Appendix X-Continued SEC. 5053. EXEMPTIONS. (a) REMOVALS FOR EXPORT.-Beer may be removed from the brewery, without payment of tax, for export to a foreign country, in such containers and under such regulations, and on the giving of such notices, entries, and bonds and other security, as the Secretary or his delegate may by regulations prescribe. (b) REMOVALS WHEN UNFIT FOR BEVERAGE USE.-When beer has become sour or damaged, so as to be incapable of use as such, a brewer may remove the same from his brewery without payment of tax, for manufacturing purposes, under such regulations as the Secretary or his delegate may prescribe. (c) REMOVALS FOR LABORATORY ANALYSIS.-Beer may be removed from the brewery, without payment of tax, for laboratory analysis, subject to such limitations and under such regulations as the Secretary or his delegate may prescribe. (d) REMOVAL AS SUPPLIES FOR CERTAIN VESSELS AND AIRCRAFT. For exemption as to supplies for certain vessels and aircraft, see section 309 of the Tariff Act of 1930, as amended (19 U.S.C. 1309). SEC. 5054. PERSONS LIABLE FOR TAX. The tax on beer imposed by section 5051 shall be paid by the owner, agent, or superintendent of the brewery in which such beer is made, and in the manner and at the time provided in this subchapter. SEC. 5055. DETER MINATION AND COLLECTION OF TAX ON BEER. The tax on beer imposed by section 5051 shall be determined on sale or removal for consumption or sale and shall be paid by the brewer or importer thereof in accordance with section 5061. When the Secretary or his delegate finds it necessary for protection of the revenue, he may require stamps, or other devices, evidencing the tax or indicating a compliance with the provisions of this chapter, to be affixed to hogsheads, barrels, or kegs of beer at the time of removal. The Secretary or his delegate shall by regulations prescribe the manner by which such stamps or other devices shall be supplied, affixed, and accounted for. All administrative and penal provisions of this title, insofar as applicable, shall apply to any tax imposed by section 5051. SEC. 5056. DRAWBACK OF TAX. On the exportation of beer, brewed or produced in the United States, the brewer thereof shall be allowed a drawback equal in amount to the tax found to have been paid on such beer, to be paid on submission of such evidence, records and certificates indicating exportation, as the Secretary or his delegate may by regulations prescribe. For the purpose of this section, exportation shall include delivery for use as supplies on the vessels and aircraft described in section 309 of the Tariff Act of 1930, as amended (19 U.S.C. 1309). SEC. 5057. REFUND AND CREDIT OF TAX, OR RELIEF FROM LIABILITY. (a) BEER REMOVED FROM MARKET.-Any tax paid on or after the effective date of this chapter by any brewer on beer produced in the United States may be refunded or credited to him, or if the tax has not been paid, the brewer may be relieved of liability therefor, under such regulations as the Secretary or his delegate may prescribe, if such beer is removed from the market before the transfer of title thereto to any other person, and, such beer is returned to the brewery for reconditioning, for use as materials, or is destroyed under the supervision required by such regulations: Provided, That the tax imposed by section 5051 shall apply to the beer so reconditioned, such tax to be paid pursuant to section 5055. (b) BEER LOST BY FIRE, CASUALTY, OR ACT OF GOD.-Subject to regulations prescribed by the Secretary or his delegate, the tax paid by any brewer on beer produced in the United States may be refunded or credited, or if the tax has not been paid, the liability may be remitted, if such beer is lost other than by theft, or is destroyed by fire, casualty, or act of God, before the transfer of title thereto to any other person. (c) DATE OF FILING.-No claims under this section shall be allowed unless filed within 6 months after the date of such removal from the market, loss, or destruction, or if the claimant was indemnified by insurance or otherwise in respect of the tax. Subpart E-General Provisions Sec. 5061. Method of collecting tax. Sec. 5062. Refund and drawback in case of exportation. Sec. 5063. Floor stocks tax refunds on distilled spirits, wines, cordials, and beer. Sec. 5065. Cross references. SEC. 5061. METHOD OF COLLECTING TAX. (a) COLLECTION BY RETURN.-The taxes on distilled spirits, wines, rectified distilled spirits and wines, and beer shall be paid by return. The Secretary or his delegate shall, by regulation, prescribe the period for which such return shall be filed, the time for filing such return, the information to be shown in such return and the time for payment of such tax: Provided, however, That, notwithstanding this subsection, the taxes shall continue to be paid by stamp until the Secretary or his delegate shall by regulations provide for the payment of the taxes by return. (b) DISCRETIONARY METHOD OF COLLECTION.-Whether or not the method of collecting any tax imposed by this part is specifically provided in this part, any such tax may, under regulations prescribed by the Secretary or his delegate, be collected by stamp, coupon, serially-numbered Appendix X-Continued ticket, or the use of tax-stamp machines, or by such other reasonable device or method as may be necessary or helpful in securing collection of the tax. (c) APPLICABILITY OF OTHER PROVISIONS OF LAW.-All administrative and penalty provisions of this title, insofar as applicable, shall apply to the collection of any tax which the Secretary or his delegate determines or prescribes shall be collected in any manner provided in this section. SEC. 5062. REFUND AND DRAWBACK IN CASE OF EXPORTATION. (a) REFUND.-Under such regulations as the Secretary or his delegate may prescribe, the amount of any internal revenue tax erroneously or illegally collected in respect to exported articles may be refunded to the exporter of the article, instead of to the manufacturer, if the manufacturer waives any claim for the amount so to be refunded. (b) DRAWBACK.-On the exportation of distilled spirits and wines manufactured or produced in the United States on which an internal revenue tax has been paid, and which are contained in any cask or package or in bottles, packed in cases or other containers, there shall be allowed, under regulations prescribed by the Secretary or his delegate, a drawback equal in amount to the tax found to have been paid on such distilled spirits and wines: Provided, That such distilled spirits and wines have been packaged or bottled especially for export, under regulations prescribed by the Secretary or his delegate. The Secretary or his delegate is authorized to prescribe regulations governing the determination and payment of drawback of internal reveune tax on domestic distilled spirits and wines, including the requirement of such notices, bonds, bills of lading, and other evidence of payment of tax and exportation as shall be deemed necessary. SEC. 5063. FLOOR STOCKS TAX REFUNDS ON DISTILLED SPIRITS, WINES, CORDIALS AND BEER. (a) GENERAL.-With respect to any article upon which tax is imposed under this part, upon which internal revenue tax (including floor stocks tax) at the applicable rate prescribed has been paid, and which, on April 1, 1955, is held by any person and intended for sale or for use in the manufacture or production of any article intended for sale, there shall be credited or refunded to such person (without interest) subject to such regulations as may be prescribed by the Secretary or his delegate an amount equal to the difference between the tax so paid and the rate made applicable to such articles on and after April 1, 1955, if claim for such credit or refund is filed with the Secretary or his delegate prior to May 1, 1955 or within 30 days from the promulgation of such regulations. (b) LIMITATIONS ON ELIGIBILITY FOR CREDIT OR REFUND.-No person shall be entitled to credit or refund under subsection (a), unless such person, for such period or periods both before and after April 1, 1955 (but not extending beyond 1 year thereafter), as the Secretary or his delegate shall by regulations prescribe, makes and keeps, and files with the Secretary or his delegate, such records of inventories, sales, and purchases as may be prescribed in such regulations. (c) OTHER LAWS APPLICABLE.-All provisions of law, including penalties, applicable in respect of internal revenue taxes on distilled spirits, wines, liqueurs and cordials, imported perfumes containing distilled spirits, and beer shall, insofar as applicable and not inconsistent with this section, be applicable in respect of the credits and refunds provided for in this section to the same extent as if such credits or refunds constituted credits or refunds of such taxes. SEC. 5064. TERRITORIAL EXTENT OF LAW. The provisions of this part imposing taxes on distilled spirits, wines, and beer shall be held to extend to such articles produced anywhere within the exterior boundaries of the United States, whether the same be within an internal revenue district or not. SEC. 5065. CROSS REFERENCES. For general administrative provisions applicable to the assessment, collection, refund, etc., of taxes, see subtitle F. Every rectifier of distilled spirits or wines (as defined in section 5082) shall pay a special tax of $220 a year: Provided, That any rectifier of less than 500 barrels a year, counting 40 gallons of proof spirits to the barrel, shall pay $110 a year. SEC. 5082. DEFINITION OF RECTIFIER. Every person who rectifies, purifies, or refines distilled spirits or wines by any process (other than by original and continuous distillation from mash, wort, or wash, through continuous closed vessels and pipes, until the manufacture thereof is complete), and every wholesale or retail liquor dealer Appendix X-Continued who has in his possession any still or leach tub, or who keeps any other apparatus for the purpose of refining in any manner distilled spirits, and every person who, without rectifying, purifying, or refining distilled spirits, shall, by mixing such spirits, wine, or other liquor with any material, manufacture any spurious, imitation, or compound liquors for sale, under the name of whisky, brandy, gin, rum, wine, spirits, cordials, or wine bitters, or any other name, shall be regarded as a rectifier, and as being engaged in the business of rectifying. SEC. 5083. EXEMPTIONS. For exemptions from tax under section 5021 or 5081 in case of— (1) Industrial alcohol plants and bonded warehouses, see section 5306 (2) Absolute alcohol, see section 5025 (a) (3) Production of gin and vodka, see section 5025 (b) (4) Refining spirits in course of original distillation, see section 5025 (c) (5) Redistillation of spirits at distillery, see section 5025 (d) (6) Redistillation and mingling of spirits during National Emergency, see section 5217 (a) (7) Apothecaries, see section 5025 (g) (8) Manufacturers of chemicals and flavoring extracts, see section 5025 (h) (9) Distilled spirits and wines, rectified in customs bonded manufacturing warehouses, see section 5523 (10) Blending beverage brandies in internal revenue bonded warehouses, see section 5023 (11) Blending of straight whiskies, fruit brandies, or wines, see section 5025 (e) (12) Addition of caramel to brandy, see section 5025 (f) (13) Winemakers' use or treatment of wines or wine spirits, see section 5391. SEC. 5084. CROSS REFERENCES. (1) For provisions relating to the gallonage tax on rectification, see subpart B of part I of this subchapter. Subpart B-Brewer Sec. 5091. Imposition and rate of tax. Sec. 5092. Definition of brewer. Sec. 5093. Cross references. SEC. 5091. IMPOSITION AND RATE OF TAX. Every brewer shall pay $110 a year in respect of each brewery: Provided, That any brewer of less than 500 barrels a year shall pay the sum of $55 a year: Provided further, That any beer procured by a brewer in his own hogsheads, barrels, or kegs under the provisions of section 5413 shall be included in calculating the liability to brewers' special tax of both the brewer who produces the same and the brewer who procures the same. SEC. 5092. DEFINITION OF BREWER. Every person who brews or produces beer for sale shall be deemed a brewer. SEC. 5093. CROSS REFERENCES. (1) For exemption of brewers selling at wholesale in hogsheads, barrels, and kegs from special tax as wholesale dealer, see section 5113(b). (2) For exemption of brewers selling in eighth-barrell kegs from special tax as retail dealer see section 5123 (a). (3) For exemption of brewer from special tax as wholesale or retail dealer in beer by reason of sales at different locations on contiguous brewery premises see section 5144 (c). (4) For exemption from special tax in case of sales made on purchaser dealers' premises, see section 5123 (b) (3). Subpart C-Manufacturers of Stills Sec. 5101. Imposition and rate of tax. Sec. 5102. Definition of manufacturer of stills. Sec. 5103. Exemptions. Sec. 5104. Method of payment of tax on stills. Sec. 5105. Notice of manufacture of and permit to set up still. Sec. 5106. Drawback. SEC. 5101. IMPOSITION AND RATE OF TAX. Every manufacturer of stills shall pay a special tax of $55 a year, and $22 for each still or worm for distilling made by him. SEC. 5102. DEFINITION OF MANUFACTURER OF STILLS. Any person who manufactures any still or worm to be used in distilling shall be deemed a manufacturer of stills. SEC. 5103. EXEMPTIONS. For exemption of industrial alcohol plants from the special tax imposed by section 5101, see section 5306. SEC. 5104. METHOD OF PAYMENT OF TAX ON STILLS. The tax imposed on stills or worms by section 5101 shall be paid by stamp, denoting the tax, under such regulations as the Secretary or his delegate may prescribe. SEC. 5105. NOTICE OF MANUFACTURE OF AND PERMIT TO SET UP STILL. (a) REQUIREMENT.-Any person who manufactures any still, boiler, or other vessel to be used for the purpose of distilling shall, before the same is removed from the place of manufacture, notify the Secretary or his delegate, setting forth in writing, by whom it is to be used, its capacity, and the time when the same is to be removed from the place of manufacture; and no such still, boiler, or other vessel shall be set up without the permit in writing of the Secretary or his delegate for that purpose. The notice required by this section shall be submitted in such form and manner as the Secretary or his delegate may by regulations prescribe. 60-448-67-84 (b) PENALTY. Appendix X-Continued (1) For penalty for failure to give notice of manufacture, or for setting up still without permit, see section 5602. SEC. 5106. DRAWBACK. Under regulations prescribed by the Secretary or his delegate, a drawback shall be allowed on all stills and worms manufactured for export (and actually exported) on which the tax has been paid. Subpart D-Wholesale Dealers Sec. 5111. Imposition and rate of tax. Sec. 5112. Definitions of wholesale dealers. Sec. 5113. Exemptions. Sec. 5114. Records. Sec. 5115. Marking and stamping packages filled on premises of wholesale dealers. SEC. 5111. IMPOSITION AND RATE OF TAX. (a) WHOLESALE DEALERS IN LIQUORS. (1) GENERAL.-Every wholesale dealer in liquors shall pay a special tax of $200 a year. (2) RETAILERS SELLING AT WHOLESALE. A qualified retail dealer in liquors may not sell distilled spirits, wines, or beer in quantities of 5 wine gallons or more to the same person at the same time without incurring liability to special tax as a wholesale dealer in liquors. No retail dealer in liquors shall be held to be a wholesale dealer in liquors solely by reason of sales of 5 wine gallons or more to the same person at the same time if such sales are for immediate consumption on the premises where sold. (b) WHOLESALER DEALERS IN BEER. (1) GENERAL.-Wholesale dealers in beer shall pay a special tax of $100 a year. (2) RETAILERS SELLING AT WHOLESALE.-A qualified retail dealer in beer may not sell such beer in quantities of 5 gallons or more to the same person at the same time without incurring liability to special tax as a wholesale dealer in beer. No retail dealer in beer shall be held to be a wholesale dealer in beer solely by reason of sales of 5 gallons or more to the same person at the same time if such sales are for immediate consumption on the premises where sold. SEC. 5112. DEFINITIONS OF WHOLESALE DEALERS. (a) WHOLESALE DEALER IN LIQUORS.-Except as otherwise provided, every person who sells, or offers for sale, foreign or domestic distilled spirits, wines, or beer in quantities of 5 wine gallons or more to the same person at the same time shall be regarded as a wholesale dealer in liquors. The Secretary or his delegate may, by regulations, provide for the issuance of a stamp denoting payment of such special tax as a "wholesale dealer in wines" or a wholesale dealer in wines and beer" if, as the case may be wines only, or wines and beer only, are sold by a wholesale dealer in liquors. (b) WHOLESALE DEALER IN BEER.-Except as otherwise provided, every person who sells, or offers for sale, beer in quantities of 5 gallons or more, to the same person at the same time, and who does not deal in distilled spirits or wines at wholesale, shall be regarded as a wholesale dealer in beer. SEC. 5113. EXEMPTIONS. (a) DISTILLERS SELLING SPIRITS OF OWN PRODUCTION.-No distiller who has given the required bond and who sells only distilled spirits of his own production after determination of the tax at the place of manufacture, or at the place of storage in bond, in the original packages shall be required to pay the special tax of a wholesale dealer in liquors on account of such sales. (b) BREWERS SELLING IN BARRELS, ETC.-No brewer shall be required to pay special tax as a dealer by reason of selling in hogsheads, barrels, or kegs, whether at the place of manufacture or elsewhere, beer manufactured by him, or purchased and procured by him in his own hogsheads, barrels, or kegs, under section 5413, but the quantity of beer so purchased shall be included in calculating the liability to brewers' special tax of both the brewer who manufactures and sells the same and the brewer who purchases the same. (c) WINEMAKERS SELLING WINES OF OWN PRODUCTION.-Nothing in this chapter shall be construed to impose a special tax on winemakers who have qualified as such under the internal revenue laws and regulations, and who sell wines of their own production where the same are made or at the general business office of such winemaker; Provided, That no winemaker shall have more than one place of business for the sale of such wine that shall be exempt from the special tax. (d) CASUAL SALES. (1) SALES BY CREDITORS, FIDUCIARIES AND OFFICERS OF COURT.-No special tax shall be imposed on a sale of distilled spirits, wines, or beer made by a person who is not otherwise a dealer in liquors, where such spirits, wines, or beer have been received by the person so selling as security for or in payment of a debt, or as executor, administrator, or other fiduciary, or have been levied on by any officer, under order or process of any court or magistrate, and where such liquors are sold by such person in one parcel only, or at public auction in parcels not less than 20 wine gallons. (2) SALES BY RETIRING PARTNERS OR REPRESENTATIVES OF DECEASED PARTNERS TO INCOMING OR REMAINING PARTNERS.-No special tax shall be held to accrue on a sale of distilled spirits, wines, or beer made by a retiring partner, or the representatives of a deceased partner, to the incoming, remaining, or surviving partner or partners of a firm. (1) For exemption of retail dealers selling in wholesale quantities for consumption on premises, see section 5111. (2) For exemption of retail dealers selling in liquidation, see section 5123(d). SEC. 5114. RECORDS. (a) REQUIREMENTS.-Every wholesale liquor dealer who sells, or offers for sale, distilled spirits in quantities of 5 wine-gallons or more to the same person at the same time shall keep daily a record of distilled spirits received and disposed of by him, in such form, at such place and containing such information as the Secretary or his delegate shall by regulations prescribe. Such wholesale liquor dealers shall also render such correct transcripts, summaries and copies of their records at such times and in such form and manner as the Secretary or his delegate may by regulations require. The records required to be kept under the provisions of this section, and regulations issued pursuant thereto, shall be preserved for a period of 2 years, and during such period shall be available during business hours for inspection and the taking of abstracts therefrom by internal revenue officers. (b) EXEMPTION OF STATES.-The provisions of subsection (a) shall not apply to States and liquor stores operated by such States that maintain and make available to inspection by internal revenue officers such records as will enable such officers to readily trace all distilled spirits received and disposed of by them: Provided, That such States, and the liquor stores operated by them, shall, upon the request of the Secretary or his delegate, furnish him such transcripts, summaries and copies of their records as he shall require. (c) CROSS REFERENCES. (1) For provisions relating to the keeping of records by distillers as wholesalers, see section 5197(a)(2). (2) For provisions relating to the keeping of records by rectifiers as wholesalers, see section 5285(b). (3) For penalty for violation of subsection (a), see sections 5620 and 5621. SEC. 5115. MARKING AND STAMPING PACKAGES FILLED ON PREMISES OF WHOLESALE DEALERS. (a) REQUIREMENTS.-Every package of distilled spirits containing 5 wine gallons or more, filled on the premises of a wholesale liquor dealer who has paid the special tax required by law, shall be marked, branded, and stamped by such wholesale liquor dealer in such manner and under such rules and regulations as the Secretary or his delegate may prescribe. (b) PENALTY. For penalty for failure to comply with subsection (a), see section 5631. SEC. 5116. SIGN REQUIRED ON PREMISES. (a) REQUIREMENTS.-Every wholesale liquor dealer, shall, in the manner and form prescribed by regulations issued by the Secretary or his delegate, place and keep conspicuously on the outside of the place of such business a sign, exhibiting, in plain and legible letters, the name or firm of the wholesale dealer, with the words: "wholesale liquor dealer". (b) PENALTY.— For penalty for failure to post sign, or for posting sign without paying the special tax, see section 5681. Subpart E-Retail Dealers Sec. 5121. Imposition and rate of tax. Sec. 5122. Definitions. Sec. 5123. Exemptions. Sec. 5124. Records. SEC. 5121. IMPOSITION AND RATE OF TAX. (a) RETAIL DEALERS IN LIQUORS. (1) GENERAL.-Except as provided in subsection (c), every retail dealer in liquors shall pay a special tax of $50 a year. (2) WHOLESALERS SELLING AT RETAIL. A qualified wholesale dealer in liquors may not sell distilled spirits, wines, or beer in quantities of less than 5 wine gallons without incurring liability to special tax as a retail dealer in liquors. (b) RETAIL DEALERS IN BEER. (1) GENERAL.-Retail dealers in beer shall pay a special tax of $22 a year. (2) WHOLESALERS SELLING AT RETAIL.-A qualified wholesale dealer in beer may not sell such beer in quantities of less than 5 gallons without incurring liability to special tax as a retail dealer in beer. (c) LIMITED DEALERS IN WINES AND BEER.-Notwithstanding the provisions of this part, each person making sales of beer or wine to the members, guests, or patrons of bona fide fairs, reunions, picnics, carnivals, or other similar outings, and each fraternal, civic, church, labor, charitable, benevolent, or ex-servicemen's organization, making sales of beer or wine on the occasion of any kind of entertainment, dance, picnic, bazaar, or festival held by it, if such person or organization is not otherwise engaged in business as a wholesale or retail liquor dealer or as a wholesale or retail beer dealer, shall pay, before any such sales are made and in lieu of the special taxes imposed by subsections (a) and (b), a special tax of $2.20 as a retail dealer in beer, if beer only is sold, or a special tax of $2.20 as a retail dealer in liquors if wine only, or wine and beer only are sold, for each calendar month in which any such sales are made. SEC. 5122. DEFINITIONS. (a) RETAIL DEALERS IN LIQUORS.-Except as otherwise provided, every person who sells, or offers for sale, foreign or domestic distilled spirits, wines, or beer in quantities of less than 5 wine gallons to the same person at the same time shall be regarded as a retail dealer in liquors: Provided, |