§5178 — Title 26 Internal Revenue Code | U.S. Code

Summary

A distilled spirits plant must operate on the premises described in its registration application, and the Treasury sets rules on location, construction, and security so the plant can be inspected and tax revenue protected. A plant that produces spirits cannot be located in a house, in a shed or yard connected to a house, on a boat, where beer or wine is made, where liquor is sold at retail, or where another business runs without approval. The distilling system must be continuous and built so spirits cannot be removed before they are gauged, and the government can require locks, seals, and equipment changes. A plant may also warehouse and process spirits on its bonded premises as described in its application. Other businesses may operate on plant premises only if the Secretary approves an application and finds the revenue is not at risk.

Title 26, §5178

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(a)(1)(A)The premises of a distilled spirits plant shall be as described in the application required by section 5171(c). The Secretary shall prescribe such regulations relating to the location, construction, arrangement, and protection of distilled spirits plants as he deems necessary to facilitate inspection and afford adequate security to the revenue.

(B)No distilled spirits plant for the production of distilled spirits shall be located in any dwelling house, in any shed, yard, or inclosure connected with any dwelling house, or on board any vessel or boat, or on premises where beer or wine is made or produced, or liquors of any description are retailed, or on premises where any other business is carried on (except when authorized under subsection (b)).

(C)Notwithstanding any other provision of this chapter relating to distilled spirits plants the Secretary may approve the location, construction, arrangement, and method of operation of any establishment which was qualified to operate on the date preceding the effective date of this section if he deems that such location, construction, arrangement, and method of operation will afford adequate security to the revenue.

(2)(A)Any person establishing a distilled spirits plant may, as described in his application for registration, produce distilled spirits from any source or substance.

(B)The distilling system shall be continuous and shall be so designed and constructed and so connected as to prevent the unauthorized removal of distilled spirits before their production gauge.

(C)The Secretary is authorized to order and require—

(i)such identification of, changes of, and additions to, distilling apparatus, connecting pipes, pumps, tanks, and any machinery connected with or used in or on the premises, and

(ii)such fastenings, locks, and seals to be part of any of the stills, tubs, pipes, tanks, and other equipment, as he may deem necessary to facilitate inspection and afford adequate security to the revenue.

(3)(A)Any person establishing a distilled spirits plant for the production of distilled spirits may, as described in the application for registration, warehouse bulk distilled spirits on the bonded premises of such plant.

(B)Distilled spirits plants for the bonded warehousing of bulk distilled spirits elsewhere than as described in subparagraph (A) may be established at the discretion of the Secretary by proprietors referred to in subparagraph (A) or by other persons under such regulations as the Secretary shall prescribe.

(4)Any person establishing a distilled spirits plant may, as described in the application for registration, process distilled spirits on the bonded premises of such plant.

(b)The Secretary may authorize the carrying on of such other businesses (not specifically prohibited by section 5601(a)(6)) on premises of distilled spirits plants, as he finds will not jeopardize the revenue. Such other businesses shall not be carried on until an application to carry on such business has been made to and approved by the Secretary.

(c)(1)For provisions authorizing the Secretary to require installation of meters, tanks, and other apparatus, see section 5552.

(2)For penalty for distilling on prohibited premises, see section 5601(a)(6).

(3)For provisions relating to the bottling of distilled spirits labeled as alcohol, see section 5235.

(4)For provisions relating to the unauthorized use of distilled spirits in any manufacturing process, see section 5601(a)(9).

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5178, act Aug. 16, 1954, ch. 736, 68A Stat. 631, related to plan of distillery, prior to the general revision of this chapter by Pub. L. 85–859. See section 5171(a) and 5172 of this title. Provisions similar to those comprising subsecs. (a)(1)(A), (B), (2)(A) to (C), (3), (4)(A), (B), (D), (5), (b), (c)(1), (2), (4) of this section were contained in prior sections of act Aug. 16, 1954, prior to the general revision of this chapter by Pub. L. 85–859, as follows: Present subsecs.:Prior sections (a)(1)(A)5172, 5173(a), 5231, 5271(a), 5273(a), 5305. (a)(1)(B)5171(a). (a)(2)(A)5307 (a)(2)(B)5173(b). (a)(2)(C)5173(a), (c). (a)(3)5231, 5243(a), 5302. (a)(4)(A)5243(a). (a)(4)(B), (D)5271(a), 5273(a). (a)(5)5303, 5305, 5331(a)(1). (b)5171(a). (c)(1)5173(d)(1), 5273(b)(1). (c)(2)5171(b). (c)(4)5216(b). The prior sections, act Aug. 16, 1954, ch. 736, are set out in 68A Stat. 627, 628, 641, 643, 645, 650, 654, 655, 657, 661.

Amendments

1979—Subsec. (a)(1)(A). Pub. L. 96–39, § 807(a)(18), substituted “section 5171(c)” for “section 5171(a)”. Subsec. (a)(2). Pub. L. 96–39, § 805(b)(1), substituted in heading “operations” for “facilities” and in subpar. (A) “produce” for “provided facilities which may be used for the production of” and struck out in subpar. (B) “closed at all points where potable or readily recoverable spirits are present and the distilling apparatus” after “shall be continuous and”. Subsec. (a)(3). Pub. L. 96–39, § 805(b)(1), substituted in heading “Warehousing operations” for “Bonded warehousing facilities” and in subpar. (A) “the application” for “his application” and “warehouse bulk distilled spirits” for “establish warehousing facilities” and struck out subpar. (C) which related to facilities for the storage on bonded premises of distilled spirits in casks, packages, cases, or similar portable approved containers and subpar. (D), which related to the establishment of a portion of the premises established under subpar. (C) as an export storage facility for the storage of distilled spirits returned to bonded premises under section 5215(b). Subsec. (a)(4). Pub. L. 96–39, § 805(b)(1), substituted provisions relating to processing operations for provisions relating to bottling facilities. Subsec. (a)(5). Pub. L. 96–39, § 805(b)(1), struck out par. (5) which related to arrangement and segregation of denaturing facilities by regulation of the Secretary. 1977—Subsec. (a)(3)(D). Pub. L. 95–176 added subpar. (D). 1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing. 1971—Subsec. (a)(4)(A). Pub. L. 91–659 substantially reenacted existing provisions and added cl. (ii) and the following sentence.

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 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 1971 AmendmentAmendment by Pub. L. 91–659 effective on first day of first calendar month which begins more than 90 days after Jan. 8, 1971, see section 6 of Pub. L. 91–659, set out as an

Effective Date

note under section 5066 of this title.

§5178 Premises of Distilled Spirits Plants

Summary

Title 26, §5178

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Effective Date

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