brandy prepared from one kind of berry may not be used for the fortification of a berry wine prepared from another kind of berry or for the fortification of any wine other than berry wine, (4) no brandy other than apricot brandy may be used in the fortification of apricot wine and apricot brandy may not be used for the fortification of any wine other than apricot wine, (5) no brandy other than prune brandy may be used in the fortification of prune wine and prune brandy may not be used for the fortification of any wine other than prune wine, (6) no brandy other than pear brandy may be used in the fortification of pear wine and pear brandy may not be used for the fortification of any wine other than pear wine, (7) no brandy other than plum brandy may be used in the fortification of plum wine and plum brandy may not be used for the fortification of any wine other than plum wine, (8) no brandy other than pawpaw brandy may be used in the fortification of pawpaw wine and pawpaw brandy may not be used for the fortification of any wine other than pawpaw wine, (9) no brandy other than papaya brandy may be used in the fortification of papaya wine and papaya brandy may not be used for the fortification of any wine other than papaya wine, (10) no brandy other than pineapple brandy may be used in the fortification of pineapple wine and pineapple brandy may not be used for the fortification of any wine other than pineapple wine, (11) no brandy other than cantaloup brandy may be used in the fortification of cantaloup wine and cantaloup brandy may not be used for the fortification of any wine other than cantaloup wine, and (12) no brandy other than apple brandy may be used in the fortification of apple wine, and apple brandy may not be used for the fortification of any wine other than apple wine. SEC. 3037. REMOVAL OF DOMESTIC WINES FREE OF TAX. (a) REGULATIONS.-Under such regulations and upon the execution of such notices, entries, bonds, and other security as the Commissioner, with the approval of the Secretary, may prescribe, domestic wines subject to the taxes imposed by section 3030 (a) may be removed from the winery where produced, free of tax, for storage on other bonded winery or bonded storeroom premises, or from such premises to other such bonded premises, or for exportation from the United States or for use as distilling material at any regularly registered distillery or industrial alcohol plant: Provided, however, That the distiller using any such wine as distilling material shall, subject to the provisions of section 2846, be held to pay the tax on the product of such wines as will include both the alcoholic strength therein produced by fermentation and that obtained from the brandy or wine spirits added to such wines at the time of fortification: Provided further, That suitable samples of brandy or fruit spirits may be withdrawn under rules and regulations to be prescribed by the Commissioner, subject to the approval of the Secretary, which samples shall be tax-free if for laboratory analysis and tax-paid if for any other use: Provided further, That the Commissioner, under rules and regulations to be by him prescribed subject to the approval of the Secretary, shall remit or refund all fortification taxes assessed or paid upon the quantity of fortifying spirits contained in wines exported, or which have become unfit for use as wine and are used as distilling material. (b) TRANSFER OF DUTIES. For transfer of powers and duties of Commissioner and his agents, see section 3170. SEC. 3038. GRAPE AND LIKE WINES FOR INDUSTRIAL USE. (a) REGULATIONS.-Under regulations prescribed by the Commissioner with the approval of the Secretary, it shall be lawful to produce grape wines, citrus-fruit wines, peach wines, cherry wines, berry wines, apricot wines, prune wines, plum wines, pear wines, pawpaw wines, papaya wines, pineapple wines, cantaloup wines, and apple wines on bonded winery premises by the usual method, and to transport and use the same, and like wines heretofore produced and now stored on bonded winery premises, as distilling material in any fruitbrandy distillery or industrial alcohol plant. (b) TRANSFER OF DUTIES. For transfer of powers and duties of Commissioner and his agents, see section 3170. SEC. 3039. ALLOWANCE FOR LOSS DURING STORAGE OR CELLAR TREATMENT. (a) POWER OF COMMISSIONER.-The Commissioner, with the approval of the Secretary, is authorized to make such allowances for unavoidable loss of wines while on storage or during cellar treatment as in his judgment may be just and proper. (b) TRANSFER OF DUTIES. For transfer of powers and duties of Commissioner and his agents, see section 3170. SEC. 3040. REQUIREMENTS ON PRODUCERS. (a) NOTICE, BONDS, AND STAMPS.-Every person producing after February 24, 1919, or having in his possession or under his control on February 24, 1919, any wines subject to the tax imposed in paragraphs (1) and (2) of section 3030 (a) shall file such notice, describing the premises on which such wines are produced or stored; shall execute a bond in such form; shall make such inventories under oath; and shall, prior to sale or removal for consumption, affix to each cask, barrel, bottle, or other immediate container, and to each case or other shipping container of such wine, such marks, labels, or stamps as the Commissioner, with the approval of the Secretary, may from time to time prescribe as to each; and the premises described in such notice shall, for the purpose of this chapter, be regarded as bonded premises. (b) TRANSFER OF DUTIES. For transfer of powers and duties of Commissioner and his agents, see section 3170. SEC. 3041. SPIRIT METERS, LOCKS, AND SEALS. (a) REGULATIONS.-The Commissioner, by regulations to be approved by the Secretary, may require the use at each fruit distillery of such spirit meters and such locks and seals to be affixed to fermenters, tanks, or other vessels and to such pipe connections as may in his judgment be necessary or expedient. (b) TRANSFER OF DUTIES.— For transfer of powers and duties of Commissioner and his agents, see section 3170. SEC. 3042. ASSIGNMENT OF STOREKEEPER-GAUGERS TO FRUIT DISTILLERIES AND WINERIES. (a) POWER OF COMMISSIONER.-The Commissioner is authorized to assign to any fruit distillery and to each winery where wines are to be fortified such number of storekeeper-gaugers as may be necessary for the proper supervision of the manufacture of brandy or the making or fortifying of wines subject to tax imposed by this chapter. (b) TRANSFER OF DUTIES. For transfer of powers and duties of Commissioner and his agents, see section 3170. SEC. 3043. PENALTIES AND FORFEITURES. (a) OFFENSES.-Whoever evades or attempts to evade any tax imposed by section 3030 or 3031, or any requirement of this subchapter, or regulation issued pursuant thereto, or whoever, otherwise than as provided in this subchapter, recovers or attempts to recover any spirits from domestic or imported wine, shall, on conviction, be punished for each such offense by a fine of not exceeding $5,000, or imprisonment for not more than five years, or both, and in addition thereto by a penalty of double the tax evaded, or attempted to be evaded, to be assessed and collected in the same manner as taxes are assessed and collected, and all wines, spirits, liqueurs, cordials, or similar compounds as to which such violation occurs shall be forfeited to the United States. But the provisions of this section and of section 3254 (g) relating to rectification, or other internal revenue laws of the United States, shall not be held to apply to or prohibit the mixing or blending of wines subject to tax under the provisions of section 3030 or 3031 with each other or with other wines for the sole purpose of perfecting such wines according to commercial standards, nor to apply to or prohibit the fermentation of grape wine retsina with resin on bonded winery premises: Provided, That nothing herein contained shall be construed as prohibiting the use of tax-paid grain or other ethyl alcohol in the fortification of sweet wines as defined in sections 3036 and 3044. 1 (b) CROSS REFERENCES. For forfeiture of wines in case special tax has not been paid or business of distiller is carried on without bond or with intent to defraud the Government of tax, see sections 2833 and 3253. For penalty and forfeiture imposed upon rectifiers and wholesale liquor dealers for committing offenses not specifically covered by law, see section 2806 (g). For penalties and forfeitures for other violations, see section 3173. SEC. 3044. DEFINITIONS. (a) NATURAL WINE.-Natural wine within the meaning of this subchapter shall be deemed to be the product made from the normal alcoholic fermentation of the juice of sound, ripe grapes, without addition or abstraction, except such as may occur in the usual cellar treatment of clarifying and aging. (b) WINE. The product made from the juice of sound, ripe grapes by complete fermentation of the must under proper cellar treatment and corrected by the addition (under the supervision of a storekeepergauger) of a solution of water and pure cane, beet, or dextrose sugar 1 The statute reads "sections". (containing, respectively, not less than 95 per centum of actual sugar, calculated on a dry basis) to the must or to the wine, to correct natural deficiencies, when such addition shall not increase the volume of the resultant product more than 35 per centum, and the resultant product does not contain less than five parts per 1,000 of acid before fermentation and not more than 13 per centum of alcohol after complete fermentation or, if sweetened, after complete fermentation and sweetening, shall be deemed to be wine within the meaning of this subchapter, and may be labeled, transported, and sold as "wine," qualified by the name of the locality where produced, and may be further qualified by the name of its own particular type or variety. (c) SWEET WINE.-Wine as defined in this section may be sweetened with cane sugar or beet sugar or pure condensed grape must and fortified under the provisions of this subchapter, and wines so sweetened or fortified shall be considered sweet wine within the meaning of this subchapter. (d) PURE SWEET WINE. For definition of pure sweet wine, see section 3036 (a). SEC. 3045. APPLICATION OF NATURAL WINE PROVISIONS TO CITRUSFRUIT WINES AND OTHER LIKE WINES. The provisions of the internal revenue laws applicable to natural wine shall apply in the same manner and to the same extent to citrusfruit wines, peach wines, cherry wines, berry wines, apricot wines, prune wines, plum wines, pear wines, pawpaw wines, papaya wines, pineapple wines, cantaloup wines, and apple wines, which are the products, respectively, of normal alcoholic fermentation of the juice of sound ripe (1) citrus-fruit (except lemons and limes), (2) peaches, (3) cherries, (4) berries, (5) apricots, (6) prunes, (7) plums, (8) pears, (9) pawpaws, (10) papayas, (11) pineapples, (12) cantaloups, (13) apples, with or without the addition of dry cane, beet, or dextrose sugar (containing, respectively, not less than 95 per centum of actual sugar, calculated on a dry basis) for the purpose of perfecting the product according to standards, but without the addition or abstraction of other substances, except as may occur in the usual cellar treatment of clarifying or aging: Provided, That in the case of wines produced from loganberries, currants, or gooseberries, respectively, having a normal acidity of 20 parts or more per 1,000, the volume of the resultant product may be increased more than 35 per centum but not more than 60 per centum by the addition of sugar and water solution under such regulations as the Commissioner may prescribe. 1 SUBCHAPTER C-INDUSTRIAL ALCOHOL Part I-Denaturation SEC. 3070. WITHDRAWAL FROM BOND TAX FREE. (a) FOR INDUSTRIAL USE.-Domestic alcohol of such degree of proof as may be prescribed by the Commissioner, and approved by the Secretary, may be withdrawn from bond without the payment of internal revenue tax, for use in the arts and industries, and for fuel, 'The words "of Internal Revenue" are omitted. light, and power, provided said alcohol shall have been mixed in the presence and under the direction of an authorized Government officer, after withdrawal from the internal revenue bonded warehouse,1 with methyl alcohol or other denaturing material or materials, or admixture of the same, suitable to the use for which the alcohol is withdrawn, but which destroys its character as a beverage and renders it unfit for liquid medicinal purposes; such denaturing to be done upon the application of any registered distillery in denaturing bonded warehouses specially designated or set apart for denaturing purposes only, and under conditions prescribed by the Commissioner with the approval of the Secretary. The character and quantity of the said denaturing material and the conditions upon which said alcohol may be withdrawn free of tax shall be prescribed by the Commissioner, who shall, with the approval of the Secretary, make all necessary regulations for carrying into effect the provisions of this subsection. Distillers, manufacturers, dealers, and all other persons furnishing, handling, or using alcohol withdrawn from bond under the provisions of this section shall keep such books and records, execute such bonds, and render such returns as the Commissioner, with the approval of the Secretary, may by regulation require. Such books and records. shall be open at all times to the inspection of any internal revenue officer or agent. (b) FOR USE IN MANUFACTURE OF CHEMICALS.-Notwithstanding anything contained in subsection (a), domestic alcohol when suitably denatured may be withdrawn from bond without the payment of internal revenue tax and used in the manufacture of ether and chloroform and other definite chemical substances where said alcohol is changed into some other chemical substance and does not appear in the finished product as alcohol. Rum of not less than 150 degrees proof may be withdrawn, for denaturation only, in accordance with the provisions of subsection (a). (c) TRANSFER OF DUTIES. For transfer of powers and duties of Commissioner and his agents, see section 3170. SEC. 3071. DRAWING OFF AND TRANSFER OF ALCOHOL FOR DE NATURATION. For provisions relating to the drawing off and transfer of alcohol for denaturation, see section 3108 (a). SEC. 3072. UNLAWFUL USE OR ALCOHOL. CONCEALMENT OF DENATURED Any person who withdraws alcohol free of tax under the provisions of section 3070 (a) and regulations made in pursuance thereof, and who removes or conceals same, or is concerned in removing, depositing, or concealing same for the purpose of preventing the same from being denatured under governmental supervision, and any person who uses alcohol withdrawn from bond under the provisions of said section for manufacturing any beverage or liquid medicinal preparation, or knowingly sells any beverage or liquid medicinal preparation made in whole or in part from such alcohol, or knowingly violates any 1 The statute reads "distillery warehouse". |