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. SEC. 5042. EXEMPTION FROM TAX. (a) TAX-FREE PRODUCTION. (1) CIDER.-Subject to regulations prescribed by the Secretary or his delegate, 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) FAMILY WINE.-Subject to regulations prescribed by the Secretary or his delegate, the duly registered head of any family may, without payment of tax, produce for family use and not for sale an amount of wine not exceeding 200 gallons per annum. (3) EXPERIMENTAL WINE.-Subject to regulations prescribed by the Secretary or his delegate, 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. SEC. 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 between bonded wine cellars 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premises, and the transferor shall thereupon be relieved of such liability; and (B) in the case of any wine withdrawn by a person other than such proprietor without payment of tax as authorized under the provisions of section 5362 (c), the liability for payment of the tax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, receiving, 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.-Except as provided in subsection (a) (3), the taxes on wines shall be paid in accordance with section 5061. SEC. 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 or his delegate 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. (c) STATUS OF WINE RETURNED TO BOND.-All provisions of this chapter applicable to wine in bond on the premises of a bonded wine cellar and to removals thereof shall be applicable to wine returned to bond under the provisions of this section. SEC. 5045. CROSS REFERENCES. For provisions relating to the establishment and operation of wineries, see subchapter F, and for penalties pertaining to wine, see subchapter J. Subpart D-Beer Sec. 5051. Imposition and rate of tax. Sec. 5052. Definitions. Sec. 5053. Exemptions. Sec. 5054. Determination and collection of tax on beer. Sec. 5055. Drawback of tax. Sec. 5056. Refund and credit of tax, or relief from liability. SEC. 5051. IMPOSITION AND RATE OF TAX. (a) RATE OF TAX.-There is hereby imposed on all beer, brewed or produced, and removed for consumption or sale, within the United States, or imported into the United States, a tax of $9 for every barrel containing not more than 31 gallons and at a like rate for any other quantity or for fractional parts of a barrel. On and after July 1, 1961, the tax imposed by this subsection shall be at the rate of $8 in lieu of $9. Where the Secretary or his delegate finds that the revenue will not be endangered thereby, he may by regulations prescribe tolerances for barrels and fractional parts of barrels, and, if such tolerances are prescribed, no assessment shall be made and no tax shall be collected for any excess in any case where the contents of a barrel or a fractional part of a barrel are within the limit of the applicable tolerance prescribed. (b) ASSESSMENT ON MATERIALS USED IN PRODUCTION IN CASE OF FRAUD. Nothing contained in this subpart or subchapter G shall be construed to authorize an assessment on the quantity of materials used in producing or purchased for the purpose of producing beer, nor shall the quantity of material so used or purchased be evidence, for the purpose of taxation, of the quantity of beer produced; but the tax on all beer shall be paid as provided in section 5054, and not otherwise; except that this subsection shall not apply to cases of fraud, and nothing in this subsection shall have the effect to change the rules of law respecting evidence in any prosecution or suit. SEC. 5052. DEFINITIONS. (a) BEER. For purposes of this chapter (except when used with reference to distilling or distilling material) the term "beer" means beer, ale, porter, stout, and other similar fermented beverages (including saké or similar products) of any name or description containing one-half of 1 percent or more of alcohol by volume, brewed or produced from malt, wholly or in part, or from any substitute therefor. (b) GALLON. For purposes of this subpart, the term "gallon" means the liquid measure containing 231 cubic inches. (c) REMOVED FOR CONSUMPTION OR SALE.-Except as provided for in the case of removal of beer without payment of tax, the term "removed for consumption or sale", for the purposes of this subpart, means (1) SALE OF BEER.-The sale and transfer of possession of beer for consumption at the brewery; or (2) REMOVALS.-Any removal of beer from the brewery, except that such removal shall not include any beer returned to the brewery on the same day such beer is removed from the brewery. (d) Brewer. For definition of brewer, see section 5092. SEC. 5053. EXEMPTIONS. (a) REMOVALS FOR EXPORT.-Beer may be removed from the brewery, without payment of tax, for export to a foreign country, in such containers and under such regulations, and on the giving of such notices, entries, and bonds and other security, as the Secretary or his delegate may by regulations prescribe. (b) REMOVALS WHEN UNFIT FOR BEVERAGE USE.-When beer has become sour or damaged, so as to be incapable of use as such, a brewer may remove the same from his brewery without payment of tax, for manufacturing purposes, under such regulations as the Secretary or his delegate may prescribe. (c) REMOVALS FOR LABORATORY ANALYSIS.-Beer may be removed from the brewery, without payment of tax, for laboratory analysis, subject to such limitations and under such regulations as the Secretary or his delegate may prescribe. (d) REMOVAL AS SUPPLIES FOR CERTAIN VESSELS AND AIRCRAFT. For exemption as to supplies for certain vessels and aircraft, see section 309 of the Tariff Act of 1930, as amended (19 U. S. C. 1309). SEC. 5054. DETERMINATION AND COLLECTION OF TAX ON BEER. (a) TIME OF DETERMINATION.— (1) BEER PRODUCED IN THE UNITED STATES.-Except as provided in paragraph (3), the tax imposed by section 5051 on beer produced in the United States shall be determined at the time it is removed for consumption or sale, and shall be paid by the brewer thereof in accordance with section 5061. (2) BEER IMPORTED INTO THE UNITED STATES.-Except as provided in paragraph (4), the tax imposed by section 5051 on beer imported into the United States shall be determined at the time of the importation thereof, or, if entered into customs custody, at the time of removal from such custody, and shall be paid under such regulations as the Secretary or his delegate shall prescribe. (3) ILLEGALLY PRODUCED BEER.-The tax on any beer produced in the United States at any place other than a qualified brewery shall be due and payable immediately upon production. (4) UNLAWFULLY IMPORTED BEER.-Beer smuggled or brought into the United States unlawfully shall, for purposes of this chapter, be held to be imported into the United States, and the internal revenue tax shall be due and payable at the time of such importa tion. (b) TAX ON RETURNED BEER.-Beer which has been removed for consumption or sale and is thereafter returned to the brewery shall be subject to all provisions of this chapter relating to beer prior to removal for consumption or sale, including the tax imposed by section 5051. The tax on any such returned beer which is again removed for consumption or sale shall be determined and paid without respect to the tax which was determined at the time of prior removal of the beer for consumption or sale. (c) STAMPS OR OTHER DEVICES AS EVIDENCE OF PAYMENT OF TAX.-When the Secretary or his delegate finds it necessary for the protection of the revenue, he may require stamps, or other devices, evidencing the tax or indicating a compliance with the provisions of this chapter, to be affixed to hogsheads, barrels, or kegs of beer at the time of removal. The Secretary or his delegate shall by regulations prescribe the manner by which such stamps or other devices shall be supplied, affixed, and accounted for. (d) APPLICABILITY OF OTHER PROVISIONS OF LAW.-All administrative and penal provisions of this title, insofar as applicable, shall apply to any tax imposed by section 5051. SEC. 5055. DRAWBACK OF TAX. On the exportation of beer, brewed or produced in the United States, the brewer thereof shall be allowed a drawback equal in amount to the tax found to have been paid on such beer, to be paid on submission of such evidence, records and certificates indicating exportation, as the Secretary or his delegate may by regulations prescribe. For the purpose of this section, exportation shall include delivery for use as supplies on the vessels and aircraft described in section 309 of the Tariff Act of 1930, as amended (19 U.S.C. 1309). SEC. 5056. REFUND AND CREDIT OF TAX, OR RELIEF FROM LIABILITY. (a) BEER REMOVED FROM MARKET.-Any tax paid by any brewer on beer produced in the United States may be refunded or credited to the brewer, without interest, or if the tax has not been paid, the brewer may be relieved of liability therefor, under such regulations. as the Secretary or his delegate may prescribe, if such beer is removed from the market and is returned to the brewery or is destroyed under the supervision required by such regulations. (b) BEER LOST BY FIRE, CASUALTY, OR ACT OF GOD.-Subject to regulations prescribed by the Secretary or his delegate, the tax paid by any brewer on beer produced in the United States may be refunded or credited to the brewer, without interest, or if the tax has not been paid, the brewer may be relieved of liability therefor, if such beer is lost other than by theft, or is destroyed by fire, casualty, or act of God, before the transfer of title thereto to any other person. (c) DATE OF FILING.-No claims under this section shall be allowed unless filed within 6 months after the date of such removal from the market, loss, or destruction, or if the claimant was indemnified by insurance or otherwise in respect of the tax. Subpart E-General Provisions Sec. 5061. Method of collecting tax. Sec. 5062. Refund and drawback in case of exportation. Sec. 5063. Floor stocks refunds on distilled spirits, wines, cordials, and beer. Sec. 5064. Losses caused by disaster. SEC. 5061. METHOD OF COLLECTING TAX. (a) COLLECTION BY RETURN.-The taxes on distilled spirits, wines, rectified distilled spirits and wines, and beer shall be collected on the basis of a return. The Secretary or his delegate shall, by regulation, prescribe the period or event for which such return shall be filed, the time for filing such return, the information to be shown in such return, and the time for payment of such tax. Notwithstanding the preceding sentences of this subsection, the taxes shall continue to be paid by stamp until the Secretary or his delegate shall by regulations provide for the collection of the taxes on the basis of a return. (b) DISCRETION METHOD OF COLLECTION.-Whether or not the method of collecting any tax imposed by this part is specifically provided in this part, any such tax may, under regulations prescribed by the Secretary or his delegate, be collected by stamp, coupon, seriallynumbered ticket, or the use of tax-stamp machines, or by such other reasonable device or method as may be necessary or helpful in securing collection of the tax. (c) APPLICABILITY OF OTHER PROVISIONS OF LAW.-All administrative and penalty provisions of this title, insofar as applicable, shall apply to the collection of any tax which the Secretary or his delegate determines or prescribes shall be collected in any manner provided in this section. (d) CROSS REFERENCE. For penalty and forfeiture for tampering with a stamp machine, see section 5689. SEC. 5062. REFUND AND DRAWBACK IN CASE OF EXPORTATION. (a) REFUND.-Under such regulations as the Secretary or his delegate may prescribe, the amount of any internal revenue tax erroneously or illegally collected in respect to exported articles may be refunded to the exporter of the article, instead of to the manufacturer, if the manufacturer waives any claim for the amount so to be refunded. |