LIQUOR 347 fusel oil (heads and tails) removed in the course of distillation. The distillates so collected may, under regulations prescribed by the Commissioner, with the approval of the Secretary, be removed from such distillery for denaturation or be destroyed in the manner pre- scribed by the Commissioner, under the supervision of an internal revenue officer to be designated by the Commissioner, and when so denatured or destroyed shall not be subject to the tax imposed by law upon distilled spirits. Such distillates so collected in fruit brandy distilleries may, under regulations to be prescribed by the Commis- sioner, with the approval of the Secretary, be drawn into approved casks, barrels, or other containers and stored in the brandy deposit room of the fruit brandy distillery where produced pending removal for denaturation or destruction. (b) TRANSFER OF DUTIE.- For transfer of powers and duties of Commissioner and his agents, see section 3170. SUBCHAPTER B-WINES SEC. 3030 . TAX. (a) RATE. - (1) STILL WINES.- (A) IMPosITION. -Upon all still wines, including vermouth, and all artificial or imitation wines or compounds sold as still wine, produced in or imported into the United States after February 24, 1919, or which on February 25, 1919, were on any winery premises or other bonded premises or in transit thereto or at any customhouse, there shall be levied, collected, and paid taxes at rates as follows, when sold, or removed for consumption or sale: On wines containing not more than 14 per centum of absolute alcohol, 5 cents per wine gallon, the per centum of alcohol under this section to be reckoned by volume and not by weight; On wines containing more than 14 per centum and not exceed- ing 21 per centum of absolute alcohol, 10 cents per wine-gallon; On wines containing more than 21 per centum and not exceed- ing 24 per centum of absolute alcohol, 20 cents per wine-gallon; All such wines containing more than 24 per centum of absolute alcohol by volume shall be classed as distilled spirits and shall pay tax accordingly. Any such wines may, under such regulations as the Secretary may prescribe, be sold or removed tax free for the manufacture of vinegar, or for the production of dealcoholized wines contain- ing less than one-half of 1 per centum of alcohol by volume. The taxes imposed by this subparagraph (A) of this para- graph shall not apply to dealcoholized wines containing less than one-half of 1 per centum of alcohol by volume; nor, subject to regulations prescribed by the Commissioner, with the approval of the Secretary, to wines produced for the family use of the duly registered producer thereof and not sold or otherwise removed from the place of manufacture and not exceeding in any case two hundred gallons per year. (B) CRoss REFERENCE. - For transfer of powers and duties of Commissioner and his agents, see Section 3170. (2) SPARKLING WINES, LIQUEUPS, AND CORDIALS.- Upon the fol- lowing articles which are produced in or imported into the United States, after June 26,1936, or which on the day after such date are on any winery premises or other bonded premises or in transit thereto or at any customhouse, there shall be levied, collected, and paid, in lieu of the internal-revenue taxes imposed thereon by law prior to such date, taxes at rates as follows, when sold, or removed for consumption or sale:
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