
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: 26USC5551]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
      Subtitle E--Alcohol, Tobacco, and Certain Other Excise Taxes
 
             CHAPTER 51--DISTILLED SPIRITS, WINES, AND BEER
 
             Subchapter I--Miscellaneous General Provisions
 
Sec. 5551. General provisions relating to bonds


(a) Approval as condition to commencing business

    No individual, firm, partnership, corporation, or association, 
intending to commence or to continue the business of a distiller, 
warehouseman, processor, brewer, or winemaker, shall commence or 
continue the business of a distiller, warehouseman, processor, brewer, 
or winemaker until all bonds in respect of such a business, required by 
any provision of law, have been approved by the Secretary of the 
Treasury or the officer designated by him.

(b) Disapproval

    The Secretary of the Treasury or any officer designated by him may 
disapprove any such bond or bonds if the individual, firm, partnership, 
or corporation, or association giving such bond or bonds, or owning, 
controlling, or actively participating in the management of the business 
of the individual, firm, partnership, corporation, or association giving 
such bond or bonds, shall have been previously convicted, in a court of 
competent jurisdiction, of--
        (1) any fraudulent noncompliance with any provision of any law 
    of the United States, if such provision related to internal revenue 
    or customs taxation of distilled spirits, wines, or beer, or if such 
    an offense shall have been compromised with the individual, firm, 
    partnership, corporation, or association on payment of penalties or 
    otherwise, or
        (2) any felony under a law of any State, or the District of 
    Columbia, or the United States, prohibiting the manufacture, sale, 
    importation, or transportation of distilled spirits, wine, beer, or 
    other intoxicating liquor.

(c) Appeal from disapproval

    In case the disapproval is by an officer designated by the Secretary 
of the Treasury to approve or disapprove such bonds, the individual, 
firm, partnership, corporation, or association giving the bond may 
appeal from such disapproval to the Secretary of the Treasury or an 
officer designated by him to hear such appeals, and the disapproval of 
the bond by the Secretary of the Treasury or officer designated to hear 
such appeals shall be final.

(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1394; 
amended Pub. L. 94-455, title XIX, Secs. 1905(c)(5), 1906(b)(13)(B), 
Oct. 4, 1976, 90 Stat. 1823, 1834; Pub. L. 96-39, title VIII, 
Sec. 807(a)(51), July 26, 1979, 93 Stat. 288.)


                            Prior Provisions

    A prior section 5551, act Aug. 16, 1954, ch. 736, 68A Stat. 680, 
consisted of provisions similar to those comprising this section, prior 
to the general revision of this chapter by Pub. L. 85-859.
    Provisions similar to those comprising subsec. (c) of this section 
were contained in prior section 5177(c), act Aug. 16, 1954, ch. 736, 68A 
Stat. 630, prior to the general revision of this chapter by Pub. L. 85-
859.


                               Amendments

    1979--Subsec. (a). Pub. L. 96-39 substituted ``warehouseman, 
processor'' for ``bonded warehouseman, rectifier'' in two places.
    1976--Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(B), substituted 
``Secretary of the Treasury'' for ``Secretary''.
    Subsec. (b). Pub. L. 94-455, Secs. 1905(c)(5), 1906(b)(13)(B), 
substituted ``Secretary of the Treasury'' for ``Secretary'' in 
provisions preceding par. (1) and struck out ``Territory, or'' after 
``State,'' in par. (2).
    Subsec. (c). Pub. L. 94-455, Sec. 1906(b)(13)(B), substituted 
``Secretary of the Treasury'' for ``Secretary''.


                    Effective Date of 1979 Amendment

    Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 
of Pub. L. 96-39, set out as a note under section 5001 of this title.


                    Effective Date of 1976 Amendment

    Amendment by section 1905(c)(5) 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.


                             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 5177, 5355, 5403 of this 
title.
