Public Law 88–653

That section 5382(b)

Wine, use of fruit-flavored concentrates.

72 Stat. 1383.

26 USC 5382.

of the Internal Revenue Code of 1954 (relating to specifically authorized types of cellar treatment of natural wine) is amended by adding at the end thereof the following new paragraph:

“(9)“(9)

The addition—

“(A)“(A)

to natural grape or berry wine of the winemaker’s own production, of volatile fruit-flavor concentrate produced from the same kind and variety of grape or berry at a plant qualified under section 5511, or

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“(B)“(B)

to natural fruit, wine (other than grape or berry) of the winemaker’s own production, of volatile fruit-flavor concentrate produced from the same kind of fruit at such a plant,

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so long as the proportion of the volatile fruit-flavor concentrate to the wine does not exceed the proportion of the volatile fruit-flavor concentrate to the original juice or must from which it was produced. The transfer of volatile fruit-flavor concentrate from a plant qualified under section 5511 to a bonded wine cellar

26 USC 5511.

and its storage and use in such a cellar shall be under such applications and bonds, and under such other requirements, as may be provided in regulations prescribed by the Secretary or his delegate”

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Sec. 2.

Section 5382 of such Code (relating to cellar treatment, of wine) is amended by adding at the end thereof the following new subsection:

“(d)“(d)

Use of Juice or Must From Which Volatile Fruit Flavor Has Been Removed.—

For purposes of this part, juice, concentrated juice, or must processed at a plant, qualified under section 5511 may he deemed to be pure juice, concentrated juice, or must even though volatile fruit flavor has been removed if, at a plant qualified under section 5511 or at the bonded wine cellar, there is added to such juice, concentrated juice, or must, or (in the case of a bonded wine cellar) to wine of the winemaker’s own production made therefrom, either the identical volatile flavor removed or—

“(1)“(1)

in the case of natural grape or berry wine of the wine-makers own production, an equivalent quantity of volatile fruit-flavor concentrate produced at such a plant and derived from the same kind and variety of grape or berry, or

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“(2)“(2)

in the case of natural fruit, wine (other than grape or berry wine) of the winemaker’s own production, an equivalent quantity of volatile fruit-flavor concentrate produced at such a plant and derived from the same kind of fruit.”

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Sec. 3.

Paragraph (2) of section 5511 of the Internal Revenue Code of 1954 (relating to establishment and operation of volatile fruit-flavor concentrate plants) is amended to read as follows:

“(2)“(2)

such concentrate is rendered unfit for use as a beverage before removal from the place of manufacture, or (in the case of a concentrate which does not exceed 24 percent alcohol by volume) such concentrate is transferred to a bonded wine cellar for use in production of natural wine as provided in section 5382; and”.

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Sec. 4.

The amendments made by the first section and sections 2

Effective date.

and 3 of this Act shall take effect on the first day of the second month which begins more than 10 days after the date on which this Act is enacted.

Sec. 5.

Sec. 6.