Page:United States Statutes at Large Volume 68A.djvu/648

 608

INTERNAL REVENUE CODE OF 1964

a period not less than 4 years and without the addition of coloring or flavoring matter or any other substance than pure water and if not reduced below 80 proof; nor to blends made exclusively of two or more pure fruit brandies distilled from the same kind of fruit, aged in wood for a period not less than 2 years and without the addition of coloring or flavoring matter (other than caramel) or any other substance than pure water and if not reduced below 80 proof. Such blended whiskies and blended fruit brandies shall be exempt from tax under this subpart only when compounded under the immediate supervision of a revenue officer, in such tanks and under such conditions and supervision as the Secretary or his delegate may prescribe. Such tax shall not attach to the mixing and blending of wines, where such blending is for the sole purpose of perfecting such wines according to commercial standards. (f) ADDITION OF CARAMEL TO BRANDY.—The addition of caramel to commercial brandy a t the distillery where produced, or in the internal revenue bonded warehouse where stored, pursuant to regulations prescribed by the Secretary or his delegate, shall not be deemed to be rectification within the meaning of sections 5021, 5081, and 5082. (g) APOTHECARIES.—The taxes imposed by this subpart and by part II of this subchapter shall not be imposed on apothecaries as to wines or spirituous liquors which they use exclusively in the preparation or making up of medicines unfit for use for beverage purposes. (h) MANUFACTURERS OF CHEMICALS AND FLAVORING EXTRACTS.—

The taxes imposed by this subpart and by part II of this subchapter shall not be imposed on manufacturing chemists or flavoring-extract manufacturers for recovering tax paid alcohol or spirituous liquors from dregs or marc of percolation, or extraction, if such recovered alcohol or spirituous liquors be again used in the manufacture of medicines or flavoring extracts of the kind in the production of which originally used. (i) CROSS R E F E R E N C E S. — ,, (1) For provisions exempting industrial alcohol plants and ware'\ • • houses, see section 5306. ' > (2) For provisions exempting the blending of beverage brandies in o bonded warehouses, see section 5023. (3) For provisions exempting distilled spirits and wines rectified in customs bonded manufacturing warehouses, see section 5523. (4) For provisions exempting certain redistillation and mingling of spirits during national emergency, see section 5217(a). (5) For provisions exempting winemakers in the use or treatment of wines or wine spirits, see section 5392. (6) For provisions exempting the manufacture of volatile fruit-flavor concentrates, see section 5511. SEC. 5026. DETERMINATION AND COLLECTION OF RECTIFICATION TAX. (a)

DETERMINATION OF T A X. —

(1) GENERAL.—The taxes imposed by sections 5021 and 5022 shall be determined upon the completion of the process of rectification by such means as the Secretary or his delegate shall by regulations prescribe and with the use of such devices and apparatus (including but not limited to storage, gauging, and bottling tanks, and pipelines) as the Secretary or his delegate may require. (2) UNAUTHORIZED RECTIFICATION.—In the case of taxable rectification on premises other than an authorized rectifying plant, § 5025(e)

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