Page:United States Statutes at Large Volume 68A.djvu/636

 596

INTERNAL REVENUE CODE OF 1954

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an internal revenue tax at the rate of $10.50 on each proof gallon or wine gallon when below proof and a proportionate tax at a like rate on all fractional parts of such proof or wine gallon. On and after April 1, 1955, the rate of tax imposed by this paragraph shall be $9 in lieu of $10.50. (2) PRODUCTS CONTAINING DISTILLED SPIRITS.—All products of distillation, by whatever name known, which contain distilled spirits or alcohol, on which the tax imposed by law has not been paid, shall be considered and taxed as distilled spirits. (3) IMPORTED PERFUMES CONTAINING DISTILLED SPIRITS.—There

is hereby imposed on all perfumes imported into the United States containing distilled spirits a tax of $10.50 per wine gallon, and a proportionate tax at a like rate on all fractional parts of such wine gallon. On and after April 1, 1955, the rate of tax imposed by this paragraph shall be $9 in lieu of $10.50. (4) ALCOHOLIC

COMPOUNDS

FROM

PUERTO

RICO

AND

VIRGIN

ISLANDS.—

(A) P U E R TO RICO.—Except as provided in section 5318, upon bay rum, or any article containing alcohol, brought from Puerto Rico into the United States for consumption or sale there is hereby imposed a tax on the spirits contained therein at the rate imposed on distilled spirits produced in the United States. (B)

VIRGIN ISLANDS.—

For provisions relating to tax on alcoholic compounds from the Virgin Islands, see section 7652(b)(1). (5) W I N E S CONTAINING MORE THAN 24 PERCENT ABSOLUTE ALCO-

HOL.—Wines containing more than 24 percent of absolute alcohol by volume shall be taxed as distilled spirits. (6)

DENATURED ALCOHOL, DENATURED RUM OR ARTICLES.—Any

person who produces, withdraws, sells, transports, or uses, denatured alcohol, denatured rum, or articles in violation of laws or regulations now or hereafter in force pertaining thereto, and all such denatured alcohol, denatured rum, or articles shall be subject to all provisions of law pertaining to alcohol that is not denatured, including those requiring the payment of tax thereon; and the person so producing, withdrawing, selling, transporting, or using the denatured alcohol, denatured rum, or articles shall be required to pay such tax. (7) F R U I T FLAVOR CONCENTRATES.—If any volatile fruit-flavor concentrate (or any fruit mash or juice from which such concentrate is produced) containing one-half of 1 percent or more of alcohol by volume, which is manufactured free from tax under section 5511, is sold, transported, or used by any person in violation of the provisions of this chapter or regulations promulgated thereunder, such person and such concentrate, mash, or juice shall be subject to all provisions of this chapter pertaining to distilled spirits and wines, including those requiring the payment of tax thereon; and the person so selling, transporting, or using such concentrate, mash, or juice shall be required to pay such tax. (8) IMPORTED ALCOHOL WITHDRAWN FOR BEVERAGE PURPOSES.—

On all alcohol imported under section 5311 without payment of the internal revenue tax, and withdrawn for beverage purposes, there shall be paid on such withdrawal an additional tax equal to § 5001(a)(1)

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