Page:United States Statutes at Large Volume 81.djvu/209

 81 STAT.]

PUBLIC LAW 90-73-AUG. 29, 1967

175

Public Law 90-73 AN ACT To provide for the withdrawal of wine from bonded wine cellars without payment of tax when rendered unfit for beverage use, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) section 5362. of the Internal Revenue Code of 1954 (relating to removal of wine from bonded wine cellars) is amended by adding at the end thereof the following new subsection:

August 29, 1967 [H. R. 1282]

Taxes. Wine unfit for beverage u s e, taxfree withdrawal. 72 Stat. 1380. 26 USC 5362.

" (d) WITHDRAWAL FREE or TAX OF W I N E AND W I N E PRODUCTS U N F I T FOR BEVERAGE USE.—Under such regulations as the Secretary or his

delegate may deem necessary to protect the revenue, wine, or wine products made from w'ine, when rendered unfit for beverage use, on which the tax has not been paid or determined, may be withdrawn from bonded wine cellars free of tax. The wine or wine products to be so withdrawn may be treated with methods or materials -which render such wine or wine products suitable for their intended use. No wine or w4ne products so withdrawn shall contain more than 21 percent of alcohol by volume, or be used in the compounding of distilled spirits or Avine for beverage use or in the manufacture of any product intended to be used in such compounding." (b) The amendment made by subsection (a) shall become effective on the first day of the first month which begins 90 days or more after the date of the enactment of this Act. SEC. 2. (a) Section 4918(b) of the Internal Revenue Code of 1954 is amended by adding at the end thereof the following new paragraph: " (3) CERTAIN ACQUISITIONS BY DEALERS.—For purposes of paragraph (1), if the person acquiring the stock or debt obligation is a participating firm acting for its own account and if such participating firm would be entitled to issue a written confirmation referred to in paragraph (1)(B) if it were acting as a broker in effecting such acquisition for the account of a customer, such participating firm shall be treated as having received a written confirmation referred to in paragraph (1)(B) with respect to such acquisition." (b) Section 4918(e) of such Code is amended— (1) by striking out so much of the text of such section as precedes paragraph (1) and inserting in lieu thereof "A participating firm selling, or effecting the sale of, stock of a foreign issuer or a debt obligation of a foreign obligor may issue a written comparison or broker-dealer confirmation, which indicates the exemption for prior American ownership and compliance provided in subsection (a) applies to the acquisition of such stock or debt obligation, only if such participating firm (or another participating firm for which the sale is t^ing effected) has in its possession (except in the case of a sale by a participating firm selling for its own account and in the case of a sale for another participating firm or a participating custodian to which paragraph (4) applies) a statement, upon which such participating finn (or such other participating firm) relies in gooli faith, executed under penalty of perjury by the person making the sale, establishing that such person is a United States person and is the owner of all stock of foreign issuers and debt obligations of foreign obligors carried in the records of such participating firm (or such other participating firm) for the account of such person; and such participating firm (or such other participating firm) either—"; (2) by inserting after "July 14, 1967" in paragraph (^2) the following: ", acquired such stock or debt obligation for its own 85-622 0-68—14

Effective date.

Interest e q u a l i zation tax, prior American ownership, exemption. Ante, p. 149.

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