§ 5114 Drawback

OLRC 119-134 · eCFR 2026-10-19 · 6 amending Acts · cited by 1 sections

Enacted 1958 · Pub. L. 85-859 Amended · 6 Acts

1958196819761984199419962005(a) Rate of drawback(b) Claims(c) Allowance of drawback even where certain requirements not met
Prior provisions 7
  • A prior section 5114 was renumbered section 5432 of this title.
  • Another prior section 5114, act Aug. 16, 1954, ch. 736, 68A Stat. 619, related to recordkeeping by wholesale dealers, prior to the general revision of this chapter by Pub. L. 85–859.
  • A prior section 5115, added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1342; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, related to requirement that a sign be posted on premises where liquor is sold and penalty for noncompliance, prior to repeal by Pub. L. 105–34, title XIV, § 1415(a), Aug. 5, 1997, 111 Stat. 1047.
  • Another prior section 5115, act Aug. 16, 1954, ch. 736, 68A Stat. 620, related to making and stamping packages filled on premises of wholesale dealers, prior to the general revision of this chapter by Pub. L. 85–859.
  • A prior section 5116 was renumbered section 5131 of this title.
  • Another prior section 5116, act Aug. 16, 1954, ch. 736, 68A Stat. 620, related to packaging of distilled spirits for industrial uses, prior to the general revision of this chapter by Pub. L. 85–859.
  • A prior section 5117, added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1343; amended Pub. L. 94–455, title XIX, § 1905(a)(8), Oct. 4, 1976, 90 Stat. 1819; Pub. L. 108–357, title II, § 246(b), Oct. 22, 2004, 118 Stat. 1448, related to prohibited purchases by wholesale dealers in liquors, prior to repeal by Pub. L. 109–59, title XI, § 11125(a)(1)(C), (c), Aug. 10, 2005, 119 Stat. 1953, 1957, effective July 1, 2008, but inapplicable to taxes imposed for periods before such date.
Connections Cited by 1 · Cites 1
§ 5114 Drawback
Amended 1976, 2005
  • 2005 Pub. L. 109-59 Pub. L. 109–59 renumbered section 5134 of this title as this section.
  • 1976 Pub. L. 94-455 Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.

(a) Rate of drawback In the case of distilled spirits on which the tax has been paid or determined, and which have been used as provided in this subpart, a drawback shall be allowed on each proof gallon at a rate of $1 less than the rate at which the distilled spirits tax has been paid or determined.

(b) Claims Such drawback shall be due and payable quarterly upon filing of a proper claim with the Secretary; except that, where any person entitled to such drawback shall elect in writing to file monthly claims therefor, such drawback shall be due and payable monthly upon filing of a proper claim with the Secretary. The Secretary may require persons electing to file monthly drawback claims to file with him a bond or other security in such amount and with such conditions as he shall by regulations prescribe. Any such election may be revoked on filing of notice thereof with the Secretary. No claim under this subpart shall be allowed unless filed with the Secretary within the 6 months next succeeding the quarter in which the distilled spirits covered by the claim were used as provided in this subpart.

Amended 1968
  • 1968 Pub. L. 90-615 Pub. L. 90–615 substituted “6 months” for “3 months” in last sentence.

(c) Allowance of drawback even where certain requirements not met

Amended 1984

(1) In general No claim for drawback under this section shall be denied in the case of a failure to comply with any requirement imposed under this subpart or any rule or regulation issued thereunder upon the claimant’s establishing to the satisfaction of the Secretary that distilled spirits on which the tax has been paid or determined were in fact used in the manufacture or production of medicines, medicinal preparations, food products, flavors, flavoring extracts, or perfume, which were unfit for beverage purposes.

Amended 1994
  • 1994 Pub. L. 103-465 Pub. L. 103–465 substituted “flavoring extracts, or perfume” for “or flavoring extracts”.
Cited by 1

    (2) Penalty

    Cited by 1

      (A) In general In the case of a failure to comply with any requirement imposed under this subpart or any rule or regulation issued thereunder, the claimant shall be liable for a penalty of $1,000 for each failure to comply unless it is shown that the failure to comply was due to reasonable cause.

      Cited by 1

        (B) Penalty may not exceed amount of claim The aggregate amount of the penalties imposed under subparagraph (A) for failures described in paragraph (1) in respect of any claim shall not exceed the amount of such claim (determined without regard to subparagraph (A)).

        (3) Penalty treated as tax The penalty imposed by paragraph (2) shall be assessed, collected, and paid in the same manner as taxes, as provided in section 6665(a).

        Amended 1996
        • 1996 Pub. L. 104-188 Pub. L. 104–188 substituted “section 6665(a)” for “section 6662(a)”.