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131 STAT. 2177 PUBLIC LAW 115–97—DEC. 22, 2017 ‘‘(3) REDUCED TAX RATE FOR FOREIGN MANUFACTURERS AND IMPORTERS.— ‘‘(A) IN GENERAL.—In the case of any proof gallons of distilled spirits which have been produced outside of the United States and imported into the United States, the rate of tax applicable under paragraph (1) (referred to in this paragraph as the ‘reduced tax rate’) may be assigned by the distilled spirits operation (provided that such operation makes an election described in subpara- graph (B)(ii)) to any electing importer of such proof gallons pursuant to the requirements established by the Secretary under subparagraph (B). ‘‘(B) ASSIGNMENT.—The Secretary shall, through such rules, regulations, and procedures as are determined appro- priate, establish procedures for assignment of the reduced tax rate provided under this paragraph, which shall include— ‘‘(i) a limitation to ensure that the number of proof gallons of distilled spirits for which the reduced tax rate has been assigned by a distilled spirits operation— ‘‘(I) to any importer does not exceed the number of proof gallons produced by such oper- ation during the calendar year which were imported into the United States by such importer, and ‘‘(II) to all importers does not exceed the 22,230,000 proof gallons of distilled spirits to which the reduced tax rate applies, ‘‘(ii) procedures that allow the election of a distilled spirits operation to assign and an importer to receive the reduced tax rate provided under this paragraph, ‘‘(iii) requirements that the distilled spirits oper- ation provide any information as the Secretary deter- mines necessary and appropriate for purposes of car- rying out this paragraph, and ‘‘(iv) procedures that allow for revocation of eligi- bility of the distilled spirits operation and the importer for the reduced tax rate provided under this paragraph in the case of any erroneous or fraudulent information provided under clause (iii) which the Secretary deems to be material to qualifying for such reduced rate. ‘‘(C) CONTROLLED GROUP.— ‘‘(i) IN GENERAL.—For purposes of this section, any importer making an election described in subparagraph (B)(ii) shall be deemed to be a member of the controlled group of the distilled spirits operation, as described under paragraph (2). ‘‘(ii) APPORTIONMENT.—For purposes of this para- graph, in the case of a controlled group, rules similar to section 5051(a)(5)(B) shall apply.’’. (d) EFFECTIVE DATE.—The amendments made by this section shall apply to distilled spirits removed after December 31, 2017. SEC. 13808. BULK DISTILLED SPIRITS. (a) IN GENERAL.—Section 5212 is amended by adding at the end the following sentence: ‘‘In the case of distilled spirits trans- ferred in bond after December 31, 2017, and before January 1, 26 USC 5212. 26 USC 5001 note. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00125 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS