26 U.S.C. § 5222 — Production, receipt, removal, and use of

Page 3200 TITLE 26—INTERNAL REVENUE CODE § 5221 factories’’, prior to the general revision of this chapter by Pub. L. 85–859. See sections 5178(c)(4), 5222(a)(1), (2)(D), (d), 5501, 5502(a), 5503, 5504(a), (b), 5505(a), (c) and 5601(a)(7), (8), (9)(A) of this title. A prior section 5217, acts Aug. 16, 1954, ch. 736, 68A Stat. 641; July 11, 1956, ch. 573, § 1, 70 Stat. 530; July 11, 1958, Pub. L. 85–517, 72 Stat. 357, related to national emergency transfers, prior to the general revision of this chapter by Pub. L. 85–859. SUBPART B—PRODUCTION Sec. 5221. Commencement, suspension, and resumption of operations. 5222. Production, receipt, removal, and use of dis- tilling materials. 5223. Redistillation of spirits, articles, and resi- dues. Editorial Notes AMENDMENTS 1965—Pub. L. 89–44, title VIII, § 805(f)(9), June 21, 1965, 79 Stat. 161, inserted reference to articles and residues in item 5223. § 5221. Commencement, suspension, and resump- tion of operations (a) Commencement, suspension, and resumption The proprietor of a distilled spirits plant au- thorized to produce distilled spirits shall not commence production operations until written notice has been given to the Secretary stating when operations will begin. Any proprietor of a distilled spirits plant desiring to suspend pro- duction of distilled spirits shall give notice in writing to the Secretary, stating when he will suspend such operations. Pursuant to such no- tice, an internal revenue officer shall take such action as the Secretary shall prescribe to pre- vent the production of distilled spirits. No pro- prietor, after having given such notice, shall, after the time stated therein, produce distilled spirits on such premises until he again gives no- tice in writing to the Secretary stating the time when he will resume operations. At the time stated in the notice of resuming such operations an internal revenue officer shall take such ac- tion as is necessary to permit operations to be resumed. The notices submitted under this sec- tion shall be in such form and submitted in such manner as the Secretary may by regulations re- quire. Nothing in this section shall apply to sus- pensions caused by unavoidable accidents; and the Secretary shall prescribe regulations to gov- ern such cases of involuntary suspension. (b) Penalty For penalty and forfeiture for carrying on the business of distiller after having given notice of sus- pension, see sections 5601(a)(14) and 5615(3). (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1364; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–39, title VIII, § 806(b), July 26, 1979, 93 Stat. 279.) Editorial Notes PRIOR PROVISIONS Provisions similar to those comprising subsec. (a) of this section were contained in prior section 5191(a), act Aug. 16, 1954, ch. 736, 68A Stat. 632, prior to the general revision of this chapter by Pub. L. 85–859. AMENDMENTS 1979—Subsec. (a). Pub. L. 96–39 substituted ‘‘until written notice has been given to the Secretary stating when operations will begin’’ for ‘‘until an internal rev- enue officer has been assigned to the premises’’. 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. § 5222. Production, receipt, removal, and use of distilling materials (a) Production, removal, and use (1) No mash, wort, or wash fit for distillation or for the production of distilled spirits shall be made or fermented in any building or on any premises other than on the bonded premises of a distilled spirits plant duly authorized to produce distilled spirits according to law; and no mash, wort, or wash so made or fermented shall be re- moved from any such premises before being dis- tilled, except as authorized by the Secretary; and no person other than an authorized distiller shall, by distillation or any other process, produce distilled spirits from any mash, wort, wash, or other material. (2) Nothing in this subsection shall be con- strued to apply to— (A) authorized operations performed on the premises of vinegar plants established under part I of subchapter H; (B) authorized production and removal of fermented materials produced on authorized brewery or bonded wine cellar premises as pro- vided by law; (C) products exempt from tax under the pro- visions of section 5042 or 5053(e); or (D) fermented materials used in the manu- facture of vinegar by fermentation. (b) Receipt Under such regulations as the Secretary may prescribe, fermented materials to be used in the production of distilled spirits may be received on the bonded premises of a distilled spirits plant authorized to produce distilled spirits as follows— (1) from the premises of a bonded wine cellar authorized to remove such material by section 5362(c)(6); (2) beer conveyed without payment of tax from brewery premises, beer which has been lawfully removed from brewery premises upon determination of tax, or (3) cider exempt from tax under the provi- sions of section 5042(a)(1). (c) Processing of distilled spirits containing ex- traneous substances The Secretary may by regulations provide for the removal from the distilling system, and the 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.