(3) the vessel or aircraft, in case of withdrawal under section 5214 (a) (7); and (4) the foreign-trade zone, in case of withdrawal under section 5214 (a) (8). (g) OTHER LAWS APPLICABLE.-All provisions of law, including penalties, applicable in respect of the internal revenue tax on distilled spirits, shall, insofar as applicable and not inconsistent with subsections (b) (2), (c), and (d), be applicable to the credits or refunds provided for under such subsections to the same extent as if such credits or refunds constituted credits or refunds of such tax. (h) CROSS REFERENCE.— For provisions relating to allowance for loss in case of wine spirits withdrawn for use in wine production, see section 5373 (b) (3). SEC. 5009. DRAWBACK. (a) DRAWBACK ON EXPORTATION OF DISTILLED SPIRITS IN CASKS OR PACKAGES.-On the exportation of distilled spirits in casks or packages containing not less than 20 wine gallons each, filled in internal revenue bond, drawback of the internal revenue tax paid or determined may be allowed, under such regulations, and on the filing of such bonds, reports, returns, and applications, and the keeping of such records, as the Secretary or his delegate may prescribe. The drawback shall be paid or credited in an amount equal to such tax on the quantity of distilled spirits exported, as ascertained prior to exportation by such gauge as the Secretary or his delegate may by regulations prescribe. The drawback shall be paid or credited only after all requirements of law and regulations have been complied with and on the filing, with the Secretary or his delegate, of a proper claim and evidence satisfactory to the Secretary or his delegate that the tax on such distilled spirits has been paid or determined and that the distilled spirits have been exported. (b) CROSS REFERENCES. (1) For provisions relating to drawback on distilled spirits packaged or bottled especially for export, see section 5062 (b). (2) For provisions relating to drawback on designated nonbeverage products, see sections 5131 through 5134. (3) For drawback on distilled spirits used in flavoring extracts or medicinal or toilet preparations exported, see section 313 (d) of the Tariff Act of 1930 (46 Stat. 694; 19 U. S. C. 1313). (4) For drawback on articles removed to foreign-trade zones, see 19 U. S. C. 81c. (5) For drawback on shipments from the United States to Puerto Rico, the Virgin Islands, Guam, or American Samoa, see section 7653 (c). Subpart B-Rectification Sec. 5021. Imposition and rate of tax. Sec. 5022. Tax on cordials and liqueurs containing wine. Sec. 5023. Tax on blending of beverage rums or brandies. Sec. 5024. Definitions. Sec. 5025. Exemption from rectification tax. Sec. 5026. Determination and collection of rectification tax. SEC. 5021. IMPOSITION AND RATE OF TAX. In addition to the tax imposed by this chapter on distilled spirits and wines, there is hereby imposed (except as otherwise provided in this chapter) a tax of 30 cents on each proof gallon and a proportionate tax at a like rate on all fractional parts of such proof gallon on all distilled spirits or wines rectified, purified, or refined in such manner, and on all mixtures produced in such manner, that the person so rectifying, purifying, refining, or mixing the same is a rectifier (as defined in section 5082). Spirits or wines shall not twice be subjected to tax under this section because of separate acts of rectification, pursuant to approved formula, between the time such spirits or wines. are received on the bottling premises and the time they are removed therefrom. SEC. 5022. TAX ON CORDIALS AND LIQUEURS CONTAINING WINE. On all liqueurs, cordials, or similar compounds produced in the United States and not produced for sale as wine, wine specialties, or cocktails, which contain more than 2% percent by volume of wine of an alcoholic content in excess of 14 percent by volume, there shall be paid, in lieu of the tax imposed by section 5021, a tax at the rate of $1.92 per wine gallon and a proportionate tax at a like rate on all fractional parts of such wine gallon until July 1, 1961, and on or after July 1, 1961, at the rate of $1.60 per wine gallon and a proportionate tax at a like rate on all fractional parts of such wine gallon. The last sentence of section 5021 shall not be construed to limit the imposition of tax under this section. All other provisions of law applicable to rectification shall apply to the products subject to tax under this section. SEC. 5023. TAX ON BLENDING OF BEVERAGE RUMS OR BRANDIES. In the case of rums or fruit brandies mixed or blended pursuant to section 5234 (c), in addition to the tax imposed by this chapter on the production of distilled spirits, there shall, except in the case of such rums or brandies which have been aged in wood at least 2 years at the time of their first blending or mixing, be paid a tax of 30 cents as to each proof gallon (and a proportionate tax at a like rate on all fractional parts of such proof gallon) of rums or brandies so mixed or blended and withdrawn from bonded premises, except when such rums or brandies are withdrawn under section 5214 or section 7510. SEC. 5024. DEFINITIONS. (1) For definition of "rectifier", see section 5082. (2) For definition of "products of rectification" as "distilled spirits" for certain purposes, see section 5002 (a) (6) (B). (3) For other definitions relating to distilled spirits, see section 5002. (4) For definitions of general application to this title, see chapter 79. SEC. 5025. EXEMPTION FROM RECTIFICATION TAX. (a) ABSOLUTE ALCOHOL.-The process of extraction of water from high-proof distilled spirits for the production of absolute alcohol shall not be deemed to be rectification within the meaning of sections 5081 and 5082, and absolute alcohol shall not be subject to the tax imposed by section 5021, but the production of such absolute alcohol shall be under such regulations as the Secretary or his delegate may prescribe. (b) PRODUCTION OF GIN AND VODKA. The tax imposed by section 5021 shall not apply to gin produced on bottling premises of distilled spirits plants by the redistillation of a pure spirit over juniper berries and other natural aromatics or to vodka produced on bottling premises of distilled spirits plants from pure spirits in the manner authorized on bonded premises of distilled spirits plants. (c) REFINING SPIRITS IN COURSE OF ORIGINAL DISTILLATION. The purifying or refining of distilled spirits, in the course of original and continuous distillation or other original and continuous processing, through any material which will not remain incorporated with such spirits when the production thereof is complete shall not be held to be rectification within the meaning of sections 5021, 5081, or 5082, nor shall these sections be held to prohibit such purifying or refining. (d) REDISTILLATION OF DISTILLED SPIRITS ON BONDED PREMISES. Sections 5021, 5081, and 5082 shall not apply to the redistillation of distilled spirits under section 5223. (e) MINGLING OF DISTILLED SPIRITS.-Sections 5021, 5081, and 5082 shall not apply to (1) the mingling on bonded premises of spirits distilled at 190 degrees or more of proof; or (2) the mingling of distilled spirits on bonded premises, or in the course of removal therefrom, for redistillation, storage, or any other purpose, incident to the requirements of the national defense; or (3) the mingling in bulk gauging tanks on bonded premises of heterogeneous distilled spirits for immediate removal to bottling premises, exclusively for use in taxable rectification, or in rectification under subsection (f); or (4) the blending on bonded premises of beverage brandies or rums, under the provisions of section 5234 (c); or (5) the mingling of homogeneous distilled spirits; or (6) the mingling on bonded premises of distilled spirits for immediate redistillation, immediate denaturation, or immediate removal from such premises free of tax under section 5214 (a) (1), (2), or (3), or section 7510; or (7) the mingling on bonded premises of distilled spirits for further storage in bond as authorized by section 5234 (a) (2). (f) BLENDING STRAIGHT WHISKIES, RUMS, FRUIT BRANDIES, OR WINES. The taxes imposed by this subpart shall not attach (1) to blends made exclusively of two or more pure straight whiskies aged in wood for a period not less than 4 years and without the addition of coloring or flavoring matter or any other substance than pure water and if not reduced below 80 proof; or (2) to blends made exclusively of two or more pure fruit brandies distilled from the same kind of fruit, aged in wood for a period not less than 2 years and without the addition of coloring or flavoring matter (other than caramel) or any other substance than pure water and if not reduced below 80 proof; or (3) to the mixing and blending of wines, where such blending is for the sole purpose of perfecting such wines according to commercial standards; or (4) to blends made exclusively of two or more rums aged in wood for a period not less than 2 years and without the addition of coloring or flavoring matter (other than caramel) or any other substance than pure water and if not reduced below 80 proof. Such blended whiskies, blended rums, and blended fruit brandies shall be exempt from tax under this subpart only when blended in such tanks and under such conditions and supervision as the Secretary or his delegate may by regulations prescribe. (g) ADDITION OF CARAMEL TO BRANDY OR RUM.-The addition of caramel to commercial brandy or rum on the bonded premises of a distilled spirits plant, pursuant to regulations prescribed by the Secretary or his delegate, shall not be deemed to be rectification within the meaning of sections 5021, 5081, and 5082. (h) APOTHECARIES.-The taxes imposed by this subpart and by part II of this subchapter shall not be imposed on apothecaries as to wines or distilled spirits which they use exclusively in the preparation or making up of medicines unfit for use for beverage purposes. (i) MANUFACTURER RECOVERING DISTILLED SPIRITS FOR REUSE IN PRODUCTS UNFIT FOR BEVERAGE PURPOSES.-The taxes imposed by this subpart and by part II of this subchapter shall not be imposed on any manufacturer for recovering distilled spirits, on which the tax has been paid or determined, from dregs or marc of percolation or extraction, or from medicines, medicinal preparations, food products, flavors, or flavoring extracts, which do not meet the manufacturer's standards, if such recovered distilled spirits are used by such manufacturer in the manufacture of medicines, medicinal preparations, food products, flavors, or flavoring extracts, which are unfit for use for beverage purposes. (j) STABILIZATION OF DISTILLED SPIRITS.-The removal, on the premises of a distilled spirits plant, of extraneous insoluble materials from distilled spirits, and minor changes in the soluble color or soluble solids of distilled spirits, which occur solely as a result of such filtrations or other physical treatments (which do not involve the addition of any substance which will remain incorporated in the completed product) at the time of, or preparatory to, the bottling of distilled spirits, as may be necessary or desirable to produce a stable product, shall not be deemed to be rectification within the meaning of sections 5021, 5081, and 5082, if such changes do not exceed maximum limitations which the Secretary or his delegate may by regulations provide. (k) ADDITION OF TRACER ELEMENTS.-The authorized addition of tracer elements to distilled spirits under provisions of section 5201 (d) shall not be deemed to be rectification within the meaning of sections 5021, 5081, and 5082. (1) CROSS REFERENCES. (1) For provisions exempting distilled spirits and wines rectified in customs manufacturing bonded warehouses, see section 5523. (2) For provisions exempting winemakers in the use or treatment of wines or wine spirits, see section 5391. (3) For provisions exempting the manufacture of volatile fruit-flavor concentrates, see section 5511. SEC. 5026. DETERMINATION AND COLLECTION OF RECTIFICATION TAX. (a) DETERMINATION OF TAX. (1) GENERAL.-The taxes imposed by sections 5021 and 5022 shall be determined upon the completion of the process of rectification by such means as the Secretary or his delegate shall by regulations prescribe and with the use of such devices and apparatus (including but not limited to storage, gauging, and bottling tanks, and pipelines) as the Secretary or his delegate may by regulations prescribe. (2) UNAUTHORIZED RECTIFICATION.-In the case of taxable rectification on premises other than premises on which rectification is authorized, the tax imposed by section 5021 or 5022 shall be due and payable at the time of such rectification. (b) PAYMENT OF TAX.-Except as provided in subsection (a) (2), the taxes imposed by sections 5021, 5022, and 5023, shall be paid in accordance with section 5061. Subpart C-Wines Sec. 5041. Imposition and rate of tax. Sec. 5043. Collection of taxes on wines. Sec. 5044. Refund of tax on unmerchantable wine. Sec. 5045. Cross references. SEC. 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 0.256 gram of carbon dioxide per hundred milliliters of wine; except that the Secretary or his delegate 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, except that on and after July 1, 1961, the rate shall be 15 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, except that on and after July 1, 1961, the rate shall be 60 cents a 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, except that on and after July 1, 1961, the rate shall be $2.00 per wine gallon; (4) On champagne and other sparkling wines, $3.40 per wine gallon, except that on and after July 1, 1961, the rate shall be $3.00 per wine gallon; and (5) On artificially carbonated wines, $2.40 per wine gallon, except that on and after July 1, 1961, the rate snall be $2.00 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 than the bonded premises provided for in this chapter shall (except as provided |