US Code

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

26 U.S.C. § 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revenue tax has not been paid or determined may, subject to such regulations as the Secretary shall prescribe, be withdrawn from the bonded premises of any distilled spirits plant in approved containers—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, any political subdivision of a State, 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 170(b)(1)(A)(ii) which is exempt from income tax under section 501(a), or for the use of any scientific university or college of learning;
(B)
for any laboratory for use exclusively in scientific research;
(C)
for use at any hospital, blood bank, or sanitarium), (including use in making any analysis or test at such hospital, blood bank, or sanitarium), or at any pathological laboratory exclusively engaged in making analyses, or tests, for hospitals or sanitariums; or
(D)
for the use of any clinic operated for charity and not for profit (including use in the compounding of bona fide medicines for treatment outside of such clinics of patients thereof); or
(4)
without payment of tax for exportation, after making such application and entries, filing such bonds as are required by section 5175, and complying with such other requirements as may by regulations be prescribed; or
(5)
without payment of tax for use in wine production, as authorized by section 5373; or
(6)
without payment of tax for transfer to manufacturing bonded warehouses for manufacturing in such warehouses for export, as authorized by law; or
(7)
without payment of tax for use of certain vessels and aircraft, as authorized by law; or
(8)
without payment of tax for transfer to foreign-trade zones, as authorized by law; or
(9)
without payment of tax, for transfer (for the purpose of storage pending exportation) to any customs bonded warehouse from which distilled spirits may be exported, and distilled spirits transferred to a customs bonded warehouse under this paragraph shall be entered, stored, and accounted for under such regulations and bonds as the Secretary may prescribe; or
(10)
without payment of tax by a proprietor of bonded premises for use in research, development, or testing (other than consumer testing or other market analysis) of processes, systems, materials, or equipment, relating to distilled spirits or distilled spirits operations, under such limitations and conditions as to quantities, use, and accountability as the Secretary may by regulations require for the protection of the revenue; or
(11)
free of tax when contained in an article (within the meaning of section 5002(a)(14)); or
(12)
free of tax in the case of distilled spirits produced under section 5181; or
(13)
without payment of tax for use on bonded wine cellar premises in the production of wine or wine products which will be rendered unfit for beverage use and removed pursuant to section 5362(d); or
(14)
with respect to distilled spirits removed after , and before , free of tax for use in or contained in hand sanitizer produced and distributed in a manner consistent with any guidance issued by the Food and Drug Administration that is related to the outbreak of virus SARS–CoV–2 or coronavirus disease 2019 (COVID–19).
(b)

Cross references

(1)
For provisions relating to denaturation, see sections 5241 and 5242.
(2)
For provisions requiring permit for users of distilled spirits withdrawn free of tax and for users of specially denatured distilled spirits, see section 5271.
(3)
19 U.S.C. 1309 For provisions relating to withdrawal of distilled spirits without payment of tax for use of certain vessels and aircraft, as authorized by law, see .
(4)
19 U.S.C. 1311 For provisions relating to withdrawal of distilled spirits without payment of tax for manufacture in manufacturing bonded warehouse, see .
(5)
19 U.S.C. 81c For provisions relating to foreign-trade zones, see .
(6)
For provisions authorizing regulations for withdrawal of distilled spirits free of tax for use of the United States, see section 7510.
(7)
For provisions authorizing removal of distillates to bonded wine cellars for use in the production of distilling material, see section 5373(c).
(8)
For provisions relating to distilled spirits for use of foreign embassies, legations, etc., see section 5066.

Pub. L. 85–859, title II, § 20172 Stat. 1362Pub. L. 91–172, title I, § 101(j)(29)83 Stat. 529Pub. L. 94–455, title XIX90 Stat. 1823Pub. L. 95–17691 Stat. 1365Pub. L. 96–39, title VIII, § 807(a)(28)93 Stat. 285Pub. L. 96–223, title II, § 232(e)(2)(B)94 Stat. 280Pub. L. 98–369, div. A, title IV, § 455(a)98 Stat. 823Pub. L. 116–136, div. A, title II, § 2308(a)134 Stat. 359(Added , , ; amended , , ; , §§ 1905(c)(2), 1906(b)(13)(A), , , 1834; , §§ 3(a), (d), 4(a), , ; , , ; , , ; , , ; , , .)

Editorial Notes

Prior Provisions

act Aug. 16, 1954, ch. 73668A Stat. 639Pub. L. 85–859A prior section 5214, , , related to regulation of traffic in containers of distilled spirits, prior to the general revision of this chapter by . See section 5301(a), (c), (d) of this title.

Pub. L. 85–859

Present subsecs.:

Prior sections

(a)

5243(e), 5247, 5310(a)–(c), 5331 (a)(1), (b), 5373(b)(4), 5522(a).

(a)(1)

5310(a), 5331(a)(1), (b).

(a)(2), (3)

5310(b), (c).

(a)(4)

5243(e), 5247.

(a)(9)

5373(b)(4).

(b)(3)

5248(2).

(b)(4)

5248(4).

(b)(5)

5248(3).
Provisions similar to those comprising subsecs. (a)(1) to (4), (9) and (b)(3) to (5) 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. 646–648The prior sections, , are set out in , 658, 661, 662, 667.

Amendments

Pub. L. 116–1362020—Subsec. (a)(14). added par. (14).

Pub. L. 98–3691984—Subsec. (a)(13). added par. (13).

Pub. L. 96–2231980—Subsec. (a)(12). added par. (12).

Pub. L. 96–39, § 807(a)(28)(A)1979—Subsec. (a)(6). , inserted “for manufacturing in such warehouses for export” after “bonded warehouses” and substituted “by law” for “by section 5522(a)”.

Pub. L. 96–39, § 807(a)(28)(B)Subsec. (a)(9). , struck out “in the case of distilled spirits bottled in bond for export under section 5233 or distilled spirits returned to bonded premises under section 5215(b),” after “payment of tax,”.

Pub. L. 96–39, § 807(a)(28)(C)Subsec. (a)(10). , (D), substituted “distilled spirits operations” for “distillery operations”.

Pub. L. 96–39, § 807(a)(28)(D)Subsec. (a)(11). , added par. (11).

Pub. L. 96–39, § 807(a)(28)(E)Subsec. (b)(4) to (8). , added par. (4) and redesignated former pars. (4) to (7) as (5) to (8), respectively.

Pub. L. 95–176, § 3(a)1977—Subsec. (a)(9). , substituted provisions for withdrawal of distilled spirits from bonded premises without payment of tax where the distilled spirits are bottled in bond for export or are returned to bonded premises for transfer (for the purpose of storage pending exportation) to any customs bonded warehouse for exportation and requiring the transferred distilled spirits to be entered, stored, and accounted for, for prior provision for tax free withdrawals for use as samples in making tests or laboratory analyses.

Pub. L. 95–176, § 4(a)Subsec. (a)(10). , added par. (10).

Pub. L. 95–176, § 3(d)Subsec. (b)(7). , added par. (7).

Pub. L. 94–4551976—Subsec. (a). struck out “or his delegate” after “Secretary” in introductory provisions and struck out “or Territory” after “State” in par. (2).

Pub. L. 91–1721969—Subsec. (a)(3)(A). substituted “section 170(b)(1)(A)(ii)” for “section 503(b)(2)”.

Statutory Notes and Related Subsidiaries

Effective Date of 2020 Amendment

Pub. L. 116–136, div. A, title II, § 2308(b)134 Stat. 359

“The amendments made by this section [amending this section] shall apply to distilled spirits removed after .”
, , , provided that:

Effective Date of 1984 Amendment

Pub. L. 98–369section 456(c) of Pub. L. 98–369section 5101 of this titleAmendment by effective , see , set out as an Effective Date note under .

Effective Date of 1980 Amendment

Pub. L. 96–223section 232(h)(3) of Pub. L. 96–223section 5181 of this titleAmendment by effective on first day of first calendar month beginning more than 60 days after , see , set out as an Effective Date 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 1977 Amendment

Pub. L. 95–176section 7 of Pub. L. 95–176section 5003 of this titleAmendment by effective on first day of first calendar month beginning more than 90 days after , see , set out as a note under .

Effective Date of 1976 Amendment

section 1905(c)(2) 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 of 1969 Amendment

Pub. L. 91–172section 101(k)(1) of Pub. L. 91–172section 4940 of this titleAmendment by effective , see , set out as an Effective Date note under .

Application of Other Laws

Pub. L. 116–136, div. A, title II, § 2308(c)134 Stat. 359

“Any distilled spirits or product described in paragraph (14) of section 5214(a) of the Internal Revenue Code of 1986 (as added by this section) shall not be subject to any requirements related to labeling or bulk sales under—
“(1)
27 U.S.C. 205 section 105 or 106 of the Federal Alcohol Administration Act (, 206); or
“(2)
27 U.S.C. 215 section 204 of the Alcoholic Beverage Labeling Act of 1988 ().”
, , , provided that: