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INTERNAL REVENUE CODE OF 19 54
SEC. 5309. WITHDRAWAL OF FERMENTED LIQUORS TO INDUSTRIAL ALCOHOL PLANTS.
Fermented liquors may be conveyed without payment of tax from the brewery premises where produced to a contiguous industrial alcohol plant, to be used as distilling material, and the residue from such distillation, containing less than one-half of 1 percent of alcohol by volume, which is to be used in making beverages, may be manipulated by cooling, flavoring, carbonating, settling, and filtering on the distillery premises or elsewhere. The removal of the taxable fermented liquor from the brewery to the industrial alcohol plant and the operation of such plant and removal of the residue therefrom shall be under the supervision of such officer or officers as the Secretary or his delegate shall deem proper, and the Secretary or his delegate is hereby authorized to make such regulations as may be necessary to give force and effect to this section and to safeguard the revenue. SEC. 5310. WITHDRAWAL OF ALCOHOL FREE OF TAX.
(a) FOR DENATURATION.—Alcohol produced a t any industrial alcohol plant or stored in any bonded warehouse may, under regulations, be withdrawn tax-free, as provided by existing law from any such plant or warehouse for transfer to any denaturing plant for denaturation, or may, under regulations, before or after denaturation, be removed from any such plant or warehouse for any lawful tax-free purpose. Alcohol lawfully denatured may, under regulations, be sold free of tax either for domestic use or for export. (b) FOR U S E BY FEDERAL OR STATE AGENCIES.—Alcohol may be
withdrawn tax-free, under regulations, from any industrial alcohol plant or bonded warehouse by the United States or any governmental agency thereof, or by the several States and Territories or any municipal subdivision thereof or by the District of Columbia. Alcohol may be withdrawn tax-free from customs custody by the United States or any governmental agency thereof for its own use, under such regulations as may be prescribed. (c) U S E I N RESEARCH, HOSPITALS, OR FOR CHARITABLE C L I N I C S. —
Alcohol may be withdrawn, under regulations, from any industrial alcohol plant or bonded warehouse tax-free for the use of any scientific university or college of learning, for any laboratory for use exclusively in scientific research, or for use in any hospital or sanitarium, or for the use of any clinic operated for charity and not for profit, including use in the compounding of bona fide medicines for treatment outside of such clinics of patients thereof, b u t not for sale. (d) CONDITIONS OF EXEMPTIONS.—Any person permitted to obtain
alcohol tax-free, except the United States and the several States and Territories and subdivisions thereof, and the District of Columbia, shall first apply for and secure a permit to purchase the same and give the bonds prescribed under section 5304, b u t alcohol withdrawn for nonbeverage purposes for use of the United States and the several States, Territories, and subdivisions thereof, and the District of Columbia may be purchased and withdrawn subject only to such regulations as may be prescribed. SEC. 5311. IMPORTATION OF ALCOHOL FOR INDUSTRIAL PURPOSES.
Under regulations, and subject from the time of its withdrawal from customs custody to all the applicable provisions of this part, alcohol of 160 proof, or greater, may be imported into the United § 5309
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