LIQUOR of the provisions of section 3070 (a) or 3073, or (except as provided SEC. 3073. RECOVERY OF SPIRITS FOR REUSE IN MANUFACTURE. (b) TRANSFER OF DUTIES. For transfer of powers and duties of Commissioner and his agents, see section 3170. SEC. 3074. SALE OF ABANDONED SPIRITS FOR DENATURATION WITHOUT COLLECTION OF TAX. (a) REGULATIONS.-Notwithstanding the provisions of section 2805 (b) of this chapter, any distilled spirits abandoned to the United States may be sold, in such cases as the Commissioner may by regulation provide, to the proprietor of any industrial alcohol plant for denaturation, or redistillation and denaturation, without the payment of the internal revenue tax thereon. (b) TRANSFER OF DUTIES. For transfer of powers and duties of Commissioner and his agents, see section 3170. Part II—Industrial Alcohol Plants SEC. 3100. ESTABLISHMENT OF INDUSTRIAL ALCOHOL PLANTS. (a) REQUIREMENTS. Any person establishing a plant for the production of industrial alcohol shall, before operation, make application to the Commissioner for registration of his plant, file bond, and receive permit for the operation of such plant. (b) TRANSFER OF DUTIES. For transfer of powers and duties of Commissioner and his agents, see section 3170. SEC. 3101. ESTABLISHMENT OF INDUSTRIAL ALCOHOL WAREHOUSES. (a) REQUIREMENTS.-Warehouses for the storage and distribution of alcohol may be established upon filing of application and bond and issuance of permit at such places, either in connection with the manufacturing plant or elsewhere, as the Commissioner may determine; and the entry and storage of alcohol therein and the with 241 drawals of alcohol therefrom shall be made in such containers and by such means as the Commissioner by regulation may prescribe. Permanent tanks and other structures located on the industrial alcohol plant premises and approved by the Commissioner shall be deemed to be warehouses within the meaning of this section. (b) TRANSFER OF DUTIES. For transfer of powers and duties of Commissioner and his agents, see section 3170. SEC. 3102. ESTABLISHMENT OF DENATURING PLANTS. Upon the filing of application and bond and issuance of permit, denaturing plants may be established upon the premises of any industrial alcohol plant, or elsewhere, and shall be used exclusively for the denaturation of alcohol by the admixture of such denaturing materials as shall render the alcohol, or any compound in which it is authorized to be used, unfit for use as an intoxicating beverage. SEC. 3103. EXEMPTION OF INDUSTRIAL ALCOHOL PLANTS AND WAREHOUSES FROM CERTAIN LAWS. Industrial alcohol plants and bonded warehouses established under the provisions of this part shall be exempt from the provisions of sections 3154, 3244, 3258, 3259, 3260, 3263, 3264, 3266, 3267, 3268, 3269, 3271, 3273, 3274, 3275, 3279, 3280, 3283, 3284, 3285, 3286, 3287, 3288, 3289, 3290, 3291, 3292, 3293, 3294, 3295, 3302, 3303, 3307, 3308, 3309, 3310, 3311, 3312, 3313, 3314, and 3327 of the Revised Statutes; sections 48 to 60, inclusive, and sections 62 and 67 of the act of August 27, 1894 (Twenty-eighth Statutes, pages 563 to 568), as such sections existed on October 28, 1919, and from such other provisions of laws existing on October 28, 1919, relating to distilleries and bonded warehouses as may by regulations be declared inapplicable to industrial alcohol plants and bonded warehouses established under this subchapter. Regulations may be made embodying any provision of the sections above enumerated. [The sections referred to in section 3103 correspond roughly but not exactly to I. R. C. sections 2802 (a) (1) and (2) and (d) (1) and (2), 2806 (c) and (d), 2810 (a), 2812 (a), 2814 (a), 2815 (c-e), 2816 (a), 2817 (a) and (b), 2819, 2820 (a), 2821, 2822 (a), 2826 (a), 2831, 2832, 2836, 2838, 2839 (a), 2840 (a), 2841 (a) (1), 2844 (a), 2845 (a), 2846 (a), 2849, 2850 (a), 2851 (a), 2859 (a), 2860, 2870, 2872, 2874 (a), 2876, 2877 (a), 2878 (a-d), 2879 (a-d), 2880 (a), 2882 (a), 2884 (a), 3250 (a) (1, 3, 4), (b) (1, 2, 4), (c) (1), (d) (1–3), (e) (1–4), (j) (1) and (3), 3251, 3254 (b-h), 3255 (c), 4013 (a), 4014 (a), 4017 (a) and 4021 (a) and (b).] SEC. 3104. WITHDRAWAL OF FERMENTED LIQUORS TO INDUSTRIAL ALCOHOL PLANTS. (a) REQUIREMENTS. -Fermented liquors may be conveyed without payment of tax from the brewery premises where produced to a contiguous industrial alcohol plant, to be used as distilling material, and the residue from such distillation, containing less than one-half of 1 per centum of alcohol by volume, which is to be used in making beverages, may be manipulated by cooling, flavoring, carbonating, settling, and filtering on the distillery premises or elsewhere. The removal of the taxable fermented liquor from the brewery to the distillery and the operation of the distillery and removal of the residue therefrom shall be under the supervision of such officer or officers as the Commissioner shall deem proper, and the Commissioner, with the approval of the Secretary, is hereby authorized to make such regulations from time to time as may be necessary to give force and effect to this section and to safeguard the revenue. (b) TRANSFER OF DUTIES. For transfer of powers and duties of Commissioner and his agents, see section 3170. SEC. 3105. REGULATIONS FOR ESTABLISHING, BONDING, AND OPERATION OF PLANTS AND WAREHOUSES. (a) REQUIREMENTS.-The Commissioner shall from time to time issue regulations respecting the establishment, bonding, and operation of industrial alcohol plants, denaturing plants, and bonded warehouses authorized herein, and the distribution, sale, export, and use of alcohol which may be necessary, advisable, or proper, to secure the revenue, to prevent diversion of the alcohol to illegal uses, and to place the nonbeverage alcohol industry and other industries using such alcohol as a chemical raw material or for other lawful purpose upon the highest possible plane of scientific and commercial efficiency consistent with the interests of the Government, and which shall insure an ample supply of such alcohol and promote its use in scientific research and the development of fuels, dyes, and other lawful products. (b) TRANSFER OF DUTIES. For transfer of powers and duties of Commissioner and his agents, see section 3170. SEC. 3106. PRODUCTION, USE, OR SALE OF ALCOHOL. (a) REQUIREMENTS.-Alcohol may be produced at any industrial alcohol plant established under the provisions of this part, from any raw materials or by any processes suitable for the production of alcohol, and, under regulations, may be used at any industrial alcohol plant or bonded warehouse or sold or disposed of for any lawful. purpose, as in this part provided. (b) TRANSFER OF DUTIES. For transfer of powers and duties of Commissioner and his agents, see section 3170. SEC. 3107. TRANSFER OF ALCOHOL TO OTHER PLANTS OR WARE. HOUSES. Alcohol produced at any registered industrial alcohol plant or stored in any bonded warehouse may be transferred under regulations to any other registered industrial alcohol plant or bonded warehouse for any lawful purpose. SEC. 3108. WITHDRAWAL OF ALCOHOL TAX-FREE. (a) FOR DENATURATION.-Alcohol produced at any industrial alcohol plant or stored in any bonded warehouse may, under regulations, be withdrawn tax-free, as provided by existing law,' from such plant or warehouse for transfer to any denaturing plant for denaturation, or may, under regulations, before or after denaturation, be removed from any such plant or warehouse for any lawful tax-free purpose. (b) FOR USE BY FEDERAL OR STATE AGENCIES.-Alcohol may be withdrawn, under regulations, from any industrial plant or bonded 1 Section 3070. warehouse tax-free by the United States or any governmental agency thereof, or by the several States and Territories or any municipal subdivision thereof or by the District of Columbia. (c) FOR USE IN RESEARCH, HOSPITALS, OR CHARITABLE CLINICS.Alcohol may be withdrawn, under regulations, from any industrial plant or bonded warehouse tax-free for the use of any scientific university or college of learning, any laboratory for use exclusively in scientific research, or for use in any hospital or sanitarium, or 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, but not for sale. (d) CONDITIONS OF EXEMPTIONS. But any person permitted to obtain alcohol tax-free, except the United States and the several States and Territories and sudivisions thereof, and the District of Columbia, shall first apply for and secure a permit to purchase the same and give the bonds prescribed under section 3114, but alcohol withdrawn for nonbeverage purposes for use of the United States and the several States, Territories, and subdivisions thereof, and the District of Columbia may be purchased and withdrawn subject only to such regulations as may be prescribed. (e) TRANSFER OF DUTIES. For transfer of powers and duties of Commissioner and his agents, see section 3170. SEC. 3109. SALE OF DENATURED ALCOHOL TAX-FREE. Alcohol lawfully denatured may, under regulations, be sold free of tax either for domestic use or for export. SEC. 3110. DISTILLED VINEGAR. Nothing in this part shall be construed to require manufacturers of distilled vinegar to raise the proof of any alcohol used in such manufacture or to denature the same. SEC. 3111. TAXABILITY OF DENATURED ALCOHOL OR ARTICLES PRODUCED, TRANSFERRED, USED, OR SOLD IN VIOLATION OF LAW OR REGULATIONS. Any person who shall produce, withdraw, sell, transport, or use denatured alcohol, denatured rum, or articles in violation of laws or regulations now or hereafter in force pertaining thereto, and all such denatured alcohol, denatured rum, or articles shall be subject to all provisions of law pertaining to alcohol that is not denatured, including those requiring the payment of tax thereon; and the person so producing, withdrawing, selling, transporting, or using the denatured alcohol, denatured rum, or articles shall be required to pay such tax. SEC. 3112. TAX ON ALCOHOL. (a) TIME OF ATTACHMENT AND LIEN.-Any tax imposed by law upon alcohol shall attach to such alcohol as soon as it is in existence as such, and all proprietors of industrial alcohol plants and bonded warehouses shall be jointly and severally liable for any and all taxes on any and all alcohol produced thereat or stored therein. Such taxes shall be a first lien on such alcohol and the premises and plant in which such alcohol is produced or stored, together with all im provements and appurtenances thereunto belonging or in any wise appertaining. (b) COLLECTION.-Any tax payable upon alcohol under existing law may be collected either by assessment or by stamp as regulations. shall provide; and, if by stamp, regulations shall issue prescribing the kind of stamp to be used and the manner of affixing and canceling the same. SEC. 3113. REFUND OF TAX ON ALCOHOL FOR LOSS OR LEAKAGE. (a) REQUIREMENTS.-Whenever any alcohol is lost by evaporation or other shrinkage, leakage, casualty, or unavoidable cause during distillation, redistillation, denaturation, withdrawal, piping, shipment, warehousing, storage, packing, transfer, or recovery of any such alcohol, the Commissioner may remit or refund any tax incurred under existing law upon such alcohol, provided he is satisfied that the alcohol has not been diverted to any illegal use: Provided, also, That such allowance shall not be granted if the person claiming same is indemnified against such loss by a valid claim of insurance. (b) TRANSFER OF DUTIES. For transfer of powers and duties of Commissioner and his agents, see section 3170. SEC. 3114. ALCOHOL PERMITS. (a) REQUIREMENTS.-No one shall manufacture alcohol, procure it tax-free, denature it, deal in or use specially denatured alcohol, recover completely or specially denatured alcohol, or transport specially denatured or tax-free alcohol, without first obtaining a permit from the Commissioner so to do. All such permits may be issued for one year, and shall expire on the 31st day of December next succeeding the issuance thereof: Provided, That the Commissioner may without formal application or new bond extend any permit granted under this part after August 31 in any year to December 31 of the succeeding year. Permits to purchase or procure specially denatured alcohol and taxfree alcohol shall be issued in such terms and under such conditions as the Commissioner shall by regulation prescribe. No permit shall be issued to any person who, within one year prior to the application therefor or issuance thereof, shall not in good faith have conformed to the provisions of this part, or shall have violated the terms of any permit issued under this part, or made any false statement in the application therefor, or willfully failed to disclose any information required by regulation to be furnished, or violated any law of the United States relating to intoxicating liquor, or willfully violated any law of any State, Territory, or possession of the United States or of the District of Columbia relating to intoxicating liquor. Every permit shall be in writing, dated when issued, and signed by the Commissioner or his authorized agent. It shall give the name and address of the person to whom it is issued and shall designate and limit the acts that are permitted and the time when and place where such acts may be performed. No permit shall be issued until a verified, written application shall have been made therefor, setting |