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Title 26 — Internal Revenue CodeRelease 119-73

§5361 Bonded wine cellar operations

Title 26 › Subtitle Subtitle E— - Alcohol, Tobacco, and Certain Other Excise Taxes › Chapter CHAPTER 51— - DISTILLED SPIRITS, WINES, AND BEER › Subchapter Subchapter F— - Bonded and Taxpaid Wine Premises › Part PART II— - OPERATIONS › § 5361

Last updated Apr 6, 2026|Official source

Summary

Under rules set by the Secretary, the owner of a bonded wine cellar may, on the premises, receive taxpaid wine to return to bond, recondition, or destroy; store certain untaxed fruit products; make or receive distilling material or vinegar; and produce taxed, nonbeverage wine products of two kinds: (1) heavy-bodied blending wines and Spanish-type blending sherries, and (2) other natural-wine products for nonbeverage use — plus other operations that don’t jeopardize revenue or conflict with wine operations.

Full Legal Text

Title 26, §5361

Internal Revenue Code — Source: USLM XML via OLRC

In addition to the operations described in section 5351, the proprietor of a bonded wine cellar may, subject to regulations prescribed by the Secretary, on such premises receive taxpaid wine for return to bond, reconditioning, or destruction; prepare for market and store commercial fruit products and by-products not taxable as wines; produce or receive distilling material or vinegar stock; produce (with or without added wine spirits, and without added sugar) or receive on wine premises, subject to tax as wine but not for sale or consumption as beverage wine, (1) heavy bodied blending wines and Spanish-type blending sherries, and (2) other wine products made from natural wine for nonbeverage purposes; and such other operations as may be conducted in a manner that will not jeopardize the revenue or conflict with wine operations.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5361, act Aug. 16, 1954, ch. 736, 68A Stat. 664, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

1997—Pub. L. 105–34 struck out “unmerchantable” after “premises receive”. 1979—Pub. L. 96–39 substituted “or receive on wine premises” for “or receive on standard wine premises only”. 1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1997 AmendmentAmendment by Pub. L. 105–34 effective on the 1st day of the 1st calendar quarter that begins at least 180 days after Aug. 5, 1997, see section 1416(c) of Pub. L. 105–34, set out as a note under section 5044 of this title.

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.

Effective Date

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

Reference

Citations & Metadata

Citation

26 U.S.C. § 5361

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73