Title 26, Internal Revenue CodeRelease 119-110
§5066 Distilled Spirits for Use of Foreign Embassies, Legations, 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 E — General Provisions › § 5066
Summary
Bottled distilled spirits can be moved into customs bonded warehouses under rules the Secretary sets, and when they are entered there they are treated as if they were exported (see section 5214(a)(4)). Spirits specially marked for export under section 5062(b) may also go into those warehouses and are treated the same way. Spirits kept in these warehouses can be withdrawn, without paying tax, for the official or family use of foreign governments, organizations, or people who are allowed that benefit, under the same rules, bonds, and procedures that apply to imported spirits. If the spirits are taken out of the warehouse for use in the United States, they are handled like American goods that were exported and then returned. No one may sell or use those tax-free spirits for anything other than the allowed use. People who sell, give away, or possess them illegally are subject to the penalties in section 5001(a)(4).
Full Legal Text
Title 26, §5066
Internal Revenue Code, Source: USLM XML via OLRC
(a)Entry into customs bonded warehouses
(1)Bottled distilled spirits withdrawn from bonded premises
Under such regulations as the Secretary may prescribe, bottled distilled spirits may be withdrawn from bonded premises as provided in section 5214(a)(4) for transfer to customs bonded warehouses in which imported distilled spirits are permitted to be stored in bond for entry therein pending withdrawal therefrom as provided in subsection (b). For the purposes of this chapter, the withdrawal of distilled spirits from bonded premises under the provisions of this paragraph shall be treated as a withdrawal for exportation and all provisions of law applicable to distilled spirits withdrawn for exportation under the provisions of section 5214(a)(4) shall apply with respect to spirits withdrawn under this paragraph.
(2)Bottled distilled spirits eligible for export with benefit of drawback
Under such regulations as the Secretary may prescribe, distilled spirits marked especially for export under the provisions of section 5062(b) may be shipped to a customs bonded warehouse in which imported distilled spirits are permitted to be stored, and entered in such warehouses pending withdrawal therefrom as provided in subsection (b), and the provisions of this chapter shall apply in respect of such distilled spirits as if such spirits were for exportation.
(3)Time deemed exported
For the purposes of this chapter, distilled spirits entered into a customs bonded warehouse as provided in this subsection shall be deemed exported at the time so entered.
(b)Withdrawal from customs bonded warehouses
Notwithstanding any other provisions of law, distilled spirits entered into customs bonded warehouses under the provisions of subsection (a) 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 distilled spirits from such warehouses free of tax. Distilled spirits transferred to customs bonded warehouses under the provisions of this section 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 distilled spirits.
(c)Withdrawal for domestic use
Distilled spirits entered into customs bonded warehouses as authorized by this section may be withdrawn therefrom for domestic use, in which event they shall be treated as American goods exported and returned.
(d)Sale or unauthorized use prohibited
No distilled spirits withdrawn from customs bonded warehouses or otherwise brought into the United States free of tax for the official or family use of such foreign governments, organizations, or individuals as are authorized to obtain distilled spirits free of tax shall be sold, or shall be disposed of or possessed for any use other than an authorized use. The provisions of section 5001(a)(4) are hereby extended and made applicable to any person selling, disposing of, or possessing any distilled spirits in violation of the preceding sentence, and to the distilled spirits involved in any such violation.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Prior Provisions
A prior section 5066 was renumbered 5068 of this title.
Amendments
2018—Subsec. (d). Pub. L. 115–141 substituted “section 5001(a)(4)” for “section 5001(a)(5)”. 1984—Subsec. (a)(2). Pub. L. 98–369 substituted “marked” for “stamped or restamped, and marked,”. 1979—Subsec. (a)(1). Pub. L. 96–39, § 807(a)(11)(A), substituted “bottled distilled spirits” for “distilled spirits bottled in bond for export under the provisions of section 5233, or bottled distilled spirits returned to bonded premises under section 5215(b),”. Subsec. (b). Pub. L. 96–39, § 807(a)(11)(B), struck out “or domestic distilled spirits transferred to customs bonded warehouses under section 5521(d)(2)” after “the provisions of subsection (a)”. 1977—Subsec. (a)(1). Pub. L. 95–176 substituted par. (1) heading “Bottled distilled spirits withdrawn from bonded premises” for “Distilled spirits bottled in bond for export” and authorized withdrawal of bottled distilled spirits returned to bonded premises under section 5215(b) as provided in section 5214(a)(4). 1976—Subsecs. (a), (b). Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.
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 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 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
Pub. L. 91–659, § 6, Jan. 8, 1971, 84 Stat. 1966, provided that: “This Act [enacting this section and amending section 5008, 5173, 5178, 5215, and 5232 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 [Jan. 8, 1971].”
Reference
Citations & Metadata
Citation
26 U.S.C. § 5066
Title 26, Internal Revenue Code
Last Updated
Sep 22, 2026
Release point: 119-110