26 USC § 5414 - Transfer of beer between bonded facilities

---
identifier: "/us/usc/t26/s5414"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 5414 - Transfer of beer between bonded facilities"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "5414"
section_name: "Transfer of beer between bonded facilities"
chapter_number: 51
chapter_name: "DISTILLED SPIRITS, WINES, AND BEER"
subchapter_number: "G"
subchapter_name: "Breweries"
part_number: "II"
part_name: "OPERATIONS"
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. 1389; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 115–97, title I, § 13803(a), Dec. 22, 2017, 131 Stat. 2172; Pub. L. 116–94, div. Q, title I, § 144(c)(1), Dec. 20, 2019, 133 Stat. 3235; Pub. L. 116–260, div. EE, title I, § 106(c)(1), Dec. 27, 2020, 134 Stat. 3042.)"
---


# § 5414. Transfer of beer between bonded facilities

**(a)** **In general** Beer may be removed from one brewery to another brewery, without payment of tax, and may be mingled with beer at the receiving brewery, subject to such conditions, including payment of the tax, and in such containers, as the Secretary by regulations shall prescribe, which shall include—

**(1)** any removal from one brewery to another brewery belonging to the same brewer,

**(2)** any removal from a brewery owned by one corporation to a brewery owned by another corporation when—

**(A)** one such corporation owns the controlling interest in the other such corporation, or

**(B)** the controlling interest in each such corporation is owned by the same person or persons, and

**(3)** any removal from one brewery to another brewery when—

**(A)** the proprietors of transferring and receiving premises are independent of each other and neither has a proprietary interest, directly or indirectly, in the business of the other, and

**(B)** the transferor has divested itself of all interest in the beer so transferred and the transferee has accepted responsibility for payment of the tax.

**(b)** **Transfer of liability for tax** For purposes of subsection (a)(3), such relief from liability shall be effective from the time of removal from the transferor’s premises, or from the time of divestment of interest, whichever is later.

---

**Source Credit**: (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1389; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 115–97, title I, § 13803(a), Dec. 22, 2017, 131 Stat. 2172; Pub. L. 116–94, div. Q, title I, § 144(c)(1), Dec. 20, 2019, 133 Stat. 3235; Pub. L. 116–260, div. EE, title I, § 106(c)(1), Dec. 27, 2020, 134 Stat. 3042.)

## Editorial Notes

### Prior Provisions

A prior section 5414, , , consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by .

### Amendments

2020— amended section generally. Prior to amendment, section related to removals of beer from one brewery to another belonging to the same brewer.

2019—Subsec. (b)(3).  substituted “” for “”.

2017— designated existing provisions as subsec. (a), inserted heading, and added subsec. (b).

1976— struck out “or his delegate” after “Secretary”.

## Statutory Notes and Related Subsidiaries

### Effective Date of 2020 Amendment

> “The amendment made by this subsection [amending this section] shall apply to any calendar quarters beginning after
> 
> .”

, , , provided that:

### Effective Date of 2019 Amendment

> “The amendment made by this subsection [amending this section] shall apply to calendar quarters beginning after
> 
> .”

, , , provided that:

### Effective Date of 2017 Amendment

Amendment by  applicable to any calendar quarters beginning after , see , set out as a note under .