) of Pub. L. 85-859, set out as a note under section 5001 of this title.

CROSS REFERENCES

Loss or destruction of wine not taxable under this section, see section 5370 of this title.

Penalty for failure to pay tax imposed on wine, see section 5661 of this title.

§ 5042. Exemption from tax.

(a) Tax-free production. (1) Cider.

Subject to regulations prescribed by the Secretary or his delegate, the noneffervescent product of the normal alcoholic fermentation of apple juice only, which is produced at a place other than a bonded wine cellar and without the use of preservative methods or materials, and which is sold or offered for sale as cider and not as wine or as a substitute for wine, shall not be subject to tax as wine nor to the provisions of subchapter F.

(2) Family wine.

Subject to regulations prescribed by the Secretary or his delegate, the duly registered head of any family may, without payment of tax, produce for family use and not for sale an amount of wine not exceeding 200 gallons per annum.

(3) Experimental wine.

Subject to regulations prescribed by the Secretary or his delegate, any scientific university, college of learning, or institution of scientific research may produce, receive, blend, treat, and store wine, without payment of tax, for experimental or research use but not for consumption

(other than organoleptical tests) or sale, and may receive such wine spirits without payment of tax as may be necessary for such production. (b) Cross references.

(1) For provisions relating to exemption of tax on losses of wine (including losses by theft or authorized destruction), see section 5370.

(2) For provisions exempting from tax samples of wine, see section 5372.

(3) For provisions authorizing withdrawals of wine free of tax or without payment of tax, see section 5362. (Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1331.)

CODIFICATION

Provisions similar to those comprising this section were contained in a prior section 5042, act Aug. 16, 1954, ch. 736, 688A Stat. 610.

EFFECTIVE DATE

Section effective July 1, 1959, see section 210(a) (1) of Pub. L. 85-859, set out as a note under section 5001 of this title.

§ 5043. Collection of taxes on wines. (a) Persons liable for payment.

The taxes on wine provided for in this subpart shall be paid

(1) Bonded wine cellars.

In the case of wines removed from any bonded wine cellar, by the proprietor of such bonded wine cellar; except that—

(A) in the case of any transfer of wine in bond between bonded wine cellars as authorized under the provisions of section 5362 (b), the liability for payment of the tax shall become the liability of the transferee from the time of removal of the wine from the transferor's premises, and the transferor shall thereupon be relieved of such liability; and

(B) in the case of any wine withdrawn by a person other than such proprietor without payment of tax as authorized under the provisions of section 5362 (c), the liability for payment of the tax shall become the liability of such person from the time of the removal of the wine from the bonded wine cellar, and such proprietor shall thereupon be relieved of such liability.

(2) Foreign wine.

In the case of foreign wines, by the importer thereof.

(3) Other wines.

Immediately, in the case of any wine produced, imported, received, removed, or possessed otherwise than as authorized by law, by any person producing, importing, receiving, removing, or possessing such wine; and all such persons shall be jointly and severally liable for such tax with each other as well as with any proprietor, transferee, or importer who may be liable for the tax under this subsection.

(b) Payment of tax.

Except as provided in subsection (a) (3), the taxes on wines shall be paid in accordance with section 5061. (Added Pub. L. 85-859, title II, § 201, Sept. 2. 1958, 72 Stat. 1332.)

CODIFICATION

Provisions similar to those comprising this section were contained in a prior section 5043, act Aug. 16, 1954, ch. 736, 69A Stat. 610.