Public Law 119-73 (01/23/2026)

26 U.S.C. § 5171

Establishment

(a)

Certain operations may be conducted only on bonded premises

Except as otherwise provided by law, operations as a distiller, warehouseman, or processor may be conducted only on the bonded premises of a distilled spirits plant by a person who is qualified under this subchapter.

(b)

Establishment of distilled spirits plant

A distilled spirits plant may be established only by a person who intends to conduct at such plant operations as a distiller, as a warehouseman, or as both.

(c)

Registration

(1)

In general

Each person shall, before commencing operations at a distilled spirits plant (and at such other times as the Secretary may by regulations prescribe), make application to the Secretary for, and receive notice of, the registration of such plant.

(2)

Application required where new operations are added

No operation in addition to those set forth in the application made pursuant to paragraph (1) may be conducted at a distilled spirits plant until the person has made application to the Secretary for, and received notice of, the registration of such additional operation.

(3)

Secretary may establish minimum capacity and level of activity requirements

The Secretary may by regulations prescribe for each type of operation minimum capacity and level of activity requirements for qualifying premises as a distilled spirits plant.

(4)

Applicant must comply with law and regulations

No plant (or additional operation) shall be registered under this section until the applicant has complied with the requirements of law and regulations in relation to the qualification of such plant (or additional operation).

(d)

Permits

(1)

Requirements

Each person required to file an application for registration under subsection (c) whose distilled spirits operations (or any part thereof) are not required to be covered by a basic permit under the Federal Alcohol Administration Act (27 U.S.C. secs. 203 and 204) shall, before commencing the operations (or part thereof) not so covered, apply for and obtain a permit under this subsection from the Secretary to engage in such operations (or part thereof). Subsections (b), (c), (d), (e), (f), (g), and (h) of section 5271 are hereby made applicable to persons filing applications and permits required by or issued under this subsection.

(2)

Exceptions for agencies of a State or political subdivisions

Paragraph (1) shall not apply to any agency of a State or political subdivision thereof or to any officer or employee of any such agency, and no such agency, officer, or employee shall be required to obtain a permit thereunder.

(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).

Pub. L. 85–859, title II, § 20172 Stat. 1349Pub. L. 94–455, title XIX90 Stat. 1820Pub. L. 96–39, title VIII, § 805(a)93 Stat. 274(Added , , ; amended , §§ 1905(a)(13), 1906(b)(13)(A), , , 1834; , , .)

Editorial Notes

References in Text

act Aug. 29, 1935, ch. 81449 Stat. 977section 201 of Title 27The Federal Alcohol Administration Act, referred to in subsec. (d)(1), is , , which is classified generally to subchapter I (§ 201 et seq.) of chapter 8 of Title 27, Intoxicating Liquors. The basic permit is covered by sections 203 and 204 of Title 27. For complete classification of this Act to the Code, see and Tables.

Prior Provisions

act Aug. 16, 1954, ch. 73668A Stat. 627Pub. L. 85–859A prior section 5171, , , related to “premises prohibited for distilling”, prior to the general revision of this chapter by . See sections 5178(a)(1)(B), (b), (c)(2), and 5505(b) of this title.

Pub. L. 85–859

Present subsecs.:

Prior sections

(a)

5172, 5175(a), 5177(a), 5178, 5231, 5243(a), 5271(a), 5301–5303, 5305, 5331(a)(1).

(b)(1)

5301–5303, 5304(a)(1).

(c)

5175(b), 5271(b).

Provisions similar to those comprising subsecs. (a), (b)(1) and (c) of this section were contained in prior sections of act , prior to the general revision of this chapter by , as follows:

act Aug. 16, 1954, ch. 73668A Stat. 627The prior sections, , are set out in to 631, 643, 645, 650, 654, 655.

Amendments

Pub. L. 96–391979—Subsecs. (a), (b). added subsecs. (a) and (b) and redesignated former subsecs. (a) and (b) as (c) and (d), respectively.

Pub. L. 96–39Subsec. (c). redesignated former subsec. (a) as (c) and inserted provisions relating to an application requirement where new operations are added and permitting the Secretary to establish minimum capacity and level of activity requirements. Former subsec. (c) redesignated (e).

Pub. L. 96–39Subsec. (d). redesignated former subsec. (b) as (d) and substituted reference to subsection (c) for reference to subsection (a) and struck out reference to section 5274.

Pub. L. 96–39Subsec. (e). redesignated former subsec. (c) as (e) and substituted reference to processor for reference to rectifier and reference to warehouseman for reference to bonded warehouseman and struck out reference to bottler.

Pub. L. 94–45549 Stat. 97827 U.S.C. 2031976—Subsec. (b)(1). , §§ 1905(a)(13)(A), 1906(b)(13)(A), struck out “;” before “, 204” in parenthetical provisions after “Federal Alcohol Administration Act” and struck out “or his delegate” after “Secretary”.

Pub. L. 94–455, § 1905(a)(13)(B)Subsec. (b)(3). , struck out par. (3) under which persons who were qualified on , to perform operations for which a permit was required covering operations not required to be covered by a basic permit under the Federal Alcohol Administration Act had been allowed to continue operations pending a reasonable opportunity to make application for a permit.

Statutory Notes and Related Subsidiaries

Effective Date of 1979 Amendment

Pub. L. 96–39section 810 of Pub. L. 96–39section 5001 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1976 Amendment

section 1905(a)(13) of Pub. L. 94–455section 1905(d) of Pub. L. 94–455section 5005 of this titleAmendment by effective on first day of first month which begins more than 90 days after , see , set out as a note under .

Effective Date

section 210(a)(1) of Pub. L. 85–859section 5001 of this titleSection effective , see , set out as a note under .

Transitional Rules Relating to All-In-Bond Method

Pub. L. 96–39, title VIII, § 809(a)93 Stat. 292Pub. L. 99–514, § 2100 Stat. 2095

“(a)

New Application Required.—

“(1)

In general .—

For purposes of section 5171 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (relating to establishment of distilled spirits plants), each person who intends to continue any distilled spirits operation at a premises after , shall be treated as intending to establish a distilled spirits plant on such premises on .
“(2)

Current registration to remain in effect .—

Notwithstanding paragraph (1), the registration of any person under section 5171 of the Internal Revenue Code of 1986 which is in effect on , shall remain in effect until final action on the application required by paragraph (1).
“(b)

Continuing Operations at Existing Premises .—

With respect to any operation which was permitted to be conducted on , at premises which were registered on such date under section 5171 of the Internal Revenue Code of 1986, the determination of whether such premises qualify for registration under such section as a distilled spirits plant shall be made without regard to whether or not—
“(1)
the person engaged in operations at such premises is registered under such section with respect to such premises as a distiller or warehouseman, and
“(2)
such premises meet the minimum capacity and level of activity requirements for that type of operation.”
, (b), , , as amended by , , , provided that: