26 U.S.C. § 5062 — Refund and drawback in case of expor-

Page 3169 TITLE 26—INTERNAL REVENUE CODE § 5062 ‘‘(A) taxes imposed on distilled spirits by section 5001 or 7652 of such Code, and ‘‘(B) taxes imposed on tobacco products and ciga- rette papers and tubes by section 5701 or 7652 of such Code, for the semimonthly period ending December 15, 1986, the last day for payment of such remittances shall be January 14, 1987. ‘‘(4) TREATMENT OF SMOKELESS TOBACCO IN INVENTORY ON JUNE 30, 1986.—The tax imposed by section 5701(e) of the Internal Revenue Code of 1986 shall not apply to any smokeless tobacco which— ‘‘(A) on June 30, 1986, was in the inventory of the manufacturer or importer, and ‘‘(B) on such date was in a form ready for sale.’’ EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–369 applicable to taxes re- quired to be paid on or after Sept. 30, 1984, see section 27(d)(2) of Pub. L. 98–369, set out as a note under section 5001 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 1976 AMENDMENT Amendment by section 1905(a)(6), (b)(2)(E)(iii) of Pub. L. 94–455 effective on first day of first month which be- gins 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 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. PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989 For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title. TRANSITIONAL RULES RELATING TO DETERMINATION AND PAYMENT OF TAX Pub. L. 96–39, title VIII, § 808, July 26, 1979, 93 Stat. 291, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘(a) LIABILITY FOR PAYMENT OF TAX.—Except as oth- erwise provided in this section, the tax on all distilled spirits which have been withdrawn from bond on deter- mination of tax and on which tax has not been paid by the close of December 31, 1979, shall become due on Jan- uary 1, 1980, and shall be payable in accordance with section 5061 of the Internal Revenue Code of 1986 [for- merly I.R.C. 1954]. ‘‘(b) TREATMENT OF CONTROLLED STOCK AND BULK WINE.— ‘‘(1) ELECTION WITH RESPECT TO CONTROLLED STOCK.—The proprietor of a distilled spirits plant may elect to convert any distilled spirits or wine which on January 1, 1980, is controlled stock. ‘‘(2) ELECTION WITH RESPECT TO WINE.—The propri- etor of a distilled spirits plant may elect to convert any bulk wine which on January 1, 1980, is on the premises of a distilled spirits plant. ‘‘(3) EFFECT OF ELECTION.—If an election under para- graph (1) or (2) is in effect with respect to any con- trolled stock or wine— ‘‘(A) any distilled spirits, wine, or rectification tax previously paid or determined on such con- trolled stock or wine shall be abated or (without in- terest) credited or refunded under such regulations as the Secretary shall prescribe, and ‘‘(B) such controlled stock or wine shall be treat- ed as distilled spirits or wine on which tax has not been paid or determined. ‘‘(4) MAKING OF ELECTIONS.—The elections under this subsection shall be made at such time and in such manner as the Secretary shall by regulations prescribe. ‘‘(c) TAXPAID STOCK.— ‘‘(1) TAXPAID STOCK MAY REMAIN ON BONDED PREM- ISES DURING 1980.—Section 5612(a) of the Internal Rev- enue Code of 1986 (relating to forfeiture of taxpaid distilled spirits remaining on bonded premises) shall not apply during 1980. ‘‘(2) SEPARATION OF TAXPAID STOCK.—All distilled spirits and wine on which tax has been paid and which are on the bonded premises of a distilled spirits plant shall be physically separated from other dis- tilled spirits and wine. Such separation shall be by the use of separate tanks, rooms, or buildings, or by partitioning, or by such other methods as the Sec- retary finds will distinguish such distilled spirits and wine from other distilled spirits and wine on the bonded premises of the distilled spirits plant. ‘‘(d) RETURN OF DISTILLED SPIRITS PRODUCTS CON- TAINING TAXPAID WINE.—With respect to distilled spir- its returned to the bonded premises of distilled spirits plants during 1980, section 5008(c)(1) of the Internal Revenue Code of 1986 (relating to refunds for distilled spirits returned to bonded premises) shall be treated as including a reference to section 5041 of such Code. ‘‘(e) RETURN OF DISTILLED SPIRITS PRODUCTS CON- TAINING OTHER ALCOHOLIC INGREDIENTS.—With respect to distilled spirits to which alcoholic ingredients other than distilled spirits have been added and which have been withdrawn from a distilled spirits plant before January 1, 1980, section 5215(a) of the Internal Revenue Code of 1986 shall apply only if such spirits are returned to the distilled spirits plant from which withdrawn. ‘‘(f) SECRETARY DEFINED.—For purposes of this sec- tion, the term ‘Secretary’ means the Secretary of the Treasury or his delegate.’’ § 5062. Refund and drawback in case of expor- tation (a) Refund Under such regulations as the Secretary may prescribe, the amount of any internal revenue tax erroneously or illegally collected in respect to exported articles may be refunded to the ex- porter of the article, instead of to the manufac- turer, if the manufacturer waives any claim for the amount so to be refunded. (b) Drawback On the exportation of distilled spirits or wines manufactured, produced, bottled, or packaged in casks or other bulk containers in the United States on which an internal revenue tax has been paid or determined, and which are con- tained in any cask or other bulk container, or in bottles packed in cases or other containers, there shall be allowed, under regulations pre- scribed by the Secretary, a drawback equal in amount to the tax found to have been paid or de- termined on such distilled spirits or wines. In the case of distilled spirits, the preceding sen- tence shall not apply unless the claim for draw- back is filed by the bottler or packager of the spirits and unless such spirits have been marked, especially for export, under regulations prescribed by the Secretary. The Secretary is authorized to prescribe regulations governing the determination and payment or crediting of Page 3170 TITLE 26—INTERNAL REVENUE CODE [§ 5063 drawback of internal revenue tax on spirits and wines eligible for drawback under this sub- section, including the requirements of such no- tices, bonds, bills of lading, and other evidence indicating payment or determination of tax and exportation as shall be deemed necessary. (c) Exportation of imported liquors (1) Allowance of tax Upon the exportation of imported distilled spirits, wines, and beer upon which the duties and internal revenue taxes have been paid or determined incident to their importation into the United States, and which have been found after entry to be unmerchantable or not to conform to sample or specifications, and which have been returned to customs custody, the Secretary shall, under such regulations as he shall prescribe, refund, remit, abate, or credit, without interest, to the importer thereof, the full amount of the internal rev- enue taxes paid or determined with respect to such distilled spirits, wines, or beer. (2) Destruction in lieu of exportation At the option of the importer, such imported distilled spirits, wines, and beer, after return to customs custody, may be destroyed under customs supervision and the importer thereof granted relief in the same manner and to the same extent as provided in this subsection upon exportation. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1336; amended Pub. L. 88–539, § 1, Aug. 31, 1964, 78 Stat. 746; Pub. L. 89–44, title VIII, § 805(f)(6), June 21, 1965, 79 Stat. 161; Pub. L. 90–630, § 2(a), Oct. 22, 1968, 82 Stat. 1328; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95–176, § 1, Nov. 14, 1977, 91 Stat. 1363; Pub. L. 98–369, div. A, title IV, § 454(c)(1), July 18, 1984, 98 Stat. 820.) Editorial Notes PRIOR PROVISIONS A prior section 5062, act Aug. 16, 1954, ch. 736, 68A Stat. 614, consisted of provisions similar to those com- prising this section, prior to the general revision of this chapter by Pub. L. 85–859. AMENDMENTS 1984—Subsec. (b). Pub. L. 98–369 substituted ‘‘have been marked’’ for ‘‘have been stamped or restamped, and marked’’. 1977—Subsec. (b). Pub. L. 95–176 substituted in first sentence ‘‘manufactured, produced, bottled, or pack- aged in casks or other bulk containers’’ and ‘‘other bulk container’’ for ‘‘manufactured or produced’’ and ‘‘package’’ and in last sentence ‘‘spirits and wines eligi- ble for drawback under this subsection, including the requirements’’ for ‘‘domestic distilled spirits and wines, including the requirement’’. 1976—Subsecs. (a), (b), (c)(1). Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appear- ing. 1968—Subsec. (b). Pub. L. 90–630 permitted, under Treasury regulations, drawback of the tax where the stamping, restamping, or marking is done after the spirits have been removed from the original bottling plant. 1965—Subsec. (c)(1). Pub. L. 89–44 struck out ‘‘within six months of their release therefrom’’ after ‘‘customs custody’’. 1964—Subsec. (c). Pub. L. 88–539 added subsec. (c). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–369 effective July 1, 1985, see section 456(b) of Pub. L. 98–369, set out as an Effec- tive Date note under section 5101 of this title. EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95–176 effective on first day of first calendar month beginning more than 90 days after Nov. 14, 1977, see section 7 of Pub. L. 95–176, set out as a note under section 5003 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90–630 applicable only to arti- cles exported on or after first day of first calendar month which begins more than 90 days after Oct. 22, 1968, see section 4 of Pub. L. 90–630, set out as a note under section 5008 of this title. EFFECTIVE DATE OF 1965 AMENDMENT Amendment by Pub. L. 89–44 effective July 1, 1965, see section 805(g)(1) of Pub. L. 89–44, set out as a note under section 5008 of this title. EFFECTIVE DATE OF 1964 AMENDMENT Pub. L. 88–539, § 2, Aug. 31, 1964, 78 Stat. 746, provided that: ‘‘The amendment made by the first section of this Act [amending this section] shall apply with respect to articles exported or destroyed after the date of the en- actment of this Act [Aug. 31, 1964].’’ [§ 5063. Repealed. Pub. L. 89–44, title V, § 501(e), June 21, 1965, 79 Stat. 150] Section, Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1336; Pub. L. 86–75, § 3(b)(1), June 30, 1959, 73 Stat. 157; Pub. L. 86–564, title II, § 202(b)(1), June 30, 1960, 74 Stat. 290; Pub. L. 87–72, § 3(b)(1), June 30, 1961, 75 Stat. 193; Pub. L. 87–508, § 3(b)(1), June 28, 1962, 76 Stat. 114; Pub. L. 88–52, § 3(b)(1)(A), June 29, 1963, 77 Stat. 72; Pub. L. 88–348, § 2(b)(1)(A), June 30, 1964, 78 Stat. 237, made provision for floor stocks refunds on distilled spirits, wines, cordials, and beer and set out limitations on the eligibility for such refunds or credits. A prior section 5063, act Aug. 16, 1954, ch. 736, 68A Stat. 615, consisted of provisions similar to those com- prising section 5063, prior to the general revision of this chapter by Pub. L. 85–859. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable on and after July 1, 1965, see sec- tion 701(d) of Pub. L. 89–44, set out as an Effective Date of 1965 Amendment note under section 5701 of this title. § 5064. Losses resulting from disaster, vandalism, or malicious mischief (a) Payments The Secretary, under such regulations as he may prescribe, shall pay (without interest) an amount equal to the amount of the internal rev- enue taxes paid or determined and customs du- ties paid on distilled spirits, wines, and beer pre- viously withdrawn, which were lost, rendered unmarketable, or condemned by a duly author- ized official by reason of— (1) fire, flood, casualty, or other disaster, or (2) breakage, destruction, or other damage (but not including theft) resulting from van- dalism or malicious mischief, if such disaster or damage occurred in the United States and if such distilled spirits, wines, or beer were held and intended for sale at the