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Title 26 — Internal Revenue CodeRelease 119-73

§5212 Transfer of distilled spirits between bonded premises

Title 26 › Subtitle Subtitle E— - Alcohol, Tobacco, and Certain Other Excise Taxes › Chapter CHAPTER 51— - DISTILLED SPIRITS, WINES, AND BEER › Subchapter Subchapter C— - Operation of Distilled Spirits Plants › Part PART II— - OPERATIONS ON BONDED PREMISES › Subpart Subpart A— - General › § 5212

Last updated Apr 6, 2026|Official source

Summary

Allows bulk distilled spirits with unpaid or undetermined federal tax to be moved in bond between bonded premises in approved containers under rules the Secretary creates. Such a transfer in bond is not treated as a withdrawal. The rule that only bulk spirits may be transferred does not apply to alcohol bottled under section 5235 for industrial use. After December 31, 2017, transfers in bond between premises owned by the same person or by members of the same controlled group (see section 5001(c)(2)) may include non‑bulk spirits. If a distiller sends spirits to someone else for bottling or storage and keeps title the whole time, those spirits can be returned and removed without being treated as bulk.

Full Legal Text

Title 26, §5212

Internal Revenue Code — Source: USLM XML via OLRC

Bulk distilled spirits on which the internal revenue tax has not been paid or determined as authorized by law may, under such regulations as the Secretary shall prescribe, be transferred in bond between bonded premises in any approved container. For the purposes of this chapter, the removal of bulk distilled spirits for transfer in bond between bonded premises shall not be construed to be a withdrawal from bonded premises. The provisions of this section restricting transfers to bulk distilled spirits shall not apply to alcohol bottled under the provisions of section 5235 which is to be withdrawn for industrial purposes. In the case of distilled spirits transferred in bond after December 31, 2017, between bonded premises belonging to the same person or members of the same controlled group (within the meaning of section 5001(c)(2)) this section shall be applied without regard to whether distilled spirits are bulk distilled spirits. In the case of distilled spirits transferred in bond from the person who distilled or processed such distilled spirits (hereinafter referred to as “transferor”) to another person for bottling or storage of such distilled spirits, and returned to the transferor for removal, this section shall be applied without regard to whether distilled spirits are bulk distilled spirits, but only if the transferor retains title during the entire period between such distillation, or processing, and removal.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5212, act Aug. 16, 1954, ch. 736, 68A Stat. 639, related to the prevention and detection of fraud and contained a cross reference to provisions for gauging and marking of spirits, prior to the general revision of this chapter by Pub. L. 85–859. See section 5204(b) of this title. Provisions similar to those comprising this section were contained in prior section 5194(a), (e) to (g), 5217(a), 5246, 5308, act Aug. 16, 1954, ch. 736, 68A Stat. 634 to 636, 641, 647, 657, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

2020—Pub. L. 116–260 substituted “between bonded premises belonging to the same person or members of the same controlled group (within the meaning of section 5001(c)(2))” for “and before
January 1, 2021,” and inserted at end “In the case of distilled spirits transferred in bond from the person who distilled or processed such distilled spirits (hereinafter referred to as ‘transferor’) to another person for bottling or storage of such distilled spirits, and returned to the transferor for removal, this section shall be applied without regard to whether distilled spirits are bulk distilled spirits, but only if the transferor retains title during the entire period between such distillation, or processing, and removal.” 2019—Pub. L. 116–94 substituted “
January 1, 2021” for “
January 1, 2020”. 2017—Pub. L. 115–97 inserted at end “In the case of distilled spirits transferred in bond after
December 31, 2017, and before
January 1, 2020, this section shall be applied without regard to whether distilled spirits are bulk distilled spirits.” 1980—Pub. L. 96–598 inserted provision that restriction on transfers to bulk distilled spirits not apply to alcohol bottled under section 5235 of this title which is to be withdrawn for industrial purposes. 1979—Pub. L. 96–39 substituted “Bulk distilled spirits” for “Distilled spirits” and “bulk distilled spirits” for “distilled spirits”. 1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2020 Amendment Pub. L. 116–260, div. EE, title I, § 106(h)(3), Dec. 27, 2020, 134 Stat. 3045, provided that: “The

Amendments

made by this subsection [amending this section] shall apply to distilled spirits transferred in bond after December 31, 2020.”

Effective Date

of 2019 Amendment Pub. L. 116–94, div. Q, title I, § 144(h)(2), Dec. 20, 2019, 133 Stat. 3235, provided that: “The amendment made by this subsection [amending this section] shall apply to distilled spirits transferred in bond after December 31, 2019.”

Effective Date

of 2017 Amendment Pub. L. 115–97, title I, § 13808(b), Dec. 22, 2017, 131 Stat. 2178, provided that: “The

Amendments

made by this section [amending this section] shall apply distilled spirits transferred in bond after December 31, 2017.”

Effective Date

of 1979 AmendmentAmendment by Pub. L. 96–39 effective Jan. 1, 1980, see section 810 of Pub. L. 96–39, set out as a note under section 5001 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 5212

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73