26 U.S.C. § 5223 — Redistillation of spirits, articles, and resi-

Page 3201 TITLE 26—INTERNAL REVENUE CODE § 5223 addition to the fermented or unfermented dis- tilling material, of distilled spirits containing substantial quantities of fusel oil or aldehydes, or other extraneous substances. (d) Penalty For penalty and forfeiture for unlawful produc- tion, removal, or use of material fit for distillation or for the production of distilled spirits, and for penalty and forfeiture for unlawful production of distilled spirits, see sections 5601(a)(7), 5601(a)(8), and 5615(4). (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1365; amended Pub. L. 94–455, title XIX, §§ 1905(b)(6)(D), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823, 1834; Pub. L. 95–458, § 2(b)(4), Oct. 14, 1978, 92 Stat. 1256; Pub. L. 96–39, title VIII, § 807(a)(30), July 26, 1979, 93 Stat. 286; Pub. L. 105–34, title XIV, § 1414(a), Aug. 5, 1997, 111 Stat. 1047.) Editorial Notes PRIOR PROVISIONS Provisions similar to those comprising subsecs. (a)(1), (2)(D), (b), and (d) of this section were contained in prior sections of act Aug. 16, 1954, prior to the general revision of this chapter by Pub. L. 85–859, as follows: Present subsecs.: Prior sections (a)(1), (2)(D) ................... 5216(a)(1), (4). (b) .................................. 5309, 5362(7), 5412. (d) .................................. 5216(b). The prior sections, act Aug. 16, 1954, ch. 736, are set out in 68A Stat. 640, 641, 658, 665, 675. AMENDMENTS 1997—Subsec. (b)(2). Pub. L. 105–34 amended par. (2) generally. Prior to amendment, par. (2) read as follows: ‘‘conveyed without payment of tax from contiguous brewery premises where produced; or’’. 1979—Subsec. (c). Pub. L. 96–39 struck out ‘‘, in the production facilities of a distilled spirits plant’’ after ‘‘distilling material’’. 1978—Subsec. (a)(2)(C). Pub. L. 95–458 inserted ref- erence to section 5053(e). 1976—Subsecs. (a)(1), (b), (c). Pub. L. 94–455, § 1906(b)(13)(A), struck out ‘‘or his delegate’’ after ‘‘Sec- retary’’. Subsec. (d). Pub. L. 94–455, § 1905(b)(6)(D), struck out ‘‘5601(b)(3), 5601(b)(4),’’ after ‘‘5601(a)(8),’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105–34 effective on the 1st day of the 1st calendar quarter that begins at least 180 days after Aug. 5, 1997, see section 1414(d) of Pub. L. 105–34, set out as a note under section 5053 of this title. 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 OF 1978 AMENDMENT Amendment by Pub. L. 95–458 effective on first day of first calendar month beginning more than 90 days after Oct. 14, 1978, see section 2(c) of Pub. L. 95–458, set out as a note under section 5042 of this title. EFFECTIVE DATE OF 1976 AMENDMENT Amendment by section 1905(b)(6)(D) of 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. § 5223. Redistillation of spirits, articles, and resi- dues (a) Spirits on bonded premises The proprietor of a distilled spirits plant au- thorized to produce distilled spirits may, under such regulations as the Secretary shall pre- scribe, redistill any distilled spirits which have not been withdrawn from bonded premises. (b) Distilled spirits returned for redistillation Distilled spirits which have been lawfully re- moved from bonded premises free of tax or with- out payment of tax may, under such regulations as the Secretary may prescribe, be returned for redistillation to the bonded premises of a dis- tilled spirits plant authorized to produce dis- tilled spirits. (c) Redistillation of articles and residues Articles, containing denatured distilled spir- its, which were manufactured under the provi- sions of subchapter D or on the bonded premises of a distilled spirits plant, and the spirits resi- dues of manufacturing processes related thereto, may be received, and the distilled spirits therein recovered by redistillation, on the bonded prem- ises of a distilled spirits plant authorized to produce distilled spirits, under such regulations as the Secretary may prescribe. (d) Denatured distilled spirits, articles, and resi- dues Distilled spirits recovered by the redistillation of denatured distilled spirits, or by the redis- tillation of the articles or residues described in subsection (c), may not be withdrawn from bonded premises except for industrial use or after denaturation thereof in the manner pre- scribed by law. (e) Products of redistillation All distilled spirits redistilled on bonded premises subsequent to production gauge shall be treated the same as if such spirits had been originally produced by the redistiller and all provisions of this chapter applicable to the original production of distilled spirits shall be applicable thereto. Any prior obligation as to taxes, liens, and bonds with respect to such dis- tilled spirits shall be extinguished on redistilla- tion. Nothing in this subsection shall be con- strued as affecting any provision of law relating to the labeling of distilled spirits or as limiting the authority of the Secretary to regulate the marking, branding, or identification of distilled spirits redistilled under this section. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1365; amended Pub. L. 89–44, title VIII, § 805(d), (f)(8), (10), June 21, 1965, 79 Stat. 161, 162; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–39, title VIII, § 807(a)(31), July 26, 1979, 93 Stat. 286.) Editorial Notes PRIOR PROVISIONS Provisions similar to those comprising subsecs. (a) and (d) of this section were contained in prior sections of act Aug. 16, 1954, prior to the general revision of this chapter by Pub. L. 85–859, as follows: Present subsecs.: Prior sections (a) .................................. 5194(f), 5217(a), 5305, 5308. Page 3202 TITLE 26—INTERNAL REVENUE CODE § 5231 Present subsecs.: Prior sections (d) .................................. 5194(f). The prior sections, act Aug. 16, 1954, ch. 736, are set out in 68A Stat. 635, 641, 657. AMENDMENTS 1979—Subsec. (c). Pub. L. 96–39, § 807(a)(31)(A), inserted ‘‘or on the bonded premises of a distilled spirits plant’’ after ‘‘subchapter D,’’. Subsec. (e). Pub. L. 96–39, § 807(a)(31)(B), struck out provisions relating to the treatment of the processing of distilled spirits, subsequent to production gauge, in the manufacture of vodka in the production facilities of a distilled spirits plant as a redistillation of the spir- its for purposes of this subsection, subsection (a), and sections 5025(d) and 5215. 1976—Subsecs. (a) to (c), (e). Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appear- ing. 1965—Pub. L. 89–44, § 805(f)(8), substituted ‘‘spirits, ar- ticles, and residues’’ for ‘‘spirits’’ in section catchline. Subsec. (c). Pub. L. 89–44, § 805(d), added subsec. (c). Former subsec. (c) redesignated (d). Subsec. (d). Pub. L. 89–44, § 805(d), (f)(10), redesignated subsec. (c) as (d), inserted ‘‘, articles, and residues’’ after ‘‘distilled spirits’’ in heading, and inserted ‘‘, or by the redistillation of the articles or residues de- scribed in subsection (c),’’ after ‘‘denatured distilled spirits’’ in text. Former subsec. (d) redesignated (e). Subsec. (e). Pub. L. 89–11, § 805(d), redesignated former subsec. (d) as (e). 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 OF 1965 AMENDMENT Amendment by Pub. L. 89–44 effective Oct. 1, 1965, see section 805(g)(2) of Pub. L. 89–44, set out as a note under section 5004 of this title. SUBPART C—STORAGE Sec. 5231. Entry for deposit. 5232. Imported distilled spirits. [5233, 5234. Repealed.] 5235. Bottling of alcohol for industrial purposes. 5236. Discontinuance of storage facilities and transfer of distilled spirits. Editorial Notes AMENDMENTS 1979—Pub. L. 96–39, title VIII, § 807(b)(6), July 26, 1979, 93 Stat. 290, substituted ‘‘Entry for deposit’’ for ‘‘Entry for deposit in storage’’ in item 5231 and struck out items 5233 ‘‘Bottling of distilled spirits in bond’’ and 5234 ‘‘Mingling and blending of distilled spirits’’. § 5231. Entry for deposit All distilled spirits entered for deposit on the bonded premises of a distilled spirits plant under section 5211 shall, under such regulations as the Secretary shall prescribe, be deposited in the fa- cilities on the bonded premises designated in the entry for deposit. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1366; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–39, title VIII, § 807(a)(32), July 26, 1979, 93 Stat. 286.) Editorial Notes PRIOR PROVISIONS A prior section 5231, act Aug. 16, 1954, ch. 736, 68A Stat. 643, related to authority to establish internal rev- enue bonded warehouses, prior to the general revision of this chapter by Pub. L. 85–859. See sections 5171(a), 5172, 5173(a), and 5178(a)(1)(A)(B), (3)(A)(B) of this title. Provisions similar to those comprising this section were contained in prior section 5242(a), (b)(5), act Aug. 16, 1954, ch. 736, 68A Stat. 645, prior to the general revi- sion of this chapter by Pub. L. 85–859. AMENDMENTS 1979—Pub. L. 96–39 struck out in section catchline ‘‘in storage’’ after ‘‘for deposit’’ and subsec. (a) catchline and in text substituted ‘‘on the bonded premises of a distilled spirits plant’’ for ‘‘in storage’’ and ‘‘in the fa- cilities’’ for ‘‘in storage facilities’’ and repealed subsec. (b) which related to a cross reference to section 5006(a)(2) for provisions requiring that all distilled spir- its entered for deposit be withdrawn within 20 years from date of original entry for deposit. 1976—Subsec. (a). Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’. 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. § 5232. Imported distilled spirits (a) Transfer to distilled spirits plant without payment of tax Distilled spirits imported or brought into the United States in bulk containers may, under such regulations as the Secretary shall pre- scribe, be withdrawn from customs custody and transferred in such bulk containers or by pipe- line to the bonded premises of a distilled spirits plant without payment of the internal revenue tax imposed on such distilled spirits. The person operating the bonded premises of the distilled spirits plant to which such spirits are trans- ferred shall become liable for the tax on dis- tilled spirits withdrawn from customs custody under this section upon release of the spirits from customs custody, and the importer, or the person bringing such distilled spirits into the United States, shall thereupon be relieved of his liability for such tax. (b) Withdrawals, etc. Distilled spirits transferred pursuant to sub- section (a)— (1) may be redistilled or denatured only if of 185 degrees or more of proof, and (2) may be withdrawn for any purpose au- thorized by this chapter, in the same manner as domestic distilled spirits. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1366; amended Pub. L. 90–630, § 3(a), Oct. 22, 1968, 82 Stat. 1328; Pub. L. 91–659, § 7, Jan. 8, 1971, 84 Stat. 1967; Pub. L. 94–455, title XIX, § 1905(a)(15), Oct. 4, 1976, 90 Stat. 1820; Pub. L. 96–39, title VIII, § 807(a)(33), July 26, 1979, 93 Stat. 286.)