26 U.S.C. § 5236: Discontinuance of storage…

§5236 Discontinuance of Storage Facilities and Transfer of Distilled Spirits

Title 26 › Subtitle E — Alcohol, Tobacco, and Certain Other Excise Taxes › CHAPTER 51 — DISTILLED SPIRITS, WINES, AND BEER › Subchapter C — Operation of Distilled Spirits Plants › PART II — OPERATIONS ON BONDED PREMISES › Subpart C — Storage › § 5236

Last updated Aug 21, 2026|Official source

Summary

If the Secretary finds storage on bonded premises (tax-bonded storage sites) unsafe or the spirits at risk of big loss, he can order the use of those facilities to stop and require the spirits to be moved to other storage he picks. The move must happen when and how he says and be supervised by him. The owner or the warehouse operator must pay the transfer costs. If the owner or operator does not move the spirits in time or does not pay the transfer expenses the Secretary decides are fair, the Secretary can seize and sell the spirits like property taken for unpaid taxes. Money from the sale pays the taxes and sale and removal costs first, and any leftover is given to the owner.

Title 26, §5236

Internal Revenue Code, Source: USLM XML via OLRC

When the Secretary finds any facilities for the storage of distilled spirits on bonded premises to be unsafe or unfit for use, or the spirits contained therein subject to great loss or wastage he may require the discontinuance of the use of such facilities and require the spirits contained therein to be transferred to such other storage facilities as he may designate. Such transfer shall be made at such time and under such supervision as the Secretary may require and the expense of the transfer shall be paid by the owner or the warehouseman of the distilled spirits. Whenever the owner of such distilled spirits or the warehouseman fails to make such transfer within the time prescribed, or to pay the just and proper expense of such transfer, as ascertained and determined by the Secretary, such distilled spirits may be seized and sold by the Secretary in the same manner as goods are sold on distraint for taxes, and the proceeds of such sale shall be applied to the payment of the taxes due thereon and the cost and expenses of such sale and removal, and the balance paid over to the owner of such distilled spirits.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Provisions similar to those comprising this section were contained in prior section 5252, act Aug. 16, 1954, ch. 736, 68A Stat. 649, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.