CH. 51—DISTILLED SPIRITS, WINES, AND BEER SEC. 5371. INSURANCE
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COVERAGE.
Any remission, abatement, refund, or credit of, or other relief from, taxes on wines or wine spirits authorized by law shall be allowed only to the extent that the claimant is not indemnified or recompensed for the tax. SEC. 5372. SAMPLING.
Under regulations prescribed by the Secretary or his delegate, wine may be utilized in any bonded wine cellar for testing, tasting, or sampling, free of tax. SEC. 5373. WINE SPIRITS.
(a) IN GENERAL.—The wine spirits authorized for use in wine production shall include spirits or brandy produced from the distilling material authorized for use in fruit distillery operations under section 5215, but shall not be reduced with water from distillation proof, nor be distilled, unless regulations otherwise provide, at less than 140 degrees proof: Provided, That commercial brandy aged in wood for a period of not less than 2 years and barreled at not less than 100 degrees proof shall be deemed wine spirits for the purpose of this subsection. (b) WITHDRAWAL OF W I N E SPIRITS.—
(1) The proprietor of any bonded wine cellar may withdraw and receive wine spirits without payment of tax from any registered fruit distillery or internal revenue bonded warehouse, or from any bonded wine cellar as provided in paragraph (2), for use in the production of natural wine, for addition to concentrated or unconcentrated juice for use in wine production, or for such other uses as may be authorized in this subchapter. (2) Wine spirits so withdrawn, and not used in wine production • or as otherwise authorized in this subchapter, may, as provided by regulations prescribed by the Secretary or his delegate, be transferred to any internal revenue bonded warehouse or bonded wine cellar, or may be tax paid and removed as provided by law. (3) On such use, transfer, or taxpayment, the Secretary or his delegate shall credit the proprietor with the amount of wine spirits so used or transferred or taxpaid and, in addition, with such portion of wine spirits so withdrawn, as may have been lost either in transit or on the bonded wine cellar premises, to the extent allowable under section 5011(a). Where the proprietor has used wine spirits in actual wine production but in violation of the requirements of this subchapter, the Secretary or his delegate shall also extend such credit to the wine spirits so used if the proprietor satisfactorily shows that such wine spirits were not knowingly used in violation of law. (4) Suitable samples of brandy or wine spirits may, under regulations prescribed by the Secretary or his delegate, be withdrawn free of tax from any registered fruit distillery, internal revenue bonded warehouse, bonded wine cellar, or authorized experimental premises, for analysis or testing.
§ 5373(b)(4)
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