Page:United States Statutes at Large Volume 68A.djvu/702

 662

INTERNAL REVENUE CODE OF 1954

under the direction of an authorized Government officer, after withdrawal from the distillery warehouse, with methyl alcohol or other denaturing material or materials, or admixture of the same, suitable to the use for which the alcohol is withdrawn, b u t which destroys its character as a beverage and renders it unfit for liquid medicinal purposes; such denaturing to be done on the application of any registered distillery in denaturing bonded warehouses specially designated or set apart for denaturing purposes only, and under conditions prescribed by the Secretary or his delegate. (2) DENATURING MATERIALS.—The character and quantity of

such denaturing material and the conditions under which such alcohol may be withdrawn free of tax shall be prescribed by the Secretary or his delegate, who shall make all necessary regulations for carrying into effect the provisions of this section. (3) RECORDS.^—Distillers, manufacturers, dealers, and all other persons furnishing, handling, or using alcohol withdrawn from bond under this section shall keep such books and records, execute such bonds, and render such returns as the Secretary or his delegate may by regulations require. Such books and records shall be open at all times to the inspection of any internal revenue officer or agent. (b) FOR U S E IN MANUFACTURE OF CHEMICALS.—Notwithstanding

anything contained in subsection (a), domestic alcohol when suitably denatured may be withdrawn from bond without the payment of internal revenue tax and used in the manufacture of ether and chloroform and other definite chemical substances where said alcohol is changed into some other chemical substance and does not appear in the finished product as alcohol. (c) WITHDRAWAL OF RUM.^—Rum of not less than 150 degrees proof may be withdrawn, for denaturation only, in accordance with subsection (a). SEC. 5332. RECOVERY OF SPIRITS FOR REUSE IN MANUFACTURING.

Manufacturers employing processes in which alcohol or rum, used free of tax under section 5331, is expressed or evaporated from the articles manufactured, shall be permitted to recover such alcohol or rum and to have such alcohol or rum restored to a condition suitable solely for reuse in manufacturing processes under such regulations as the Secretary or his delegate may prescribe. SEC. 5333. SALE OF ABANDONED SPIRITS FOR DENATURATION WITHOUT COLLECTION OF TAX.

Notwithstanding any other provision of law, any distilled spirits abandoned to the United States may be sold, in such cases as the Secretary or his delegate may by regulation provide, to the proprietor of any industrial alcohol plant for denaturation, or redistillation and denaturation, without the payment of the internal revenue tax thereon. SEC. 5334. CROSS REFERENCES. (1) For penalty for unlawful use or concealment of denatured alcohol, see section 5647. (2) For applicability of all provisions of law relating to alcohol that is not denatured, including those requiring payment of tax, to denatured alcohol, denatured rum or articles produced, withdrawn, sold, transported, or used in violation of law or regulations, see section 5001(a)(6).

§ 5331(a)(1)

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