Internal Revenue Code:Sec. 5171. Establishment

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
       CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
        Subchapter B - Qualification Requirements for Distilled Spirits
              Plants
       

Statute

    Sec. 5171. Establishment
 
    (a) Certain operations may be conducted only on bonded premises
      Except as otherwise provided by law, operations as a distiller,
    warehouseman, or processor may be conducted only on the bonded
    premises of a distilled spirits plant by a person who is qualified
    under this subchapter.
    (b) Establishment of distilled spirits plant
      A distilled spirits plant may be established only by a person who
    intends to conduct at such plant operations as a distiller, as a
    warehouseman, or as both.
    (c) Registration
      (1) In general
        Each person shall, before commencing operations at a distilled
      spirits plant (and at such other times as the Secretary may by
      regulations prescribe), make application to the Secretary for,
      and receive notice of, the registration of such plant.
      (2) Application required where new operations are added
        No operation in addition to those set forth in the application
      made pursuant to paragraph (1) may be conducted at a distilled
      spirits plant until the person has made application to the
      Secretary for, and received notice of, the registration of such
      additional operation.
      (3) Secretary may establish minimum capacity and level of
          activity requirements
        The Secretary may by regulations prescribe for each type of
      operation minimum capacity and level of activity requirements for
      qualifying premises as a distilled spirits plant.
      (4) Applicant must comply with law and regulations
        No plant (or additional operation) shall be registered under
      this section until the applicant has complied with the
      requirements of law and regulations in relation to the
      qualification of such plant (or additional operation).
    (d) Permits
      (1) Requirements
        Each person required to file an application for registration
      under subsection (c) whose distilled spirits operations (or any
      part thereof) are not required to be covered by a basic permit
      under the Federal Alcohol Administration Act (27 U.S.C. secs. 203
      and 204) shall, before commencing the operations (or part
      thereof) not so covered, apply for and obtain a permit under this
      subsection from the Secretary to engage in such operations (or
      part thereof).  Subsections (b), (c), (d), (e), (f), (g), and (h)
      of section 5271 are hereby made applicable to persons filing
      applications and permits required by or issued under this
      subsection.
      (2) Exceptions for agencies of a State or political subdivisions
        Paragraph (1) shall not apply to any agency of a State or
      political subdivision thereof or to any officer or employee of
      any such agency, and no such agency, officer, or employee shall
      be required to obtain a permit thereunder.
    (e) Cross references
          (1) For penalty for failure of a distiller or processor to
        file application for registration as required by this section,
        see section 5601(a)(2).
          (2) For penalty for the filing of a false application by a
        distiller, warehouseman, or processor of distilled spirits, see
        section 5601(a)(3).
 

Sources

    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1349; amended Pub. L. 94-455, title XIX, Sec. 1905(a)(13),
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1820, 1834; Pub. L. 96-39,
    title VIII, Sec. 805(a), July 26, 1979, 93 Stat. 274.)
 

References in Text

                             REFERENCES IN TEXT
      The Federal Alcohol Administration Act, referred to in subsec.
    (d)(1), is act Aug. 29, 1935, ch. 814, 49 Stat. 977, as amended,
    which is classified generally to subchapter I (Sec. 201 et seq.) of
    chapter 8 of Title 27, Intoxicating Liquors. The basic permit is
    covered by sections 203 and 204 of Title 27. For complete
    classification of this Act to the Code, see section 201 of Title 27
    and Tables.
 

Miscellaneous

                              PRIOR PROVISIONS
      A prior section 5171, act Aug. 16, 1954, ch. 736, 68A Stat. 627,
    related to ''premises prohibited for distilling'', prior to the
    general revision of this chapter by Pub. L. 85-859. See sections
    5178(a)(1)(B), (b), (c)(2), and 5505(b) of this title.
      Provisions similar to those comprising subsecs. (a), (b)(1) and
    (c) of this section were contained in prior sections of act Aug.
    16, 1954, prior to the general revision of this chapter by Pub. L.
    85-859, as follows:
 
    ---------------------------------------------------------------------
    Present subsecs.:                  Prior sections
    ---------------------------------------------------------------------
    (a)                                5172, 5175(a), 5177(a), 5178,
                                        5231, 5243(a), 5271(a), 5301-
                                       5303, 5305, 5331(a)(1).
    (b)(1)                             5301-5303, 5304(a)(1).
    (c)                                5175(b), 5271(b).
                     -------------------------------
      The prior sections, act Aug. 16, 1954, ch. 736, are set out in
    68A Stat. 627 to 631, 643, 645, 650, 654, 655.
                                 AMENDMENTS
      1979 - Subsecs. (a), (b). Pub. L. 96-39 added subsecs. (a) and
    (b) and redesignated former subsecs. (a) and (b) as (c) and (d),
    respectively.
      Subsec. (c). Pub. L. 96-39 redesignated former subsec. (a) as (c)
    and inserted provisions relating to an application requirement
    where new operations are added and permitting the Secretary to
    establish minimum capacity and level of activity requirements.
    Former subsec. (c) redesignated (e).
      Subsec. (d). Pub. L. 96-39 redesignated former subsec. (b) as (d)
    and substituted reference to subsection (c) for reference to
    subsection (a) and struck out reference to section 5274.
      Subsec. (e). Pub. L. 96-39 redesignated former subsec. (c) as (e)
    and substituted reference to processor for reference to rectifier
    and reference to warehouseman for reference to bonded warehouseman
    and struck out reference to bottler.
      1976 - Subsec. (b)(1). Pub. L. 94-455, Sec. 1905(a)(13)(A),
    1906(b)(13)(A), struck out ''49 Stat. 978;'' before ''27 U.S.C.
    203, 204'' in parenthetical provisions after ''Federal Alcohol
    Administration Act'' and struck out ''or his delegate'' after
    ''Secretary''.
      Subsec. (b)(3). Pub. L. 94-455, Sec. 1905(a)(13)(B), struck out
    par. (3) under which persons who were qualified on June 30, 1959,
    to perform operations for which a permit was required covering
    operations not required to be covered by a basic permit under the
    Federal Alcohol Administration Act had been allowed to continue
    operations pending a reasonable opportunity to make application for
    a permit.
                      EFFECTIVE DATE OF 1979 AMENDMENT
      Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
    810 of Pub. L. 96-39, set out as a note under section 5001 of this
    title.
                      EFFECTIVE DATE OF 1976 AMENDMENT
      Amendment by section 1905(a)(13) of Pub. L. 94-455 effective on
    first day of first month which begins more than 90 days after Oct.
    4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note
    under section 5005 of this title.
                               EFFECTIVE DATE
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.
             TRANSITIONAL RULES RELATING TO ALL-IN-BOND METHOD
      Section 809(a), (b) of Pub. L. 96-39, as amended by Pub. L.
    99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
      ''(a) New Application Required. -
        ''(1) In general. - For purposes of section 5171 of the
      Internal Revenue Code of 1986 (formerly I.R.C. 1954) (relating to
      establishment of distilled spirits plants), each person who
      intends to continue any distilled spirits operation at a premises
      after December 31, 1979, shall be treated as intending to
      establish a distilled spirits plant on such premises on January
      1, 1980.
        ''(2) Current registration to remain in effect. -
      Notwithstanding paragraph (1), the registration of any person
      under section 5171 of the Internal Revenue Code of 1986 which is
      in effect on December 31, 1979, shall remain in effect until
      final action on the application required by paragraph (1).
      ''(b) Continuing Operations at Existing Premises. - With respect
    to any operation which was permitted to be conducted on May 1,
    1979, at premises which were registered on such date under section
    5171 of the Internal Revenue Code of 1986, the determination of
    whether such premises qualify for registration under such section
    as a distilled spirits plant shall be made without regard to
    whether or not -
        ''(1) the person engaged in operations at such premises is
      registered under such section with respect to such premises as a
      distiller or warehouseman, and
        ''(2) such premises meet the minimum capacity and level of
      activity requirements for that type of operation.''
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 5172, 5178, 5601, 5681 of
    this title.