
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: 26USC5314]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
      Subtitle E--Alcohol, Tobacco, and Certain Other Excise Taxes
 
             CHAPTER 51--DISTILLED SPIRITS, WINES, AND BEER
 
     Subchapter E--General Provisions Relating to Distilled Spirits
 
                   PART III--MISCELLANEOUS PROVISIONS
 
Sec. 5314. Special applicability of certain provisions


(a) Puerto Rico

                          (1) Applicability

        The provisions of this subsection shall not apply to the 
    Commonwealth of Puerto Rico unless the Legislative Assembly of the 
    Commonwealth of Puerto Rico expressly consents thereto in the manner 
    prescribed in the constitution of the Commonwealth of Puerto Rico, 
    for the enactment of a law.

                           (2) In general

        Distilled spirits for the purposes authorized in section 
    5214(a)(2) and (3), denatured distilled spirits, and articles, as 
    described in this paragraph, produced or manufactured in Puerto 
    Rico, may be brought into the United States free of any tax imposed 
    by section 5001(a)(10) \1\ or 7652(a)(1) for disposal under the same 
    conditions as like spirits, denatured spirits, and articles, 
    produced or manufactured in the United States; and the provisions of 
    this chapter and regulations promulgated thereunder (and all other 
    provisions of the internal revenue laws applicable to the 
    enforcement thereof, including the penalties of special application 
    thereto) relating to the production, bonded warehousing, and 
    denaturation of distilled spirits, to the withdrawal of distilled 
    spirits or denatured distilled spirits, and to the manufacture of 
    articles from denatured distilled spirits, shall, insofar as 
    applicable, extend to and apply in Puerto Rico in respect of--
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    \1\ See References in Text note below.
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            (A) distilled spirits for shipment to the United States for 
        the purposes authorized in section 5214(a)(2) and (3);
            (B) distilled spirits for denaturation;
            (C) denatured distilled spirits for shipment to the United 
        States;
            (D) denatured distilled spirits for use in the manufacture 
        of articles for shipment to the United States; and
            (E) articles, manufactured from denatured distilled spirits, 
        for shipment to the United States.

              (3) Withdrawals authorized by Puerto Rico

        Distilled spirits (including denatured distilled spirits) may be 
    withdrawn from the bonded premises of a distilled spirits plant in 
    Puerto Rico pursuant to authorization issued under the laws of the 
    Commonwealth of Puerto Rico; such spirits so withdrawn, and products 
    containing such spirits so withdrawn, may not be brought into the 
    United States free of tax.

                     (4) Costs of administration

        Any expenses incurred by the Treasury Department in connection 
    with the enforcement in Puerto Rico of the provisions of this 
    subtitle and section 7652(a), and regulations promulgated 
    thereunder, shall be charged against and retained out of taxes 
    collected under this title in respect of commodities of Puerto Rican 
    manufacture brought into the United States. The funds so retained 
    shall be deposited as a reimbursement to the appropriation to which 
    such expenses were originally charged.

(b) Virgin Islands

                           (1) In general

        Distilled spirits for the purposes authorized in section 
    5214(a)(2) and (3), denatured distilled spirits, and articles, as 
    described in this paragraph, produced or manufactured in the Virgin 
    Islands, may be brought into the United States free of any tax 
    imposed by section 7652(b)(1) for disposal under the same conditions 
    as like spirits, denatured spirits, and articles, produced or 
    manufactured in the United States; and the provisions of this 
    chapter and regulations promulgated thereunder (and all other 
    provisions of the internal revenue laws applicable to the 
    enforcement thereof, including the penalties of special application 
    thereto) relating to the production, bonded warehousing, and 
    denaturation of distilled spirits, to the withdrawal of distilled 
    spirits or denatured distilled spirits, and to the manufacture of 
    articles from denatured distilled spirits, shall, insofar as 
    applicable, extend to and apply in the Virgin Islands in respect 
    of--
            (A) distilled spirits for shipment to the United States for 
        the purposes authorized in section 5214(a)(2) and (3);
            (B) distilled spirits for denaturation;
            (C) denatured distilled spirits for shipment to the United 
        States;
            (D) denatured distilled spirits for use in the manufacture 
        of articles for shipment to the United States; and
            (E) articles, manufactured from denatured distilled spirits, 
        for shipment to the United States.

                        (2) Advance of funds

        The insular government of the Virgin Islands shall advance to 
    the Treasury of the United States such funds as may be required from 
    time to time by the Secretary for the purpose of defraying all 
    expenses incurred by the Treasury Department in connection with the 
    enforcement in the Virgin Islands of paragraph (1) and regulations 
    promulgated thereunder. The funds so advanced shall be deposited in 
    a separate trust fund in the Treasury of the United States and shall 
    be available to the Treasury Department for the purposes of this 
    subsection.

              (3) Regulations issued by Virgin Islands

        The Secretary may authorize the Governor of the Virgin Islands, 
    or his duly authorized agents, to issue or adopt such regulations, 
    to approve such bonds, and to issue, suspend, or revoke such 
    permits, as are necessary to carry out the provisions of this 
    subsection. When regulations have been issued or adopted under this 
    paragraph with concurrence of the Secretary he may exempt the Virgin 
    Islands from any provisions of law and regulations otherwise made 
    applicable by the provisions of paragraph (1), except that denatured 
    distilled spirits, articles and distilled spirits for tax-free 
    purposes which are brought into the United States from the Virgin 
    Islands under the provisions of this subsection shall in all 
    respects conform to the requirements of law and regulations imposed 
    on like products of domestic manufacture.

(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1375; 
amended Pub. L. 94-455, title XIX, Secs. 1905(a)(18), 1906(b)(13)(A), 
Oct. 4, 1976, 90 Stat. 1820, 1834.)

                       References in Text

    Section 5001(a)(10), referred to in subsec. (a)(2), was redesignated 
section 5001(a)(9) by Pub. L. 103-465, title I, Sec. 136(a), Dec. 8, 
1994, 108 Stat. 4841.


                            Prior Provisions

    A prior section 5314, act Aug. 16, 1954, ch. 736, 68A Stat. 659, 
related to officers and agents authorized to investigate, issue search 
warrants, and prosecute for violations, prior to the general revision of 
this chapter by Pub. L. 85-859. See sections 5557 of this title.
    Provisions similar to those comprising subsec. (a)(2) of this 
section were contained in prior section 5318, act Aug. 16, 1954, ch. 
736, 68A Stat. 660, prior to the general revisions of this chapter by 
Pub. L. 85-859.


                               Amendments

    1976--Subsec. (a)(2). Pub. L. 94-455, Sec. 1905(a)(18), substituted 
``section 5001(a)(10)'' for ``section 5001(a)(4)''.
    Subsec. (b)(2), (3). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out 
``or his delegate'' after ``Secretary'' wherever appearing.


                    Effective Date of 1976 Amendment

    Amendment by section 1905(a)(18) of Pub. L. 94-455 effective on 
first day of first month which begins more than 90 days after Oct. 4, 
1976, see section 1905(d) of Pub. L. 94-455, set out as a note under 
section 5005 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 5001, 7652 of this title.
