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26 USC § 5201 - Regulation of operations

---
identifier: "/us/usc/t26/s5201"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 5201 - Regulation of operations"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "5201"
section_name: "Regulation of operations"
chapter_number: 51
chapter_name: "DISTILLED SPIRITS, WINES, AND BEER"
subchapter_number: "C"
subchapter_name: "Operation of Distilled Spirits Plants"
part_number: "I"
part_name: "GENERAL PROVISIONS"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1357; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–39, title VIII, § 807(a)(21), July 26, 1979, 93 Stat. 283.)"
---

# § 5201. Regulation of operations

**(a)** **General** Proprietors of distilled spirits plants shall conduct all operations authorized to be conducted on the premises of such plants under such regulations as the Secretary shall prescribe.

**(b)** **Distilled spirits for industrial uses** The regulations of the Secretary under this chapter respecting the production, warehousing, denaturing, distribution, sale, export, and use of distilled spirits for industrial purposes shall be such as he deems necessary, advisable, or proper to secure the revenue, to prevent diversion to illegal uses, and to place the distilled spirits industry and other industries using such distilled spirits as a chemical raw material or for other lawful industrial purposes on the highest possible plane of scientific and commercial efficiency and development consistent with the provisions of this chapter. Where nonpotable chemical mixtures containing distilled spirits are produced for transfer to the bonded premises of a distilled spirits plant for completion of processing, the Secretary may waive any provision of this chapter with respect to the production of such mixtures, and the processing of such mixtures on the bonded premises shall be deemed to be production of distilled spirits for purposes of this chapter.

**(c)** **Hours of operations** The Secretary may prescribe regulations relating to hours for distillery operations and to hours for removal of distilled spirits from distilled spirits plants; however, such regulations shall not be more restrictive, as to any operation or function, that the provisions of internal revenue law and regulations relating to such operation or function in effect on the day preceding the effective date of this section.

**(d)** **Identification of distilled spirits** The Secretary may provide by regulations for the addition of tracer elements to distilled spirits to facilitate the enforcement of this chapter. Tracer elements to be added to distilled spirits at any distilled spirits plant under provisions of this subsection shall be of such character and in such quantity as the Secretary may authorize or require, and such as will not impair the quality of the distilled spirits for their intended use.

---

**Source Credit**: (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1357; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–39, title VIII, § 807(a)(21), July 26, 1979, 93 Stat. 283.)

## Editorial Notes

### Prior Provisions

> | Present subsecs.: | Prior sections |
> | --- | --- |
> | (a) | 5193(a), 5194(g), 5241(a), 5281, 5282(a), 5302, 5305–5307, 5319(6). |
> | (b) | 5305. |
> | (c) | 5195, 5215, 5306. |

Provisions similar to those comprising subsecs. (a) to (c) of this section were contained in prior sections of act , prior to the general revision of this chapter by , as follows:

The prior sections, , are set out in , 636, 640, 644, 651, 654, 657, 661.

### Amendments

1979—Subsec. (a).  substituted “all operations authorized to be conducted” for “their operations relating to the production, storage, denaturing, rectification and bottling of distilled spirits, and all other operations authorized to be conducted”.

1976—Subsecs. (a) to (d).  struck out “or his delegate” after “Secretary” wherever appearing.

## Statutory Notes and Related Subsidiaries

### Effective Date of 1979 Amendment

Amendment by  effective , see , set out as a note under .

### Effective Date

Section effective , see , set out as a note under .