United States 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.

85044. Refund of tax on unmerchantable wine. (a) General.

In the case of any wine produced in the United States and returned to bond as unmerchantable under section 5361

(1) any tax imposed by section 5041 shall, if paid, be refunded or credited, without interest, to the proprietor of the bonded wine cellar to which such wine is delivered; or

(2) if any tax so imposed has not been paid, the person liable for the tax may be relieved of liability therefor,

under such regulations as the Secretary or his delegate may prescribe. Such regulations may provide that claim for refund or credit under paragraph (1), or relief from liability under paragraph (2), may be made only with respect to minimum quantities specified in such regulations. The burden of proof in all such cases shall be on the applicant. (b) Date of filing.

No claim under subsection (a) shall be allowed unless filed within 6 months after the date of the return of the wine to bond.

All provisions of this chapter applicable to wine in bond on the premises of a bonded wine cellar and to removals thereof shall be applicable to wine returned to bond under the provisions of this section. (Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1332.)

Section 5054 related to "Persons liable for tax". Section 5055 related to "Determination and collection of tax on beer".

Section 5056 related to "Drawback of tax".

Section 5057, act Aug. 16, 1954, ch. 736, 68A Stat. 613, related to "Refund and credit of tax, or relief from llability". See sections 5054 (b) and 5056 of this title.

§ 5051. Imposition and rate of tax. (a) Rate of tax.

There is hereby imposed on all beer, brewed or produced, and removed for consumption or sale, within the United States, or imported into the United States, a tax of $9 for every barrel containing not more than 31 gallons and at a like rate for any other quantity or for fractional parts of a barrel. On and after July 1, 1965, the tax imposed by this subsection shall be at the rate of $8 in lieu of $9. Where the Secretary or his delegate finds that the revenue will not be endangered thereby, he may by regulations prescribe tolerances for barrels and fractional parts of barrels, and, if such tolerances are prescribed, no assessment shall be made and no tax shall be collected for any excess in any case where the contents of a barrel or a fractional part of a barrel are within the limit of the applicable tolerance prescribed.

(b) Assessment on materials used in production in case of fraud.

Nothing contained in this subpart or subchapter G shall be construed to authorize an assessment on the quantity of materials used in producing or purchased for the purpose of producing beer, nor shall the quantity of material so used or purchased be evidence, for the purpose of taxation, of the quantity of beer produced; but the tax on all beer shall be paid as provided in section 5054, and not otherwise; except that this subsection shall not apply to cases of fraud, and nothing in this subsection shall have the effect to change the rules of law respecting evidence in any prosecution or suit. (Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1333, and amended Pub. L. 86-75, § 3(a) (6), June 30, 1959, 73 Stat. 157; Pub. L. 86-564, title II, § 202(a) (8), June 30, 1960, 74 Stat. 290; Pub. L. 87-72, § 3(a) (8), June 30, 1961, 75 Stat. 193; Pub. L. 87-508, § 3(a) (7), June 28, 1962, 76 Stat. 114; Pub. L. 88-52, § 3(a) (8), June 29, 1963, 77 Stat. 72; Pub. L. 88-348, § 2(a) (8), June 30, 1964, 78 Stat. 237.)

CODIFICATION

Provisions similar to those comprising this section were contained in a prior section 5051, act Aug. 16, 1954, ch. 736, 68A Stat. 611, as amended by acts Mar. 30, 1955, ch. 18, 3(a) (8), 69 Stat. 14; Mar. 29, 1956, ch. 115, §3(a) (8), 70 Stat. 66; Mar. 29, 1957, Pub. L. 85-12, §3(a) (6), 71 Stat. 9; June 30, 1958, Pub. L. 85-475, § 3(a) (6), 72 Stat. 259.

AMENDMENTS

1964 Subsec. (a). Pub. L. 88-348 substituted "July 1, 1965" for "July 1, 1964."

1963-Subsec. (a). Pub. L. 88-52 substituted "July 1, 1964" for "July 1, 1963".

1962-Subsec. (a). Pub. L. 87-508 substituted "July 1, 1963" for "July 1, 1962."

1961-Subsec. (a). Pub. L. 87-72 substituted "July 1, 1962" for "July 1, 1961."

1960 Subsec. (a). Pub. L. 86-564 substituted "July 1, 1961" for "July 1, 1960."

1959 Subsec. (a). Pub. L. 86-75 substituted "July 1, 1960" for "July 1, 1959".

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

Method of collecting tax, see section 5061 of this title. Penalty and forfeiture for evasion of beer tax, see section 5671 of this title.

§ 5052. Definitions. (a) Beer.

For purposes of this chapter (except when used with reference to distilling or distilling material) the term beer means beer, ale, porter, stout, and other similar fermented beverages (including saké or similar products) of any name or description containing one-half of 1 percent or more of alcohol by volume, brewed or produced from malt, wholly or in part, or from any substitute therefor.

(b) Gallon.

For purposes of this subpart, the term gallon means the liquid measure containing 231 cubic inches.

Except as provided for in the case of removal of beer without payment of tax, the term "removed for consumption or sale", for the purposes of this subpart means

(1) Sale of beer.

The sale and transfer of possession of beer for consumption at the brewery; or

(2) Removals.

Any removal of beer from the brewery, except that such removal shall not include any beer returned to the brewery on the same day such beer is removed from the brewery.

(d) Brewer.

For definition of brewer, see section 5092. (Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1333.)

CODIFICATION

Provisions similar to those comprising subsecs. (a), (b) and (d) of this section were contained in a prior section 5052, act Aug. 16, 1954, ch. 736, 68A Stat. 612.

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.

§ 5053. Exemptions.

(a) Removals for export.

Beer may be removed from the brewery, without payment of tax, for export to a foreign country, in such containers and under such regulations, and on the giving of such notices, entries, and bonds and other security, as the Secretary or his delegate may by regulations prescribe.

(b) Removals when unfit for beverage use.

When beer has become sour or damaged, so as to be incapable of use as such, a brewer may remove the same from his brewery without payment of tax, for manufacturing purposes, under such regulations as the Secretary or his delegate may prescribe.

Beer may be removed from the brewery, without payment of tax, for laboratory analysis, subject to

such limitations and under such regulations as the Secretary or his delegate may prescribe.

(d) Removal as supplies for certain vessels and aircraft.

For exemption as to supplies for certain vessels and aircraft, see section 309 of the Tariff Act of 1930, as amended (19 U. S. C. 1309).

(Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1334.)

CODIFICATION

Provisions similar to those comprising this section were contained in a prior section 5053, act Aug. 16, 1954, ch. 736, 68A Stat. 612.

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.

§ 5054. Determination and collection of tax on beer. (a) Time of determination.

(1) Beer produced in the United States.

Except as provided in paragraph (3), the tax imposed by section 5051 on beer produced in the United States shall be determined at the time it is removed for consumption or sale, and shall be paid by the brewer thereof in accordance with section 5061.

(2) Beer imported into the United States.

Except as provided in paragraph (4), the tax imposed by section 5051 on beer imported into the United States shall be determined at the time of the importation thereof, or, if entered into customs custody, at the time of removal from such custody, and shall be paid under such regulations as the Secretary or his delegate shall prescribe. (3) Illegally produced beer.

The tax on any beer produced in the United States at any place other than a qualified brewery shall be due and payable immediately upon production.

(4) Unlawfully imported beer.

Beer smuggled or brought into the United States unlawfully shall, for purposes of this chapter, be held to be imported into the United States, and the internal revenue tax shall be due and payable at the time of such importation.

(b) Tax on returned beer.

Beer which has been removed for consumption or sale and is thereafter returned to the brewery shall be subject to all provisions of this chapter relating to beer prior to removal for consumption or sale, including the tax imposed by section 5051. The tax on any such returned beer which is again removed for consumption or sale shall be determined and paid without respect to the tax which was determined at the time of prior removal of the beer for consumption or sale.

When the Secretary or his delegate finds it necessary for the protection of the revenue, he may require stamps, or other devices, evidencing the tax or indicating a compliance with the provisions of this chapter, to be affixed to hogsheads, barrels, or kegs of beer at the time of removal. The Secretary

or his delegate shall by regulations prescribe the manner by which such stamps or other devices shall be supplied, affixed, and accounted for.

(d) Applicability of other provisions of law.

All administrative and penal provisions of this title, insofar as applicable, shall apply to any tax imposed by section 5051. (Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1334.)

CODIFICATION

Provisions similar to those comprising subsec. (a) (1) of this section were contained in a prior section 5054, act Aug. 16, 1954, ch. 736, 68A Stat. 613.

Provisions similar to those comprising subsecs. (a)(1), (2) and (b)-(d) of this section were contained in former sections 5055 and 5057(a), act Aug. 16, 1954, ch. 736, 68A Stat. 613, 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 an note under section 5001 of this title.

§ 5055. Drawback of tax.

On the exportation of beer, brewed or produced in the United States, the brewer thereof shall be allowed a drawback equal in amount to the tax found to have been paid on such beer, to be paid on submission of such evidence, records and certificates indicating exportation, as the Secretary or his delegate may by regulations prescribe. For the purpose of this section, exportation shall include delivery for use as supplies on the vessels and aircraft described in section 309 of the tariff Act of 1930, as amended (19 U. S. C. 1309). (Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1335.)

CODIFICATION

A prior section 5055, act Aug. 16, 1954, ch. 736, 68A Stat. 613, related to "determination and collection of tax on beer". See section 5054 (a)(1), (2), (c), (d) of this title. Provisions similar to those comprising this section were contained in former section 5056, act Aug. 16, 1954, ch. 736, 68A Stat. 613, 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.

§ 5056. Refund and credit of tax, or relief from liability.

(a) Beer removed from market.

Any tax paid by any brewer on beer produced in the United States may be refunded or credited to the brewer, without interest, or if the tax has not been paid, the brewer may be relieved of liability therefor, under such regulations as the Secretary or his delegate may prescribe, if such beer is removed from the market and is returned to the brewery or is destroyed under the supervision required by such regulations. (b) Beer lost by fire, casualty, or act of God.

Subject to regulations prescribed by the Secretary or his delegate, the tax paid by any brewer on beer produced in the United States may be refunded or credited to the brewer, without interest, or if the tax has not been paid, the brewer may be relieved of liability therefor, if such beer is lost other than by theft, or is destroyed by fire, casualty, or act of God, before the transfer of title thereto to any other person.

The taxes on distilled spirits, wines, rectified distilled spirits and wines, and beer shall be collected on the basis of a return. The Secretary or his delegate shall, by regulation, prescribe the period or event for which such return shall be filed, the time for filing such return, the information to be shown in such return, and the time for payment of such tax. Notwithstanding the preceding sentences of this subsection, the taxes shall continue to be paid by stamp until the Secretary or his delegate shall by regulations provide for the collection of the taxes on the basis of a return.

(b) Discretion method of collection.

Whether or not the method of collecting any tax imposed by this part is specifically provided in this part, any such tax may, under regulations prescribed by the Secretary or his delegate, be collected by stamp, coupon, serially-numbered ticket, or the use of tax-stamp machines, or by such other reasonable device or method as may be necessary or helpful in securing collection of the tax.

All administrative and penalty provisions of this title, insofar as applicable, shall apply to the collection of any tax which the Secretary or his delegate determines or prescribes shall be collected in any manner provided in this section.

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.

§ 5062. Refund and drawback in case of exportation. (a) Refund.

Under such regulations as the Secretary or his delegate may prescribe, the amount of any internal revenue tax erroneously or illegally collected in respect to exported articles may be refunded to the exporter of the article, instead of to the manufacturer, if the manufacturer waives any claim for the amount so to be refunded.

(b) Drawback.

On the exportation of distilled spirits or wines manufactured or produced in the United States on which an internal revenue tax has been paid or determined, and which are contained in any cask or package, or in bottles packed in cases or other containers, there shall be allowed, under regulations prescribed by the Secretary or his delegate, a drawback equal in amount to the tax found to have been paid or determined on such distilled spirits or wines. The preceding sentence shall not apply unless such distilled spirits have been packaged or bottled especially for export, or, in the case of distilled spirits originally bottled for domestic use, have been restamped and marked especially for export at the distilled spirits plant where originally bottled and before removal therefrom, under regulations prescribed by the Secretary or his delegate. The Secretary or his delegate is authorized to prescribe regulations governing the determination and payment or crediting of drawback of internal revenue tax on domestic distilled spirits and wines, including the requirement of such notices, bonds, bills of lading, and other evidence indicating payment or determination of tax and exportation as shall be deemed necessary.

(1) Allowance of tax.

Upon the exportation of imported distilled spirits, wines, and beer upon which the duties and internal revenue taxes have been paid or determined incident to their importation into the United States, and which have been found after entry to be unmerchantable or not to conform to sample or specifications, and which have been returned to customs custody within six months of their release therefrom, the Secretary or his delegate shall, under such regulations as he shall prescribe, refund, remit, abate, or credit, without interest, to the importer thereof, the full amount of the internal revenue

taxes paid or determined with respect to such distilled spirits, wines, or beer.

(2) Destruction in lieu of exportation.

At the option of the importer, such imported distilled spirits, wines, and beer, after return to customs custody, may be destroyed under customs supervision and the importer thereof granted relief in the same manner and to the same extent as provided in this subsection upon exportation.

(Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1336, and amended Pub. L. 88-539, § 1, Aug. 31, 1964, 78 Stat. 746.)

With respect to any article upon which tax is imposed under this part, upon which internal revenue tax (including floor stocks tax) at the applicable rate prescribed has been paid or determined, and which, on July 1, 1965, is held by any person and intended for sale or for use in the manufacture or production of any article intended for sale, there shall be credited or refunded to such person (without interest), subject to such regulations as may be prescribed by the Secretary or his delegate, an amount equal to the difference between the tax so paid or determined and the rate made applicable to such articles on and after July 1, 1965, if claim for such credit or refund is filed with the Secretary or his delegate prior to October 1, 1965, or within 30 days from the promulgation of such regulations, whichever is later.

(b) Limitations on eligibility for credit or refund. No person shall be entitled to credit or refund under subsection (a), unless such person, for such period or periods both before and after July 1, 1965. (but not extending beyond 1 year thereafter), as the Secretary or his delegate shall by regulations prescribe, makes and keeps, and files with the Secretary or his delegate, such records of inventories, sales, and purchases as may be prescribed in such regulations.

All provisions of law, including penalties, applicable in respect of internal revenue taxes on distilled spirits, wines, liqueurs and cordials, imported perfumes containing distilled spirits, and beer shall, insofar as applicable and not inconsistent with this section, be applicable in respect of the credits and

refunds provided for in this section to the same extent as if such credits or refunds constituted credits or refunds of such taxes. (Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1336, and amended Pub. L. 86-75, § 3(b) (1), June 30, 1959, 73 Stat. 157; Pub. L. 86-564, title II, § 202(b) (1), June 30, 1960, 74 Stat. 290; Pub. L. 87-72, § 3(b) (1), June 30, 1961, 75 Stat. 193; Pub. L. 87-508, § 3(b) (1), June 28, 1962, 76 Stat. 114; Pub. L. 88-52, § 3(b) (1) (A), June 29, 1963, 77 Stat. 72; Pub. L. 88-348, § 2 (b) (1) (A), June 30, 1964, 78 Stat. 237.)

CODIFICATION

Provisions similar to those comprising this section were contained in a prior section 5063, act Aug. 16, 1954, ch. 736, 68A Stat. 615, as amended by acts Mar. 30, 1955, ch. 18, § 3(b) (1), 69 Stat. 15; Mar. 29, 1956, ch. 115, § 3(b) (1), 70 Stat. 66; Mar. 29, 1957, Pub. L. 85-12, § 3(b) (1), 71 Stat. 9; June 30, 1958, Pub. L. 85-475, § 3(b) (1), 72 Stat. 259. AMENDMENTS

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

1963-Pub. L. 88-52 substituted "July 1, 1964" for "July 1, 1963" in three instances and "October 1, 1964" for "October 1, 1963".

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

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

1960-Pub. L. 86-564 substituted "July 1, 1961" for "July 1, 1960" in three instances, and "October 1, 1961" for "October 1, 1960."

1959-Pub. L. 86-75 substituted "July 1, 1960" for "July 1, 1959" in three places and "October 1, 1960" for "October 1, 1959".

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.

§ 5064. Losses caused by disaster.

(a) Authorization.

Where the President has determined under the Act of September 30, 1950 (42 U. S. C., sec. 1855), that a "major disaster" as defined in such Act has occured in any part of the United States, the Secretary or his delegate shall pay (without interest) an amount equal to the amount of the internal revenue taxes paid or determined and customs duties paid on distilled spirits, wines, rectified products, and beer previously withdrawn, which were lost, rendered unmarketable, or condemned by a duly authorized official by reason of such disaster occurring in such part of the United States after June 30, 1959, if such distilled spirits, wines, rectified products, or beer were held and intended for sale at the time of such disaster. The payments authorized by this section shall be made to the person holding such distilled spirits, wines, rectified products, or beer for sale at the time of such disaster. (b) Claims.

No claim shall be allowed under this section unless

(1) filed within 6 months after the date on which the President makes the determination that the disaster referred to in subsection (a) has occurred; and

(2) the claimant furnishes proof to the satisfaction of the Secretary or his delegate that

(A) he was not indemnified by any valid claim of insurance or otherwise in respect of the tax, or tax and duty, on the distilled spirits, wines, rectified products, or beer covered by the claim; and

(B) he is entitled to payment under this section.

Claims under this section shall be filed under such regulations as the Secretary or his delegate shall prescribe.

When the Secretary or his delegate has made payment under this section in respect of the tax, or tax and duty, on the distilled spirits, wines, rectified products, or beer condemned by a duly authorized official or rendered unmarketable, such distilled spirits, wines, rectified products, or beer shall be destroyed under such supervision as the Secretary or his delegate may prescribe, unless such distilled spirits, wines, rectified products, or beer were previously destroyed under supervision satisfactory to the Secretary or his delegate.

(d) Products of Puerto Rico.

The provisions of this section shall not be applicable in respect of distilled spirits, wines, rectified products, and beer of Puerto Rican manufacture brought into the United States and so lost or rendered unmarketable or condemned.

(e) Other laws applicable.

All provisions of law, including penalties, applicable in respect of internal revenue taxes on distilled spirits, wines, rectified products, and beer shall, insofar as applicable and not inconsistent with this section, be applied in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of such taxes. (Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1337.)

CODIFICATION

A prior section 5064, act Aug. 16, 1954, ch. 736, 68A Stat. 615, related to "territorial extent of law". See section 5065 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.

EXCEPTION TO EFFECTIVE DATE

Section 210 (a) (3) of Pub. L. 85-859 provided that: "Provisions having the effect of section 5064 of the Internal Revenue Code of 1954 (as such section is included in chapter 51 of such Code as amended by section 201 of this Act) [this section] 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], and shall apply with respect to disasters occurring after such date of enactment [September 2, 1958], and not later than June 30, 1959."

BEER LOST BY REASON OF FLOODS OF 1951 OR HURRICANES OF 1954

Section 207 of Pub. L. 85-859 provided that: "(a) AUTHORIZATION.-The Secretary of the Treasury or his delegates shall pay (without interest) to the person specified in subsection (b) an amount equal to the amount of the internal revenue tax paid under section 3150 (a) of the Internal Revenue Code of 1939 on any fermented malt liquor which was lost, rendered unmarketable, or condemned by a duly authorized health official of the United States or of a State, by reason of the floods of 1951 or the hurricanes of 1954.

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United States Code, Volume 6