1. U.S. Code
  2. title 26
  3. subtitle E
  4. chapter 51
  5. subchapter B
  6. § 5181

Collapse to view only § 5181. Distilled spirits for fuel use

§ 5171. Establishment
(a) Certain operations may be conducted only on bonded premises
(b) Establishment of distilled spirits plant
(c) Registration
(1) In general
(2) Application required where new operations are added
(3) Secretary may establish minimum capacity and level of activity requirements
(4) Applicant must comply with law and regulations
(d) Permits
(1) Requirements
(2) Exceptions for agencies of a State or political subdivisions
(e) Cross references
(1) For penalty for failure of a distiller or processor to file application for registration as required by this section, see section 5601(a)(2).
(2) For penalty for the filing of a false application by a distiller, warehouseman, or processor of distilled spirits, see section 5601(a)(3).
(Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1349; amended Pub. L. 94–455, title XIX, §§ 1905(a)(13), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1820, 1834; Pub. L. 96–39, title VIII, § 805(a), July 26, 1979, 93 Stat. 274.)

CITE AS: 26 USC 5171

§ 5172. Application

The application for registration required by section 5171(c) shall, in such manner and form as the Secretary may by regulations prescribe, identify the applicant and persons interested in the business (or businesses) covered by the application, show the nature, location and extent of the premises, show the specific type or types of operations to be conducted on such premises, and show any other information which the Secretary may by regulations require for the purpose of carrying out the provisions of this chapter.

(Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1349; 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)(13), July 26, 1979, 93 Stat. 282.)

CITE AS: 26 USC 5172

§ 5173. Bonds
(a) Operations at, and withdrawals from, distilled spirits plant must be covered by bond
(1) Operations
(2) Withdrawals
(b) Operations bondsThe bond required by paragraph (1) of subsection (a) shall meet the requirements of paragraph (1), (2), or (3) of this subsection:
(1) One plant bond
(2) Adjacent wine cellar bond
(3) Area bondThe bond covers operations at 2 or more distilled spirits plants (and adjacent bonded wine cellars) which—
(A) are located in the same geographical area (as designated in regulations prescribed by the Secretary), and
(B) are operated by the same person (or, in the case of a corporation, by such corporation and its controlled subsidiaries).
(c) Withdrawal bonds
(d) Unit bonds
(e) Terms and conditions
(1) In generalAny bond furnished under this section shall be conditioned that the person furnishing the bond—
(A) will faithfully comply with all provisions of law and regulations relating to the activities covered by such bond, and
(B) will pay—
(i) all taxes imposed by this chapter, and
(ii) all penalties incurred by, or fines imposed on, such person for violation of any such provision.
(2) Other terms and conditions
(f) Amount
(1) In general
(2) Maximum and minimum amount
(g) Total amount available
(h) Special rulesFor purposes of this section—
(1) Withdrawal bondsIn the case of any bond furnished under this section which covers withdrawals but not operations—
(A) such bond shall be in addition to the operations bond, and
(B) if distilled spirits are withdrawn under such bond, the operations bond shall no longer cover liability for payment of the tax on the spirits withdrawn.
(2) Adjacent wine cellars
(A) RequirementsNo wine cellar shall be treated as being adjacent to a distilled spirits plant unless—
(i) such distilled spirits plant is qualified under this subchapter for the production of distilled spirits, and
(ii) such wine cellar and the distilled spirits plant are operated by the same person (or, in the case of a corporation, by such corporation and its controlled subsidiaries).
(B) Bond in lieu of wine cellar bond
(Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1349; amended Pub. L. 91–659, § 4, Jan. 8, 1971, 84 Stat. 1966; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–39, title VIII, § 805(c), July 26, 1979, 93 Stat. 276; Pub. L. 114–113, div. Q, title III, § 332(b)(2)(A), Dec. 18, 2015, 129 Stat. 3105.)

CITE AS: 26 USC 5173

[§ 5174. Repealed. Pub. L. 96–39, title VIII, § 807(a)(14), July 26, 1979, 93 Stat. 282]

CITE AS: 26 USC 5174

§ 5175. Export bonds
(a) Requirements
(b) Exception where proprietor withdraws spirits for exportation
(c) Cancellation or credit of export bonds
(Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1352; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95–176, § 3(b), Nov. 14, 1977, 91 Stat. 1365; Pub. L. 96–39, title VIII, § 807(a)(15), July 26, 1979, 93 Stat. 282; Pub. L. 105–34, title XIV, § 1412(a), Aug. 5, 1997, 111 Stat. 1046.)

CITE AS: 26 USC 5175

§ 5176. New or renewed bonds
(a) General
(b) Bonds
(Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1353; 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)(16), July 26, 1979, 93 Stat. 282.)

CITE AS: 26 USC 5176

§ 5177. Other provisions relating to bonds
(a) General provisions relating to bonds
(b) Cross references
(1) For deposit of United States bonds or notes in lieu of sureties, see section 9303 of title 31, United States Code.
(2) For penalty and forfeiture for failure or refusal to give bond, or for giving false, forged, or fraudulent bond, or carrying on the business of a distiller without giving bond, see sections 5601(a)(4), 5601(a)(5), 5601(b), and 5615(3).
(Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1353; amended Pub. L. 94–455, title XIX, § 1905(b)(6)(B), Oct. 4, 1976, 90 Stat. 1823; Pub. L. 96–39, title VIII, § 807(a)(17), July 26, 1979, 93 Stat. 282; Pub. L. 97–258, § 3(f)(3), Sept. 13, 1982, 96 Stat. 1064.)

CITE AS: 26 USC 5177

§ 5178. Premises of distilled spirits plants
(a) Location, construction, and arrangement
(1) General
(A) The premises of a distilled spirits plant shall be as described in the application required by section 5171(c). The Secretary shall prescribe such regulations relating to the location, construction, arrangement, and protection of distilled spirits plants as he deems necessary to facilitate inspection and afford adequate security to the revenue.
(B) No distilled spirits plant for the production of distilled spirits shall be located in any dwelling house, in any shed, yard, or inclosure connected with any dwelling house, or on board any vessel or boat, or on premises where beer or wine is made or produced, or liquors of any description are retailed, or on premises where any other business is carried on (except when authorized under subsection (b)).
(C) Notwithstanding any other provision of this chapter relating to distilled spirits plants the Secretary may approve the location, construction, arrangement, and method of operation of any establishment which was qualified to operate on the date preceding the effective date of this section if he deems that such location, construction, arrangement, and method of operation will afford adequate security to the revenue.
(2) Production operations
(A) Any person establishing a distilled spirits plant may, as described in his application for registration, produce distilled spirits from any source or substance.
(B) The distilling system shall be continuous and shall be so designed and constructed and so connected as to prevent the unauthorized removal of distilled spirits before their production gauge.
(C) The Secretary is authorized to order and require—
(i) such identification of, changes of, and additions to, distilling apparatus, connecting pipes, pumps, tanks, and any machinery connected with or used in or on the premises, and
(ii) such fastenings, locks, and seals to be part of any of the stills, tubs, pipes, tanks, and other equipment, as he may deem necessary to facilitate inspection and afford adequate security to the revenue.
(3) Warehousing operations
(A) Any person establishing a distilled spirits plant for the production of distilled spirits may, as described in the application for registration, warehouse bulk distilled spirits on the bonded premises of such plant.
(B) Distilled spirits plants for the bonded warehousing of bulk distilled spirits elsewhere than as described in subparagraph (A) may be established at the discretion of the Secretary by proprietors referred to in subparagraph (A) or by other persons under such regulations as the Secretary shall prescribe.
(4) Processing operations
(b) Use of premises for other businesses
(c) Cross references
(1) For provisions authorizing the Secretary to require installation of meters, tanks, and other apparatus, see section 5552.
(2) For penalty for distilling on prohibited premises, see section 5601(a)(6).
(3) For provisions relating to the bottling of distilled spirits labeled as alcohol, see section 5235.
(4) For provisions relating to the unauthorized use of distilled spirits in any manufacturing process, see section 5601(a)(9).
(Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1353; amended Pub. L. 91–659, § 5, Jan. 8, 1971, 84 Stat. 1966; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95–176, § 2(b), Nov. 14, 1977, 91 Stat. 1364; Pub. L. 96–39, title VIII, §§ 805(b)(1), 807(a)(18), July 26, 1979, 93 Stat. 275, 283.)

CITE AS: 26 USC 5178

§ 5179. Registration of stills
(a) Requirements
(b) Cross references
(1) For penalty and forfeiture provisions relating to unregistered stills, see sections 5601(a)(1) and 5615(1).
(2) For provisions requiring notification to set up a still, boiler, or other vessel for distilling, see section 5101(a)(2).
(Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1355; amended Pub. L. 94–455, title XIX

CITE AS: 26 USC 5179

§ 5180. Signs
(a) Requirements
(b) Penalty
(Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1355; 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)(19), July 26, 1979, 93 Stat. 283.)

CITE AS: 26 USC 5180

§ 5181. Distilled spirits for fuel use
(a) In general
(1) Purposes for which plant may be established
On such application and bond and in such manner as the Secretary may prescribe by regulation, a person may establish a distilled spirits plant solely for the purpose of—
(A) producing, processing, and storing, and
(B) using or distributing,
distilled spirits to be used exclusively for fuel use.
(2) Regulations
In prescribing regulations under paragraph (1) and in carrying out the provisions of this section, the Secretary shall, to the greatest extent possible, take steps to—
(A) expedite all applications;
(B) establish a minimum bond; and
(C) generally encourage and promote (through regulation or otherwise) the production of alcohol for fuel purposes.
(b) Authority to exempt
(c) Special rules for small plant production
(1) Applications
(A) In general
(B) Receipt of application
(C) Multiple applications
(2) Determination
(A) In general
(B) Failure to make determination
(C) Rejection of application
If the Secretary determines under subparagraph (A) that a permit should not be issued—
(i) the Secretary shall include in the notice to the applicant of such determination under subparagraph (A) detailed reasons for such determination, and
(ii) such determination shall not prejudice any further application for such operating permit.
(3) Bond
(4) Eligible distilled spirits plant
(d) Withdrawal free of tax
(e) Prohibited withdrawal, use, sale, or disposition
(1) In general
(2) Rendering unfit for use
(f) Definition of distilled spirits
(Added Pub. L. 96–223, title II, § 232(e)(1), Apr. 2, 1980, 94 Stat. 278.)

CITE AS: 26 USC 5181

§ 5182. Cross references

For provisions requiring recordkeeping by wholesale liquor dealers, see section 5121, and by retail liquor dealers, see section 5122.

(Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1356, § 5181; amended Pub. L. 96–39, title VIII, § 807(a)(20), July 26, 1979, 93 Stat. 283; renumbered § 5182, Pub. L. 96–223, title II, § 232(e)(1), Apr. 2, 1980, 94 Stat. 278; Pub. L. 109–59, title XI, § 11125(b)(16), Aug. 10, 2005, 119 Stat. 1956; Pub. L. 115–141, div. U, title IV, § 401(a)(243), Mar. 23, 2018, 132 Stat. 1195.)

CITE AS: 26 USC 5182