Fermented materials that a proprietor intends to use in the production of spirits must be:
Produced on the bonded premises where used;
Received from a bonded wine cellar in the case of wine;
Beer received from a brewery without payment of tax, or beer that was removed from a brewery upon determination of tax; or
Apple cider exempt from tax under 26 U.S.C. 5042(a)(1).
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