Public Law 74–830

Section 1.

This Act may be cited as the “Liquor Tax Administration

Citation of title.

Act”.

Sec. 2.

Sec. 3.

Section 1 of the Act entitled “An Act to provide punishment for killing or assaulting Federal officers”, approved May 18, 1934, as amended, is amended by striking out the words “any officer

Provisions extended to include employee, agent, etc.

Vol. 48, p. 780.

U. S. C., p. 739.

of the Customs Service or of the Internal Revenue Service”, and inserting in lieu thereof the words “any officer, employee, agent, or other person in the service of the customs or of the internal revenue”.

Sec. 4.

Notwithstanding any provisions of law relating to the return on bond of any vessel or vehicle seized for the violation of any law of the United States, the court having jurisdiction of the subject matter, may, in its discretion and upon good cause shown by the United States, refuse to order such return of any such vessel or vehicle to the claimant thereof.

Sec. 5.

Section 201.

Section 3287 of the Revised Statutes, as amended (U. S. C., 1934 ed., title 26, sec. 1231), is amended to read as follows:

“Sec. 3287.

(a)(a)

Except as provided in section 602 of the Revenue Act of 1918, as amended, all distilled spirits shall be drawn from receiving cisterns into casks or packages and thereupon shall be gauged, proved, and marked by a storekeeper-gauger, and immediately

Regulations for drawing off, gauging, etc., to be prescribed.

removed into an Internal Revenue Bonded Warehouse. The Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, is hereby empowered to .prescribe all necessary regulations relating to the drawing off, gauging, and packaging of

Marking, branding, etc., and transfer and storage of, in bonded warehouses.

distilled spirits; the marking, branding, numbering, and stamping of such packages; and the transfer and transportation to, and the storage of such spirits in, Internal Revenue Bonded Warehouses.

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“(b)“(b)

Upon the application of the distiller and under such regulations as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may prescribe, distilled spirits may be drawn into wooden packages, each containing two or more metallic cans, which cans shall each have a capacity of not less than five gallons, wine measure. Such packages shall be filled and used only for exportation from the United States. And there shall be charged for each of said packages or cases for the expense of providing and affixing stamps, 5 cents.

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“(c)“(c)

The Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may, by regulations, prescribe the standards of fill of casks or packages of distilled spirits at each distillery.

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“(d)“(d)

The Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may, by regulations, from time to time, require a distiller, at his expense and under the immediate personal supervision of a storekeeper-gauger, to do such marking and branding and such mechanical labor pertaining to gauging required under this section as the Commissioner deems proper and determines may be done without danger to the revenue.”

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Sec. 202.

Section 3295 of the Revised Statutes, as amended

R. S., sec. 3295, p.637.

U. S. C., p. 1156.

(U. S. C., 1934 ed., title 26, sec. 1236), is further amended to read as follows:

“Sec. 3295.

(a)(a)

Whenever an application is received for

Gauging, branding, and stamping spirits before removal from warehouse.

the removal from any Internal Revenue Bonded Warehouse of any cask or package of distilled spirits on which the tax has been paid, the storekeepergauger shall gauge and inspect the same, and shall, before such cask or package has left the warehouse, place upon such package such marks, brands, and stamps as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall

Erasure of marks, etc., when cask emptied.

by regulations prescribe, which marks, brands, and stamps shall be erased when such cask or package is emptied.

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“(b)“(b)

The Commissioner of Internal Revenue, with the approval

Marking and branding by distiller.

of the Secretary of the Treasury, may, by regulations, from time to time, require any distiller, at his expense and under the immediate personal supervision of a storekeeper-gauger, to do such marking and branding and such mechanical labor pertaining to gauging required under this section as the Commissioner deems proper and determines may be done without danger to the revenue.”

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Sec. 203.

Section 3290 of the Revised Statutes (U. S. C., 1934 ed.,

R. S., sec. 3290, p. 636.

U. S. C., p. 1212.

title 26, sec. 1811 (a) ) is amended to read as follows:

“Sec. 3290.

Whenever any storekeepergauger employs any owner,

Storekeeper-gauger employing distiller, etc., to use his brands, or discharge his duties.

agent, or superintendent of any distillery or Internal Revenue Bonded Warehouse, or any person in the service, of such owner, agent, or superintendent, or any rectifier or wholesale liquor dealer, or any person in the service of such rectifier or wholesale liquor dealer, to use his brands or to discharge any of the duties imposed upon him by law, he shall, for each offense so committed, be subject

Penalty.

to a fine of not more than $1,000. This section shall not apply in

Liability removed if directed by Commissioner.

any case in which the use of the storekeepergauger’s brand or the discharge of his duties by another has been directed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, under authority of law.”

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Section 301.

Sec. 302.

Section 3264 of the Revised Statutes, as amended

R. S., sec. 3264, p. 630.

U. S. C., p. 1147.

(U. S. C., 1934 ed., title 26, sec. 1168), is further amended by adding at the end thereof the following new paragraph:

“The Secretary of the Treasury in the case of any distillery may,

Waiver of survey requirements in certain cases.

under regulations, waive such of the requirements of this section as he determines may be waived without danger to the revenue. Whenever the Secretary of the Treasury, by authority of this paragraph, waives any or all of the requirements of this section, he may, by regulation, relieve the distiller from such requirements of sections

R. S., secs. 3285, 3309–3311, pp. 1150–1151.

Vol. 20, p. 340; Vol. 21, p. 147.

U. S. C., p. 1151.

3285, 3309, 3310, and 3311 of the Revised Statutes, as amended, and of section 6 of the Act of March 1, 1879, as amended (U. S. C., 1934 ed., title 26, sec. 1198), and of such other provisions of law relating or incidental to survey requirements, as the Secretary deter-mines may be waived without danger to the revenue.”

Sec. 303.

Section 3260 of the Revised Statutes, as amended

R. S., sec. 3260, p. 629.

U. S. C., p. 1146.

(U. S. C., 1934 ed., title 26, sec. 1165), is further amended by adding at the end thereof the following new paragraph:

“Whenever, under authority of law, the Secretary of the Treasury

Amount of distiller’s bond when relieved from survey requirements.

shall relieve a distiller from the survey requirements of section 3264 of the Revised Statutes, as amended (U. S. C., 1934 ed., title 26, sec. 1168), he may likewise by regulation fix the penal sum of the distiller’s bond, but in no case shall the amount of the minimum bond be less than $5,000 nor the amount of the maximum bond greater than $100,000.”

Sec. 304.

Section 3267 of the Revised Statutes (U. S. C., 1934 ed.,

R. S., sec. 3267, p. 630.

U. S. C., p. 1147.

title 26, sec. 1171), is amended by adding a new paragraph at the end thereof, to read as follows:

“Whenever, under authority of law, the Secretary of the Treasury

Receiving cisterns in distilleries.

shall relieve a distiller from the survey requirements, he may, by regulation, require the distiller to provide such receiving cisterns, tanks, or such other equipment as the Secretary shall deem proper in order to protect the revenue.”

Sec. 305.

Section 67 of the Act of August 27, 1894 (28 Stat. 568),

Vol. 28. p. 568.

U. S. C., p. 1146.

(U. S. C., 1934 ed., title 26, sec. 1166 (c)), is amended to read as follows:

“Sec. 67.

(a)(a)

No individual, firm, partnership, corporation, or

Approval of bonds before commencing or continuing business.

association, intending to commence or to continue the business of a distiller, rectifier, brewer, or winemaker, shall commence or continue the business of a distiller, rectifier, brewer, or winemaker until all bonds in respect of such a business, required by any provision of law, have been approved by the Commissioner of Internal Revenue or such other officer of the Bureau of Internal Revenue as the Commissioner, with the approval of the Secretary of the Treasury, may designate.

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“(b)“(b)

The Commissioner or the designated officer may disapprove

Disapproval of bonds for causes specified.

any such bond or bonds if the individual, firm, partnership, corporation, or association giving the same, or owning, controlling, or actively participating in the management of the business of the individual or firm, partnership, corporation, or association giving the same, shall have been previously convicted, in a court of competent jurisdiction, of (1) any fraudulent noncompliance with any

Fraudulent noncompliance with internal revenue, etc., taxation.

provision of any law of the United States if such provision related to internal-revenue or customs taxation of distilled spirits, wines, or fermented malt liquors, or if such an offense shall have been compromised with the individual, firm, partnership, corporation, or

Felony under prohibition, etc., laws.

association upon payment of penalties or otherwise, or (2) any felony under a law of any State, Territory, or the District of Columbia, or the United States, prohibiting the manufacture, sale, importation, or transportation of distilled spirits, wine, fermented malt liquor, or other intoxicating liquor.

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“(c)“(c)

In case the disapproval is by any officer other than the Commissioner, the individual, firm, partnership, corporation, or association giving the bond may appeal from such disapproval to the Commissioner.

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“(d)“(d)

The disapproval of the Commissioner in any matter under this section shall be final.”

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Sec. 306.

Sec. 307.

Sec. 308.

The first paragraph of section 602 of the Revenue Act of 1918, approved February 24, 1919, is amended to read as follows:

“Sec. 602.

Subject to the provisions of existing law, spirits produced at registered distilleries and reduced in the receiving cisterns in such distilleries to not more than one hundred and fifty-nine degrees of proof and not less than one hundred degrees of proof,

Transfers by pipe lines to storage tanks in warehouses.

may be transferred, by means of pipe lines, direct to storage tanks in the Internal Revenue Bonded Warehouse located on the bonded premises where produced and be warehoused in such storage tanks,

Drawing into approved containers for storage in warehouse.

Taxpaid in approved containers in cistern rooms.

or they may be drawn into approved containers and transferred to any Internal Revenue Bonded Warehouse for storage therein, or they may be taxpaid in such approved containers in such cistern rooms, without being entered into an Internal Revenue Bonded Warehouse. Such spirits may be drawn into approved containers from storage tanks in Internal Revenue Bonded Warehouse located on the bonded premises of the distillery either for storage in bond

Transportation in approved containers, for leverage use.

or tax payment. Such spirits, upon tax payment, may be transported in approved containers for use for beverage purposes only. The Commissioner of Internal Revenue, with the approval of the

Regulations to be prescribed.

Secretary of the Treasury, is hereby empowered to prescribe all necessary regulations relating to the drawing off, transferring, gauging, storing, and transportation of such spirits; the records to be kept and returns to be made; the size and kind of containers to be used; the marking, branding, numbering, and stamping of such containers; the kind of stamps, if any, to be used; and the kind of bond and the penal sum thereof.”

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Sec. 309.

Section 3293 of the Revised Statutes, as amended (U. S.

R. S., sec. 3293, p. 637.

U. S. C., p. 1156.

C., 1934 ed., title 2G, sec. 1232), is amended to read as follows:

“Sec. 3293.

(a)(a)

The distillers of all spirits removed to an Internal

Entry of spirits for deposit in warehouse.

Revenue Bonded Warehouse shall enter the same for deposit in such warehouse, under such regulations as the Commissioner of Internal Revenue may prescribe. Said entry shall be in such form as the

Form.

Commissioner shall prescribe.

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“(b)“(b)

The tax on all distilled spirits hereafter entered for deposit

Tax on spirits entered for deposit.

in Internal Revenue Bonded Warehouses shall be due and payable before and at the time the same are withdrawn therefrom and within eight years from the date of the original entry for deposit therein; and warehousing bonds hereafter taken under the provisions of the

Warehousing bonds.

internal revenue laws shall be conditioned for the payment of the tax on the spirits as specified in the entry before withdrawal from the Internal Revenue Bonded Warehouse, and within eight years from the date of said entry. The Commissioner shall prescribe the

Form and amount.

form and penal sums of bonds covering

Proviso.

Maximum.

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.

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“(c)“(c)

A new bond shall be required in case of the death, insolvency,

New bond upon death, etc., of sureties.

or removal of the surety or sureties, and may be required in any other contingency affecting its validity or impairing its efficiency, at the discretion of the Commissioner of Internal Revenue. And in

Penalty for failure to give bond, etc.

case the warehouseman fails or refuses to give the bond required, or to renew the same, or neglects to immediately withdraw the spirits and pay the tax thereon, or if he neglects to withdraw any bonded spirits and pay the tax thereon before the expiration of the time limited in the bond, the collector shall proceed to collect the tax by distraint, issuing his warrant of distraint for the amount of tax found to be due, as ascertained by him from the report of the storekeeper-gauger if no bond was given, or from the terms of the bond if a bond was given. But this provision shall not exclude any other

Other proceedings.

remedy or proceeding provided by law.

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“(d)“(d)

If it shall appear at any time that there has been a loss

Loss of spirits other than by accident.

of distilled spirits from any cask or other package deposited in an Internal Revenue Bonded Warehouse, other than the loss provided for in section 3221 of the Revised Statutes, as amended, which, in

R. S., sec. 3221, p. 619.

U. S. C., p. 1161.

the opinion of the Commissioner of Internal Revenue, is excessive, he may instruct the District Supervisor of the district in which the loss has occurred to require the withdrawal from warehouse of such distilled spirits, and direct the Collector of Internal Revenue to collect the tax accrued upon the original quantity of distilled spirits entered into the warehouse in such cask or package, notwithstanding that the time specified in any bond given for the withdrawal of the spirits entered into warehouse in such cask or package has not expired. If the said tax is not paid on demand, the collector shall

Assessment and collection of tax if not paid on demand.

report the amount due upon his next monthly list, and it shall be assessed and collected as other taxes are assessed and collected.”

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Sec. 310.

Section 3302 of the Revised Statutes (U. S. C., 1934 ed.,

R. S., sec. 3302. p. 639.

U. S. C., p. 1155.

title 26, sec. 1229) is amended to read as follows:

“Sec. 3302.

The storekeepergauger assigned to any distillery shall,

Records to be kept by storekeeper-gaugers.

in addition to all other duties required to be performed by him, keeprecords of the receipt and use of substances brought into said distillery, or on said premises, to be used for the purpose of producing spirits, and of all spirits drawn off from the receiving cistern, and the time when the same were drawn off, in such form as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall, by regulations, prescribe.”

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Sec. 311.

Section 3303 of the Revised Statutes (U. S. C., 1934 ed., title 26, sec. 1192 (a) ) is amended to read as follows:

“Sec. 3303.

Every person who makes or distills spirits, or owns any still, boiler, or other vessel used for the purpose of distilling spirits, or who has such still, boiler, or other vessel so used under his superintendence, either as agent or owner, or who uses any such still, boiler, or other vessel, shall keep a record, in the form and manner prescribed by the Commissioner of Internal Revenue, of the receipt on the distillery premises, and the use thereon, of materials intended for use in the distillation of spirits, and of the number of gallons of spirits distilled, the number of gallons placed in the warehouse, and the proof thereof, the number of gallons sold or removed, with the proof thereof, and the name, place of business, and residence of the person to whom sold.”

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Sec. 312.

Section 3331 of the Revised Statutes (U. S. C., 1934 ed., title 26, sec. 1203) is hereby amended to read as follows:

“Sec. 3331.

Any distillery or distilling apparatus seized for any violation of law may, in the discretion of the court, be released before final judgment to a receiver appointed by the court to operate

Bond by receiver.

such distillery or apparatus. Such receiver shall give bond, which shall be approved in open court, with two or more competent personal sureties, or one approved corporate surety, for the full appraised value of all the property seized, to be ascertained by three

Impounding of funds.

competent appraisers designated and appointed by the court. Funds obtained from such operation shall be impounded as the court shall direct pending such final judgment.”

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Sec. 313.

Sec. 314.

Sec. 315.

Section 3335 of the Revised Statutes (U. S. C., 1934 ed.,

R. S., sec. 3335, p. 650.

U. S. C., p. 1168.

title 26, sec. 1334 (a)) is amended to read as follows:

“Sec. 3335.

Every brewer shall, before commencing or continuing

Notice by brewer before commencing business; information required.

business, file with the officer designated for that purpose by the Commissioner of Internal Revenue a notice in writing and in the form prescribed by the Commissioner, with the approval of the Secretary of the Treasury. Such notice shall set forth (a) the name and residence of the brewer, and the names and residences of all such persons interested or to be interested in the business, directly or indirectly, as the Commissioner shall prescribe, (b) the precise place where the business is to be carried on, including a description of the premises on which the brewery is situated, the title of the brewer to the premises, and the name of the owner thereof, and (c) such additional particulars as the Commissioner shall prescribe as necessary for the protection of the revenue.”

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Sec. 316.

Section 3336 of the Revised Statutes, as amended (U. S. C., 1934 ed., title 26, sec. 1334 (b)), is further amended to read as follows:

“Sec. 3336.

Every brewer, on filing notice as provided by law of his intention to commence or continue business, shall execute a bond to the United States in such penal sum, in proportion to the production capacity of the plant, as the Secretary of the Treasury shall by regulations prescribe, but in no event shall such sum be less

Conditions.

than $1,000. The bond shall be conditioned that the brewer shall pay, or cause to be paid, as herein provided, the tax required by law on all beer, lager beer, ale, porter, and other fermented liquors made by or for him, before the same is sold or removed for consumption or sale, except as hereinafter provided; and that he shall keep, or cause to be kept, in the manner required by law, a book which shall be open to inspection by the proper officers, as by law required; and that he shall in all respects faithfully comply, without fraud or evasion, with all requirements of law relating to the manufacture

Renewals.

and sale of any malt liquors aforesaid. Once in every four years, or whenever required so to do by the Secretary of the Treasury, or such officer as may be designated by the Secretary of the Treasury, the brewer shall execute a new bond in the penal sum fixed in this section or prescribed in pursuance of this section, and conditioned as above provided, which bond shall be in lieu of any former bond or bonds of such brewer in respect to all liabilities accruing after its approval.”

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Sec. 317.

Section 3340 of the Revised Statutes, as amended (U. S. C., 1934 ed., title 26, sec. 1337 (a)), is amended to read as follows:

“Sec. 3340.

(a)(a)

Every owner, agent, or superintendent of any brewery, vessels, or utensils used in making fermented liquors, who evades or attempts to evade the payment of the tax thereon, or fraudulently neglects or refuses to make true and exact entry and report of the same in the manner required by law, or to do, or cause to be done, any of the things by law required to be done by him, or who intentionally makes false entry in said book or in said statement, or knowingly allows or procures the same to be done, shall—

“(1)“(1)

forfeit, for every such offense, all the liquors made by him or for him, and all the vessels, utensils, and apparatus used in making the same, and

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“(2)“(2)

be liable to a penalty of not less than $500 nor more than $1,000, to be recovered with costs of suit, and shall be deemed guilty of a misdemeanor, and be imprisoned for a term not exceeding one year.

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“(b)“(b)

Every brewer who neglects to keep books or refuses to furnish the account and duplicate thereof as provided by law, or refuses to permit the proper officer to examine the books in the

Penalty.

manner provided, shall, for every such refusal or neglect, forfeit and pay the sum of $300.

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“(c)“(c)

For flagrant and willful removal of taxable malt liquors for consumption or sale, without payment of tax thereon, all the right, title, and interest of each person, who has knowingly suffered or permitted such removal or has connived at the same, in the lands and buildings constituting the brewery premises and bottling house shall be forfeited by a proceeding in rem in the District Court of the United States having jurisdiction thereof.

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“(d)“(d)

The brewery premises shall consist of the land and buildings described in the brewer’s notice and shall be used solely for the purposes of manufacturing beer, lager beer, ale, porter, and similar fermented malt liquors, cereal beverages containing less than one-half of 1 per centum of alcohol by volume, vitamins, ice, malt, and malt syrup; of drying spent grain from the brewery; of recovering carbon dioxide and yeast; and of storing bottles, packages, and supplies necessary or incidental to all such manufacture. The brewery

Bottling house; use restricted.

bottling house shall be used solely for the purposes of bottling beer, lager beer, ale, porter, and similar fermented malt liquors, and cereal beverages containing less than one-half of 1 per centum of alcohol by volume. Notwithstanding the foregoing provisions,

Established breweries used for other purposes.

where any such brewery premises or brewery bottling house is, on the date of the enactment of the Liquor Tax Administration Act, being used by any brewer for purposes other than those herein described, or the brewery bottling house is, on such date, being used for the bottling of soft drinks, the use of the brewery and bottling house premises for such purposes may be continued by such brewer. The brewery bottling house of any brewery shall not be

Bottling products of another brewery.

Penalty for violation.

used for the bottling of the product of any other brewery. Any brewer who uses his brewery or bottling house contrary to the provisions of this subsection shall be fined not more than $50 with respect to each day upon which any such use occurs.”

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Sec. 318.

The Secretary of the Treasury may, by regulations,

Amelioration of wine, etc., without supervision; regulations for.

authorize the amelioration of wine by the winemaker and the fortification of wine, without supervision by any officer of the United States, whenever he determines that such authorization may be made without danger to the revenue.

Sec. 319.

Sec. 320.

Section 609 of the Revenue. Act of 1918 (26 U. S. C.,

Vol. 40, p. 1109.

Removal of fermented liquors to industrial alcohol plant.

sec. 515) is amended by striking out the words “industrial distillery of either class established under the Act entitled ‘An Act to reduce tariff duties and to provide a revenue for the Government, and for other purposes’, approved October 3, 1913”, and substituting therefor the words “industrial alcohol plant”.

Sec. 321.

Each retail liquor dealer shall provide at his own

Retail liquor dealers to keep records, etc.

expense, and keep in his place of business, a record in book form, or shall keep all invoices of, and bills

Open to official inspection.

for, all distilled spirits, wines, and fermented malt liquors received, the quantity thereof, and from whom and the date when received. Such

Retention for two years.

records, invoices, and bills shall be open to inspection during the usual business hours of the retailer by Government officers upon identification and request. Such records, invoices, and bills shall be kept for a period of two years after the time of the transactions to which they relate. For each

Penalty for violation.

willful violation of the provisions hereof the retailer shall be subject to a fine of $25.

Sec. 322.

Section 3237 of the Revised Statutes, as amended

R. S., sec. 3237, p.621.

U. S. C., p. 1179.

(U. S. C., 1934 ed., title 26, secs. 1402 (b) and 1403), is amended to read as follows:

(a)(a)

All special taxes shall become due on the 1st day

When special taxes become due.

of July in each year, or on commencing any trade or business on which such tax is imposed. In the former case the tax shall be reckoned for one year, and in the latter case it shall be reckoned proportionately, from the 1st day of the month in which the liability to a special tax commenced, to and including the 30th day of June following.

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“(b)“(b)

It shall be the duty of the special taxpayers to render their

Time for rendering returns.

returns with remittances to the collector at such times within the calendar month in which the special tax liability commenced as shall enable him to receive such returns, duly signed and verified, together with the remittances, not later than the last day of the month, except

Exceptions.

R. S., sec. 3176, p.610.

U. S. C., p. 1191.

in cases of sickness or absence, as provided for in section 3176 of the Revised Statutes, as amended.”

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Sec. 323.

Paragraph “Fourth” of section 3244 of the Revised Statutes,

R. S., sec. 3244, p. 622.

U. S. C., pp. 1177, 1178.

as amended (U. S. C., 1934 ed., title 26. sec. 1394 (a) and (b) (1), and sec. 1398 (a) and (b)), is amended to read as follows:

“Fourth.,

(a)(a)

Retail dealers in liquors shall pay a special tax of

Retail dealers in liquors. special tax.

Term construed.

$25. Every person who sells, or offers for sale, foreign or domestic distilled spirits, wines, or malt liquors, otherwise than as hereinafter provided, in less quantities than five wine-gallons to the same person at the same time, shall be regarded as a retail dealer in liquors: Provided, That the Commissioner of Internal Revenue may, by regulations,

Provisos.

Special stamp to denote imyment.

with the approval of the Secretary of the Treasury, provide for the issuance of a stamp denoting payment of such special tax as a ‘retail dealer in wines’ or a ‘retail dealer in wines and malt liquors’ if, as the case may be, wines only, or wines and malt liquors only, are sold by a retail dealer in liquors: And provided further, That the

“Medicinal spirits stamp tax.”

tax required to be paid by this paragraph shall, in case of a retail drug store or pharmacy making sales of liquors through a duly licensed pharmacist, be designated as a ‘medicinal spirits stamp tax’: And provided further, That any retail dealer in liquors or retail

“At Large” stamps.

dealer in malt liquors whose business is such as to require him to travel from place to place in different States of the United States may, under regulations prescribed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, procure a special-tax stamp ‘At Large’ covering his activities throughout the United States with the payment of but one special tax as a retail dealer in liquors or as a retail dealer in malt liquors, as the case may be.

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“(b)“(b)

Wholesale dealers in liquors shall pay a special tax of $100. Every person who sells, or offers for sale, foreign or domestic distilled spirits, wines, or malt liquors, otherwise than as hereinafter provided, in quantities of five wine-gallons or more to the same jerson at the same time, shall be regarded as a wholesale dealer in

Proviso.

Special stamp to denote payment.

liquors: Provided, That the Commissioner of Internal Revenue may, by regulations, with the approval of the Secretary of the Treasury, provide for the issuance of a stamp denoting payment of such special tax as a ‘wholesale dealer in wines’ or a ‘wholesale dealer in wines and malt liquors’ if, as the case may be, wines only, or wines

Restrictions.

and malt liquors only, are sold by a wholesale dealer in liquors. A qualified wholesale dealer in liquors may not sell distilled spirits, wines, or malt liquors in quantities of less than five wine-gallons without incurring liability to special tax as a retail dealer in liquors. A qualified retail dealer in liquors may not sell such liquors in quantities of five wine-gallons or more to the same person at the same time without incurring liability to special tax as a wholesale dealer in

Bonded distiller selling own production.

liquors. But no distiller who has given the required bond and who sells only distilled spirits of his own production at the place of manufacture, or at the place of storage in bond, in the original packages to which the tax-paid stamps are affixed, shall be required to pay the special tax of a wholesale dealer in liquors on account of such sales.

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“(c)“(c)

No retail dealer in liquors shall be held to be a wholesale dealer in liquors solely by reason of sales of five wine-gallons or more to the same person at the same time if such sales are for immediate consumption on the premises where sold.

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“(d)“(d)

No wholesale or retail dealer in liquors who has paid the special tax as such a dealer shall again be required to pay special tax as such dealer on account of sales of beer, lager beer, ale, porter, or other similar fermented malt liquor to wholesale or retail dealers in liquors or wholesale or retail dealers in malt liquors consummated at the purchaser’s place of business covered by the stamp issued to him to denote the payment of the special tax imposed upon such dealers.”

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Sec. 324.

Paragraph “Fifth” of section 3244 of the Revised Statutes, as amended (U. S. C., 1934 ed., title 26, secs. 1394 (d), 1394 (e) (1) and (2), 1396, and 1398 (d) and (e)), is amended to read as follows:

“Fifth,

(a)(a)

Retail dealers in malt liquors shall pay a special tax of $20. Every person who sells, or offers for sale, malt liquors in less quantities than five gallons to the same person at the same time, and does not deal in distilled spirits or wines, shall be regarded as a retail dealer in malt liquors.

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“(b)“(b)

Wholesale dealers in malt liquors shall pay a special tax of $50. Every person who sells, or offers for sale, malt liquors in quantities of five gallons or more, to the same person at the same time, and who does not deal in distilled spirits or wines at wholesale,

Restrictions.

shall be regarded as a wholesale dealer in malt liquors. A qualified wholesale dealer in malt liquors may not sell such liquors in quantities of less than five gallons without incurring liability to special tax as a retail dealer in malt liquors. A qualified retail dealer in malt liquors may not sell such liquors in quantities of five gallons or more to the same person at the same time without incurring liability to special tax as a wholesale dealer in malt liquors:

Proviso.

Brewer selling own product in original stamped barrels.

Provided, That no brewer shall be obliged to pay special tax as a dealer by reason of selling in the original stamped hogsheads, barrels, or kegs, whether at the place of manufacture or elsewhere, malt liquors manufactured by him or purchased and procured by him in his own hogsheads, barrels, or kegs, under the provisions of section

R. S., sec. 3349, p. 654.

U. S. C., p. 1169.

3349 of the Revised Statutes, as amended, but the quantity of malt liquors so purchased shall be included in calculating the liability to brewers’ special tax of both the brewer who manufactures and sells the same and the brewer who purchases the same.

#

“(c)“(c)

No collection of special tax as a retail dealer in malt liquors

Brewer selling own product in original stamped package.

shall be made from brewers for selling malt liquors of their own manufacture in the original stamped eighth-barrel packages.

#

“(d)“(d)

No special tax shall be held to accrue on a sale of distilled

Special tax exemptions.

spirits, wines, or malt liquors made by a person who is not otherwise a dealer in liquors, where such spirits, wines, or liquors have been received by the person so selling as security for or in payment of a debt, or as executor, administrator, or other fiduciary, or have been levied on by any officer, under order or process of any court or magistrate, and where such spirits are sold by such person in one parcel only, or at public auction in parcels not less than twenty wine-gallons, nor shall such tax be held to accrue on a sale made by a retiring partner, or the representatives of a deceased partner to the incoming, remaining, or surviving partner or partners of a firm. Nor shall the special tax of a wholesale dealer in liquors or wholesale

Retail dealer selling entire stock, etc.

dealer in malt liquors be held to apply to a retail dealer in liquors or a retail dealer in malt liquors, because of such retail dealer selling out his entire stock of liquors in one parcel, or in parcels embracing not less than his entire stock of distilled spirits, of wines, or of malt liquors. Section 3319 of the Revised Statutes shall not

R. S., sec. 3319, p. 644.

U. S. C., p. 1153.

be held to prohibit a rectifier or liquor dealer from purchasing, in quantities greater than twenty wine-gallons, the distilled spirits sold in one parcel as aforesaid.

#

“(e)“(e)

No retail dealer in malt liquors shall be held to be a wholesale

Retail dealer in malt liquors not deemed wholesale dealer by reason of certain quantity sales.

dealer in malt liquors solely by reason of sales of five gallons or more to the same person at the same time if such sales are for immediate consumption on the premises where sold.

#

“(f)“(f)

No wholesale or retail dealer in malt liquors who has paid

Malt liquor sales consummated at purchaser’s place of business.

the special tax as such a dealer shall again be required to pay special tax as such dealer on account of sales of beer, lager beer, ale, porter, or other similar fermented malt liquor to wholesale or retail dealers in liquors or wholesale or retail dealers in malt liquors consummated at the purchaser’s place of business covered by the stamp issued to him to denote the payment of the special tax imposed upon such dealers.

#

“(g)“(g)

Notwithstanding the foregoing provisions of this section,

Sales at fairs, etc , by persons not regularly engaged in business as dealer.

each person making sales of fermented malt liquor to the members, guests, or patrons of bonafide fairs, reunions, picnics, carnivals, or other similar outings, and each fraternal, civic, church, labor, charitable, benevolent, or ex-service men’s organization making sales of fermented malt liquor on the occasion of any kind of entertainment, dance, picnic, bazaar, or festival, held by it, if such person or organization is not otherwise engaged in business as a dealer in malt liquors, shall pay, before any such sales are made and in lieu of the special tax imposed by subdivision (a) of this paragraph, a special tax

Tax imposed.

of $2 as a retail dealer in malt liquors, for each calendar month in which any such sales are made.”

#

#

Sec. 325.

Section 3450 of the Revised Statutes (U. S. C., 1934 ed.,

R. S., sec. 3450, p. 682.

U. S. C., p. 1182.

Removing or concealing with attempt to defraud.

title 26, sec. 1441) is hereby reenacted and amended by striking out “fine or penalty of not more than $500” appearing at the end of the second sentence thereof, and inserting in lieu thereof the words “fine of not more

Penalty.

than $5,000 or be imprisoned for not more than three years, or both”.

Sec. 326.

Section 203 of the Liquor Taxing Act of 1934 is amended by adding a new paragraph at the end thereof, as follows:

“The Commissioner of Internal Revenue, under regulations approved by the Secretary of the Treasury, may issue new stamps in exchange for any unused stamps issued under this Act that have been spoiled by fire or water, or rendered useless by erroneous overprinting

Refunds.

or cutting; or may refund the value of any unused stamps for which the lawful owner has no use due to the discontinuance or

Provisos.

Minimum quantity.

transfer of his business: Provided, That stamps may be exchanged, or the value thereof refunded, only in quantities of the value of $5

Time limit for claim forexchange or refund.

or more: And provided further, That no claim for the exchange of such stamps or refund therefor shall be allowed unless presented within one year after the date on which such stamps were purchased, or, in the case of any such stamps so spoiled or rendered useless or for which the lawful owner had no use due to the discontinuance or transfer of his business prior to the date of the enactment of the Liquor Tax Administration Act, within one year after such date.

Annual appropriation authorized.

There are hereby authorized to be appropriated annually, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary to carry out the provisions of this paragraph.”

Sec. 327.

Sec. 328.

Section 3246 of the Revised Statutes, as amended (U. S. C., 1934 ed., title 26, sec. 1394 (g), (h), and (i)), is amended to read as follows:

“Sec. 3246.

(a)(a)

Nothing in this chapter shall be construed to impose a special tax upon winemakers who have qualified as such under the internal-revenue laws and regulations, and who sell wines of their own production where the same are made or at the general business

Proviso.

Place of sale.

office of such winemaker: Provided, That no winemaker shall have more than one place of business for the sale of such wine that shall be exempt from the special tax.

#

“(b)“(b)

No special tax shall be imposed upon apothecaries as to wines

Apothecaries; wines, etc., used in medicines.

or spirituous liquors which they use exclusively in the preparation or making up of medicines unfit for use for beverage purposes.

#

“(c)“(c)

No special tax shall be imposed upon manufacturing chemists

Manufacturing chemists and flavoring-extract manufacturers, recovery of alcohol, etc., by.

or flavoring-extract manufacturers for recovering tax-paid alcohol or spirituous liquors from dregs or marc of percolation, or extraction, if such recovered alcohol or spirituous liquors be again used in the manufacture of medicines or flavoring extracts of the kind in the production of which originally used.”

#

#

Sec. 329.

Sec. 330.

The last paragraph of section 610 of the Revenue Act of

Ante, p. 987.

U. S. C., Supp. I, p. 185.

1918, as amended (U. S. C., 1934 ed., Supp. I, title 26, sec. 1310 (d) ), is amended to read as follows:

“The provisions of the internal-revenue laws applicable to natural

Provisions applicable to natural wme ex-tended.

wine shall apply in the same manner and to the same extent to citrus-fruit wines, peach wines, cherry wines, berry wines, apricot wines, and apple wines, which are the products, respectively, of normal alcoholic fermentation of the juice of sound ripe (1) citrus-fruit (except lemons and limes), (2) peaches, (3) cherries, (4) berries, (5) apricots, or (6) apples, with or without the addition of dry cane, beet, or dextrose sugar (containing, respectively, not less than 95 per centum of actual sugar, calculated on a dry basis) for the purpose of perfecting the product according to standards, but without the addition or abstraction of other substances, except as may occur in the usual cellar treatment of clarifying or aging.”

Sec. 331.

Section 612 of the Revenue Act of 1918, as amended

Ante, p. 988.

U. S. C., Supp. I, p. 184.

(U. S. C., 1934 ed., Supp. I, title 26, sec. 1301) is amended to read as follows:

“Sec. 612.

(a)(a)

Under such regulations and official supervision

Fortification of wines, withdrawing grape brandy or wine spirits for.

Provisions extended.

and upon the giving of such notices and entries as the Commissioner, with the approval of the Secretary, may prescribe, any producer of wines defined under the provisions of this title may withdraw from any fruit distillery or Internal Revenue Bonded Warehouse grape brandy, or wine spirits, for the fortification of such wines on the premises where actually made, and any producer of citrus-fruit wines, peach wines, cherry wines, berry wines, apricot wines, or apple wines may similarly withdraw citrus-fruit brandy, peach brandy, cherry brandy, berry brandy, apricot brandy, or apple brandy for the fortification, respectively, of citrus-fruit wines, peach wines, cherry wines, berry wines, apricot wines, or apple wines,

Provisos.

Tax imposed.

on the premises where actually made: Provided, That after the date of the enactment of the Liquor Tax Administration Act there shall be levied and assessed against the producer of such wines or citrus-fruit wines, peach wines, cherry wines, berry wines, apricot wines, or apple wines (in lieu of the internal-revenue tax now imposed thereon by law) a tax of 10 cents per proof-gallon of grape brandy, citrus-fruit brandy, peach brandy, cherry brandy, berry brandy, apricot brandy, apple brandy, or wine spirits, whenever withdrawn and so used by him after such date in the fortification of such wines or citrus-fruit wines or peach wines, cherry wines, berry wines, apricot wines, or apple wines during the preceding month, which assessment shall be paid by him within eighteen

Bond.

months from the date of notice thereof: Provided, That every producer of wine who withdraws such brandy, citrus-fruit brandy, peach brandy, cherry brandy, berry brandy, apricot brandy, apple brandy, or wine spirits shall give bond to fully cover at all times prior to payment of the assessment the amount of tax due on such brandy, citrus-fruit brandy, peach brandy, cherry brandy, berry brandy, apricot brandy, apple brandy, or wine spirits, which bond shall be in such form as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall, by regulations,

Tax abated or refunded when wines destroyed, etc.

prescribe. When such wines are destroyed or sold or removed for the manufacture of vinegar, or the production of dealcoholized wines containing less than one-half of 1 per centum of alcohol by volume, the tax under this section on such grape brandy, citrus-fruit brandy, peach brandy, cherry brandy, berry brandy, apricot brandy, apple brandy, or wine spirits shall, under such regulations as the Secretary may prescribe, be abated or refunded.

#

“(b)“(b)

Nothing contained in this section shall be construed as exempting any wines, citrus-fruit wines, peach wines, cherry wines, berry wines, apricot wines, apple wines, cordials, liqueurs, or similar compounds from the payment of any tax provided for in this title.

#

“(c)“(c)

Any such wines, or citrus-fruit wines, or peach wines, cherry wines, berry wines, apricotwines, apple wines, may, under such regulations as the Secretary may prescribe, be sold or removed tax free for the manufacture of vinegar, or for the production of dealcoholized wines containing less than one-half of 1 per centum of alcohol by volume.

#

“(d)“(d)

The taxes imposed by this section shall not apply to dealcoholized wines containing less than one-half of 1 per centum of alcohol by volume.”

#

#

Sec. 332.

Section 42 of the Act entitled “An Act to reduce the revenue and equalize duties on imports, and for other purposes”, approved October 1, 1890, as amended (U. S. C., 1934 ed., Supp. I, title 26, sec. 1302), is amended by inserting at the end thereof the following new paragraph:

Fortification of wines; limitation on use ot designated brandies.

“The provisions of this section and section 43 shall apply to the use of peach brandy, cherry brandy, berry brandy, apricot brandy, and apple brandy, in the preparation, respectively, of fortified peach wines, cherry wines, berry wines, apricot wines, and apple wines, in the same manner and to the same extent as such provisions apply to the use of wine spirits in the fortification of sweet wines; except that (1) no brandy other than peach brandy may be used in the fortification of peach wine and peach brandy may not be used for the fortification of any wine other than peach wine, (2) no brandy other than cherry brandy may be used in the fortification of cherry wine and cherry brandy may not be used for the fortification of any wine other than cherry wine, (3) no brandy other than berry brandy may be used in the fortification of berry wine and a berry brandy prepared from one kind of berry may not be used for the fortification of a berry wine prepared from another kind of berry or for the fortification of any wine other than berry wine, (4) no brandy other than apricot brandy may be used in the fortification of apricot wine and apricot brandy may not be used for the fortification of any wine other than apricot wine, and (5) no brandy other than apple brandy may be used in the fortification of apple wine and apple brandy may not be used for the fortification of any wine other than apple wine.”

Sec. 333.

The first proviso of section 3255 of the Revised Statutes,

R. S., sec. 3253, p. 627; Ante, p. 988.

U. S. C., Supp. I, p. 184.

Brandy distillers.

Certain exemptions of, extended.

as amended (U. S. C., 1934 ed., Supp. I, title 26, sec. 1176), is amended by inserting after “citrus-fruit wine”, wherever it appears, the words “, peach wine, cherry wine, berry wine, apricot wine, or apple wine”; and by inserting after “citrus-fruit brandy” the words “, peach brandy, cherry brandy, berry brandy, apricot brandy, or apple brandy”.

Sec. 334.

Section 618 (b) of the Revenue Act of 1918 (U. S. C.,

Vol. 40, p. 1113.

U. S. C., p. 1105.

1934 ed., title 26, sec. 1304) is amended to read as follows:

“(b)“(b)

Under regulations prescribed by the Commissioner with

Use of wines as distilling material.

the approval of the Secretary, it shall be lawful to produce grape wines, citrus-fruit wines, peach wines, cherry wines, berry wines, apricot wines, and apple wines on bonded winery premises by the usual method, and to transport and use the same, and like wines heretofore produced and now stored on bonded winery premises, as distilling material in any fruit-brandy distillery or industrial-alcohol plant.”

#

Sec. 335.

Section 620 of the Revenue Act of 1918 (U. S. C., 1934

Vol. 40, p. 1113.

U. S. C., p. 1166.

Mixing domestic wines with distilled spirits.

ed., title 26, sec. 1309) is amended by striking out the following: “or whoever rectifies, mixes, or compounds with distilled spirits any domestic wines, other than in the manufacture of liqueurs, cordials, or similar compounds,”.

Sec. 336.

The tax imposed by section 601 (c) (3) of the Revenue

Grape concentrate.

Excise tax repealed.

Vol. 47, p. 260.

Act of 1932, as amended (relating to the tax on grape concentrate, and so forth), shall not apply to any sale or importation after the date of the enactment of this Act.

Sec. 337.

The third proviso of paragraph 1798 of the Tariff Act of

Allowance for personal purchases abroad.

Liquor, etc., importations limited to one wine-gallon.

Vol. 46, p. 683.

1930 is amended to read as follows: “Provided further, That up to but not exceeding $100 in value (including distilled spirits, wines, and malt liquors aggregating not more than one winegallon) of articles acquired abroad by such residents of the United States for personal or household use or as souvenirs or curios, but not bought on commission or intended for sale, shall be admitted free of duty:”.

Sec. 338.

Section 616 of the Revenue. Act of 1918 (U. S. C., 1934

U. S. C., p. 1165.

Marks, labels, etc., to be affixed to containers.

ed., title 26, sec. 1306) is amended by striking out “and shall, prior to sale or removal for consumption, affix to each cask or vessel containing such wine such marks, labels, or stamps as the Commissioner, with the approval of the Secretary, may from time to time prescribe”, and inserting in lieu thereof “and shall, prior to sale or removal for consumption, affix to each cask, barrel, bottle, or other immediate container, and to each case or other shipping container, of such wine, such marks, labels, or stamps as the Commissioner, with the approval of the Secretaxy, may from time to time prescribe as to each”.

Section 401.

Sec. 402.

Section 313 (d) of the Tariff Act of 1930 (U. S. C., 1934 ed., title 19, sec. 1313 (d)) is amended by adding thereto the following:

Drawback, exportation of bottled distilled spirits and wines.

“Upon the exportation of bottled distilled spirits and wines manufactured or produced in the United States on which an internal-revenue tax has been paid, there shall be allowed, under regulations to be prescribed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, a drawback equal in amount to the tax found to have been paid on such bottled distilled

Proviso.

Bottled especially for export, etc.

spirits and wines: Provided, That such distilled spirits and wines have been bottled especially for export, under regulations prescribed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury.”

Sec. 403.

Section 313 (i) (3i of the Tariff Act of 1930 (U. S. C., 1934 ed., title 19, sec. 1313 (i)) is amended by striking therefrom the word “alcohol” and inserting in lieu thereof the words “distilled spirits and wines”.

Sec. 404.

Section 311 of the Tariff Act of 1930 (U. S. C., 1934 ed., title 19, sec. 1311) is amended by adding a paragraph at the end thereof, reading as follows:

Distilled spirits and wine, rectified in, etc.

“Distilled spirits and wines which are rectified in bonded manufacturing warehouses, class six, and distilled spirits which are reduced in proof and bottled in such warehouses, shall be deemed to have been manufactured within the meaning of this section, and may

Shipments in bond to Puerto Rico.

be withdrawn as hereinbefore provided, and likewise for shipment in bond to Puerto Rico, subject to the provisions of this section, and under such regulations as the Secretary of the Treasury may prescribe, there to be withdrawn for consumption or be rewarehoused

Provisos.

Collection of duties.

and subsequently withdrawn for consumption: Provided, That upon withdrawal in Puerto Rico for consumption, the duties imposed by the customs laws of the United States shall be collected on all imported merchandise (in its condition as imported) and imported containers used in the manufacture and putting tip of such spirits

Tax on spirits, etc., rectified in class six warehouses; provisions.

and wines in such warehouses: Provided further, That no internal-revenue tax shall be imposed on distilled spirits and wines rectified in class six warehouses if such distilled spirits and wines are exported or shipped in accordance with the provisions of this section, and that no person rectifying distilled spirits or wines in such warehouses shall be subject by reason of such rectification to the payment of special tax as a rectifier.”

Sec. 405.

Section 51 of the Act of August 27, 1894, as amended

Vol. 28, p. 564; Ante, p. 889.

U. S. C., p. 1160; Supp. I, p. 184.

(U. S. C., 1934 ed., title 26, sec. 1265; U. S. C., 1934 ed., Supp. I, title 26, sec. 1265), is amended to read as follows:

“Sec.

51. The Commissioner of Internal Revenue shall be, and is hereby, authorized, in his discretion, and upon the execution of such bonds as he may prescribe, to establish warehouses, to be known and designated as Internal Revenue Bonded Warehouses, to be used exclusively for the storage of spirits distilled at a registered distillery, each of which warehouses shall be in charge of a storekeeper-gauger to be appointed, assigned, transferred, and paid in the same manner as such officers for distillery warehouses have been appointed, assigned, transferred, and paid prior to the date of enactment of the Liquor Tax Administration Act. Every such warehouse shall be under the control of the District Supervisor of the Alcohol Tax Unit district in which such warehouse is located, and shall be in the joint custody of the storekeepergauger and proprietor thereof, and kept, securely locked, and shall at no time be unlocked or opened or remain open except in the presence of such storekeepergauger or other person who may be designated to act for him. No dwelling house shall be used for such a warehouse, and no door, window, or other opening shall be made or permitted in the walls of such warehouse leading into a distillery. Such warehouses shall be under such further regulations as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may prescribe.”

Sec. 406.

Sec. 407.

The distinction between distillery bonded warehouses,

Distinctions removed.

general bonded warehouses, and special bonded warehouses is hereby removed, and any warehouse for the storage of spirits distilled at a registered distillery, prior to tax-payment, shall be operated as an Internal Revenue Bonded Warehouse. The establishment, construction,

Regulations.

maintenance, and supervision of Internal Revenue Bonded Warehouses shall be under such regulations as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall prescribe.

Sec. 408.

Internal Revenue Bonded Warehouses established under

Exemptions from designated provisions of law.

authority of law shall be exempt from the provisions of those sections of law which, prior to the date of enactment of this Act have made distinctions between distillery bonded warehouses, general bonded warehouses, and special bonded warehouses, as to (1) kind of spirits to be stored therein; (2) ownership or production of distilled spirits to be stored therein; (3) ownership or proprietorship of such warehouses; (4) location and construction of such bonded warehouses; (5) entry of distilled spirits therein; (6) withdrawal of distilled spirits therefrom; (7) transfers of distilled spirits to or from one or more of such classes of bonded warehouses; or (8) any other matter; it being hereby declared to be the purpose of the

Vol. 28, p. 564.

amendment to section 51 of the Act of August 27, 1894, made by section 407 hereof, to establish the Internal Revenue Bonded Warehouse as the sole type and kind of bonded warehouse under the internal revenue laws for the storage of spirits distilled at a registered distillery on which the tax has not been paid.

Sec. 409.

Section 3296 of the Revised Statutes (U. S. C., 1934 ed., title 26, sec. 1287) is amended to read as follows:

“Sec. 3296.

Whenever any person removes, or aids or abets in the removal of, any distilled spirits on which the tax has not been paid, to a place other than the Internal Revenue Bonded Warehouse provided by law, or conceals or aids in the

Penalty.

concealment of any spirits so removed, or removes, or aids or abets in the removal of, any distilled spirits from any such warehouse authorized by law, in any manner other than is provided by law, or conceals or aids in the concealment of any spirits so removed, he shall be liable to a penalty of double the tax imposed on such distilled spirits so removed or concealed, and shall be fined not less than $200 nor more than $5,000, and imprisoned not less than three months nor more than three years.”

#

Sec. 410.

Under rules and regulations to be prescribed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, distillers may collect in locked tanks distillates containing one-half of 1 per centum or more of aldehydes or 1 per centum or more of fusel oil (heads and tails) removed in

Disposition.

the course of distillation. Such distillates containing one-half of 1 per centum or more of aldehydes or more than 1 per centum of fusel oil so collected may be removed for denaturation, under regulations prescribed by the Commissioner of Internal Revenue with the approval of the Secretary of the Treasury, or destroyed in the manner prescribed by the Commissioner of Internal Revenue, under the supervision of an internal revenue officer to be designated by the Commissioner, and when so denatured or destroyed shall not be subject to the tax imposed by law upon distilled spirits.

Sec. 411.

Section 3318 of the Revised Statutes, as amended (U. S. C., 1934 ed., title 26, secs. 1208 and 1209), is further amended to read as follows:

“Sec. 3318.

Every rectifier and wholesale liquor dealer shall keep daily, at his place of business covered by his special tax stamp, a record of distilled spirits received and disposed of by him, and shall render under oath correct transcripts and summaries of such records:

Proviso.

Keeping record where spirits received and sent out.

Provided, That the Commissioner may in his discretion require such record to be kept at the place where the spirits are actually received and sent out. The records shall be kept and the transcripts shall be rendered in such form, and under such rules and regulations as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may prescribe.

Preservation of records for four years.

“The records required to be kept under the provisions of this section and regulations issued pursuant thereto, shall be preserved for a period of four years, and during such period shall be available during business hours for inspection and the taking of abstracts therefrom by the Commissioner or any internal revenue officer.

Penal provisions.

“Every rectifier and wholesale liquor dealer who refuses or neglects to keep such records in the form prescribed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, or to make entries therein, or cancels, alters, or obliterates any entry therein (except for the purpose of correcting errors) or destroys any part of such records, or any entry therein, or makes any false entry therein, or hinders or obstructs any internal revenue officer from inspecting such records or taking any abstracts therefrom, or neglects or refuses to preserve or produce such records as required by this Act or by regulations issued pursuant thereto, shall pay a penalty of $100 and, on conviction, shall be fined not less than $100 nor more than $5,000, and be imprisoned not less than three months nor more than three years.

“Every rectifier and wholesale liquor dealer who refuses or neglects to render transcripts or summaries in the form required by the Commissioner, with the approval of the Secretary, shall, upon conviction, be fined not more than $100 for each such neglect or refusal.”

#

Sec. 412.

Section G2 of the Act of August 27, 1894 (U. S. C., 1934

Vol. 28. p. 567.

U. S. C., p. 1153.

ed., title 20, sec. 1210), is amended to read as follows:

“Sec. 62.

No distiller who has given the required bond and who

Bonded distillers selling only their own production.

Special tax of whole-sale liquor dealer not applicable.

sells only distilled spirits of his own production at the place of manufacture, or at the place of storage in bond, in the original packages to which the tax-paid stamps are affixed, shall be required to pay the special tax of a wholesale liquor dealer on account of such sales: Provided, That every distiller shall keep daily a record

Proviso.

Record to be kept; transcripts to be rendered.

of such distilled spirits disposed of by him, and shall render under oath correct transcripts and summaries of such records. The records shall be kept and the transcripts shall be rendered in such form, and under such rules and regulations as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may prescribe.

“The records required to be kept under the provisions of this

Preservation of records for four years.

section and regulations issued pursuant thereto, shall be preserved for a period of four years, and during such period shall at all times be available, during business hours, for inspection and the taking of abstracts therefrom by the Commissioner or any internal revenue officer.

“Every distiller who refuses or neglects to keep such records in

Penal provisions.

the form prescribed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, or to make entries therein, or cancels, alters, or obliterates any entry therein (except for the purpose of correcting errors) or destroys any part of such records, or any entry therein, or makes any false entry therein, or hinders or obstructs any internal revenue officer from inspecting such records or taking any abstracts therefrom, or neglects or refuses to preserve or produce such records as required by this Act or by regulations issued pursuant thereto, shall pay a penalty of $100 and, on conviction, shall be fined not less than $100 nor more than $5,000, and be imprisoned not less than three months nor more than three years.

“Every distiller who refuses or neglects to render the transcripts or summaries in the form as required by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall, upon conviction, be fined not more than $100 for each such neglect or refusal.”

#

Sec. 413.

All internal-revenue laws of the United States in regard

Continuation of designated provisions.

to the manufacture and taxation of, and traffic in, distilled spirits, wines, and malt liquors, and all penalties for violations of such laws, that were in force at the time the National Prohibition Act

Vol. 41, p. 305.

U. S. C., p. 1217.

was enacted, shall be and continue in force, except as they have been repealed or amended by Acts other than (1) Title II of the National Prohibition Act, as amended and supplemented, and (2)

Ante, p. 872.

section 1 of the Liquor Law Repeal and Enforcement Act, and except as they may be modified by, or may be inconsistent with, this Act.

Sec. 414.

Except as provided in section 329 of this Act, nothing contained in this Act shall be construed as restricting or limiting the provisions of Title III of the National Prohibition Act, as amended.

Section 501.

Sec. 502.

Sec. 503.

Sec. 504.

The unexpended balances of appropriations available for

Appropriations available.

salaries and expenses of the Federal Alcohol Administration, as a division of the Treasury Department, shall be available for salaries and expenses of the Federal Alcohol Administration, as an independent establishment of the Government, including the salaries and expenses of the members of the Federal Alcohol Administration.

Sec. 505.

The third paragraph of section 5 (e) of the Federal

Ante, pp. 982, 1152.

Alcohol Administration Act is hereby amended to read as follows:

“In order to prevent the sale or shipment or other introduction of

Certificate of label approval.

Bottling or withdrawal from customs custody of products not covered by, forbidden.

distilled spirits, wine, or malt beverages in interstate or foreign commerce, if bottled, packaged, or labeled in violation of the requirements of this subsection, (1) no bottler of distilled spirits, no producer, blender, or wholesaler of wine, or proprietor of a bonded wine store-room, and no brewer or wholesaler of malt beverages shall bottle, and (2) no person shall remove from customs custody, in bottles, for sale or any other commercial purpose, distilled spirits, wine, or malt beverages, respectively, after such date as the Administrator fixes as the earliest practicable date for the application of the provisions of this subsection to any class of such persons (but not later than August 15, 1936, in the case of distilled spirits, and December 15, 1936, in the case of wine and malt beverages, and only after thirty days’ public notice), unless, upon application to the Administrator, he has obtained and has in his possession a certificate of label approval covering the distilled spirits, wine, or malt beverages, issued by the Administrator

Proviso.

Exemptions.

in such manner and form as he shall by regulations prescribe: Provided, That any such bottler of distilled spirits, or producer, blender, or wholesaler of wine, or proprietor of a bonded wine storeroom, or brewer or wholesaler of malt beverages shall be exempt from the requirements of this subsection if, upon application to the Administrator, he shows to the satisfaction of the Administrator that the distilled spirits, wine, or malt beverages to be bottled by the applicant are not to be sold, or offered for sale, or shipped or delivered for shipment, or otherwise introduced, in interstate or foreign commerce. Officers of internal revenue are authorized and directed to withhold the release of distilled spirits from the bottling plant unless

Jurisdiction of suits to enjoin, etc., action.

such certificates have been obtained, or unless the application of the bottler for exemption has been granted by the Administrator; and customs officers are authorized and directed to withhold the release from customs custody of distilled spirits, wine, and malt beverages, unless such certificates have been obtained. The District Courts of the United States, the Supreme Court of the District of Columbia, and the United States court for any Territory shall have jurisdiction of suits to enjoin, annul, or suspend in whole or in part any final action by the Administrator upon any application under this subsection; or”.

Sec. 506.

The second proviso of section 5 (e) of the Federal Alcohol Administration Act is amended to read as follows: “Provided further, That nothing herein nor any decision, ruling, regulation or other action of any Department of the Government or official thereof shall deny the right of any person to use wholly or in part the wine names or brands Port, Sherry, Burgundy, Sauteme, Haut Sauterne, Rhine (Hock), Moselle, Chianti, Chablis, Tokay, Malaga, Madeira, Marsala, Claret, Vermouth, Barbera, Cabernet, Saint Julien, Riesling, Zinfandel, Medoc, or Cognac, or any other geographic name of foreign origin (except Champagne), upon any of the foregoing produced in the United States if of the same type and the use of such name or brand is qualified by the name of the State or other locality in the United States in which the product is produced, and, in the case of the use of such name or brand on any label or in any advertisement, if such qualification

Standards of identity, quality, etc.

is as conspicuous as such name or brand: And provided further, That except as herein expressly provided as to said names or brands, nothing in this section shall be held in any wise to affect or abridge any of the powers granted to the Federal Alcohol Administration to provide standards of identity, quality, labeling, or other regulations.”

Sec. 507.

Section 9 of the Federal Alcohol Administration Act (U. S. C., 1934 ed., Supp. I, title 27, sec. 209) is amended by adding at the end thereof the following new subsection:

“(e)“(e)

Nothing in this section shall affect the authority of the Secretary of the Treasury, under the customs or internal-revenue laws, to remit or mitigate the forfeiture, or alleged forfeiture, of such distilled spirits, wines, or malt beverages, or the authority of the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, to compromise any civil or criminal case in respect of such distilled spirits, wines, or malt beverages prior to commencement of suit thereon, or the authority of the Secretary of the Treasury to compromise any claim under the customs laws in respect of such distilled spirits, wines, or malt beverages.”

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Sec. 508.

This title, except sections 502, 505, and 507, shall take effect when a majority of the members of the Federal Alcohol Administration first appointed under the provisions of section 502 qualify and take office.