72 S T A T. ]
PUBLIC LAW 85-859-SEPT. 2, 1958
SEC. 206. EXTENSION OF BONDING PERIOD. (a) Section 5006(a)(2) is amended to read as follows: "(2)
DISTILLED SPIRITS DEPOSITED IN INTERNAL REVENUE BONDED
WAREHOUSES.—The tax on distilled spirits entered for deposit in internal revenue bonded warehouses shall be determined at the time the same are withdrawn therefrom and within 8 or 20 years from the date of original entry for deposit therein, whichever may be required by the bond covering; such spirits (except that distilled spirits which on July 26, 1936, were 8 years of age or older and which were in bonded warehouses on that date, may remain therein)." (b) Section 5232(a) is amended to read as follows: " (a) GENERAL.—The Secretary or his delegate shall, by regulations, prescribe the form and penal sums of bonds covering distilled spirits in internal revenue bonded warehouses and in transit to and between such warehouses: Provided, That the penal sums of such bonds covering distilled spirits shall not exceed in the aggregate $200,000 for each such warehouse. Such bonds shall be conditioned (1) on the withdrawal of the spirits from the internal revenue bonded warehouse within 20 years (or, in the discretion of the person or persons furnishing any bond, within 8 years) from the date of original entry for deposit; (2) on payment of the tax on the spirits as determined on withdrawal from the internal revenue bonded warehouse; and (3) on compliance with all provisions of law and regulations relating to the business of warehousing distilled spirits." (c) The last sentence of section 5243(b) (relating to bottling requirements of certain distilled spirits known commercially as gin) is amended by striking out "at any time within 8 years after entry in bond". (d) Section 5005(d)(1) (relating to persons liable for tax) is amended to read as follows: "(I) For provisions relating to bonds covering distilled spirits in internal revenue bonded warehouses and in transit to and between such warehouses, see section 5232(a)." (e) Section 5242(b)(5) (relating to deposit of spirits in warehouses) is amended to read as follows: "(5) For provisions requiring in certain cases that distilled spirits entered for deposit in internal revenue bonded warehouses be withdrawn within 8 years from date of entry for deposit, see section 5006(a)." (f)(1) The amendments made by this section shall apply with respect to: (A) distilled spirits which on the date of the enactment of this Act are in internal revenue bonded warehouses or are in transit to or between such warehouses, and in respect of which the 8-year bonding period has not expired before the date of enactment of this Act; and (B) distilled spirits which after the date of the enactment of this Act are entered for deposit in an internal revenue bonded warehouse. (2) If the 8 years from the date of original entry of any distilled spirits for deposit in internal revenue bonded warehouses expires at any time during the 10-day period which begins on the date of the enactment of this Act, the amendments made by this section shall apply with respect to such spirits if (and only if) before the close of such 10-day period there is filed with the Secretary of the Treasury or his delegate either— (A) a consent of surety which changes (for periods on and after the date of the enactment of this Act) the condition based
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