U.S Code last checked for updates: Nov 22, 2024
§ 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
(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
(g)
Posting of permits
(h)
Regulations
(Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1370; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
cite as: 26 USC 5271