26 U.S.C. § 5392 — Definitions

Page 3226 TITLE 26—INTERNAL REVENUE CODE § 5391 (C) Wines to which paragraph applies (i) In general Except as provided in clause (ii), this paragraph shall apply to any grape wine which is designated as Burgundy, Claret, Chablis, Champagne, Chianti, Malaga, Marsala, Madeira, Moselle, Port, Retsina, Rhine Wine or Hock, Sauterne, Haut Sau- terne, Sherry, or Tokay. (ii) Exception This paragraph shall not apply to wine which— (I) contains less than 7 percent or more than 24 percent alcohol by volume, (II) is intended for sale outside the United States, or (III) does not bear a brand name. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1387; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 105–34, title IX, § 910(a), Aug. 5, 1997, 111 Stat. 877; Pub. L. 109–432, div. A, title IV, § 422(a), Dec. 20, 2006, 120 Stat. 2972.) Editorial Notes PRIOR PROVISIONS A prior section 5388, act Aug. 16, 1954, ch. 736, 68A Stat. 672, consisted of provisions similar to those com- prising this section, prior to the general revision of this chapter by Pub. L. 85–859. AMENDMENTS 2006—Subsec. (c)(3). Pub. L. 109–432 added par. (3). 1997—Subsec. (c). Pub. L. 105–34 added subsec. (c). 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2006 AMENDMENT Pub. L. 109–432, div. A, title IV, § 422(b), Dec. 20, 2006, 120 Stat. 2973, provided that: ‘‘The amendments made by this section [amending this section] shall apply to wine imported or bottled in the United States on or after the date of enactment of this Act [Dec. 20, 2006].’’ EFFECTIVE DATE OF 1997 AMENDMENT Pub. L. 105–34, title IX, § 910(b), Aug. 5, 1997, 111 Stat. 877, provided that: ‘‘The amendment made by this sec- tion [amending this section] shall take effect on the date of the enactment of this Act [Aug. 5, 1997].’’ PART IV—GENERAL Sec. 5391. Exemption from distilled spirits taxes. 5392. Definitions. Editorial Notes PRIOR PROVISIONS A prior part IV consisted of sections 5391 and 5392 of this title, prior to the general revision of this chapter by Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1313. AMENDMENTS 1979—Pub. L. 96–39, title VIII, § 807(b)(8), July 26, 1979, 93 Stat. 290, substituted ‘‘Exemption from distilled spir- its taxes’’ for ‘‘Exemption from rectifying and spirits taxes’’ in item 5391. § 5391. Exemption from distilled spirits taxes Notwithstanding any other provision of law, the tax imposed by section 5001 on distilled spir- its shall not, except as provided in this sub- chapter, be assessed, levied, or collected from the proprietor of any bonded wine cellar with re- spect to his use of wine spirits in wine produc- tion, in such premises; except that, whenever wine or wine spirits are used in violation of this subchapter, the applicable tax imposed by sec- tion 5001 shall be collected unless the proprietor satisfactorily shows that such wine or wine spir- its were not knowingly used in violation of law. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1387; amended Pub. L. 96–39, title VIII, § 807(a)(49), July 26, 1979, 93 Stat. 288.) Editorial Notes PRIOR PROVISIONS A prior section 5391, act Aug. 16, 1954, ch. 736, 68A Stat. 672, consisted of provisions similar to those com- prising this section, prior to the general revision of this chapter by Pub. L. 85–859. AMENDMENTS 1979—Pub. L. 96–39 substituted ‘‘distilled’’ for ‘‘recti- fying and’’ in section catchline and struck out provi- sions relating to exemption from taxes imposed on rec- tified spirits and wines and the status of any proprietor of a bonded wine cellar as a rectifier of such spirits in text. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1979 AMENDMENT Amendment by Pub. L. 96–39 effective Jan. 1, 1980, see section 810 of Pub. L. 96–39, set out as a note under sec- tion 5001 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. § 5392. Definitions (a) Standard wine For purposes of this subchapter the term ‘‘standard wine’’ means natural wine, specially sweetened natural wine, special natural wine, and standard agricultural wine, produced in ac- cordance with the provisions of sections 5381, 5385, 5386, and 5387, respectively. (b) Heavy bodied blending wine For purposes of this subchapter the term ‘‘heavy bodied blending wine’’ means wine made from fruit without added sugar, and with or without added wine spirits, and conforming to the definition of natural wine in all respects ex- cept as to maximum total solids content. (c) Pure sugar For purposes of this subchapter the term ‘‘pure sugar’’ means pure refined sugar, suitable for human consumption, having a dextrose equivalent of not less than 95 percent on a dry basis, and produced from cane, beets, or fruit, or from grain or other sources of starch. Invert sugar syrup produced from such pure sugar by recognized methods of inversion may be used to prepare any sugar syrup, or solution of water and pure sugar, authorized in this subchapter. (d) Total solids For purposes of this subchapter the term ‘‘total solids’’, in the case of wine, means the de- grees Brix of the dealcoholized wine. Page 3227 TITLE 26—INTERNAL REVENUE CODE § 5401 (e) Same kind of fruit For purposes of this subchapter the term ‘‘same kind of fruit’’ includes, in the case of grapes, all of the several species and varieties of grapes. In the case of fruits other than grapes, this term includes all of the several species and varieties of any given kind; except that this shall not preclude a more precise identification of the composition of the product for the pur- pose of its designation. (f) Own production For purposes of this subchapter the term ‘‘own production’’, when used with reference to wine in a bonded wine cellar, means wine produced by fermentation in the same bonded wine cellar, whether or not produced by a predecessor in in- terest at such bonded wine cellar. This term may also include, under regulations, wine pro- duced by fermentation in bonded wine cellars owned or controlled by the same or affiliated persons or firms when located within the same State; the term ‘‘affiliated’’ shall be deemed to include any one or more bonded wine cellar pro- prietors associated as members of any farm co- operative, or any one or more bonded wine cellar proprietors affiliated within the meaning of sec- tion 117(a)(5) of the Federal Alcohol Administra- tion Act, as amended (27 U.S.C. 211). (g) Liquid sugar For purposes of this subchapter the term ‘‘liq- uid sugar’’ means a substantially colorless pure sugar and water solution containing not less than 60 percent pure sugar by weight (60 degrees Brix.) (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1387; amended Pub. L. 89–44, title VIII, § 806(b)(3), June 21, 1965, 79 Stat. 163; Pub. L. 94–455, title XIX, § 1905(a)(21), Oct. 4, 1976, 90 Stat. 1820; Pub. L. 115–141, div. U, title IV, § 401(a)(246), Mar. 23, 2018, 132 Stat. 1195.) Editorial Notes PRIOR PROVISIONS A prior section 5392, act Aug. 16, 1954, ch. 736, 68A Stat. 672, consisted of provisions similar to those com- prising this section, prior to the general revision of this chapter by Pub. L. 85–859. AMENDMENTS 2018—Subsec. (f). Pub. L. 115–141 substituted ‘‘section 117(a)(5)’’ for ‘‘section 17(a)(5)’’. 1976—Subsec. (f). Pub. L. 94–455 struck out ‘‘49 Stat. 990;’’ before ‘‘27 U.S.C. 211’’. 1965—Subsec. (c). Pub. L. 89–44, § 806(b)(3)(A), added fruit, grain, or other sources of starch to cane and beets as sources of ‘‘pure sugar’’. Subsec. (g). Pub. L. 89–44, § 806(b)(3)(B), added subsec. (g). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–455 effective on first day of first month which begins more than 90 days after Oct. 4, 1976, see section 1905(d) of Pub. L. 94–455, set out as a note under section 5005 of this title. EFFECTIVE DATE OF 1965 AMENDMENT Amendment by Pub. L. 89–44 effective Jan. 1, 1966, see section 806(d)(2) of Pub. L. 89–44, set out as a note under section 5383 of this title. Subchapter G—Breweries Part I. Establishment. II. Operations. Editorial Notes PRIOR PROVISIONS A prior subchapter G consisted of parts I and II, con- tained sections 5401 to 5403 and 5411 to 5416, respec- tively, prior to the general revision of this chapter by Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1313. PART I—ESTABLISHMENT Sec. 5401. Qualifying documents. 5402. Definitions. 5403. Cross references. Editorial Notes PRIOR PROVISIONS A prior part I consisted of sections 5401 to 5403 of this title, prior to the general revision of this chapter by Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1313. § 5401. Qualifying documents (a) Notice Every brewer shall, before commencing or con- tinuing business, file with the officer designated for that purpose by the Secretary a notice in writing, in such form and containing such infor- mation as the Secretary shall by regulations prescribe as necessary to protect and insure col- lection of the revenue. (b) Bonds Every brewer, on filing notice as provided by subsection (a) of his intention to commence business, shall execute a bond to the United States in such reasonable penal sum as the Sec- retary shall by regulation prescribe as necessary to protect and insure collection of the revenue. The bond shall be conditioned (1) that the brew- er shall pay, or cause to be paid, as herein pro- vided, the tax required by law on all beer, in- cluding all beer removed for transfer to the brewery from other breweries owned by him as provided in section 5414; (2) that he shall pay or cause to be paid the tax on all beer removed free of tax for export as provided in section 5053(a), which beer is not exported or returned to the brewery; and (3) that he shall in all respects faithfully comply, without fraud or evasion, with all requirements of law relating to the pro- duction and sale of any beer aforesaid. Once in every 4 years, or whenever required so to do by the Secretary, the brewer shall execute a new bond or a continuation certificate, in the penal sum prescribed in pursuance of this section, and conditioned as above provided, which bond or continuation certificate shall be in lieu of any former bond or bonds, or former continuation certificate or certificates, of such brewer in re- spect to all liabilities accruing after its ap- proval. If the contract of surety between the brewer and the surety on an expiring bond or continuation certificate is continued in force be- tween the parties for a succeeding period of not less than 4 years, the brewer may submit, in lieu of a new bond, a certificate executed, under pen-