Operations at, and withdrawals from, distilled spirits plant must be covered by bond
Operations
Except as provided under section 5551(d), no person intending to establish a distilled spirits plant may commence operations at such plant unless such person has furnished bond covering operations at such plant.
Withdrawals
Except as provided under section 5551(d), no distilled spirits (other than distilled spirits withdrawn under section 5214 or 7510) may be withdrawn from bonded premises except on payment of tax unless the proprietor of the bonded premises has furnished bond covering such withdrawal.
Operations bonds
One plant bond
The bond covers operations at a single distilled spirits plant.
Adjacent wine cellar bond
The bond covers operations at a distilled spirits plant and at an adjacent bonded wine cellar.
Area bond
Withdrawal bonds
The bond required by paragraph (2) of subsection (a) shall cover withdrawals from 1 or more bonded premises the operations at which could be covered by the same operations bond under subsection (b).
Unit bonds
Under regulations prescribed by the Secretary, the requirements of paragraphs (1) and (2) of subsection (a) shall be treated as met by a unit bond which covers both operations at, and withdrawals from, 1 or more bonded premises which could be covered by the same operations bond under subsection (b).
Terms and conditions
In general
Other terms and conditions
Any bond furnished under this section shall contain such other terms and conditions as may be required by regulations prescribed by the Secretary.
Amount
In general
The penal sum of any bond shall be the amount determined under regulations prescribed by the Secretary.
Maximum and minimum amount
The Secretary shall by regulations prescribe a minimum amount and a maximum amount for each type of bond which may be furnished under this section.
Total amount available
The total amount of any bond furnished under this section shall be available for the satisfaction of any liability incurred under the terms and conditions of such bond.
Special rules
Withdrawal bonds
Adjacent wine cellars
Requirements
Bond in lieu of wine cellar bond
In the case of any adjacent wine cellar, a bond furnished under this section which covers operations at such wine cellar shall be in lieu of any bond which would otherwise be required under section 5354 with respect to such wine cellar (other than supplemental bonds required under the second sentence of section 5354).
Pub. L. 85–859, title II, § 20172 Stat. 1349Pub. L. 91–659, § 484 Stat. 1966Pub. L. 94–455, title XIX, § 1906(b)(13)(A)90 Stat. 1834Pub. L. 96–39, title VIII, § 805(c)93 Stat. 276Pub. L. 114–113, div. Q, title III, § 332(b)(2)(A)129 Stat. 3105(Added , , ; amended , , ; , , ; , , ; , , .)
Editorial Notes
Prior Provisions
act Aug. 16, 1954, ch. 73668A Stat. 628Pub. L. 85–859A prior section 5173, , , related to “distillery fixtures and equipment”, prior to the general revision of this chapter by . See sections 5178(a)(1)(A), (2)(B)(C), (c)(1) and 5202(b) of this title.
Present subsecs.: | Prior sections |
|---|---|
(a) | 5172, 5176(a), 5231, 5232(a), 5272(a), 5301–5303, 5304(a)(5), 5305, 5311(a)(3). |
(b) | 5176 (a), (d). |
(b)(1) | 5176(a), 5177(c). |
(b)(1)(A)–(C) | 5177(b)(1)–(3). |
(b)(3) | 5177(b)(4). |
(c) | 5232(a), 5302, 5303, 5306, 5331(a)(3). |
(c)(1) | 5232(a). |
(d) | 5272(a). |
(e)(1) | 5304(a)(5). |
act Aug. 16, 1954, ch. 73668A Stat. 627The prior sections, , are set out in , 629 to 631, 643, 650, 654, 655, 657, 662.
Amendments
Pub. L. 114–113, § 332(b)(2)(A)(i)2015—Subsec. (a)(1). , substituted “Except as provided under section 5551(d), no person” for “No person”.
Pub. L. 114–113, § 332(b)(2)(A)(ii)Subsec. (a)(2). , substituted “Except as provided under section 5551(d), no distilled spirits” for “No distilled spirits”.
Pub. L. 96–391979—, among other changes, struck out provisions relating to liens on distillery property and the furnishing of indemnity bonds as methods of securing tax payments and inserted provisions relating to the one plant operations bond, which will cover the operations at a bonded wine cellar which is adjacent to the distilled spirits plant and operated by the same person.
Pub. L. 94–4551976— struck out “or his delegate” after “Secretary” wherever appearing.
Pub. L. 91–659, § 4(b)1971—Subsec. (b)(1). , extended exception clause in parenthetical by making reference to cl. (4) of this subsection.
Pub. L. 91–659, § 4(c)Subsec. (b)(2). , inserted reference to par. (4).
Pub. L. 91–659, § 4(a)Subsec. (b)(4). , added par. (4).
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Pub. L. 114–113section 332(c) of Pub. L. 114–113section 5061 of this titleAmendment by applicable to any calendar quarters beginning more than 1 year after , see , set out as a note under .
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 1971 Amendment
Pub. L. 91–659section 6 of Pub. L. 91–659section 5066 of this titleAmendment by effective on first day of first calendar month which begins more than 90 days after , see , set out as an Effective Date note under .
Transitional Rules Relating to All-In-Bond Method
Pub. L. 96–39, title VIII, § 809(c)93 Stat. 292Pub. L. 99–514, § 2100 Stat. 2095