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PUBLIC LAW 86-869-SEPT. 2, 1968
[72 S T A T.
"SEC. 5361. BONDED WINE CELLAR OPERATIONS. " I n addition to the operations described in section 5351, the proprietor of a bonded wine cellar may, subject to regulations prescribed by the Secretary or his delegate, on such premises receive unmerchantable taxpaid wine for return to bond, reconditioning, or destruction; prepare for market and store commercial fruit products and by-products not taxable as wines j produce or receive distilling material or vinegar stock; produce (with or without added wine spirits, and without added sugar) or receive on standard wine premises only, subject to tax as wine but not for sale or consumption as beverage wme, (1) heavy bodied blending wines and Spanish-type blending sherries, and (2) other wine products made from natural wine for nonbeverage purposes; and such other operations as may be conducted in a manner that will not jeopardize the revenue or conflict with wine operations. "SEC. 5362. REMOVALS OF WINE FROM BONDED WINE CELLARS. "(a)
WITHDRAWALS ON DETERMINATION or
TAX.—Wine may
be
withdrawn from bonded wine cellars on payment or determination of the tax thereon, under such regulations as the Secretary or his delegate shall prescribe. "(b)
TRANSFERS OF W I N E BETWEEN BONDED W I N E CELLARS.—Wine
on which the internal revenue tax has not been paid or determined may, under such regulations as the Secretary or his delegate shall prescribe, be transferred in bond between bonded wine cellars. For the purposes of this chapter, the removal of wine for transfer in bond tDetween bonded wine cellars shall not be construed to be a removal for consumption or sale. "(c)
WITHDRAWALS OF W I N E FREE OF T A X OR W I T H O U T PAYMENT
OF TAX.—^^¥ine on which the tax has not been paid or determined may, under such regulations and bonds as the Secretary or his delegate may deem necessary to protect the revenue, be withdrawn from bonded wine cellars— "(1) without payment of tax for export by the proprietor or by any authorized exporter; "(2) without payment of tax for transfer to any foreigntrade zone; "(3) without payment of tax for use of certain vessels and aircraft as authorized by law; "(4) without payment of tax for transfer to any class 6 customs manufacturing warehouse; "(5) without payment of tax for use in the production of vinegar; "(6) without payment of tax for use in distillation in any distilled spirits plant authorized to produce distilled spirits; "(7) free of tax for experimental or research purposes by any scientific university, college of learning, or institution of scientific research; " (8) free of tax for use by or for the account of the proprietor or his agents for analysis or testing, organoleptic or otherwise; and "(9) free of tax for use by the United States or any agency thereof, and for use for analysis, testing, research, or experimentation by the governments of the several States and Territories and the District of Columbia or of any political subdivision thereof or by any agency of such governments. No bond shall be required of any such government or agency under this paragraph.
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