Title 26 — Internal Revenue CodeRelease 119-73
§5062 Refund and Drawback in Case of Exportation
Title 26 › Subtitle 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 E— General Provisions › § 5062
Summary
When alcohol that was taxed in the United States is exported, the tax can come back. If a federal tax was wrongly collected on exported goods, the refund can go to the exporter instead of the manufacturer, as long as the manufacturer waives its claim. For distilled spirits and wines made or bottled in the United States and then exported, the bottler or packager can claim a "drawback" equal to the tax that was paid, provided the spirits were specially marked for export. Imported spirits, wine, or beer that turns out to be unmerchantable or not up to sample after entry can be returned to customs custody. The importer then gets back the full federal excise tax, without interest, whether the goods are re-exported or destroyed under customs supervision.
Full Legal Text
Title 26, §5062
Internal Revenue Code — Source: USLM XML via OLRC
(a)Under such regulations as the Secretary 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)On the exportation of distilled spirits or wines manufactured, produced, bottled, or packaged in casks or other bulk containers in the United States on which an internal revenue tax has been paid or determined, and which are contained in any cask or other bulk container, or in bottles packed in cases or other containers, there shall be allowed, under regulations prescribed by the Secretary, a drawback equal in amount to the tax found to have been paid or determined on such distilled spirits or wines. In the case of distilled spirits, the preceding sentence shall not apply unless the claim for drawback is filed by the bottler or packager of the spirits and unless such spirits have been marked, especially for export, under regulations prescribed by the Secretary. The Secretary is authorized to prescribe regulations governing the determination and payment or crediting of drawback of internal revenue tax on spirits and wines eligible for drawback under this subsection, including the requirements of such notices, bonds, bills of lading, and other evidence indicating payment or determination of tax and exportation as shall be deemed necessary.
(c)(1)Upon the exportation of imported distilled spirits, wines, and beer upon which the duties and internal revenue taxes have been paid or determined incident to their importation into the United States, and which have been found after entry to be unmerchantable or not to conform to sample or specifications, and which have been returned to customs custody, the Secretary shall, under such regulations as he shall prescribe, refund, remit, abate, or credit, without interest, to the importer thereof, the full amount of the internal revenue taxes paid or determined with respect to such distilled spirits, wines, or beer.
(2)At the option of the importer, such imported distilled spirits, wines, and beer, after return to customs custody, may be destroyed under customs supervision and the importer thereof granted relief in the same manner and to the same extent as provided in this subsection upon exportation.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Prior Provisions
A prior section 5062, act Aug. 16, 1954, ch. 736, 68A Stat. 614, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85–859.
Amendments
1984—Subsec. (b). Pub. L. 98–369 substituted “have been marked” for “have been stamped or restamped, and marked”. 1977—Subsec. (b). Pub. L. 95–176 substituted in first sentence “manufactured, produced, bottled, or packaged in casks or other bulk containers” and “other bulk container” for “manufactured or produced” and “package” and in last sentence “spirits and wines eligible for drawback under this subsection, including the requirements” for “domestic distilled spirits and wines, including the requirement”. 1976—Subsecs. (a), (b), (c)(1). Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing. 1968—Subsec. (b). Pub. L. 90–630 permitted, under Treasury
Regulations
, drawback of the tax where the stamping, restamping, or marking is done after the spirits have been removed from the original bottling plant. 1965—Subsec. (c)(1). Pub. L. 89–44 struck out “within six months of their release therefrom” after “customs custody”. 1964—Subsec. (c). Pub. L. 88–539 added subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date
of 1984 AmendmentAmendment by Pub. L. 98–369 effective July 1, 1985, see section 456(b) of Pub. L. 98–369, set out as an
Effective Date
note under section 5101 of this title.
Effective Date
of 1977 AmendmentAmendment by Pub. L. 95–176 effective on first day of first calendar month beginning more than 90 days after Nov. 14, 1977, see section 7 of Pub. L. 95–176, set out as a note under section 5003 of this title.
Effective Date
of 1968 AmendmentAmendment by Pub. L. 90–630 applicable only to articles exported on or after first day of first calendar month which begins more than 90 days after Oct. 22, 1968, see section 4 of Pub. L. 90–630, set out as a note under section 5008 of this title.
Effective Date
of 1965 AmendmentAmendment by Pub. L. 89–44 effective July 1, 1965, see section 805(g)(1) of Pub. L. 89–44, set out as a note under section 5008 of this title.
Effective Date
of 1964 Amendment Pub. L. 88–539, § 2, Aug. 31, 1964, 78 Stat. 746, provided that: “The amendment made by the first section of this Act [amending this section] shall apply with respect to articles exported or destroyed after the date of the enactment of this Act [Aug. 31, 1964].”
Reference
Citations & Metadata
Citation
26 U.S.C. § 5062
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73