Tax Deferral via In-Bond Transfers

§ 5362. Removals of wine from bonded wine cellars(a) Withdrawals on determination of taxWine may be withdrawn from bonded wine cellars on payment or determination of the tax thereon, under such regulations as the Secretary shall prescribe. (b) Transfers of wine between bonded premises(1) In generalWine on which the tax has not been paid or determined may, under such regulations as the Secretary shall prescribe, be transferred in bond between bonded premises. (2) Wine transferred to a distilled spirits plant may not be removed for consumption or sale as wineAny wine transferred to the bonded premises of a distilled spirits plant—(A) may be used in the manufacture of a distilled spirits product, and (B) may not be removed from such bonded premises for consumption or sale as wine. (3) Continued liability for taxThe liability for tax on wine transferred to the bonded premises of a distilled spirits plant pursuant to paragraph (1) shall (except as otherwise provided by law) continue until the wine is used in a distilled spirits product. (4) Transfer in bond not treated as removal for consumption or saleFor purposes of this chapter, the removal of wine for transfer in bond between bonded premises shall not be treated as a removal for consumption or sale. (5) Bonded premisesFor purposes of this subsection, the term “bonded premises” means a bonded wine cellar or the bonded premises of a distilled spirits plant. (c) Withdrawals of wine free of tax or without payment of taxWine on which the tax has not been paid or determined may, under such regulations and bonds as the Secretary may deem necessary to protect the revenue, be withdrawn from bonded wine cellars—(1) without payment of tax for export by the proprietor or by any authorized exporter; (2) without payment of tax for transfer to any foreign-trade 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 customs bonded 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 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.