26 U.S.C. § 5178 — Premises of distilled spirits plants

A distilled spirits plant^* must be located and operated as described in its application and under regulations that protect the revenue and help officials inspect it. Production systems must prevent unauthorized removal of spirits^* before the production measurement. The Secretary^* may allow some additional businesses and special arrangements under the conditions in this section.

(a) Location, construction, and arrangement.

(1) General.

(A) The plant premises must match the application required by section 5171(c). The Secretary must issue regulations about the plant’s location, construction, arrangement, and protection when the Secretary considers them necessary to make inspection easier and give adequate security to the revenue.

(B) A plant that produces distilled spirits^* may not be in a dwelling house, a shed, yard, or enclosure connected to a dwelling house, on a vessel or boat, on premises where beer or wine is made or produced, on premises where any liquor is sold at retail, or on premises where another business is carried on. The exception is a business authorized under subsection (b).

(C) Even if another provision of this chapter says otherwise, the Secretary may approve the location, construction, arrangement, and operating method of an establishment that was qualified to operate on the day before this section took effect, if the Secretary decides those features provide adequate security to the revenue.

(2) Production operations.

(A) A person establishing a plant may produce distilled spirits from any source or substance if the person describes that activity in the registration application.

(B) The distilling system must operate continuously. It must be designed, built, and connected to prevent spirits from being removed without authorization before the production gauge.

(C) The Secretary may order or require—

(i) identification, changes, or additions to distilling apparatus, connecting pipes, pumps, tanks, and machinery connected with or used on the premises; and

(ii) fastenings, locks, and seals on stills, tubs, pipes, tanks, and other equipment,

when the Secretary considers them necessary to make inspection easier and give adequate security to the revenue.

(3) Warehousing operations.

(A) A person establishing a plant to produce distilled spirits may warehouse bulk distilled spirits^* on the plant’s bonded premises if the application for registration describes that activity.

(B) At the Secretary’s discretion, plant proprietors described in subparagraph (A), or other people, may establish plants for bonded warehousing of bulk distilled spirits at other locations, under regulations issued by the Secretary.

(4) Processing operations. A person establishing a plant may process distilled spirits on its bonded premises if the application for registration describes that activity.

(b) Use of premises for other businesses. The Secretary may allow other businesses on plant premises if section 5601(a)(6) does not specifically prohibit them and the Secretary finds they will not endanger the revenue. The business may not begin until the person applies to the Secretary and the Secretary approves the application.

(c) Cross references.

(1) For authority to require meters, tanks, and other equipment, see section 5552.

(2) For the penalty for distilling on prohibited premises, see section 5601(a)(6).

(3) For bottling distilled spirits labeled as alcohol, see section 5235.

(4) For unauthorized use of distilled spirits in a manufacturing process, see section 5601(a)(9).

This section does not define “distilled spirits plant,” “bonded premises,” “production gauge,” “revenue,” or “other businesses.”