§5314 Special Applicability of Certain Provisions

Summary

Puerto Rico must say yes under its constitution before these tax rules apply there. If the Commonwealth agrees, distilled spirits for the purposes in section 5214(a)(2) and (3), denatured distilled spirits, and articles made from them that are made in Puerto Rico may be brought into the United States free of the tax in section 5001(a)(9) or 7652(a)(1), and the same production, bonded warehousing, denaturation, withdrawal, and manufacture rules that apply in the United States will apply in Puerto Rico to those kinds of products. If distilled spirits are taken out of a Puerto Rico bonded plant under Puerto Rico law, those spirits and products made from them cannot enter the United States tax-free. Any Treasury Department costs to enforce these rules in Puerto Rico will be paid from the taxes collected on Puerto Rican goods brought into the United States and used to reimburse the original appropriation. The Virgin Islands may bring like distilled spirits, denatured spirits, and articles into the United States free of the tax in section 7652(b)(1) under the same conditions and with the same production and enforcement rules applying there. The Virgin Islands government must advance funds to the U.S. Treasury as needed to cover enforcement costs; those funds go into a separate trust for this purpose. The Secretary of the Treasury can allow the Governor of the Virgin Islands (or agents) to make regulations, approve bonds, and issue or revoke permits to carry out these rules, and, with the Secretary’s agreement, may exempt the Islands from some other laws — but products brought into the United States under this rule must meet the same legal requirements as U.S.-made products.