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Title 26, Internal Revenue CodeRelease 119-102

§5003 Cross References to Exemptions, Etc.

Title 26 › Subtitle E — Alcohol, Tobacco, and Certain Other Excise Taxes › CHAPTER 51 — DISTILLED SPIRITS, WINES, AND BEER › Subchapter A — Gallonage and Occupational Taxes › PART I — GALLONAGE TAXES › Subpart A — Distilled Spirits › § 5003

Last updated Aug 21, 2026|Official source

Summary

Names 17 places in the tax code that let distilled spirits and some related products be taken out or used without paying tax in certain situations. Those situations include use by federal or state agencies; nonprofits, schools, hospitals, labs, and blood banks; certain imported or denatured spirits; making vinegar or wine; fruit-flavor concentrates; export and transfers to bonded or customs warehouses and foreign-trade zones; supplies for ships and planes; use by the United States and its possessions; research or testing; manufacturing for export; items contained inside other goods; and rules for losses covered by a bond.

Full Legal Text

Title 26, §5003

Internal Revenue Code, Source: USLM XML via OLRC

(1)For provisions authorizing the withdrawal of distilled spirits free of tax for use by Federal or State agencies, see section 5214(a)(2) and 5313.
(2)For provisions authorizing the withdrawal of distilled spirits free of tax by nonprofit educational organizations, scientific universities or colleges of learning, laboratories, hospitals, blood banks, sanitariums, and charitable clinics, see section 5214(a)(3).
(3)For provisions authorizing the withdrawal of certain imported distilled spirits from customs custody without payment of tax, see section 5232.
(4)For provisions authorizing the withdrawal of denatured distilled spirits free of tax, see section 5214(a)(1).
(5)For provisions exempting from tax distilled spirits for use in production of vinegar by the vaporizing process, see section 5505(j).
(6)For provisions relating to the withdrawal of wine spirits without payment of tax for use in the production of wine, see section 5373.
(7)For provisions exempting from tax volatile fruit-flavor concentrates, see section 5511.
(8)For provisions authorizing the withdrawal of distilled spirits from bonded premises without payment of tax for export, see section 5214(a)(4).
(9)For provisions authorizing withdrawal of distilled spirits without payment of tax to customs bonded warehouses for export, see section 5214(a)(9).
(10)For provisions relating to withdrawal of distilled spirits without payment of tax as supplies for certain vessels and aircraft, see 19 U.S.C. 1309.
(11)For provisions authorizing regulations for withdrawal of distilled spirits for use of United States free of tax, see section 7510.
(12)For provisions relating to withdrawal of distilled spirits without payment of tax to foreign-trade zones, see 19 U.S.C. 81c.
(13)For provisions relating to exemption from tax of taxable articles going into the possessions of the United States, see section 7653(b).
(14)For provisions authorizing the withdrawal of distilled spirits without payment of tax for use in certain research, development, or testing, see section 5214(a)(10).
(15)For provisions authorizing the withdrawal of distilled spirits without payment of tax for transfer to manufacturing bonded warehouses for manufacturing for export, see section 5214(a)(6).
(16)For provisions authorizing the withdrawal of articles from the bonded premises of a distilled spirits plant free of tax when contained in an article, see section 5214(a)(11).
(17)For provisions relating to allowance for certain losses in bond, see section 5008(a).

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5003, act Aug. 16, 1954, ch. 736, 68A Stat. 597, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

1979—Par. (9). Pub. L. 96–39, § 807(a)(1)(A), struck out “section 5522(a) and” before “section 5214(a)(9)”. Pars. (15) to (17). Pub. L. 96–39, § 807(a)(1)(B), added pars. (15) and (16) and redesignated former par. (15) as (17). 1977—Par. (9). Pub. L. 95–176, § 3(c), struck out “manufacturing” after “customs” and inserted reference to section 5214(a)(9). Par. (14). Pub. L. 95–176, § 4(f), substituted “withdrawal of distilled spirits without payment of tax for use in certain research, development, or testing, see section 5214(a)(10)” for “removal of samples free of tax for making tests or laboratory analyses, see section 5214(a)(9)”.

Statutory Notes and Related Subsidiaries

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

of 1977 Amendment Pub. L. 95–176, § 7, Nov. 14, 1977, 91 Stat. 1367, provided that: “The

Amendments

made by this Act [amending this section and section 5004, 5005, 5008, 5025, 5062, 5066, 5175, 5178, 5205, 5207, 5214, 5215, and 5234 of this title] shall take effect on the first day of the first calendar month which begins more than 90 days after the date of the enactment of this Act [Nov. 14, 1977].”

Reference

Citations & Metadata

Citation

26 U.S.C. § 5003

Title 26, Internal Revenue Code

Last Updated

Aug 21, 2026

Release point: 119-102