26 U.S.C. § 5211 — Production and entry of distilled spirits

Page 3195 TITLE 26—INTERNAL REVENUE CODE § 5211 his operations, at such times and in such form and manner and containing such information, as the Secretary shall by regulations prescribe. (c) Preservation and inspection The records required by subsection (a) and a copy of each report required by subsection (b) shall be available for inspection by any internal revenue officer during business hours, and shall be preserved by the person required to keep such records and reports for such period as the Sec- retary shall by regulations prescribe. (d) Penalty For penalty and forfeiture for refusal or neglect to keep records required under this section, or for false entries therein, see sections 5603 and 5615(5). (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1361; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95–176, § 2(e), Nov. 14, 1977, 91 Stat. 1364; Pub. L. 96–39, title VIII, § 807(a)(25), July 26, 1979, 93 Stat. 283; Pub. L. 98–369, div. A, title IV, § 454(c)(6), July 18, 1984, 98 Stat. 821; Pub. L. 105–34, title XIV, § 1413(a), Aug. 5, 1997, 111 Stat. 1046.) Editorial Notes PRIOR PROVISIONS Provisions similar to those comprising 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) .................................. 5197(a)(1)(A), (a)(2), 5305, 5331(a)(3). (b) .................................. 5285, 5555(a). (c) .................................. 5197(b), 5285, 5305, 5331(a)(3), 5555(a). (d) .................................. 5197(a)(1)(B), 5285, 5305, 5331(a)(3), 5555(a). (e) .................................. 5197(c)(2), 5285. The prior sections, act Aug. 16, 1954, ch. 736, are set out in 68A Stat. 637, 638, 652, 657, 662, 681. AMENDMENTS 1997—Subsec. (c). Pub. L. 105–34 struck out ‘‘shall be kept on the premises where the operations covered by the record are carried on and’’ after ‘‘required by sub- section (b)’’. 1984—Subsec. (a)(4)(D). Pub. L. 98–369, § 454(c)(6), struck out subpar. (D) which required every distilled spirits plant proprietor to keep records in such form and manner as prescribed by the Secretary of the re- ceipt, use, and balance on hand of all stamps required by law or regulations to be used by the proprietor. 1979—Subsec. (a). Pub. L. 96–39 struck out provisions relating to the bottling of distilled spirits in bond and relating to the kind and quantity of distilled spirits re- turned to bonded premises and inserted provisions re- lating to the kind and quantity of distilled spirits re- turned to storage and relating to receipt, use, and bal- ance on hand of all stamps required by law or regula- tions to be used by the Secretary. Subsec. (b). Pub. L. 96–39 redesignated subsec. (c) as (b) and struck out ‘‘or (b)’’ after ‘‘subsection (a)’’. Former subsec. (b), relating to records of rectifiers and bottlers, was struck out. Subsec. (c). Pub. L. 96–39 redesignated subsec. (d) as (c), struck out ‘‘and (b),’’ after ‘‘subsection (a)’’, and substituted ‘‘subsection (b)’’ for ‘‘subsection (c)’’. Former subsec. (c) redesignated (b). Subsecs. (d), (e). Pub. L. 96–39 redesignated subsec. (e) as (d). Former subsec. (d) redesignated (c). 1977—Subsec. (a)(10), (11). Pub. L. 95–176, § 2(e)(2), (3), added par. (10) and redesignated former par. (10) as (11). 1976—Subsecs. (a) to (d). Pub. L. 94—455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appear- ing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1997 AMENDMENT Pub. L. 105–34, title XIV, § 1413(b), Aug. 5, 1997, 111 Stat. 1046, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall take effect on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act [Aug. 5, 1997].’’ 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 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 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. PART II—OPERATIONS ON BONDED PREMISES Subpart A. General B. Production. C. Storage. D. Denaturation. Editorial Notes PRIOR PROVISIONS A prior part II, Operation, consisted of sections 5241 to 5252, prior to the general revision of this chapter by Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1313. SUBPART A—GENERAL Sec. 5211. Production and entry of distilled spirits. 5212. Transfer of distilled spirits between bonded premises. 5213. Withdrawal of distilled spirits from bonded premises on determination of tax. 5214. Withdrawal of distilled spirits from bonded premises free of tax or without payment of tax. 5215. Return of tax determined distilled spirits to bonded premises. 5216. Regulation of operations. § 5211. Production and entry of distilled spirits Distilled spirits in the process of production in a distilled spirits plant may be held prior to the production gauge only for so long as is reason- ably necessary to complete the process of pro- duction. Under such regulations as the Sec- retary shall prescribe, all distilled spirits pro- duced in a distilled spirits plant shall be gauged and a record made of such gauge within a rea- sonable time after the production thereof has been completed. The proprietor shall, pursuant to such production gauge and in accordance with such regulations as the Secretary shall pre- scribe, make appropriate entry for— (1) deposit of such spirits on bonded premises for storage or processing; (2) withdrawal upon determination of tax as authorized by law; (3) withdrawal under the provisions of sec- tion 5214; and Page 3196 TITLE 26—INTERNAL REVENUE CODE § 5212 (4) transfer for redistillation under the pro- visions of section 5223. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1362; 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)(26), July 26, 1979, 93 Stat. 284.) Editorial Notes PRIOR PROVISIONS A prior section 5211, act Aug. 16, 1954, ch. 736, 68A Stat. 638, related to detention of casks, packages, or containers on suspicion, prior to the general revision of this chapter by Pub. L. 85–859. See section 5311 of this title. Provisions similar to those comprising this section were contained in prior sections 5193(a), 5194(a), (e) to (g), 5242(a), 5305, act Aug. 16, 1954, ch. 736, 68A Stat. 633 to 636, 645, 657, prior to the general revision of this chapter by Pub. L. 85–859. AMENDMENTS 1979—Pars. (1), (5). Pub. L. 96–39 substituted in par. (1) ‘‘on bonded premises for storage or processing’’ for ‘‘in storage on bonded premises’’ and struck out par. (5) which related to an appropriate entry by the proprietor for immediate denaturation. 1976—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. § 5212. Transfer of distilled spirits between bond- ed premises Bulk distilled spirits on which the internal revenue tax has not been paid or determined as authorized by law may, under such regulations as the Secretary shall prescribe, be transferred in bond between bonded premises in any ap- proved container. For the purposes of this chap- ter, the removal of bulk distilled spirits for transfer in bond between bonded premises shall not be construed to be a withdrawal from bonded premises. The provisions of this section restrict- ing transfers to bulk distilled spirits shall not apply to alcohol bottled under the provisions of section 5235 which is to be withdrawn for indus- trial purposes. In the case of distilled spirits transferred in bond after December 31, 2017, be- tween bonded premises belonging to the same person or members of the same controlled group (within the meaning of section 5001(c)(2)) this section shall be applied without regard to whether distilled spirits are bulk distilled spir- its. In the case of distilled spirits transferred in bond from the person who distilled or processed such distilled spirits (hereinafter referred to as ‘‘transferor’’) to another person for bottling or storage of such distilled spirits, and returned to the transferor for removal, this section shall be applied without regard to whether distilled spir- its are bulk distilled spirits, but only if the transferor retains title during the entire period between such distillation, or processing, and re- moval. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1362; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–39, title VIII, § 805(b)(2), July 26, 1979, 93 Stat. 276; Pub. L. 96–598, § 6(d), Dec. 24, 1980, 94 Stat. 3490; Pub. L. 115–97, title I, § 13808(a), Dec. 22, 2017, 131 Stat. 2177; Pub. L. 116–94, div. Q, title I, § 144(h)(1), Dec. 20, 2019, 133 Stat. 3235; Pub. L. 116–260, div. EE, title I, § 106(h)(1), (2), Dec. 27, 2020, 134 Stat. 3045.) Editorial Notes PRIOR PROVISIONS A prior section 5212, act Aug. 16, 1954, ch. 736, 68A Stat. 639, related to the prevention and detection of fraud and contained a cross reference to provisions for gauging and marking of spirits, prior to the general re- vision of this chapter by Pub. L. 85–859. See section 5204(b) of this title. Provisions similar to those comprising this section were contained in prior sections 5194(a), (e) to (g), 5217(a), 5246, 5308, act Aug. 16, 1954, ch. 736, 68A Stat. 634 to 636, 641, 647, 657, prior to the general revision of this chapter by Pub. L. 85–859. AMENDMENTS 2020—Pub. L. 116–260 substituted ‘‘between bonded premises belonging to the same person or members of the same controlled group (within the meaning of sec- tion 5001(c)(2))’’ for ‘‘and before January 1, 2021,’’ and inserted at end ‘‘In the case of distilled spirits trans- ferred in bond from the person who distilled or proc- essed such distilled spirits (hereinafter referred to as ‘transferor’) to another person for bottling or storage of such distilled spirits, and returned to the transferor for removal, this section shall be applied without re- gard to whether distilled spirits are bulk distilled spir- its, but only if the transferor retains title during the entire period between such distillation, or processing, and removal.’’ 2019—Pub. L. 116–94 substituted ‘‘January 1, 2021’’ for ‘‘January 1, 2020’’. 2017—Pub. L. 115–97 inserted at end ‘‘In the case of distilled spirits transferred in bond after December 31, 2017, and before January 1, 2020, this section shall be ap- plied without regard to whether distilled spirits are bulk distilled spirits.’’ 1980—Pub. L. 96–598 inserted provision that restric- tion on transfers to bulk distilled spirits not apply to alcohol bottled under section 5235 of this title which is to be withdrawn for industrial purposes. 1979—Pub. L. 96–39 substituted ‘‘Bulk distilled spir- its’’ for ‘‘Distilled spirits’’ and ‘‘bulk distilled spirits’’ for ‘‘distilled spirits’’. 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2020 AMENDMENT Pub. L. 116–260, div. EE, title I, § 106(h)(3), Dec. 27, 2020, 134 Stat. 3045, provided that: ‘‘The amendments made by this subsection [amending this section] shall apply to distilled spirits transferred in bond after De- cember 31, 2020.’’ EFFECTIVE DATE OF 2019 AMENDMENT Pub. L. 116–94, div. Q, title I, § 144(h)(2), Dec. 20, 2019, 133 Stat. 3235, provided that: ‘‘The amendment made by this subsection [amending this section] shall apply to distilled spirits transferred in bond after December 31, 2019.’’