
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC5271]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
      Subtitle E--Alcohol, Tobacco, and Certain Other Excise Taxes
 
             CHAPTER 51--DISTILLED SPIRITS, WINES, AND BEER
 
            Subchapter D--Industrial Use of Distilled Spirits
 
Sec. 5271. Permits


(a) Requirements

    No person shall--
        (1) procure or use distilled spirits free of tax under the 
    provisions of section 5214(a)(2) or (3); or
        (2) procure, deal in, or use specially denatured distilled 
    spirits; or
        (3) recover specially or completely denatured distilled spirits, 
    until he has filed an application with and received a permit to do 
    so from the Secretary.

(b) Form of application and permit

    (1) The application required by subsection (a) shall be in such 
form, shall be submitted at such times, and shall contain such 
information, as the Secretary shall by regulations prescribe.
    (2) Permits under this section shall, under such regulations as the 
Secretary shall prescribe, designate and limit the acts which are 
permitted, and the place where and time when such acts may be performed. 
Such permits shall be issued in such form and under such conditions as 
the Secretary may by regulations prescribe.

(c) Disapproval of application

    Any application submitted under this section may be disapproved and 
the permit denied if the Secretary, after notice and opportunity for 
hearing, finds that--
        (1) in case of an application to withdraw and use distilled 
    spirits free of tax, the applicant is not authorized by law or 
    regulations issued pursuant thereto to withdraw or use such 
    distilled spirits; or
        (2) the applicant (including, in the case of a corporation, any 
    officer, director, or principal stockholder, and, in the case of a 
    partnership, a partner) is, by reason of his business experience, 
    financial standing, or trade connections, not likely to maintain 
    operations in compliance with this chapter; or
        (3) the applicant has failed to disclose any material 
    information required, or made any false statement as to any material 
    fact, in connection with his application; or
        (4) the premises on which it is proposed to conduct the business 
    are not adequate to protect the revenue.

(d) Changes after issuance of permit

    With respect to any change relating to the information contained in 
the application for a permit issued under this section, the Secretary 
may by regulations require the filing of written notice of such change 
and, where the change affects the terms of the permit, require the 
filing of an amended application.

(e) Suspension or revocation

    If, after notice and hearing, the Secretary finds that any person 
holding a permit issued under this section--
        (1) has not in good faith complied with the provisions of this 
    chapter or regulations issued thereunder; or
        (2) has violated the conditions of such permit; or
        (3) has made any false statement as to any material fact in his 
    application therefor; or
        (4) has failed to disclose any material information required to 
    be furnished; or
        (5) has violated or conspired to violate any law of the United 
    States relating to intoxicating liquor, or has been convicted of any 
    offense under this title punishable as a felony or of any conspiracy 
    to commit such offense; or
        (6) is, in the case of any person who has a permit under 
    subsection (a)(1) or (a)(2), by reason of his operations, no longer 
    warranted in procuring or using the distilled spirits or specially 
    denatured distilled spirits authorized by his permit; or
        (7) has, in the case of any person who has a permit under 
    subsection (a)(2), manufactured articles which do not correspond to 
    the descriptions and limitations prescribed by law and regulations; 
    or
        (8) has not engaged in any of the operations authorized by the 
    permit for a period of more than 2 years;

such permit may, in whole or in part, be revoked or be suspended for 
such period as the Secretary deems proper.

(f) Duration of permits

    Permits issued under this section, unless terminated by the terms of 
the permit, shall continue in effect until suspended or revoked as 
provided in this section, or until voluntarily surrendered.

(g) Posting of permits

    Permits issued under this section, to use distilled spirits free of 
tax, to deal in, or use specially denatured distilled spirits, or to 
recover specially or completely denatured distilled spirits, shall be 
kept posted available for inspection on the premises covered by the 
permit.

(h) Regulations

    The Secretary shall prescribe all necessary regulations relating to 
issuance, denial, suspension, or revocation, of permits under this 
section, and for the disposition of distilled spirits (including 
specially denatured distilled spirits) procured under permit pursuant to 
this section which remain unused when such permit is no longer in 
effect.

(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1370; 
amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 
Stat. 1834.)


                            Prior Provisions

    A prior section 5271, act Aug. 16, 1954, ch. 736, 68A Stat. 650, 
related to ``notice of business of rectifier'', prior to the general 
revision of this chapter by Pub. L. 85-859. See sections 5171(a), (c), 
5172, and 5178(a)(1)(A), (4)(B)-(D) of this title.
    Provisions similar to those comprising subsecs. (a) to (f) and (h) 
of this section were contained in prior section 5304(a)(1) to (4), (b), 
(c), act Aug. 16, 1954, ch. 736, 68A Stat. 655, prior to the general 
revision of this chapter by Pub. L. 85-859.


                               Amendments

    1976--Subsecs. (a) to (e), (h). Pub. L. 94-455 struck out ``or his 
delegate'' after ``Secretary'' wherever appearing.


                             Effective Date

    Section effective July 1, 1959, see section 210(a)(1) of Pub. L. 85-
859, set out as a note under section 5001 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 5171, 5214, 5244, 5272, 5276 
of this title.
