65 STAT.]
PUBLIC LAW 76—JULY 11, 1951
11'
spirits may be stored in approved tanks in, or constituting a part of, any internal revenue bonded warehouse or industrial alcohol bonded W i t d a w a l from warehouse: Provided further, That any such distilled spirits removed plants horrwarehouses. to an industrial alcohol plant or industrial alcohol bonded warehouse may be withdrawn therefrom if of a proof of one hundred and sixty degrees or more for any tax-free purpose, or upon payment of tax for any purpose, authorized by part II of subchapter C; and any such 53 Stat. 357. 5§310026 U.S.C. 3126. distilled spirits removed to a distillery or internal revenue bonded warehouse may be withdrawn therefrom if of a proof of one hundred and sixty degrees or more for any tax-free purpose authorized by part II of subchapter C or for any purpose authorized in the case of like Removal for transspirits produced at a distillery: Provided further, That any such dis- fer. tilled spirits, upon removal from a distillery or internal revenue bonded warehouse for transfer to an industrial alcohol plant or industrial alcohol bonded warehouse or for any tax-free purpose authorized by part II of subchapter C, shall be subject to the provisions of part II of subchapter C: Provided further, That when any distilled spirits are Tax liability, etc. removed under the provisions of this section to a distillery, industrial alcohol plant, or industrial alcohol bonded warehouse, the tax liability of the proprietor of the distillery, internal revenue bonded warehouse, industrial alcohol plant, or industrial alcohol bonded warehouse from which the spirits are removed, and the liens on such distillery, industrial alcohol plant, or industrial alcohol bonded warehouse, shall cease; and at and from the time the distilled spirits leave the distillery, internal revenue bonded warehouse, industrial alcohol plant, or industrial alcohol bonded warehouse the tax shall be the liability of the proprietor of, and the liens shall be transferred to the premises of, the distillery, industrial alcohol plant, or industrial alcohol bonded warehouse to which the distilled spirits are transferred: Provided further, That when any distilled spirits are removed under the provisions of this section to an internal revenue bonded warehouse the proprietor of such warehouse shall be primarily liable for the tax on the spirits at and from the time the spirits leave the premises from which transferred: Provided further, That the provisions of section 2901 of the Losses in transfer. 53 Stat. Internal Revenue Code shall apply in respect of losses of ^ny distilled 26 U.S. 340.§2901. C. spirits transferred, or removed for transfer, under this section to a distillery or internal revenue bonded warehouse; and the provisions of section 3113 of the code shall apply in respect of losses of any distilled 53 Stat. 360. spirits transferred, or removed for transfer, under this section to an 26 U.S.C. §3113. industrial alcohol plant or industrial alcohol bonded warehouse: And provided further, That sections 2836 and 2870 of the Internal Revenue Code shall not apply to the production or redistillation and removal Nonapplicability. 63 Stat. 320, 331. of any such spirits; nor shall sections 2800(a)(5) and 3250 (f) of the 26 U.S.C. §§ 2836, code apply to the redistillation or to the mingling at a distillery or an 2870.Stat. 298, 388. 53 26 internal revenue bonded warehouse or in the course of removal, of any 3250. U.S.C. §§ 2800, such spirits. "(b)
EXEMPTION FROM STATUTORY REQUIREMENTS.—The Secretary
may temporarily exempt proprietors of distilleries, internal revenue bonded warehouses, industrial alcohol plants, or industrial alcohol bonded warehouses from any provision of the internal revenue laws relating to distilled spirits, except those requiring payment of the tax thereon, whenever in his judgment it may seem expedient to do so to meet the requirements of the national defense. Whenever the Secretary shall exercise the authority conferred by this subsection he may prescribe such regulations as may be necessary to accomplish the purpose which caused him to grant the exemption. "(c) TERMINATION OF SECTION.—The authority conferred upon the Secretary by this section shall expire five years from the date of enactment of this section." Approved July 11, 1951.
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