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 paragraph, in the case of a controlled group, rules similar to section 5051(a)(5)(B) shall apply. . (d) Effective date (1) In general Subject to paragraph (2), the amendments made by this section shall apply to distilled spirits removed after September 30, 2019. (2) Proration For purposes of the fourth calendar quarter of 2019, the Secretary of the Treasury (or the Secretary's delegate) shall issue such guidance, rules, or regulations as are deemed appropriate to provide that the amendments made by this section are applied on a prorated basis for purposes of distilled spirits removed during such quarter. 402. Bulk distilled spirits (a) In general Section 5212 of the Internal Revenue Code of 1986 is amended— (1) by striking Bulk distilled spirits on which and inserting Distilled spirits on which , and (2) by striking bulk each place it appears. (b) Effective date The amendments made by this section shall apply distilled spirits transferred in bond in any calendar quarters beginning more than 1 year after the date of the enactment of this Act. V Funding 501. Increased funding for the Alcohol and Tobacco Tax and Trade Bureau (a) In general For necessary expenses of carrying out section 1111(d) of the Homeland Security Act of 2002 ( 6 U.S.C. 531(d) ), there are authorized to be appropriated— (1) for fiscal year 2017, $116,439,000, to remain available until September 30, 2018