26 U.S.C. § 5383 — Amelioration and sweetening limitations

Page 3222 TITLE 26—INTERNAL REVENUE CODE § 5383 ed wine cellar, there is added to such juice, con- centrated juice, or must, or (in the case of a bonded wine cellar) to wine of the winemaker’s own production made therefrom, either the iden- tical volatile flavor removed or— (1) in the case of natural grape or berry wine of the winemaker’s own production, an equiva- lent quantity of volatile fruit-flavor con- centrate produced at such a plant and derived from the same kind and variety of grape or berry, or (2) in the case of natural fruit wine (other than grape or berry wine) of the winemaker’s own production, an equivalent quantity of volatile fruit-flavor concentrate produced at such a plant and derived from the same kind of fruit. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1383; amended Pub. L. 88–653, §§ 1, 2, Oct. 13, 1964, 78 Stat. 1085; Pub. L. 89–44, title VIII, § 806(c)(1), June 21, 1965, 79 Stat. 164; Pub. L. 90–619, § 2, Oct. 22, 1968, 82 Stat. 1237; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 108–429, title II, § 2002(a), Dec. 3, 2004, 118 Stat. 2588; Pub. L. 109–432, div. D, title III, § 3007, Dec. 20, 2006, 120 Stat. 3176.) Editorial Notes PRIOR PROVISIONS A prior section 5382, act Aug. 16, 1954, ch. 736, 68A Stat. 668, 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. (a)(1)(A). Pub. L. 109–432 substituted ‘‘correct or stabilize’’ for ‘‘stabilize’’. 2004—Subsec. (a). Pub. L. 108–429 amended heading and text of subsec. (a) generally. Prior to amendment text read as follows: ‘‘Proper cellar treatment of nat- ural wine constitutes those practices and procedures in the United States and elsewhere, whether historical or newly developed, of using various methods and mate- rials to correct or stabilize the wine, or the fruit juice from which it is made, so as to produce a finished prod- uct acceptable in good commercial practice. Where a particular treatment has been used in customary com- mercial practice, it shall continue to be recognized as a proper cellar treatment in the absence of regulations prescribed by the Secretary finding such treatment not to be a proper cellar treatment within the meaning of this subsection.’’ 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appearing. 1968—Subsec. (b)(2)(B). Pub. L. 90–619 permitted wine spirits to be added to natural wine produced by fer- mentation in any bonded wine cellars located within the same State in which the addition is to take place. 1965—Subsec. (b)(2). Pub. L. 89–44 struck out ‘‘made without added sugar or reserved as provided in sections 5383(b) and 5384(b)’’ after ‘‘winemaker’s own produc- tion’’. 1964—Subsec. (b)(9). Pub. L. 88–653, § 1, added par. (9). Subsec. (d). Pub. L. 88–653, § 2, added subsec. (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2004 AMENDMENT Pub. L. 108–429, title II, § 2002(b), Dec. 3, 2004, 118 Stat. 2589, provided that: ‘‘The amendment made by this sec- tion [amending this section] shall take effect on Janu- ary 1, 2005.’’ EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90–619 effective on first day of first month which begins 90 days or more after Oct. 22, 1968, see section 6 of Pub. L. 90–619, set out as a note under section 5373 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. EFFECTIVE DATE OF 1964 AMENDMENT Pub. L. 88–653, § 4, Oct. 13, 1964, 78 Stat. 1085, provided that: ‘‘The amendments made by the first section [amending this section] and sections 2 and 3 of this Act [amending this section and section 5511 of this title] shall take effect on the first day of the second month which begins more than 10 days after the date on which this Act is enacted [Oct. 13, 1964].’’ § 5383. Amelioration and sweetening limitations for natural grape wines (a) Sweetening of grape wines Any natural grape wine may be sweetened after fermentation and before taxpayment with pure dry sugar or liquid sugar if the total solids content of the finished wine does not exceed 12 percent of the weight of the wine and the alco- holic content of the finished wine after sweet- ening is not more than 14 percent by volume; ex- cept that the use under this subsection of liquid sugar shall be limited so that the resultant vol- ume will not exceed the volume which could re- sult from the maximum authorized use of pure dry sugar only. (b) High acid wines (1) Amelioration Before, during, and after fermentation, ame- liorating materials consisting of pure dry sugar or liquid sugar, water, or a combination of sugar and water, may be added to natural grape wines of a winemaker’s own production when such wines are made from juice having a natural fixed acid content of more than five parts per thousand (calculated before fer- mentation and as tartaric acid). Ameliorating material so added shall not reduce the natural fixed acid content of the juice to less than five parts per thousand, nor exceed 35 percent of the volume of juice (calculated exclusive of pulp) and ameliorating material combined. (2) Sweetening Any wine produced under this subsection may be sweetened by the producer thereof, after amelioration and fermentation, with pure dry sugar or liquid sugar if the total sol- ids content of the finished wine does not ex- ceed (A) 17 percent by weight if the alcoholic content is more than 14 percent by volume, or (B) 21 percent by weight if the alcoholic con- tent is not more than 14 percent by volume. The use under this paragraph of liquid sugar shall be limited to cases where the resultant volume does not exceed the volume which could result from the maximum authorized use of pure dry sugar only. (3) Wine spirits Wine spirits may be added (whether or not wine spirits were previously added) to wine produced under this subsection only if the wine contains not more than 14 percent of al- cohol by volume derived from fermentation. Page 3223 TITLE 26—INTERNAL REVENUE CODE § 5384 (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1384; amended Pub. L. 89–44, title VIII, § 806(b)(1), June 21, 1965, 79 Stat. 162; Pub. L. 90–619, § 3, Oct. 22, 1968, 82 Stat. 1237.) Editorial Notes PRIOR PROVISIONS A prior section 5383, act Aug. 16, 1954, ch. 736, 68A Stat. 669, consisted of provisions similar to those com- prising this section, prior to the general revision of this chapter by Pub. L. 85–859. AMENDMENTS 1968—Subsec. (a). Pub. L. 90–619, § 3(b), substituted ‘‘not more than 14 percent’’ for ‘‘less than 14 percent’’. Subsec. (b). Pub. L. 90–619, § 3(a), simplified produc- tion procedures and calculations, provided that the limitation on sweetening high acid wine is to be based upon the total solids content of the finished wine, au- thorized the use of liquid sugar but only to the extent that it did not increase the total volume of the finished wine above what it would be if the maximum author- ized use had been made of dry sugar only, and inserted provisions making it clear that wine spirits may be added at more than one stage in the process of wine production. 1965—Pub. L. 89–44 divided subsec. (b) relating to high acid wines into pars. (1) and (2) and par. (2) into sub- pars. (A) to (E), struck out reserve inventory require- ment with respect to the amelioration and sweetening of wines, authorized use of other than pure, dry sugar, and allowed limited use of liquid sugar at appropriate points where use of pure dry sugar had formerly been prescribed. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90–619 effective on first day of first month which begins 90 days or more after Oct. 22, 1968, see section 6 of Pub. L. 90–619, set out as a note under section 5373 of this title. EFFECTIVE DATE OF 1965 AMENDMENT Pub. L. 89–44, title VIII, § 806(d)(2), June 21, 1965, 79 Stat. 164, provided that: ‘‘The amendments made by subsections (b) and (c) [amending this section and sec- tions 5382, 5384, 5385, and 5392] shall take effect on Janu- ary 1, 1966.’’ § 5384. Amelioration and sweetening limitations for natural fruit and berry wines (a) In general To natural wine made from berries or fruit other than grapes, pure dry sugar or liquid sugar may be added to the juice in the fermenter, or to the wine after fermentation; but only if such wine has not more than 14 percent alcohol by volume after complete fermentation, or after complete fermentation and sweetening, and a total solids content not in excess of 21 percent by weight; and except that the use under this subsection of liquid sugar shall be limited so that the resultant volume will not exceed the volume which could result from the maximum authorized use of pure dry sugar only. (b) Ameliorated fruit and berry wines (1) Any natural fruit or berry wine (other than grape wine) of a winemaker’s own production may, if not made under subsection (a) of this section, be ameliorated to correct high acid con- tent. Ameliorating material calculations and ac- counting shall be separate for wines made from each different kind of fruit. (2) Pure dry sugar or liquid sugar may be used in the production of wines under this subsection for the purpose of correcting natural defi- ciencies, but not to such an extent as would re- duce the natural fixed acid in the corrected juice or wine to five parts per thousand. The quantity of sugar so used shall not exceed the quantity which would have been required to adjust the juice, prior to fermentation, to a total solids content of 25 degrees (Brix). Such sugar shall be added prior to the completion of fermentation of the wine. After such addition of the sugar, the wine or juice shall be treated and accounted for as provided in section 5383(b), covering the pro- duction of high acid grape wines, except that— (A) Natural fixed acid shall be calculated as malic acid for apple wine and as citric acid for other fruit and berry wines, instead of tartaric acid; (B) Juice adjusted with pure dry sugar or liq- uid sugar as provided in this paragraph shall be treated in the same manner as original nat- ural juice under the provisions of section 5383(b); except that if liquid sugar is used, the volume of water contained therein must be de- ducted from the volume of ameliorating mate- rial authorized; (C) Wines made under this subsection shall have a total solids content of not more than 21 percent by weight, whether or not wine spirits have been added; and (D) Wines made exclusively from any fruit or berry with a natural fixed acid of 20 parts per thousand or more (before any correction of such fruit or berry) shall be entitled to a vol- ume of ameliorating material not in excess of 60 percent (in lieu of 35 percent). (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1385; amended Pub. L. 89–44, title VIII, § 806(b)(2), (c)(2), (3), June 21, 1965, 79 Stat. 163, 164; Pub. L. 90–619, § 3(b), Oct. 22, 1968, 82 Stat. 1237; Pub. L. 105–34, title XIV, § 1417(a), Aug. 5, 1997, 111 Stat. 1048.) Editorial Notes PRIOR PROVISIONS A prior section 5384, act Aug. 16, 1954, ch. 736, 68A Stat. 670, consisted of provisions similar to those com- prising this section, prior to the general revision of this chapter by Pub. L. 85–859. AMENDMENTS 1997—Subsec. (b)(2)(D). Pub. L. 105–34 substituted ‘‘any fruit or berry with a natural fixed acid of 20 parts per thousand or more (before any correction of such fruit or berry)’’ for ‘‘loganberries, currants, or goose- berries,’’. 1968—Subsec. (a). Pub. L. 90–619 substituted ‘‘not more than 14 percent’’ for ‘‘less than 14 percent’’. 1965—Subsec. (a). Pub. L. 89–44, § 806(b)(2)(A), author- ized addition of liquid sugar provided resultant volume will not exceed volume which could result from max- imum authorized use of pure dry sugar only. Subsec. (b). Pub. L. 89–44, § 806(c)(3), substituted ‘‘Ameliorated’’ for ‘‘Reserve’’ in heading. Subsec. (b)(1). Pub. L. 89–44, § 806(b)(2)(B), struck out references to reserves and reserve inventories. Subsec. (b)(2). Pub. L. 89–44, § 806(b)(2)(C), amended first sentence by authorizing use of liquid sugar but limiting use of any sugar if it reduced natural fixed