Page:United States Statutes at Large Volume 68A.djvu/704

 664

INTERNAL REVENUE CODE OF 1954

transit at any one time, but not less than $1,000 nor more than $50,000: Provided, That where the tax on such wine and on such wine spirits exceeds $250,000, the penal sum of the bond shall be not more than $100,000: And provided further, That where additional liability arises as a result of deferral of payment of tax payable on any return, the Secretary or his delegate may require the proprietor to file a supplemental bond in such amount as may be necessary to protect the revenue. The liability of any person on any such bond shall apply whether the transaction or operation on which the liability of the proprietor is based occurred on or off the proprietor's premises, SEC. 5355. GENERAL PROVISIONS RELATING TO BONDS.

The provisions of section 5551 (relating to bonds) shall be applicable to the bonds required under section 5354. SEC. 5356. APPLICATION.

The application required by this part shall disclose, as regulations issued by the Secretary or his delegate shall provide, such information as may be necessary to enable the Secretary or his delegate to determine the location and extent of the premises, the type of operations to be conducted on such premises, and whether the operations will be in conformity with law and regulations. SEC. 5357. PREMISES.

Bonded wine cellar premises, including noncontiguous portions thereof, shall be so located, constructed and equipped, as to afford adequate protection to the revenue, as regulations prescribed by the Secretary or his delegate may provide. PART II—OPERATIONS Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec.

5361. 5362. 5363. 5364. 5365. 5366. 5367. 5368. 5369. 5370. 5371. 5372. 5373.

Bonded wine cellar operations. Removals of wine from bonded premises. Taxpaid wine bottling house operations. Standard wine premises. Segregation of operations. Supervision. Records. Gauging, marking, and stamping. Inventories. Losses. Insurance coverage. Sampling. Wine spirits.

SEC. 5361. BONDED WINE CELLAR OPERATIONS.

In addition to the operations described in section 5351, the proprietor of a bonded wine cellar may, subject to regulations prescribed by the Secretary or his delegate, on such premises receive unmerchantable taxpaid wine for return to bond, reconditioning, or destruction; prepare for market and store commercial fruit products and byproducts not taxable as wines; produce or receive distilling material or vinegar stock; produce or receive heavy bodied blending wines, Spanish-type blending sherries, and similar wine products made from fruit, with or without added wine spirits, and without added sugar, subject to tax as wine but not for sale or consumption as beverage wine; and such other operations as may be conducted in a manner that will not jeopardize the revenue or conflict with wine operations. § 5354

�