and Enforcement Act, 49 Stat. 872, or Title III of the National Prohibition Act, 41 Stat. 319, or any regulation thereunder, executed in such form and for such penal sum as may be required by the Commissioner or prescribed by regulation.

(6) The term "regulation" shall mean any regulation prescribed by the Commissioner with the approval of the Secretary for carrying out the provisions of this part, and the Commissioner is authorized to make such regulations.

1

(7) The term "articles" shall mean any substance or preparation in the manufacture of which denatured alcohol or denatured rum is used.

(8) The term "person" shall mean and include natural persons, firms, partnerships, corporations, and associations. (b) TRANSFER OF DUTIES.

For transfer of powers and duties of Commissioner and his agents, see section 3170.

SEC. 3125. IMPORTATION OF ALCOHOL FOR INDUSTRIAL PURPOSES. (a) IMPORTATION WITHOUT PAYMENT OF INTERNAL REVENUE TAX.-Under regulations to be prescribed by the Commissioner, with the approval of the Secretary, and subject from the time of its withdrawal from customs custody to all the applicable provisions of this part, alcohol of 160 proof, or greater, may be imported into the United States and be withdrawn, in bond, from customs custody, without payment of the internal revenue tax imposed by section 2800 upon the act of importing such alcohol, for transfer to industrial alcohol plants, alcohol bonded warehouses, and denaturing plants for redistillation or denaturation and withdrawal, or withdrawal without redistillation or denaturation, tax-free or tax-paid, as the case may be, for all the purposes authorized by this part. It such alcohol is withdrawn from the said industrial alcohol plants, alcohol bonded warehouses, or denaturing plants for beverage purposes, there shall be paid upon such withdrawal an additional tax equal to the duty which would have been paid had such spirits been imported for beverage purposes, less the duty already paid thereon.

(b) WITHDRAWAL TAX-FREE FOR USE OF UNITED STATES.-Alcohol may be withdrawn from customs custody by the United States or any governmental agency thereof for its own use, free of internal revenue tax, under such regulations as may be prescribed.

SUBCHAPTER D-FERMENTED LIQUORS

SEC. 3150. TAX.

(a) RATE.-There shall be levied and collected on all beer, lager beer, ale, porter, and other similar fermented liquor, containing onehalf of 1 per centum or more of alcohol, brewed or manufactured and sold, or removed for consumption or sale, within the United States, or or imported into the United States, by whatever name such liquors may be called, a tax of $7 for every barrel containing not more than 31 gallons, and at a like rate for any other quantity or for the fractional parts of a barrel authorized and defined by law. Imported The words "of the Treasury" have been omitted.

fermented malt liquors shall, during the continuance of the war-tax rate on fermented malt liquors prescribed in section 1650, be subject to tax at such rate in lieu of the rate hereinbefore prescribed. In estimating and computing such tax, the fractional parts of a barrel shall be halves, thirds, quarters, sixths, and eighths; and any fractional part of a barrel, containing less than one-eighth, shall be accounted one-eighth; more than one-eighth, and not more than one-sixth, shall be accounted one-sixth; more than one-sixth, and not more than one-fourth, shall be accounted one-fourth; more than one-fourth, and not more than one-third, shall be accounted one-third; more than one-third, and not more than one-half, shall be accounted one-half; more than one-half, and not more than one barrel, shall be accounted one barrel; and more than one barrel, and not more than 63 gallons, shall be accounted two barrels, or a hogshead.

The provisions of this section requiring the accounting of hogsheads, barrels, and fractional parts of barrels at the next higher quantity shall not apply where the contents of such hogsheads, barrels, or fractional parts of barrels are within the limits of tolerance established by the Commissioner by regulations which he is hereby authorized to prescribe with the approval of the Secretary; and no assessment shall be made and no tax shall be collected for any excess in any case where the contents of the hogsheads, barrels, or fractional parts of barrels heretofore or hereafter used are within the limits of the tolerance so prescribed.

[For wartime increase in rate, see section 1650.]

(b) PAYMENT.

(1) IN GENERAL.-The said tax shall be paid by the owner, agent, or superintendent of the brewery or premises in which such fermented liquors are made, and in the manner and at the time hereinafter specified.

(2) UNFERMENTED WORTS SOLD BY ONE BREWER TO ANOTHER. When malt liquor or tun liquor, in the first stages of fermentation, known as unfermented worts, of whatever kind, is sold by one brewer to another for the purpose of producing fermentation or enlivening old or stale ale, porter, lager beer, or other fermented liquors, it shall not be liable to a tax to be paid by the seller thereof, but the tax on the same shall be paid by the purchaser thereof, when the same, having been mixed with the old or stale beer, is sold by him as provided by law, and such sale or transfer shall be subject to such restrictions and regulations as the Commissioner may prescribe.

(c) EXEMPTION OF MATERIALS USED IN PRODUCING FERMENTED OR MALT LIQUORS.-Nothing contained in section 3155 (c) shall be so construed as to authorize an assessment upon the quantity of materials used in producing, or purchased for the purpose of producing, fermented or malt liquors, nor shall the quantity of materials so used or purchased be evidence, for the purpose of taxation, of the quantity of liquor produced; but the tax on all beer, lager beer, ale, porter, or other similar fermented liquor, brewed or manufactured, and sold or removed for consumption or sale, shall be paid as provided in paragraph (1) of subsection (b), and not otherwise: Provided, That this subsection shall not apply to cases of fraud: And provided further,

That nothing in this subsection shall have the effect to change the rules of law respecting evidence in any prosecution or suit.

(d) TRANSFER OF DUTIES.

For transfer of powers and duties of Commissioner and his agents, see section 3170.

SEC. 3151. TAX-PAID STAMPS AND PERMITS.

(a) SUPPLY.-The Commissioner shall cause to be prepared, for the payment of such tax, suitable stamps denoting the amount of tax required to be paid on the hogsheads, barrels, and halves, thirds, quarters, sixths, and eighths of a barrel of such fermented liquors (and shall also cause to be prepared suitable permits for the purpose hereinafter mentioned), and shall furnish the same to the collectors, who shall each be required to keep on hand at all times a sufficient supply of permits and a supply of stamps equal in amount to two months' sales thereof, if there be any brewery or brewery warehouse in his district; and such stamps shall be sold, and permits granted and delivered by such collectors, only to the brewers of their district, respectively.

(b) COLLECTOR'S ACCOUNT.-Such collectors shall keep an account of the number of permits delivered and of the number and value of the stamps sold by them to each brewer.

(c) TRANSFER OF DUTIES.

For transfer of powers and duties of Commissioner and his agents, see section 3170.

SEC. 3152. OTHER PROVISIONS RELATING TO STAMPS.

(a) PROCUREMENT BY BREWER.-Every brewer shall obtain, from the collector of the district in which his brewery or brewery warehouse is situated, and not otherwise unless such collector shall fail to furnish the same upon application to him, the proper stamps.

(b) AFFIXING AND CANCELING TAX-PAID STAMPS.-Every brewer shall affix, upon the spigot hole in the head of every hogshead, barrel, or keg in which any fermented liquor is contained, when sold or removed from such brewery or warehouse (except in case of removal under permit, as hereinafter provided), a stamp denoting the amount of the tax required upon such fermented liquor, which stamp shall be destroyed by driving through the same the faucet through which the liquor is to be withdrawn, or an air-faucet of equal size, at the time the hogshead, barrel, or keg is tapped, in case it is tapped through the other spigot hole (of which there shall be but two, one in the head and one in the side), and shall also, at the time of affixing such stamp, cancel the same by writing or imprinting thereon the name of the person, firm, or corporation by whom such liquor was made, or the initial letters thereof, and the date when canceled: Provided, however, That the Commissioner may, in his discretion, authorize the use of such other tapping devices or faucets as will permit the affixing and destruction of stamps in a manner consistent with the protection of the

revenue.

(c) INSTRUMENTS FOR ATTACHING, PROTECTING, AND CANCELING STAMPS. The instruments or other means prescribed under section 3301 (a) for attaching, protecting, and canceling stamps for fermented liquors shall be furnished by the United States to the persons

using the stamps to be affixed therewith, under such regulations as the Commissioner may prescribe.

(d) ISSUE FOR RESTAMPING.-The Commissioner may, under regulations prescribed by him with the approval of the Secretary, issue stamps for restamping packages of fermented liquors which have been duly stamped but from which the stamps have been lost or destroyed by unavoidable accident.

(e) AUTHORITY TO DISCONTINUE EXPORT STAMPS.-The Commissioner, with the approval of the Secretary, is authorized to discontinue the use of export fermented-liquor stamps whenever in his judgment the interests of the Government will be subserved thereby, (f) GENERAL STAMP PROVISIONS.

For general provisions relating to stamps, see subchapter A of chapter 28 [sections 3300 and following].

(g) TRANSFER OF DUTIES.—

For transfer of powers and duties of Commissioner and his agents, see section 3170.

SEC. 3153. REMOVALS FREE OF TAX.

(a) FROM BREWERY TO WAREHOUSE UNDER PERMIT.-Any brewer may remove or transport, or cause to be removed or transported, from his brewery or other place of manufacture to a depot, warehouse, or other place used exclusively for storage or sale in bulk, and occupied by him, in another part of the same collection district, or in another collection district, but to no other place, malt liquor of his own manufacture, known as lager beer, in quantities of not less than six barrels, and malt liquor of his own manufacture, known as ale or porter, or any other malt liquor of his own manufacture not heretofore mentioned, in quantities not less than 50 barrels at a time, without affixing the proper stamps on said vessels of lager beer, ale, porter, or other malt liquor, at the brewery or place of manufacture, under a permit, which shall be granted, upon application, by the collector of the district in which said malt liquor is manufactured, and under such regulations as the Commissioner may prescribe; and thereafter the manufacturer of said malt liquor shall stamp the same, when it leaves such depot or warehouse, in the same manner and under the same penalties and liabilities as when stamped at the brewery as provided in section 3152 (b).

And the collector of the district in which such depot or warehouse is situated shall furnish the manufacturer with the stamps for stamping the same, as if the said malt liquor had been manufactured in his district. And said permit must be affixed to every such vessel or cask so removed, and canceled or destroyed in such manner as the Commissioner may prescribe, and under the same penalties and liabilities as provided in section 3159 (d).

(b) FROM BREWERY OR WAREHOUSE FOR EXPORT.-Fermented liquor may be removed from the place of manufacture, or storage, for export to a foreign country, without payment of tax, in such packages and under such regulations, and upon the giving of such notices, entries, bonds, and other security, as the Commissioner, with the approval of the Secretary, may from time to time prescribe; and no drawback of tax shall be allowed on fermented liquor exported.

(c) FOR MANUFACTURING PURPOSES WHEN UNFIT FOR BEVERAGE USE.-When fermented liquor has become sour or damaged, so as to be incapable of use as such, brewers may sell the same for manufacturing purposes, and may remove the same to places where it may be used for such purposes, in casks, or other vessels, unlike those ordinarily used for fermented liquors, containing respectively not less than one barrel each, and having the nature of their contents marked upon them, without affixing thereon the permit, stamp, or stamps required.

(d) TRANSFER OF DUTIES.

For transfer of powers and duties of Commissioner and his agents, see section 3170.

SEC. 3154. REFUNDS AND CREDITS.

(a) ALLOWANCE.

(1) UNSALABLE PRODUCTS.-The Commissioner shall make refund, or in lieu thereof, if he so elects, allow credit to a brewer in the amount of tax paid by such brewer on any beer, lager beer, ale, porter, or other similar fermented malt liquor manufactured by such brewer which has become unsalable by reason of its condition, upon the filing of a claim therefor by the brewer and proof by him to the satisfaction of the Commissioner that such beer, lager beer, ale, porter, or other similar fermented malt liquor (A) was fully tax-paid, (B) was lawfully removed from his brewery to his bottling house on or after March 22, 1933, (C) never was removed from such bottling house, except in the process of destruction or for return to the brewery, (D) had become unsalable without fraud, connivance, or collusion on his part, and (E) was destroyed by him in such bottling house in the presence of a representative of the Bureau of Internal Revenue, or was returned from such bottling house to the brewery in which made for use therein as brewing material.

(2) Loss. The Commissioner shall make refund, or in lieu thereof, if he so elects, allow credit to a brewer in the amount of tax paid by such brewer on any beer, lager beer, ale, porter, or other similar fermented malt liquor manufactured by such brewer which was lost in his bottling house through breakage or leakage or in the process of filling, capping, pasteurizing, or labeling, upon the filing of a claim therefor by the brewer and proof by him to the satisfaction of the Commissioner that such beer, lager beer, ale, porter, or other similar fermented malt liquor was fully taxpaid and that no refund or credit was made or allowed therefor under paragraph (1) of 1 this subsection. Refund or credit under this paragraph for such loss during any calendar month shall not exceed an amount equal to 21⁄2 per centum of the tax paid by him on all beer, lager beer, ale, porter, or other similar fermented malt liquor removed by him during such calendar month from his brewery to his bottling house.

(b) TIME FOR FILING CLAIM.-No claim under the provisions of subsection (a) shall be allowed unless filed within 90 days after the 1 The statute reads "to".