26 U.S.C. § 5551 | General provisions relating to bonds

(a)

Approval as condition to commencing business

Except as provided under subsection (d), no individual, firm, partnership, corporation, or association, intending to commence or to continue the business of a distiller, warehouseman, processor, brewer, or winemaker, shall commence or continue the business of a distiller, warehouseman, processor, brewer, or winemaker until all bonds in respect of such a business, required by any provision of law, have been approved by the Secretary of the Treasury or the officer designated by him.

(b)

Disapproval

The Secretary of the Treasury or any officer designated by him may disapprove any such bond or bonds if the individual, firm, partnership, or corporation, or association giving such bond or bonds, or owning, controlling, or actively participating in the management of the business of the individual, firm, partnership, corporation, or association giving such bond or bonds, shall have been previously convicted, in a court of competent jurisdiction, of—

(1)

any fraudulent noncompliance with any provision of any law of the United States, if such provision related to internal revenue or customs taxation of distilled spirits, wines, or beer, or if such an offense shall have been compromised with the individual, firm, partnership, corporation, or association on payment of penalties or otherwise, or

(2)

any felony under a law of any State, or the District of Columbia, or the United States, prohibiting the manufacture, sale, importation, or transportation of distilled spirits, wine, beer, or other intoxicating liquor.

(c)

Appeal from disapproval

In case the disapproval is by an officer designated by the Secretary of the Treasury to approve or disapprove such bonds, the individual, firm, partnership, corporation, or association giving the bond may appeal from such disapproval to the Secretary of the Treasury or an officer designated by him to hear such appeals, and the disapproval of the bond by the Secretary of the Treasury or officer designated to hear such appeals shall be final.

(d)

Removal of bond requirements

(1)

In general

During any period to which subparagraph (A) of section 5061(d)(4) applies to a taxpayer (determined after application of subparagraph (B) thereof), such taxpayer shall not be required to furnish any bond covering operations or withdrawals of distilled spirits or wines for nonindustrial use or of beer.

(2)

Satisfaction of bond requirements

Any taxpayer for any period described in paragraph (1) shall be treated as if sufficient bond has been furnished for purposes of covering operations and withdrawals of distilled spirits or wines for nonindustrial use or of beer for purposes of any requirements relating to bonds under this chapter.

Pub. L. 85–859, title II, § 201Sept. 2, 195872 Stat. 1394 Pub. L. 94–455, title XIXOct. 4, 197690 Stat. 1823 Pub. L. 96–39, title VIII, § 807(a)(51)July 26, 197993 Stat. 288 Pub. L. 114–113, div. Q, title III, § 332(b)(1)Dec. 18, 2015129 Stat. 3105 (Added , , ; amended , §§ 1905(c)(5), 1906(b)(13)(B), , , 1834; , , ; , , .)

Editorial Notes

Prior Provisions

act Aug. 16, 1954, ch. 736 68A Stat. 680 Pub. L. 85–859A prior section 5551, , , consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by .

act Aug. 16, 1954, ch. 736 68A Stat. 630 Pub. L. 85–859Provisions similar to those comprising subsec. (c) of this section were contained in prior section 5177(c), , , prior to the general revision of this chapter by .

Amendments

Pub. L. 114–113, § 332(b)(1)(A)2015—Subsec. (a). , substituted “Except as provided under subsection (d), no individual” for “No individual”.

Pub. L. 114–113, § 332(b)(1)(B)Subsec. (d). , added subsec. (d).

Pub. L. 96–391979—Subsec. (a). substituted “warehouseman, processor” for “bonded warehouseman, rectifier” in two places.

Pub. L. 94–455, § 1906(b)(13)(B)1976—Subsec. (a). , substituted “Secretary of the Treasury” for “Secretary”.

Pub. L. 94–455Subsec. (b). , §§ 1905(c)(5), 1906(b)(13)(B), substituted “Secretary of the Treasury” for “Secretary” in provisions preceding par. (1) and struck out “Territory, or” after “State,” in par. (2).

Pub. L. 94–455, § 1906(b)(13)(B)Subsec. (c). , substituted “Secretary of the Treasury” for “Secretary”.

Statutory Notes and Related Subsidiaries

Effective Date of 2015 Amendment

Pub. L. 114–113Dec. 18, 2015section 332(c) of Pub. L. 114–113 section 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. 96–39Jan. 1, 1980section 810 of Pub. L. 96–39 section 5001 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1976 Amendment

section 1905(c)(5) of Pub. L. 94–455Oct. 4, 1976section 1905(d) of Pub. L. 94–455 section 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

July 1, 1959section 210(a)(1) of Pub. L. 85–859 section 5001 of this titleSection effective , see , set out as a note under .