Page:United States Statutes at Large Volume 68A.djvu/718

 678

INTERNAL REVENUE CODE OF 19 54

PART III—MANUFACTURING BONDED WAREHOUSES Sec. 5521. Establishment and operation. Sec. 5522. Withdrawal of distilled spirits to manufacturing bonded warehouse. Sec. 5523. Special provisions relating to distilled spirits and wines rectified in manufacturing bonded warehouses. SEC. 5521. ESTABLISHMENT AND OPERATION.

(a) ESTABLISHMENT.—All medicines, preparations, compositions, perfumery, cosmetics, cordials, and other liquors manufactured wholly or in part of domestic spirits, intended for exportation, as provided by law, in order to be manufactured and sold or removed, without being charged with duty and without having a stamp affixed thereto, shall, under such regulations as the Secretary or his delegate may prescribe, be made and manufactured in warehouses similarly constructed to those known and designated in Treasury regulations as bonded warehouses, class six: Provided, That such manufacturer shall first give satisfactory bonds to the Secretary or his delegate for the faithful observance of all the provisions of law and the regulations as aforesaid, in amount not less than half of that required by the regulations of the Secretary or his delegate from persons allowed bonded warehouses. (b) SUPERVISION.—All labor performed and services rendered under this section shall be under the supervision of an officer of the customs, and at the expense of the manufacturer. (c) MATERIALS FOR M A N U F ACT U R E. — (1) EXPORTABLE FREE OF TAX.—Any manufacturer of the articles

specified in subsection (a), or of any of them, having such bonded warehouse, shall be a t liberty, under such regulations as the Secretary or his delegate may prescribe, to convey therein any materials to be used in such manufacture which are allowed by the provisions of law to be exported free from tax or duty, as well as the necessary materials, implements, packages, vessels, brands, and labels for the preparation, putting up, and export of such manufactured articles; and every article so used shall be exempt from the payment of stamp and excise duty by such manufacturer. Articles and materials so to be used may be transferred from any bonded warehouse under such regulations as the Secretary or his delegate may prescribe, into any bonded warehouse in which such manufacture may be conducted, and may be used in such manufacture, and when so used shall be exempt from stamp and excise d u t y; and the receipt of the officer in charge shall be received as a voucher for the manufacture of such articles. (2) IMPORTED MATERIALS.—Any materials imported into the United States may, under such regulations as the Secretary or his delegate may prescribe, and under the direction of the proper officer, be removed in original packages from on shipboard, or from the bonded warehouse in which the same may be, into the bonded warehouse in which such manufacture may be carried on, for the purpose of being used in such manufacture, without payment of duties thereon, and may there be used in such manufacture. No article so removed, nor any article manufactured in said bonded warehouse, shall be taken therefrom except for exportation, under the direction §5621

�