REPEAL OF TAX ON IMPORTED PERFUMES; DRAWBACK OF TAX ON DISTILLED SPIRITS USED IN PERFUME MANUFACTURE.

SEC. 136. REPEAL OF TAX ON IMPORTED PERFUMES; DRAWBACK OF TAX ON DISTILLED SPIRITS USED IN PERFUME MANUFACTURE. (a) Repeal of Tax on Imported Perfumes.—Subsection (a) of section 5001 of the Internal Revenue Code of 1986 is amended by striking paragraph (3) and redesignating the following paragraphs accordingly. (b) Drawback of Tax on Distilled Spirits Used in Perfume Manufacture.—Sections 5131(a), 5132, 5134(c)(1), and 7652(g) of such Code are each amended by striking “or flavoring extracts” and inserting “flavoring extracts, or perfume”. (c) Conforming Amendments.— (1) Subsection (b) of section 5002 of such Code is amended by striking paragraph (1) and redesignating the following paragraphs accordingly. (2) Subsection (f) of section 5005 of such Code is amended— (A) by striking “section 5001(a)(6) and (7)” in paragraph (3) and inserting “section 5001(a)(5) and (6)”, and (B) by striking “section 5001(a)(5)” in paragraph (4) and inserting “section 5001(a)(4)”. (3) Subsection (b) of section 5007 of such Code is amended to read as follows: “(b) Collection of Tax on Imported Distilled Spirits.—The internal revenue tax imposed by section 5001(a)(l) and (2) upon imported distilled spirits shall be collected by the Secretary 108 STAT. 4842and deposited as internal revenue collections, under such regulations as the Secretary may prescribe. Section 5688 shall be applicable to the disposition of imported spirits.”. (4) Paragraph (3) of section 5007(c) of such Code is amended by striking “section 5001(a)(5), (6), and (7)” and inserting “section 5001(a)(4), (5), and (6)”. (5) Paragraph (1) of section 5061(b) of such Code is amended to read as follows: “(1) section 5001(a)(4), (5), or (6),”. (d) Effective Date.—The amendments made by this section shall take effect on January 1, 1995.