gauging instruments, or other means or methods for ascertaining the quantity, gravity, and producing capacity of any mash, wort, or beer used, or to be used, in the production of distilled spirits, and the strength and quantity of spirits subject to tax, as he may deem necessary; and he may prescribe regulations to secure a uniform and correct system of inspection, weighing, marking, and gauging of spirits.

(c) GAUGING, STAMPING, MARKING, AND BRANDING BY PROPRIETORS.-The Secretary or his delegate may by regulations require the proprietor of a distilled spirits plant, at the proprietor's expense and under such supervision as the Secretary or his delegate may require, to do such gauging, stamping, marking, and branding and such mechanical labor pertaining thereto as the Secretary or his delegate deems proper and determines may be done without danger to the

revenue.

SEC. 5205. STAMPS.

(a) STAMPS FOR CONTAINERS OF DISTILLED SPIRITS.

(1) CONTAINERS OF DISTILLED SPIRITS BOTTLED IN BOND.Every container of distilled spirits bottled in bond under section 5233 when filled shall be stamped by a stamp evidencing the bottling of such spirits in bond under the provisions of this paragraph and section 5233.

(2) CONTAINERS OF OTHER DISTILLED SPIRITS.-No person shall transport, possess, buy, sell, or transfer any distilled spirits, unless the immediate container thereof is stamped by a stamp evidencing the determination of the tax or indicating compliance with the provisions of this chapter. The provisions of this paragraph shall not apply to

(A) distilled spirits, lawfully withdrawn from bond, placed in containers for immediate consumption on the premises or for preparation for such consumption;

(B) distilled spirits in bond or in customs custody;

(C) distilled spirits, lawfully withdrawn from bond, in immediate containers stamped under other provisions of internal revenue or customs law or regulations issued pursuant thereto; (D) distilled spirits, lawfully withdrawn from bond, in actual process of rectification, blending, or bottling, or in actual use in processes of manufacture;

(E) distilled spirits on which no internal revenue tax is required to be paid;

(F) distilled spirits lawfully withdrawn from bond and not intended for sale or for use in the manufacture or production of any article intended for sale; or

(G) any regularly established common carrier receiving, transporting, delivering, or holding for transportation or delivery distilled spirits in the ordinary course of its business as a common carrier.

(3) STAMP REGULATIONS.-The Secretary or his delegate shall prescribe regulations with respect to the supplying or procuring of stamps required under this subsection or section 5235, the time and manner of applying for, issuing, affixing, and destroying such stamps, the form of such stamps and the information to be shown thereon, applications for the stamps, proof that applicants are

entitled to such stamps, and the method of accounting for such stamps, and such other regulations as he may deem necessary for the enforcement of this subsection. In the case of a container of a capacity of 5 wine gallons or less, the stamp shall be affixed in such a manner as to be broken when the container is opened, unless the container is one that cannot again be used after opening.

(b) STAMPS FOR CONTAINERS OF DISTILLED SPIRITS WITHDRAWN FROM BONDED PREMISES ON DETERMINATION OF TAX.-Containers of all distilled spirits withdrawn from bonded premises on determination of tax under section 5006 (a) shall be stamped by a stamp under such regulations as the Secretary or his delegate shall prescribe. This subsection shall not be construed to require stamps on cases of bottled distilled spirits filled and stamped on bonded premises.

(c) STAMPS FOR CONTAINERS OF DISTILLED SPIRITS WITHDRAWN FOR EXPORTATION.

(1) EXPORTATION WITHOUT PAYMENT OF TAX.-Every container of distilled spirits withdrawn for exportation under section 5214 (a) (4) shall be stamped by a stamp under such regulations as the Secretary or his delegate shall prescribe. This paragraph shall not be construed to require stamps on cases of bottled distilled spirits filled and stamped on bonded premises.

(2) EXPORTATION WITH BENEFIT OF DRAWBACK.-The Secretary or his delegate may require any container of distilled spirits bottled or packaged especially for export with benefit of drawback to be stamped by a stamp under such regulations as he may prescribe. (d) STAMPS FOR CONTAINERS OF 5 WINE GALLONS OR MORE OF DISTILLED SPIRITS FILLED ON BOTTLING PREMISES.-All containers of distilled spirits containing 5 wine gallons or more, which are filled on bottling premises of a distilled spirits plant for removal therefrom, shall be stamped by a stamp under such regulations as the Secretary or his delegate shall prescribe.

(e) ISSUE FOR RESTAMPING.-The Secretary or his delegate, under regulations prescribed by him, may authorize restamping of containers of distilled spirits which have been duly stamped but from which the stamps have been lost or destroyed by unavoidable accident.

(f) ACCOUNTABILITY.-All stamps relating to distilled spirits shall be used and accounted for under such regulations as the Secretary or his delegate may prescribe.

(g) EFFACEMENT OF STAMPS, MARKS, AND BRANDS ON EMPTIED CONTAINERS.-Every person who empties, or causes to be emptied, any immediate container of distilled spirits bearing any stamp, mark, or brand required by law or regulations prescribed pursuant thereto (other than containers stamped under subsection (a) or section 5235) shall at the time of emptying such container efface and obliterate such stamp, mark, or brand, except that the Secretary or his delegate may, by regulations, waive any requirement of this subsection as to the effacement or obliteration of marks or brands (or portions thereof) where he determines that no jeopardy to the revenue will be involved. (h) FORM OF STAMP.-Any stamp required by or prescribed pursuant to the provisions of this section or section 5235 may consist of such coupon, serially-numbered ticket, imprint, design, or other form of stamp as the Secretary or his delegate shall by regulations prescribe.

(i) CROSS REFERENCES.

(1) For general provisions relating to stamps, see chapter 69. (2) For provisions relating to the stamping, marking, and branding of containers of distilled spirits by proprietors, see section 5204 (c).

(3) For provisions relating to the stamping of bottled alcohol, see section 5235.

(4) For authority of the Secretary or his delegate to prescribe regulations regarding stamps for distilled spirits withdrawn to manufacturing bonded warehouses, see section 5522 (a).

(5) For penalties and forfeitures relating to stamps, marks, and brands, see sections 5604, 5613, 7208, and 7209.

SEC. 5206. CONTAINERS.

(8) AUTHORITY TO PRESCRIBE.-The Secretary or his delegate shall by regulations prescribe the types or kinds of containers which may be used to contain, store, transfer, convey, remove, or withdraw distilled spirits.

(b) STANDARDS OF FILL.-The Secretary or his delegate may by regulations prescribe the standards of fill for approved containers.

(c) MARKING, BRANDING, OR IDENTIFICATION.-Containers of distilled spirits (and cases containing bottles or other containers of such spirits) shall be marked, branded, or identified in such manner as the Secretary or his delegate shall by regulations prescribe.

(d) APPLICABILITY.-This section shall be applicable exclusively with respect to containers of distilled spirits for industrial use, with respect to containers of distilled spirits of a capacity of more than one gallon for other than industrial use, and with respect to cases containing bottles or other containers of distilled spirits.

(e) CROSS REFERENCES.—

(1) For other provisions relating to regulation of containers of distilled spirits, see section 5301.

(2) For provisions relating to labeling containers of distilled spirits of one gallon or less for nonindustrial uses, see section 5 (e) of the Federal Alcohol Administration Act (27 U. S. C. 205 (e)).

SEC. 5207. RECORDS AND REPORTS.

(a) RECORDS OF DISTILLERS AND BONDED WAREHOUSEMEN.Every distiller and every bonded warehouseman shall keep records in such form and manner as the Secretary or his delegate shall by regulations prescribe of

(1) the receipt of materials intended for use in the production of distilled spirits, and the use thereof,

(2) the receipt and use of distilled spirits received for redistillation,

(3) the kind and quantity of distilled spirits produced,

(4) the kind and quantity of distilled spirits entered into storage, (5) the bottling of distilled spirits in bond,

(6) the kind and quantity of distilled spirits removed from bonded premises, and from any taxpaid storeroom operated in connection therewith, and the purpose for which removed,

(7) the kind and quantity of denaturants received and used or otherwise disposed of,

(8) the kind and quantity of distilled spirits denatured,
(9) the kind and quantity of denatured distilled spirits removed,

and

(10) such additional information as may by regulations be required.

(b) RECORDS OF RECTIFIERS AND BOTTLERS.-Every rectifier and every bottler of distilled spirits shall keep records in such form and manner as the Secretary or his delegate shall by regulations prescribe of

(1) all distilled spirits and wines received,

(2) the kind and quantity of distilled spirits and wines rectified and packaged or bottled, or packaged or bottled without rectification,

(3) the kind and quantity of distilled spirits and wines removed from his premises,

(4) the receipt, use, and balance on hand of all stamps required by law or regulations to be used by him, and

(5) such additional information as may by regulations be required.

(c) REPORTS.-Every person required to keep records under subsection (a) or (b) shall render such reports covering his operations, at such times and in such form and manner and containing such information, as the Secretary or his delegate shall by regulation prescribe.

(d) PRESERVATION AND INSPECTION.-The records required by subsection (a) and (b), and a copy of each report required by subsection (c) shall be kept on the premises where the operations covered by the record are carried on and 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 Secretary or his delegate shall by regulations prescribe.

(e) 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).

PART II-OPERATIONS ON BONDED PREMISES

Subpart A. General.

Subpart B. Production.

Subpart C. Storage.

Subpart D. Denaturation.

Subpart A-General

Sec. 5211. Production and entry of distilled spirits.

Sec. 5212. Transfer of distilled spirits between bonded premises. Sec. 5213. Withdrawal of distilled spirits from bonded premises on determination of tax.

Sec. 5214.

Withdrawal of distilled spirits from bonded premises free of tax or without payment of tax.

Sec. 5215. Return of tax determined distilled spirits to bonded prem

ises.

Sec. 5216. Regulation of operations.

SEC. 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 reasonably necessary to complete the process of production. Under such regulations as the Secretary or his delegate shall prescribe, all distilled spirits produced in a distilled spirits plant shall be gauged and a record made of such gauge within a reasonable 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 or his delegate shall prescribe, make appropriate entry for

(1) deposit of such spirits in storage on bonded premises;

(2) withdrawal upon determination of tax as authorized by law; (3) withdrawal under the provisions of section 5214;

(4) transfer for redistillation under the provisions of section 5223; or

(5) immediate denaturation.

SEC. 5212. TRANSFER OF DISTILLED SPIRITS BETWEEN BONDED PREMISES.

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 or his delegate shall prescribe, be transferred in bond between bonded premises in any approved container. For the purposes of this chapter, the removal of distilled spirits for transfer in bond between bonded premises shall not be construed to be a withdrawal from bonded premises.

SEC. 5213. WITHDRAWAL OF DISTILLED SPIRITS FROM BONDED PREMISES ON DETERMINATION OF TAX.

On application to the Secretary or his delegate and subject to the provisions of section 5174 (a), distilled spirits may be withdrawn from the bonded premises of a distilled spirits plant on payment or determination of tax thereon, in approved containers, under such regulations as the Secretary or his delegate shall prescribe.

SEC. 5214. WITHDRAWAL OF DISTILLED SPIRITS FROM BONDED PREMISES FREE OF TAX OR WITHOUT PAYMENT OF TAX.

(a) PURPOSES.-Distilled spirits on which the internal revenue tax has not been paid or determined may, subject to such regulations as the Secretary or his delegate shall prescribe, be withdrawn from the bonded premises of any distilled spirits plant in approved containers(1) free of tax after denaturation of such spirits in the manner prescribed by law for

(A) exportation;

(B) use in the manufacture of ether, chloroform, or other definite chemical substance where such distilled spirits are changed into some other chemical substance and do not appear in the finished product; or

(C) any other use in the arts and industries (except for uses prohibited by section 5273 (b) or (d)) and for fuel, light, and power; or

(2) free of tax by, and for the use of, the United States or any governmental agency thereof, any State or Territory, any political subdivision of a State or Territory, or the District of Columbia, for nonbeverage purposes; or

(3) free of tax for nonbeverage purposes and not for resale or use in the manufacture of any product for sale

(A) for the use of any educational organization described in section 503 (b) (2) which is exempt from income tax under section 501 (a), or for the use of any scientific university or college of learning;