Internal Revenue Code (Title 26 U.S.C.)
26 U.S.C. § 5362 (2024) — Removals of wine from bonded wine cellars
Withdrawals on determination of tax
Wine may be withdrawn from bonded wine cellars on payment or determination of the tax thereon, under such regulations as the Secretary shall prescribe.
Transfers of wine between bonded premises
(1) In general Wine on which the tax has not been paid or determined may, under such regulations as the Secretary shall prescribe, be transferred in bond between bonded premises. (2) Wine transferred to a distilled spirits plant may not be removed for consumption or sale as wine Any wine transferred to the bonded premises of a distilled spirits plant— (A) may be used in the manufacture of a distilled spirits product, and (B) may not be removed from such bonded premises for consumption or sale as wine. (3) Continued liability for tax The liability for tax on wine transferred to the bonded premises of a distilled spirits plant pursuant to paragraph (1) shall (except as otherwise provided by law) continue until the wine is used in a distilled spirits product. (4) Transfer in bond not treated as removal for consumption or sale For purposes of this chapter, the removal of wine for transfer in bond between bonded premises shall not be treated as a removal for consumption or sale. (5) Bonded premises For purposes of this subsection, the term "bonded premises" means a bonded wine cellar or the bonded premises of a distilled spirits plant.
Withdrawals of wine free of tax or without payment of tax
Wine on which the tax has not been paid or determined may, under such regulations and bonds as the Secretary may deem necessary to protect the revenue, be withdrawn from bonded wine cellars— (1) without payment of tax for export by the proprietor or by any authorized exporter; (2) without payment of tax for transfer to any foreign-trade zone; (3) without payment of tax for use of certain vessels and aircraft as authorized by law; (4) without payment of tax for transfer to any customs bonded warehouse; (5) without payment of tax for use in the production of vinegar; (6) without payment of tax for use in distillation in any distilled spirits plant authorized to produce distilled spirits; (7) free of tax for experimental or research purposes by any scientific university, college of learning, or institution of scientific research; (8) free of tax for use by or for the account of the proprietor or his agents for analysis or testing, organoleptic or otherwise; and (9) free of tax for use by the United States or any agency thereof, and for use for analysis, testing, research, or experimentation by the governments of the several States and the District of Columbia or of any political subdivision thereof or by any agency of such governments. No bond shall be required of any such government or agency under this paragraph.
Withdrawal free of tax of wine and wine products unfit for beverage use
Under such regulations as the Secretary may deem necessary to protect the revenue, wine, or wine products made from wine, when rendered unfit for beverage use, on which the tax has not been paid or determined, may be withdrawn from bonded wine cellars free of tax. The wine or wine products to be so withdrawn may be treated with methods or materials which render such wine or wine products suitable for their intended use. No wine or wine products so withdrawn shall contain more than 21 percent of alcohol by volume, or be used in the compounding of distilled spirits or wine for beverage use or in the manufacture of any product intended to be used in such compounding.
Withdrawal from customs bonded warehouses for use of foreign embassies, legations, etc.
(1) In general Notwithstanding any other provision of law, wine entered into customs bonded warehouses under subsection (c)(4) may, under such regulations as the Secretary may prescribe, be withdrawn from such warehouses for consumption in the United States by and for the official or family use of such foreign governments, organizations, and individuals who are entitled to withdraw imported wines from such warehouses free of tax. Wines transferred to customs bonded warehouses under subsection (c)(4) shall be entered, stored, and accounted for in such warehouses under such regulations and bonds as the Secretary may prescribe, and may be withdrawn therefrom by such governments, organizations, and individuals free of tax under the same conditions and procedures as imported wines. (2) Withdrawal for domestic use Wine entered into customs bonded warehouses under subsection (c)(4) for purposes of removal under paragraph (1) may be withdrawn therefrom for domestic use. Wines so withdrawn shall be treated as American goods exported and returned. (3) Sale or unauthorized use prohibited Wine withdrawn from customs bonded warehouses or otherwise brought into the United States free of tax for the official or family use of foreign governments, organizations, or individuals authorized to obtain wine free of tax shall not be sold and shall not be disposed of or possessed for any use other than an authorized use. The provisions of paragraphs (1)(B) and (3) of section 5043(a) are hereby extended and made applicable to any person selling, disposing of, or possessing any wine in violation of the preceding sentence, and to the wine involved in any such violation.
Source: official text