REDUCED RATES NOT ALLOWED FOR SMUGGLED OR ILLEGALLY PRODUCED BEER, WINE, AND SPIRITS.

SEC. 108. REDUCED RATES NOT ALLOWED FOR SMUGGLED OR ILLEGALLY PRODUCED BEER, WINE, AND SPIRITS. (a) [26 U.S.C. 5068] In General.—Subpart E of part I of subchapter A of chapter 51 is amended by redesignating section 5067 as section 5068 and by inserting after section 5066 the following new section: “SEC. 5067. [26 U.S.C. 5067] REDUCED RATES NOT ALLOWED FOR SMUGGLED OR ILLEGALLY PRODUCED BEER, WINE, OR SPIRITS “In the case of beer, wine, or distilled spirits that are smuggled into the United States or produced other than as authorized by this chapter— “(1) the rates of tax under paragraphs (1)(A)(i) and (2) of section 5051(a) shall not apply in the case of any such beer, “(2) the credit under section 5041(c) shall not apply in the case of any such wine, and “(3) the rates of tax under section 5001(c) shall not apply in the case of any such distilled spirits.” . (b) [26 U.S.C. 5061] Clerical Amendment.—The table of sections for subpart E of part I of subchapter A of chapter 51 is amended by striking the last item and inserting the following new items: “Sec. 5067. Reduced rates not allowed for illegally produced beer, wine, or spirits. “Sec. 5068. Cross reference.” . (c) [26 U.S.C. 5067 note] Effective Date.—The amendments made by this section shall apply to beer, wine, or distilled spirits, as the case may be, produced after the date of the enactment of this Act.