(b) Time for determining and allowing credit
(1) In generalThe credit allowable by subsection (a)—
(B)
shall be allowable at the time the tax imposed by
section 5001 (or 7652) on such
distilled spirits is payable as if the credit allowable by this section constituted a reduction in the rate of tax.
(2) Determination of content in the case of imports
For purposes of this section, the wine content, and the flavors content, of imported distilled spirits shall be established by such chemical analysis, certification, or other methods as may be set forth in regulations prescribed by the Secretary.
(c) DefinitionsFor purposes of this section—
(1) Wine content
(B) WineThe term “wine”—
(ii)
does not include any substance which has been subject to distillation at a
distilled spirits plant after receipt in bond.
(2) Flavors content
(A) In general
Except as provided in subparagraph (B), the term “flavors content” means alcohol derived from flavors of a type for which drawback is allowable under section 5114.
(B) ExceptionsThe term “flavors content” does not include—
(iii)
in the case of any
distilled spirits product, alcohol derived from flavors to the extent such alcohol exceeds (on a
proof gallon basis) 2½ percent of the finished product.
(Added
Pub. L. 96–598, § 6(a),
Dec. 24, 1980,
94 Stat. 3488; amended
Pub. L. 98–369, div. A, title I, § 27(a)(2),
July 18, 1984,
98 Stat. 507;
Pub. L. 100–647, title V, § 5063(a),
Nov. 10, 1988,
102 Stat. 3681;
Pub. L. 101–508, title XI, § 11201(a)(2),
Nov. 5, 1990,
104 Stat. 1388–415;
Pub. L. 109–59, title XI, § 11125(b)(14),
Aug. 10, 2005,
119 Stat. 1956.)
Prior Provisions
A prior section 5010, act Aug. 16, 1954, ch. 736, 68A Stat. 603, related to miscellaneous stamp provisions, prior to the general revision of this chapter by Pub. L. 85–859.
Amendments
2005—Subsec. (c)(2)(A). Pub. L. 109–59 substituted “section 5114” for “section 5134”.
1990—Subsec. (a)(1), (2). Pub. L. 101–508 substituted “$13.50” for “$12.50”.
1988—Subsec. (c)(2)(B). Pub. L. 100–647 added cl. (ii) and redesignated former cl. (ii) as (iii).
1984—Subsec. (a)(1), (2). Pub. L. 98–369 substituted “$12.50” for “$10.50”.
Effective Date
Pub. L. 96–598, § 6(c), Dec. 24, 1980, 94 Stat. 3489, provided that:
“The amendments made by subsections (a) and (b) [enacting this section] shall take effect on January 1, 1980.”
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