Pub. L. 90-630, § 1, Oct. 22, 1968, 82 Stat. 1328; Pub. L. 91-659, §§ 1, 2(a), (b), Jan. 8, 1971, 84 Stat. 1964; Pub. L. 94-273, § 47, Apr. 21, 1976, 90 Stat. 382; Pub. L. 94-455, title XIX, §§ 1905(a)(2), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1818, 1834; Pub. L. 95-176, §§ 2(f), 4(e), Nov. 14, 1977, 91 Stat. 1364, 1366; Pub. L. 96-39, title VIII, § 807(a)(6), July 26, 1979, 93 Stat. 281.)

PRIOR PROVISIONS

A prior section 5008, act Aug. 16, 1954, ch. 736, 68A Stat. 602, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859. See sections 5205(a), (g) and 5604(a)(1) of this title.

Provisions similar to those comprising subsecs. (a)(1) to (4) and (f)(1), (2) of this section were contained in prior sections 5011(a)(1) to (4), 5023, 5247(e) and 5522(b), act Aug. 16, 1954, ch. 736, 68A Stat. 604, 606, 648, 679, prior to the general revision of this chapter by Pub. L. 85-859.

AMENDMENTS

1979-Subsec. (a)(1). Pub. L. 96-39, § 807(a)(6)(A), in subpar. (B) substituted "subsection (b); and" for "subsection (b)(1)." and added subpar. (C).

Subsec. (a)(5). Pub. L. 96-39, § 807(a)(6)(B), substituted "before" for "prior to the completion" and struck out provisions relating to the applicability of this subsection where the loss occurred after the time prescribed for the withdrawal of the distilled spirits from the bonded premises under section 5006(a)(2) and relating to the applicability of this paragraph to any loss of distilled spirits for which abatement, remission, credit, or refund of tax is allowed under subsec. (c).

Subsec. (b). Pub. L. 96-39, § 807(a)(6)(C), struck out "(1) Distilled spirits in bond" preceding "The proprietor of" and provisions relating to distilled spirits withdrawn for rectification or bottling.

Subsec. (c). Pub. L. 96-39, § 807(a)(6)(C), added subsec. (c). Former subsec. (c), which related to loss of distilled spirits withdrawn from bond for rectification or bottling, was struck out.

Subsec. (d). Pub. L. 96-39, § 807(a)(6)(D), redesignated subsec. (f) as (d). Former subsec. (d), which related to distilled spirits returned to bonded premises, was struck out.

Subsec. (e). Pub. L. 96-39, § 807(a)(6)(D), (E), redesignated subsec. (g) as (e) and, as so redesignated, substituted "subsection (c)" for "subsections (b)(2), (c), and (d)" and "under such subsection" for "under such subsections". Former subsec. (e), which related to samples of distilled spirits used for analysis or testing by the United States, was struck out.

Subsec. (f). Pub. L. 96-39, § 807(a)(6)(D), redesignated subsec. (h) as (f). Former subsec. (f) redesignated (d).

Subsecs. (g), (h). Pub. L. 96-39, § 807(a)(6)(D), redesignated subsecs. (g) and (h) as (e) and (f), respectively. 1977-Subsec. (d). Pub. L. 95-176, § 2(f), reenacted par. (1) and substituted therein the heading "General" for "Allowance of tax" and "(or the tax equal to such tax imposed under section 7652)" for "or under section 7652"; added pars. (2) and (3); and redesignated as par. (4) provisions of former par. (2), inserting therein reference to allowance of claims under par. (2) or (3).

Subsec. (f)(5). Pub. L. 95-176, § 4(e), added par. (5). 1976-Subsec. (b)(1). Pub. L. 94-455, §§ 1905(a)(2)(A), 1906(b)(13)(A), inserted "or by section 7652" following "tax imposed by this chapter" and struck out "or his delegate" following "Secretary".

Subsec. (b)(2). Pub. L. 94-455, §§ 1905(a)(2)(B), 1906(b)(13)(A), struck out "or his delegate" following "Secretary" and inserted ", or under section 7652" following "under subpart B of this part".

Subsec. (c)(1). Pub. L. 94-455, §§ 1905(a)(2)(C), 1906(b)(13)(A), struck out "or his delegate" following

"Secretary" wherever appearing and inserted "or under section 7652" following "under section 5001(a)(1)".

Subsec. (c)(2), (3). Pub. L. 94-273 substituted "computation year" for "fiscal year" wherever appearing therein.

Subsec. (c)(5). Pub. L. 94-455, § 1906(b)(13)(A), struck out or his delegate" following "Secretary".

Subsec. (d)(1). Pub. L. 94-455, §§ 1905(a)(2)(C), (D), 1906(b)(13)(A), struck out "on or after July 1, 1959," following "from bonded premises," and "or his delegate" following "Secretary" and inserted "or under section 7652" following "under section 5001(a)(1)”.

1971-Subsec. (b)(2). Pub. L. 91-659, § 2(a), eliminated the condition that the distilled spirits can be destroyed only before bottling and permitted destruction after completion of bottling so long as the distilled spirits are on the bottling premises and added taxes imposed under subpart B of this Part as additional taxes which can be claimed for abatement, remission, credit or refund.

Subsec. (c)(1)(A). Pub. L. 91-659, § 1, added cl. (iii). Subsec. (c)(5). Pub. L. 91-659, § 2(b), permits distilled spirits returned to bottling premises to be treated for purposes of the various loss provisions as though they had not been removed from the bottling premises.

1968-Subsec. (c)(1). Pub. L. 90-630 added provisions allowing abatement, remission, and refund if the casualty loss occurs after completion of the packaging but before the spirits have been removed from the premises of the distilled spirits plant to which the spirits were removed from bond.

1965-Subsec. (d)(2). Pub. L. 89-44 struck out final clause prohibiting the allowance of a claim in respect to any distilled spirits withdrawn from bonded premises of a distilled spirits plant more than 6 months prior to the date of such return.

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 section 5001 of this title.

EFFECTIVE DATE OF 1977 AMENDMENT Enactment of subsec. (f)(5) and amendment of subsec. (d) by Pub. L. 95-176 effective on the first day of the 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 1976 AMENDMENT Amendment by section 1905 of Pub. L. 94-455 effective on the first day of the 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.

EFFECTIVE DATE OF 1971 AMENDMENT Amendment by Pub. L. 91-659 effective on the first day of the first calendar month which begins more than 90 days after January 8, 1971, see, section 6 of Pub. L. 91-659, set out as an Effective Date note under section 5066 of this title.

EFFECTIVE DATE OF 1968 AMENDMENT Section 4 of Pub. L. 90-630 provided that: "(a) For purposes of subsection (b), the effective date of this Act is the first day of the first calendar month which begins more than 90 days after the date of the enactment of this Act [Oct. 22, 1968].

"(b) The amendments made by the first section of this Act [amending this section] shall apply only to losses sustained on or after such effective date. The amendments made by section 2 [amending section 5062(b) of this title and section 1313(d) of Title 19, Customs Duties] shall apply only to articles exported on or after such effective date. The amendments made

by section 3 (amending section 5232 of this title] shall apply only to withdrawals from customs custody on or after such effective date."

EFFECTIVE Date of 1965 AMENDMENT

Section 805(g)(1) of Pub. L. 89-44 provided that: "The amendments made by subsections (a), (c), (e), and (f)(6) [amending sections 5008, 5062(c)(1), 5215(a), and 5608(b) of this title] shall take effect on July 1, 1965."

DISTILLED SPIRITS RETURNED TO BONDED PREMISES OF DISTILLED SPIRITS PLANT DURING 1980

Subsec. (c)(1) of this section to be treated as including a reference to section 5041 of this title with respect to distilled spirits returned to the bonded premises of distilled spirits plants during 1980, see section 808(d) of Pub. L. 96-39, set out as a note under section 5061 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5003, 5005, 5006, 5215, 5373 of this title.

[§ 5009. Repealed. Pub. L. 96-39, title VIII, § 807(a)(7), July 26, 1979, 93 Stat. 281]

Section, added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1327, and amended Pub. L. 94-455, title XIX, §§ 1905(a)(3), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1818, 1834, related to drawback on the exportation of distilled spirits in casks or packages.

A prior section 5009, act Aug. 16, 1954, ch. 736, 68A Stat. 603, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859. See sections 5205(c)(1), (f), (i)(4) and 5206(c) of this title.

EFFECTIVE DATE OF REPEAL

Repeal effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as an Effective Date of 1979 Amendment note under section 5001 of this title.

§ 5010. Credit for wine content and for flavors content

(a) Allowance of credit

(1) Wine content

On each proof gallon of the wine content of distilled spirits, there shall be allowed a credit against the tax imposed by section 5001 (or 7652) equal to the excess of

(A) $10.50, over

(B) the rate of tax which would be imposed on the wine under section 5041(b) but for its removal to bonded premises.

(2) Flavors content

On each proof gallon of the flavors content of distilled spirits, there shall be allowed a credit against the tax imposed by section 5001 (or 7652) equal to $10.50.

(3) Fractional part of proof gallon

In the case of any fractional part of a proof gallon of the wine content, or of the flavors content, of distilled spirits, a proportionate credit shall be allowed.

(b) Time for determining and allowing credit

(1) In general

The credit allowable by subsection (a)—

(A) shall be determined at the same time the tax is determined under section 5006 (or 7652) on the distilled spirits containing the wine or flavors, and

(B) shall be allowable at the time the tax imposed by section 5001 (or 7652) on such distilled spirits is payable as if the credit allowable by this section constituted a reduction in the rate of tax.

(2) Determination of content in the case of imports

For purposes of this section, the wine content, and the flavors content, of imported distilled spirits shall be established by such chemical analysis, certification, or other methods as may be set forth in regulations prescribed by the Secretary.

(c) Definitions

For purposes of this section(1) Wine content

(A) In general

The term "wine content" means alcohol derived from wine.

(B) Wine

The term "“wine”—

(i) means wine on which tax would be imposed by paragraph (1), (2), or (3) of section 5041(b) but for its removal to bonded premises, and

(ii) does not include any substance which has been subject to distillation at a distilled spirits plant after receipt in bond. (2) Flavors content

(A) In general

Except as provided in subparagraph (B), the term "flavors content" means alcohol derived from flavors of a type for which drawback is allowable under section 5134. (B) Exceptions

The term "flavors content" does not include

(i) alcohol derived from flavors made at a distilled spirits plant, and

(ii) in the case of any distilled spirits product, alcohol derived from flavors to the extent such alcohol exceeds (on a proof gallon basis) 21⁄2 percent of the finished product.

(Added Pub. L. 96-598, § 6(a), Dec. 24, 1980, 94 Stat. 3488.)

PRIOR PROVISIONS

A prior section 5010, act Aug. 16, 1954, ch. 736, 68A Stat. 603, related to miscellaneous stamp provisions, prior to the general revision of this chapter by Pub. L. 85-859.

A prior section 5011, act Aug. 16, 1954, ch. 736, 68A Stat. 604, related to abatement, remission, refund and allowance for loss or destruction of distilled spirits, prior to the general revision of this chapter by Pub. L. 85-859.

A prior section 5012, act Aug. 16, 1954, ch. 736, 68A Stat. 605, related to drawback on exportation of distilled spirits; prior to the general revision of this chapter by Pub. L. 85-859.

EFFECTIVE DATE

Section 6(c) of Pub. L. 96-598 provided that: "The amendments made by subsections (a) and (b) [enacting this section] shall take effect on January 1, 1980."

[SUBPART B-REPEALED]

[§§ 5021 to 5026. Repealed. Pub. L. 96-39, title VIII, § 803(a), July 26, 1979, 93 Stat. 274]

Section 5021, added Pub. L. 85-859, title II. § 201, Sept. 2, 1958, 72 Stat. 1328, provided for the imposition of a tax on rectified distilled spirits or wines.

A prior section 5021, act Aug. 16, 1954, ch. 736, 68A Stat. 606, related to the imposition and rate of tax, prior to the general revision of this chapter by Pub. L. 85-859.

Section 5022, added Pub. L. 85-859. title II. § 201, Sept. 2, 1958, 72 Stat. 1328, and amended Pub. L. 86-75, § 3(a)(4), June 30, 1959, 73 Stat. 157; Pub. L. 86-564, title II, § 202(a)(6), June 30, 1960, 74 Stat. 290; Pub. L. 87-72, § 3(a)(6), June 30, 1961, 75 Stat. 193; Pub. L. 87-508, § 3(a)(5), June 28, 1962, 76 Stat. 114; Pub. L. 88-52, § 3(a)(6), June 29, 1963, 77 Stat. 72; Pub. L. 88-348. § 2(a)(6), June 30, 1964, 78 Stat. 237; Pub. L. 89-44, title V, § 501(b), June 21, 1965, 79 Stat. 150, imposed a tax on cordials and liqueurs containing wine.

A prior section 5022, acts Aug. 16, 1954, ch. 736, 68A Stat. 606; Mar. 30, 1955, ch. 18, § 3(a)(6), 69 Stat. 14; Mar. 29, 1956, ch. 115, § 3(a)(6), 70 Stat. 66; Mar. 29, 1957, Pub. L. 85-12, § 3(a)(4), 71 Stat. 9; June 30, 1958, Pub. L. 85-475, § 3(a)(4), 72 Stat. 259, imposed a tax on cordials and liqueurs containing wine, prior to the general revision of this chapter by Pub. L. 85-859.

Section 5023, added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1328, imposed a tax on the blending of beverage rums and brandies.

A prior section 5023, act Aug. 16, 1954, ch. 736, 68A Stat. 606, imposed a tax on blending of beverage brandies, prior to the general revision of this chapter by Pub. L. 85-859.

Section 5024, added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1328, indicated the sources for the definitions of the terms "rectifier", "products of rectification", and "distilled spirits" and referred to other definitions relating to distilled spirits as well as other definitions of general application to this title.

A prior section 5024, act Aug. 16, 1954, ch. 736, 68A Stat. 607, defined "rectifier" and "products of rectification", prior to the general revision of this chapter by Pub. L. 85-859.

Section 5025, added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1328, and amended Pub. L. 89-44, title VIII, § 805(b), (f)(2)-(5), June 21, 1965, 79 Stat. 161; Pub. L. 94-455, title XIX, §§ 1905(a)(4), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1818, 1834; Pub. L. 95-176, §§ 5(b), 6, Nov. 14, 1977, 91 Stat. 1366, 1367, enumerated 12 exemptions from the rectification tax.

A prior section 5025, act Aug. 16, 1954, ch. 736, 68A Stat. 607, related to exemption from rectification tax, prior to the general revision of this chapter by Pub. L. 85-859.

Provisions similar to those comprising section 5025(e)(1), (2), (4) of this title were contained in former sections 5023, 5217(a), and 5306 of this title, act Aug. 16, 1954, ch. 736, 68A Stat. 606, 641, 657, prior to the general revision of this chapter by Pub. L. 85-859. Section 5026, added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1330; Pub. L. 94-455, title XIX, §§ 1905(b)(2)(B), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1822, 1834, related to the determination and collection of the rectification tax.

A prior section 5026, act Aug. 16, 1954, ch. 736, 68A Stat. 608, related to determination and collection of rectification tax, prior to the general revision of this chapter by Pub. L. 85-859.

A prior section 5027, act Aug. 16, 1954, ch. 736, 68A Stat. 609, related to stamp provisions applicable to rectifiers, prior to the general revision of this chapter by Pub. L. 85-859.

A prior section 5028, act Aug. 16, 1954, ch. 736, 68A Stat. 609, related to cross references for penalty provisions, prior to the general revision of this chapter by Pub. L. 85-859.

SUBPART REFERRED TO IN OTHER SECTIONS This subpart is referred to in section 5661 of this title.

§ 5041. Imposition and rate of tax (a) Imposition

There is hereby imposed on all wines (including imitation, substandard, or artificial wine, and compounds sold as wine) having not in excess of 24 percent of alcohol by volume, in bond in, produced in, or imported into, the United States, taxes at the rates shown in subsection (b), such taxes to be determined as of the time of removal for consumption or sale. All wines containing more than 24 percent of alcohol by volume shall be classed as distilled spirits and taxed accordingly. Still wines shall include those wines containing not more than 0.392 gram of carbon dioxide per hundred milliliters of wine; except that the Secretary may by regulations prescribe such tolerances to this maximum limitation as may be reasonably necessary in good commercial practice.

(b) Rates of tax

(1) On still wines containing not more than 14 percent of alcohol by volume, 17 cents per wine gallon;

(2) On still wines containing more than 14 percent and not exceeding 21 percent of alcohol by volume, 67 cents per wine gallon;

(3) On still wines containing more than 21 percent and not exceeding 24 percent of alcohol by volume, $2.25 per wine gallon;

(4) On champagne and other sparkling wines, $3.40 per wine gallon; and

(5) On artificially carbonated wines, $2.40 per wine gallon.

(c) Wine gallon

For the purpose of this chapter, the term "wine gallon" means a United States gallon of liquid measure equivalent to the volume of 231 cubic inches. On lesser quantities the tax shall be paid proportionately (fractions of less than one-tenth gallon being converted to the nearest one-tenth gallon, and five-hundredths gallon being converted to the next full one-tenth gallon).

(d) Illegally produced wine

Notwithstanding subsection (a), any wine produced in the United States at any place other

CROSS REFERENCES

than the bonded premises provided for in this chapter shall (except as provided in section 5042 in the case of tax-free production) be subject to tax at the rate prescribed in subsection (b) at the time of production and whether or not removed for consumption or sale.

(Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1331, and amended Pub. L. 86-75, § 3(a)(5), June 30, 1959, 73 Stat. 157; Pub. L. 86-564, title II, § 202(a)(7), June 30, 1960, 74 Stat. 290; Pub. L. 87-72, § 3(a)(7), June 30, 1961, 75 Stat. 193; Pub. L. 87-508, § 3(a)(6), June 28, 1962, 76 Stat. 114; Pub. L. 88-52, § 3(a)(7), June 29, 1963, 77 Stat. 72; Pub. L. 88-348, § 2(a)(7), June 30, 1964, 78 Stat. 237; Pub. L. 89-44, title V, § 501(c), title VIII, § 806(a), June 21, 1965, 79 Stat. 150, 162; Pub. L. 93-490, § 6(a), Oct. 26, 1974, 88 Stat. 1468; Pub. L. 94-455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

PRIOR PROVISIONS

A prior section 5041, acts Aug. 16, 1954, ch. 736, 68A Stat. 609; Mar. 30, 1955, ch. 18, § 3(a)(7), 69 Stat. 14; Mar. 29, 1956, ch. 115, § 3(a)(7), 70 Stat. 66; Mar. 29, 1957, Pub. L. 85-12, § 3(a)(5), 71 Stat. 9; June 30, 1958, Pub. L. 85-475, § 3(a)(5), 72 Stat. 259, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.

AMENDMENTS

1976-Subsec. (a). Pub. L. 94-455 struck out "or his delegate" following "Secretary".

1974-Subsec. (a). Pub. L. 93-490 substituted "0.392" for "0.277".

1965-Subsec. (a). Pub. L. 89-44, § 806(a), struck out "0.256" in the last sentence and inserted in lieu thereof "0.277".

Subsec. (b). Pub. L. 89-44, § 501(c)(1)-(5), struck out provisions at the end of each par. setting out a specified reduced rate to be applied on and after July 1, 1965.

1964-Subsec. (b). Pub. L. 88-348 substituted "July 1, 1965" for "July 1, 1964" in five instances.

1963-Subsec. (b). Pub. L. 88-52 substituted "July 1, 1964" for "July 1, 1963" in five instances.

1962-Subsec. (b). Pub. L. 87-508 substituted "July 1, 1963" for "July 1, 1962" in five instances.

1961-Subsec. (b). Pub. L. 87-72 substituted "July 1, 1962" for "July 1, 1961" in five instances.

1960-Subsec. (b). Pub. L. 86-564 substituted "July 1, 1961" for "July 1, 1960" in five instances. 1959-Subsec. (b). Pub. L. 86-75 substituted "July 1, 1960" for "July 1, 1959" in five instances.

EFFECTIVE Date of 1974 Amendment Section 6(b) of Pub. L. 93-490 provided that: "The amendment made by this section [amending subsec. (a) of this section] shall take effect on the first day of the first calendar month which begins more than 90 days after the date of enactment of this Act [Oct. 26, 1974]."

EFFECTIVE DATE OF 1965 AMENDMENT

Amendment of subsec. (b) by section 501 of Pub. L. 89-44, applicable on and after July 1, 1965, see section 701(d) of Pub. L. 89-44, set out as a note under section 5701 of this title.

Section 806(d)(1) of Pub. L. 89-44 provided that: "The amendment made by subsection (a) [amending this section] shall take effect on July 1, 1965."

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.

Loss or destruction of wine not taxable under this section, see section 5370 of this title.

Penalty for failure to pay tax imposed on wine, see section 5661 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5002, 5010, 5044, 5061 of this title.

§ 5042. Exemption from tax

(a) Tax-free production

(1) Cider

Subject to regulations prescribed by the Secretary, the noneffervescent product of the normal alcoholic fermentation of apple juice only, which is produced at a place other than a bonded wine cellar and without the use of preservative methods or materials, and which is sold or offered for sale as cider and not as wine or as a substitute for wine, shall not be subject to tax as wine nor to the provisions of subchapter F.

(2) Wine for personal or family use

Subject to regulations prescribed by the Secretary

(A) Exemption

Any adult may, without payment of tax, produce wine for personal or family use and not for sale.

(B) Limitation

The aggregate amount of wine exempt from tax under this paragraph with respect to any household shall not exceed―

(i) 200 gallons per calendar year if there are 2 or more adults in such household, or (ii) 100 gallons per calendar year if there is only 1 adult in such household. (C) Adults

For purposes of this paragraph, the term "adult" means an individual who has attained 18 years of age, or the minimum age (if any) established by law applicable in the locality in which the household is situated at which wine may be sold to individuals, whichever is greater.

(3) Experimental wine

Subject to regulations prescribed by the Secretary, any scientific university, college of learning, or institution of scientific research may produce, receive, blend, treat, and store wine, without payment of tax, for experimental or research use but not for consumption (other than organoleptical tests) or sale, and may receive such wine spirits without payment of tax as may be necessary for such production.

(b) Cross references

(1) For provisions relating to exemption of tax on losses of wine (including losses by theft or authorized destruction), see section 5370.

(2) For provisions exempting from tax samples of wine, see section 5372.

(3) For provisions authorizing withdrawals of wine free of tax or without payment of tax, see section 5362.

(Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1331, and amended Pub. L. 94-455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-458, § 2(a), Oct. 14, 1978, 92 Stat. 1255.)

PRIOR PROVISIONS

A prior section 5042, act Aug. 16, 1954, ch. 736, 68A Stat. 610, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.

AMENDMENTS

1978-Subsec. (a)(2). Pub. L. 95-458 substituted in heading "Wine for personal or family use" for "Family wine" and in text provision permitting an adult to produce 200 gallons of wine per calendar year if there are 2 or more adults in the household or 100 gallons of wine per calendar year if there is one adult in the household for provision which permitted the duly registered head of any family to produce an amount of wine not exceeding 200 gallons of wine per annum.

1976-Subsec. (a)(1) to (3). Pub. L. 94-455 struck out "or his delegate" following "Secretary" wherever appearing.

EFFECTIVE DATE OF 1978 AmendmenT

Section 2(c) of Pub. L. 95-458 provided that: "The amendments made by this section [amending sections 5042, 5051, 5053, 5054, 5092, 5222 and 5674 of this title] shall take effect on the first day of the first calendar month which begins more than 90 days after the date of the enactment of this Act [Oct. 14, 1978]."

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5041, 5222, 5351 of this title.

§ 5043. Collection of taxes on wines

(a) Persons liable for payment

The taxes on wine provided for in this subpart shall be paid

(1) Bonded wine cellars

In the case of wines removed from any bonded wine cellar, by the proprietor of such bonded wine cellar; except that

(A) in the case of any transfer of wine in bond as authorized under the provisions of section 5362(b), the liability for payment of the tax shall become the liability of the transferee from the time of removal of the wine from the transferor's premises, and the transferor shall thereupon be relieved of such liability; and

(B) in the case of any wine withdrawn by a person other than such proprietor without payment of tax as authorized under the provisions of section 5362(c), the liability for payment of the tax shall become the liability of such person from the time of the removal of the wine from the bonded wine cellar, and such proprietor shall thereupon be relieved of such liability.

(2) Foreign wine

In the case of foreign wines, by the importer thereof.

(3) Other wines

Immediately, in the case of any wine produced, imported, received, removed, or possessed otherwise than as authorized by law, by any person producing, importing, receiv

ing, removing, or possessing such wine; and all such persons shall be jointly and severally liable for such tax with each other as well as with any proprietor, transferee, or importer who may be liable for the tax under this subsection.

(b) Payment of tax

The taxes on wines shall be paid in accordance with section 5061.

(Added Pub. L. 85-859, title II, § 201, Sept. 2, 1958, 72 Stat. 1332, and amended Pub. L. 94-455, title XIX, § 1905(b)(2)(C), Oct. 4, 1976, 90 Stat. 1822; Pub. L. 96-39, title VIII, § 807(a)(8), July 26, 1979, 93 Stat. 281.)

PRIOR PROVISIONS

A prior section 5043, act Aug. 16, 1954, ch. 736, 68A Stat. 610, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.

AMENDMENTS

1979-Subsec. (a)(1)(A). Pub. L. 96-39 struck out "between bonded wine cellars" following "transfer of wine in bond".

1976-Subsec. (b). Pub. L. 94-455 substituted "The taxes" for "Except as provided in subsection (a)(3), the taxes".

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 section 5001 of this title.

EFFECTIVE Date of 1976 AMENDMENT Amendment by Pub. L. 94-455 effective on the first day of the 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.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5005, 5061, 5362 of this title.

§ 5044. Refund of tax on unmerchantable wine (a) General

In the case of any wine produced in the United States and returned to bond as unmerchantable under section 5361

(1) any tax imposed by section 5041 shall, if paid, be refunded or credited, without interest, to the proprietor of the bonded wine cellar to which such wine is delivered; or

(2) if any tax so imposed has not been paid, the person liable for the tax may be relieved of liability therefor,

under such regulations as the Secretary may prescribe. Such regulations may provide that claim for refund or credit under paragraph (1), or relief from liability under paragraph (2), may be made only with respect to minimum quantities specified in such regulations. The burden of proof in all such cases shall be on the applicant.

(b) Date of filing

No claim under subsection (a) shall be allowed unless filed within 6 months after the date of the return of the wine to bond.