-CITE-

26 USC CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS

AND TUBES 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

-HEAD-

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

-MISC1-

Subchapter Sec.(!1)

A. Definitions; rate and payment of tax; exemption from

tax; and refund and drawback of tax 5701

B. Qualification requirements for manufacturers and

importers of tobacco products and cigarette papers

and tubes, and export warehouse proprietors 5711

C. Operations by manufacturers and importers of tobacco

products and cigarette papers and tubes and export

warehouse proprietors 5721

D. Occupational tax 5731

E. Records of manufacturers and importers of tobacco

products and cigarette papers and tubes, and export

warehouse proprietors 5741

F. General provisions 5751

G. Penalties and forfeitures 5761

AMENDMENTS

1997 - Pub. L. 105-33, title IX, Sec. 9302(g)(3)(C), (h)(2)(D),

Aug. 5, 1997, 111 Stat. 673, 674, amended chapter heading

generally, substituting "TOBACCO PRODUCTS" for "CIGARS, CIGARETTES,

SMOKELESS TOBACCO, PIPE TOBACCO,", and inserted "and importers"

after "manufacturers" in item for subchapter B.

1988 - Pub. L. 100-647, title V, Sec. 5061(c)(3), Nov. 10, 1988,

102 Stat. 3680, inserted "PIPE TOBACCO," after "SMOKELESS TOBACCO,"

in chapter heading.

1987 - Pub. L. 100-203, title X, Sec. 10512(f)(2), Dec. 22, 1987,

101 Stat. 1330-449, added item for subchapter D and redesignated

items for former subchapters D, E, and F as E, F, and G,

respectively.

1986 - Pub. L. 99-272, title XIII, Sec. 13202(b)(1), Apr. 7,

1986, 100 Stat. 311, inserted "SMOKELESS TOBACCO," after

"CIGARETTES," in chapter heading.

1976 - Pub. L. 94-455, title XXI, Sec. 2128(d)(2), Oct. 4, 1976,

90 Stat. 1921, substituted "manufacturers and importers" for

"manufacturers" in item for subchapter D.

1965 - Pub. L. 89-44, title V, Sec. 502(b)(1), (2), June 21,

1965, 79 Stat. 150, struck out "TOBACCO," from chapter heading,

reference to dealers in tobacco materials from heading of

subchapter B, heading of subchapter D and redesignated subchapters

E, F and G as D, E and F respectively, and struck out in heading of

subchapter D (as redesignated) a reference to dealers in tobacco

materials.

1958 - Pub. L. 85-859, title II, Sec. 202, Sept. 2, 1958, 72

Stat. 1414, substituted "manufacturers of tobacco products and

cigarette papers and tubes, export warehouse proprietors, and" for

"manufacturers of articles and" in heading of subchapters B and E,

"manufacturers and importers of tobacco products and cigarette

papers and tubes and export warehouse proprietors" for

"manufacturers of articles" in heading of subchapter C, and

"Penalties and forfeitures" for "Fines, penalties and forfeitures"

in heading of subchapter G.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 6103, 6207, 6423, 6808,

7328 of this title; title 6 section 531; title 18 section 2341;

title 19 section 1681b.

-FOOTNOTE-

(!1) Section numbers editorially supplied.

-End-

-CITE-

26 USC Subchapter A - Definitions; Rate and Payment of

Tax; Exemption From Tax; and

Refund and Drawback of Tax 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter A - Definitions; Rate and Payment of Tax; Exemption From

Tax; and Refund and Drawback of Tax

-HEAD-

SUBCHAPTER A - DEFINITIONS; RATE AND PAYMENT OF TAX; EXEMPTION FROM

TAX; AND REFUND AND DRAWBACK OF TAX

-MISC1-

Sec.

5701. Rate of tax.

5702. Definitions.

5703. Liability for tax and method of payment.

5704. Exemption from tax.

5705. Credit, refund, or allowance of tax.

5706. Drawback of tax.

[5707. Repealed.]

5708. Losses caused by disaster.

AMENDMENTS

1965 - Pub. L. 89-44, title V, Sec. 501(g), title VIII, Sec.

808(c)(2), June 21, 1965, 79 Stat. 150, 165, struck out item 5707

"Floor stocks refund on cigarettes" and inserted "Credit" before

"refund" in item 5705.

1958 - Pub. L. 85-859, title II, Sec. 202, Sept. 2, 1958, 72

Stat. 1414, added item 5708.

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 6651 of this title.

-End-

-CITE-

26 USC Sec. 5701 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter A - Definitions; Rate and Payment of Tax; Exemption From

Tax; and Refund and Drawback of Tax

-HEAD-

Sec. 5701. Rate of tax

-STATUTE-

(a) Cigars

On cigars, manufactured in or imported into the United States,

there shall be imposed the following taxes:

(1) Small cigars

On cigars, weighing not more than 3 pounds per thousand, $1.828

cents per thousand ($1.594 cents per thousand on cigars removed

during 2000 or 2001);

(2) Large cigars

On cigars weighing more than 3 pounds per thousand, a tax equal

to 20.719 percent (18.063 percent on cigars removed during 2000

or 2001) of the price for which sold but not more than $48.75 per

thousand ($42.50 per thousand on cigars removed during 2000 or

2001).

Cigars not exempt from tax under this chapter which are removed but

not intended for sale shall be taxed at the same rate as similar

cigars removed for sale.

(b) Cigarettes

On cigarettes, manufactured in or imported into the United

States, there shall be imposed the following taxes:

(1) Small cigarettes

On cigarettes, weighing not more than 3 pounds per thousand,

$19.50 per thousand ($17 per thousand on cigarettes removed

during 2000 or 2001);

(2) Large cigarettes

On cigarettes, weighing more than 3 pounds per thousand, $40.95

per thousand ($35.70 per thousand on cigarettes removed during

2000 or 2001); except that, if more than 6 1/2 inches in length,

they shall be taxable at the rate prescribed for cigarettes

weighing not more than 3 pounds per thousand, counting each 2 3/4

inches, or fraction thereof, of the length of each as one

cigarette.

(c) Cigarette papers

On cigarette papers, manufactured in or imported into the United

States, there shall be imposed a tax of 1.22 cents (1.06 cents on

cigarette papers removed during 2000 or 2001) for each 50 papers or

fractional part thereof; except that, if cigarette papers measure

more than 6 1/2 inches in length, they shall be taxable at the

rate prescribed, counting each 2 3/4 inches, or fraction thereof,

of the length of each as one cigarette paper.

(d) Cigarette tubes

On cigarette tubes, manufactured in or imported into the United

States, there shall be imposed a tax of 2.44 cents (2.13 cents on

cigarette tubes removed during 2000 or 2001) for each 50 tubes or

fractional part thereof, except that if cigarette tubes measure

more than 6 1/2 inches in length, they shall be taxable at the

rate prescribed, counting each 2 3/4 inches, or fraction thereof,

of the length of each as one cigarette tube.

(e) Smokeless tobacco

On smokeless tobacco, manufacturered (!1) in or imported into the

United States, there shall be imposed the following taxes:

(1) Snuff

On snuff, 58.5 cents (51 cents on snuff removed during 2000 or

2001) per pound and a proportionate tax at the like rate on all

fractional parts of a pound.

(2) Chewing tobacco

On chewing tobacco, 19.5 cents (17 cents on chewing tobacco

removed during 2000 or 2001) per pound and a proportionate tax at

the like rate on all fractional parts of a pound.

(f) Pipe tobacco

On pipe tobacco, manufactured in or imported into the United

States, there shall be imposed a tax of $1.0969 cents (95.67 cents

on pipe tobacco removed during 2000 or 2001) per pound (and a

proportionate tax at the like rate on all fractional parts of a

pound).

(g) Roll-your-own tobacco

On roll-your-own tobacco, manufactured in or imported into the

United States, there shall be imposed a tax of $1.0969 cents (95.67

cents on roll-your-own tobacco removed during 2000 or 2001) per

pound (and a proportionate tax at the like rate on all fractional

parts of a pound).

(h) Imported tobacco products and cigarette papers and tubes

The taxes imposed by this section on tobacco products and

cigarette papers and tubes imported into the United States shall be

in addition to any import duties imposed on such articles, unless

such import duties are imposed in lieu of internal revenue tax.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 705; Mar. 30, 1955, ch. 18, Sec.

3(a)(9), 69 Stat. 14; Mar. 29, 1956, ch. 115, Sec. 3(a)(9), 70

Stat. 66; Pub. L. 85-12, Sec. 3(a)(7), Mar. 29, 1957, 71 Stat. 9;

Pub. L. 85-475, Sec. 3(a)(7), June 30, 1958, 72 Stat. 259; Pub. L.

85-859, title II, Sec. 202, Sept. 2, 1958, 72 Stat. 1414; Pub. L.

86-75, Sec. 3(a)(7), June 30, 1959, 73 Stat. 157; Pub. L. 86-564,

title II, Sec. 202(a)(9), June 30, 1960, 74 Stat. 290; Pub. L.

86-779, Sec. 1, Sept. 14, 1960, 74 Stat. 998; Pub. L. 87-72, Sec.

3(a)(9), June 30, 1961, 75 Stat. 193; Pub. L. 87-508, Sec. 3(a)(8),

June 28, 1962, 76 Stat. 114; Pub. L. 88-52, Sec. 3(a)(9), June 29,

1963, 77 Stat. 72; Pub. L. 88-348, Sec. 2(a)(9), June 30, 1964, 78

Stat. 237; Pub. L. 89-44, title V, Secs. 501(f), 502(a), June 21,

1965, 79 Stat. 150; Pub. L. 90-240, Sec. 4(a), Jan. 2, 1968, 81

Stat. 776; Pub. L. 94-455, title XIX, Sec. 1905(a)(24), title XXI,

Sec. 2128(a), Oct. 4, 1976, 90 Stat. 1821, 1921; Pub. L. 97-248,

title II, Sec. 283(a), Sept. 3, 1982, 96 Stat. 568; Pub. L. 99-272,

title XIII, Sec. 13202(a), Apr. 7, 1986, 100 Stat. 311; Pub. L.

100-647, title V, Sec. 5061(a), Nov. 10, 1988, 102 Stat. 3679; Pub.

L. 101-508, title XI, Sec. 11202(a)-(f), Nov. 5, 1990, 104 Stat.

1388-419; Pub. L. 105-33, title IX, Sec. 9302(a)-(g)(1), (h)(3),

Aug. 5, 1997, 111 Stat. 671, 672, 674.)

-MISC1-

AMENDMENTS

1997 - Subsec. (a)(1). Pub. L. 105-33, Sec. 9302(b)(1),

substituted "$1.828 cents per thousand ($1.594 cents per thousand

on cigars removed during 2000 or 2001)" for "$1.125 cents per

thousand (93.75 cents per thousand on cigars removed during 1991 or

1992)".

Subsec. (a)(2). Pub. L. 105-33, Sec. 9302(b)(2), substituted

"equal to 20.719 percent (18.063 percent on cigars removed during

2000 or 2001) of the price for which sold but not more than $48.75

per thousand ($42.50 per thousand on cigars removed during 2000 or

2001)." for "equal to -

"(A) 10.625 percent of the price for which sold but not more

than $25 per thousand on cigars removed during 1991 or 1992, and

"(B) 12.75 percent of the price for which sold but not more

than $30 per thousand on cigars removed after 1992."

Subsec. (b)(1). Pub. L. 105-33, Sec. 9302(a)(1), substituted

"$19.50 per thousand ($17 per thousand on cigarettes removed during

2000 or 2001)" for "$12 per thousand ($10 per thousand on

cigarettes removed during 1991 or 1992)".

Subsec. (b)(2). Pub. L. 105-33, Sec. 9302(a)(2), substituted

"$40.95 per thousand ($35.70 per thousand on cigarettes removed

during 2000 or 2001)" for "$25.20 per thousand ($21 per thousand on

cigarettes removed during 1991 or 1992)".

Subsec. (c). Pub. L. 105-33, Sec. 9302(h)(3), substituted "On

cigarette papers," for "On each book or set of cigarette papers

containing more than 25 papers,".

Pub. L. 105-33, Sec. 9302(c), substituted "1.22 cents (1.06 cents

on cigarette papers removed during 2000 or 2001)" for "0.75 cent

(0.625 cent on cigarette papers removed during 1991 or 1992)".

Subsec. (d). Pub. L. 105-33, Sec. 9302(d), substituted "2.44

cents (2.13 cents on cigarette tubes removed during 2000 or 2001)"

for "1.5 cents (1.25 cents on cigarette tubes removed during 1991

or 1992)".

Subsec. (e)(1). Pub. L. 105-33, Sec. 9302(e)(1), substituted

"58.5 cents (51 cents on snuff removed during 2000 or 2001)" for

"36 cents (30 cents on snuff removed during 1991 or 1992)".

Subsec. (e)(2). Pub. L. 105-33, Sec. 9302(e)(2), substituted

"19.5 cents (17 cents on chewing tobacco removed during 2000 or

2001)" for "12 cents (10 cents on chewing tobacco removed during

1991 or 1992)".

Subsec. (f). Pub. L. 105-33, Sec. 9302(f), substituted "$1.0969

cents (95.67 cents on pipe tobacco removed during 2000 or 2001)"

for "67.5 cents (56.25 cents on pipe tobacco removed during 1991 or

1992)".

Subsecs. (g), (h). Pub. L. 105-33, Sec. 9302(g)(1), added subsec.

(g) and redesignated former subsec. (g) as (h).

1990 - Subsec. (a)(1). Pub. L. 101-508, Sec. 11202(a)(1),

substituted "$1.125 cents per thousand (93.75 cents per thousand on

cigars removed during 1991 or 1992)" for "75 cents per thousand".

Subsec. (a)(2). Pub. L. 101-508, Sec. 11202(a)(2), substituted

"equal to - " and subpars. (A) and (B) for "equal to 8 1/2 percent

of the wholesale price, but not more than $20 per thousand."

Subsec. (b)(1). Pub. L. 101-508, Sec. 11202(b)(1), substituted

"$12 per thousand ($10 per thousand on cigarettes removed during

1991 or 1992)" for "$8 per thousand".

Subsec. (b)(2). Pub. L. 101-508, Sec. 11202(b)(2), substituted

"$25.20 per thousand ($21 per thousand on cigarettes removed during

1991 or 1992)" for "$16.80 per thousand".

Subsec. (c). Pub. L. 101-508, Sec. 11202(c), substituted "0.75

cent (0.625 cent on cigarette papers removed during 1991 or 1992)"

for " 1/2 cent".

Subsec. (d). Pub. L. 101-508, Sec. 11202(d), substituted "1.5

cents (1.25 cents on cigarette tubes removed during 1991 or 1992)"

for "1 cent".

Subsec. (e)(1). Pub. L. 101-508, Sec. 11202(e)(1), substituted

"36 cents (30 cents on snuff removed during 1991 or 1992)" for "24

cents".

Subsec. (e)(2). Pub. L. 101-508, Sec. 11202(e)(2), substituted

"12 cents (10 cents on chewing tobacco removed during 1991 or

1992)" for "8 cents".

Subsec. (f). Pub. L. 101-508, Sec. 11202(f), substituted "67.5

cents (56.25 cents on pipe tobacco removed during 1991 or 1992)"

for "45 cents".

1988 - Subsecs. (f), (g). Pub. L. 100-647 added subsec. (f) and

redesignated former subsec. (f) as (g).

1986 - Subsecs. (e), (f). Pub. L. 99-272 added subsec. (e) and

redesignated former subsec. (e) as (f).

1982 - Subsec. (b)(1). Pub. L. 97-248, Sec. 283(a)(1),

substituted "$8" for "$4".

Subsec. (b)(2). Pub. L. 97-248, Sec. 283(a)(2), substituted

"$16.80" for "$8.40".

1976 - Subsec. (a). Pub. L. 94-455, Sec. 2128(a), substituted

provisions setting a tax of 8 1/2 percent of the wholesale price,

but not more than $20 per thousand, on cigars weighing more than 3

pounds per thousand for provisions setting the tax according to a

graduated table running from $2.50 per thousand for large cigars if

removed to retail at not more than 2 1/2 cents each to $20 per

thousand if removed to retail at more than 20 cents each, and

struck out provisions that, in determining the retail price, for

tax purposes, regard be had to the ordinary retail price of a

single cigar in its principal market, exclusive of any State or

local taxes imposed on cigars as a commodity, and that, for

purposes of that determination, the amount of State or local tax

excluded from the retail price be the actual tax imposed, except

that, if the combined taxes resulted in a numerical figure ending

in a fraction of a cent, the amount so excluded would be rounded to

the next highest full cent unless such rounding would result in a

tax lower than the tax which would be imposed in the absence of

State or local tax.

Subsec. (e). Pub. L. 94-455, Sec. 1905(a)(24), inserted ", unless

such import duties are imposed in lieu of internal revenue tax"

after "such articles".

1968 - Subsec. (a). Pub. L. 90-240 provided that the amount of

State and local tax excluded from the retail price be the actual

tax imposed, except that, if the combined taxes result in a

numerical figure ending in a fraction of a cent, the amount so

excluded be rounded to the next highest full cent unless such

rounding would result in a tax lower than the tax which would be

imposed in the absence of State and local taxes.

1965 - Pub. L. 89-44, Sec. 502(a), struck out subsec. (a)

relating to tobacco and redesignated subsecs. (b) to (f) as

subsecs. (a) to (e), respectively.

Subsec. (b)(1). Pub. L. 89-44, Sec. 501(f), removed the July 1,

1965, time limit for the $4 per thousand rate as well as the

provision for imposition of a $3.50 rate on and after July 1, 1965.

1964 - Subsec. (c)(1). Pub. L. 88-348 substituted "July 1, 1965"

for "July 1, 1964" in two places.

1963 - Subsec. (c)(1). Pub. L. 88-52 substituted "July 1, 1964"

for "July 1, 1963" in two places.

1962 - Subsec. (c)(1). Pub. L. 87-508 substituted "July 1, 1963"

for "July 1, 1962" in two places.

1961 - Subsec. (c)(1). Pub. L. 87-72 substituted "July 1, 1962"

for "July 1, 1961" in two places.

1960 - Subsec. (b). Pub. L. 86-779 substituted "imposed on cigars

as a commodity" for "imposed on the retail sales of cigars".

Subsec. (c)(1). Pub. L. 86-564 substituted "July 1, 1961" for

"July 1, 1960" in two places.

1959 - Subsec. (c)(1). Pub. L. 86-75 substituted "July 1, 1960"

for "July 1, 1959" in two places.

1958 - Subsec. (b). Pub. L. 85-859 provided that in determining

the retail price, for tax purposes, regard shall be had to the

ordinary retail price of a single cigar in its principal market,

exclusive of any State or local taxes imposed on the retail sale of

cigars, and required cigars not exempt from tax under this chapter

which are removed but not intended for sale to be taxed at the same

rate as similar cigars removed for sale.

Subsec. (c)(1). Pub. L. 85-475 substituted "July 1, 1959" for

"July 1, 1958" in two places.

Subsec. (d). Pub. L. 85-859 substituted "On each book or set of

cigarette papers containing more than 25 papers, manufactured in or

imported into the United States, there shall be imposed" for "On

cigarette papers, manufactured in or imported into the United

States, there shall be imposed, on each package, book, or set

containing more than 25 papers".

Subsec. (f). Pub. L. 85-859 substituted "imposed by this section

on tobacco products and cigarette papers and tubes imported into

the United States" for "imposed on articles by this section".

1957 - Subsec. (c)(1). Pub. L. 85-12 substituted "July 1, 1958"

for "April 1, 1957" in two places.

1956 - Subsec. (c)(1). Act Mar. 29, 1956, substituted "April 1,

1957" for "April 1, 1956" in two places.

1955 - Subsec. (c)(1). Act Mar. 30, 1955, substituted "April 1,

1956" for "April 1, 1955" in two places.

EFFECTIVE DATE OF 1997 AMENDMENT

Section 9302(i) of Pub. L. 105-33 provided that:

"(1) In general. - The amendments made by this section [enacting

section 5754 of this title and amending this section and sections

5702, 5704, 5712, 5713, 5721, 5722, and 5761 to 5763 of this title]

shall apply to articles removed (as defined in section 5702(k) [now

section 5702(j)] of the Internal Revenue Code of 1986, as amended

by this section) after December 31, 1999.

"(2) Transitional rule. - Any person who -

"(A) on the date of the enactment of this Act [Aug. 5, 1997] is

engaged in business as a manufacturer of roll-your-own tobacco or

as an importer of tobacco products or cigarette papers and tubes,

and

"(B) before January 1, 2000, submits an application under

subchapter B of chapter 52 of such Code to engage in such

business,

may, notwithstanding such subchapter B, continue to engage in such

business pending final action on such application. Pending such

final action, all provisions of such chapter 52 shall apply to such

applicant in the same manner and to the same extent as if such

applicant were a holder of a permit under such chapter 52 to engage

in such business."

EFFECTIVE DATE OF 1990 AMENDMENT

Section 11202(h) of Pub. L. 101-508 provided that: "The

amendments made by this section [amending this section and section

5702 of this title] shall apply with respect to articles removed

after December 31, 1990."

EFFECTIVE DATE OF 1988 AMENDMENT

Section 5061(d) of Pub. L. 100-647 provided that:

"(1) In general. - The amendments made by this section [amending

this section and section 5702 of this title] shall apply to pipe

tobacco removed (within the meaning of section 5702(k) [now section

5702(j)] of the 1986 Code) after December 31, 1988.

"(2) Transitional rule. - Any person who -

"(A) on the date of the enactment of this Act [Nov. 10, 1988],

is engaged in business as a manufacturer of pipe tobacco, and

"(B) before January 1, 1989, submits an application under

subchapter B of chapter 52 of the 1986 Code to engage in such

business,

may, notwithstanding such subchapter B, continue to engage in such

business pending final action on such application. Pending such

final action, all provisions of chapter 52 of the 1986 Code shall

apply to such applicant in the same manner and to the same extent

as if such applicant were a holder of a permit to manufacture pipe

tobacco under such chapter 52."

EFFECTIVE DATE OF 1986 AMENDMENT

Section 13202(c) of Pub. L. 99-272, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

"(1) In general. - The amendments made by this section [amending

this section and section 5702 of this title] shall apply to

smokeless tobacco removed after June 30, 1986.

"(2) Transitional rule. - Any person who -

"(A) on the date of the enactment of this Act [Apr. 7, 1986],

is engaged in business as a manufacturer of smokeless tobacco,

and

"(B) before July 1, 1986, submits an application under

subchapter B of chapter 52 of the Internal Revenue Code of 1986

[formerly I.R.C. 1954] to engage in such business,

may, notwithstanding such subchapter B, continue to engage in such

business pending final action on such application. Pending such

final action, all provisions of chapter 52 of such Code shall apply

to such applicant in the same manner and to the same extent as if

such applicant were a holder of a permit to manufacture smokless

[sic] tobacco under such chapter 52."

EFFECTIVE DATE OF 1982 AMENDMENT

Section 283(c) of Pub. L. 97-248, as amended by Pub. L. 99-107,

Sec. 2, Sept. 30, 1985, 99 Stat. 479; Pub. L. 99-155, Sec. 2(a),

Nov. 14, 1985, 99 Stat. 814; Pub. L. 99-181, Sec. 1, Dec. 13, 1985,

99 Stat. 1172; Pub. L. 99-189, Sec. 1, Dec. 18, 1985, 99 Stat.

1184; Pub. L. 99-201, Sec. 1, Dec. 23, 1985, 99 Stat. 1665; Pub. L.

99-272, title XIII, Sec. 13201(a), Apr. 7, 1986, 100 Stat. 311,

provided that: "The amendment made by subsection (a) [amending this

section] shall apply with respect to cigarettes removed after

December 31, 1982."

[Pub. L. 99-272, title XIII, Sec. 13201(b), Apr. 7, 1986, 100

Stat. 311, provided that: "For purposes of all Federal and State

laws, the amendment made by subsection (a) [amending section 283(c)

of Pub. L. 97-248, set out above] shall be treated as having taken

effect on March 14, 1986."]

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by section 1905(a)(24) of Pub. L. 94-455 effective on

first day of first month which begins more than 90 days after Oct.

4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note

under section 5005 of this title.

Section 2128(e) of Pub. L. 94-455 provided that: "The amendments

made by this section [amending this section and sections 5702 and

5741 of this title] shall take effect on the first month which

begins more than 90 days after the date of the enactment of this

Act [Oct. 4, 1976]."

EFFECTIVE DATE OF 1968 AMENDMENT

Section 4(b) of Pub. L. 90-240 provided that: "The amendment made

by subsection (a) [amending this section] shall apply to the

removal of cigars on or after the first day of the first calendar

quarter which begins more than 30 days after the date of the

enactment of this Act [Jan. 2, 1968]."

EFFECTIVE DATE OF 1965 AMENDMENT

Section 701(d) of Pub. L. 89-44 provided that: "The amendments

made by section 501 [repealing sections 5063 and 5707 of this title

and provisions formerly set out below and amending this section and

sections 5001, 5022, 5041, and 5051 of this title] shall apply on

and after July 1, 1965. The amendments made by section 502

[striking out subchapter D of chapter 52 of this title and

redesignating subchapters E, F, and G as subchapters D, E, and F

respectively, and amending this section and sections 5702, 5704,

5711, 5741, 5753, 5762, and 5763 of this title] shall apply on and

after January 1, 1966."

EFFECTIVE DATE OF 1960 AMENDMENT

Section 2 of Pub. L. 86-779 provided that: "The amendment made by

the first section of this Act [amending this section] shall apply

with respect to cigars removed on or after the ninth day of the

first month which begins after the date of the enactment of this

Act [Sept. 14, 1960]."

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-859 effective Sept. 3, 1958, see section

210(a)(1) of Pub. L. 85-859, set out as a note under section 5001

of this title.

COORDINATION WITH TOBACCO INDUSTRY SETTLEMENT AGREEMENT

Section 9302(k) of Pub. L. 105-33, as added by Pub. L. 105-34,

title XVI, Sec. 1604(f)(3), Aug. 5, 1997, 111 Stat. 1099, which

provided that the increase in excise taxes collected as a result of

the amendments made by subsections (a), (e), and (g) of section

9302 of Pub. L. 105-33 (amending this section and section 5702 of

this title) were to be credited against the total payments made by

parties pursuant to Federal legislation implementing the tobacco

industry settlement agreement of June 20, 1997, was repealed by

Pub. L. 105-78, title V, Sec. 519, Nov. 13, 1997, 111 Stat. 1519.

FLOOR STOCKS TAXES

Section 9302(j) of Pub. L. 105-33, as amended by Pub. L. 106-554,

Sec. 1(a)(7) [title III, Sec. 315(a)(1)], Dec. 21, 2000, 114 Stat.

2763, 2763A-643, provided that:

"(1) Imposition of tax. - On cigarettes manufactured in or

imported into the United States which are removed before any tax

increase date, and held on such date for sale by any person, there

is hereby imposed a tax in an amount equal to the excess of -

"(A) the tax which would be imposed under section 5701 of the

Internal Revenue Code of 1986 on the article if the article had

been removed on such date, over

"(B) the prior tax (if any) imposed under section 5701 of such

Code on such article.

"(2) Authority to exempt cigarettes held in vending machines. -

To the extent provided in regulations prescribed by the Secretary,

no tax shall be imposed by paragraph (1) on cigarettes held for

retail sale on any tax increase date, by any person in any vending

machine. If the Secretary provides such a benefit with respect to

any person, the Secretary may reduce the $500 amount in paragraph

(3) with respect to such person.

"(3) Credit against tax. - Each person shall be allowed as a

credit against the taxes imposed by paragraph (1) an amount equal

to $500. Such credit shall not exceed the amount of taxes imposed

by paragraph (1) on any tax increase date, for which such person is

liable.

"(4) Liability for tax and method of payment. -

"(A) Liability for tax. - A person holding cigarettes on any

tax increase date, to which any tax imposed by paragraph (1)

applies shall be liable for such tax.

"(B) Method of payment. - The tax imposed by paragraph (1)

shall be paid in such manner as the Secretary shall prescribe by

regulations.

"(C) Time for payment. - The tax imposed by paragraph (1) shall

be paid on or before April 1 following any tax increase date.

"(5) Articles in foreign trade zones. - Notwithstanding the Act

of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) and any other

provision of law, any article which is located in a foreign trade

zone on any tax increase date, shall be subject to the tax imposed

by paragraph (1) if -

"(A) internal revenue taxes have been determined, or customs

duties liquidated, with respect to such article before such date

pursuant to a request made under the 1st proviso of section 3(a)

of such Act [19 U.S.C. 81c(a)], or

"(B) such article is held on such date under the supervision of

a customs officer pursuant to the 2d proviso of such section

3(a).

"(6) Definitions. - For purposes of this subsection -

"(A) In general. - Terms used in this subsection which are also

used in section 5702 of the Internal Revenue Code of 1986 shall

have the respective meanings such terms have in such section, as

amended by this Act.

"(B) Tax increase date. - The term 'tax increase date' means

January 1, 2000, and January 1, 2002.

"(C) Secretary. - The term 'Secretary' means the Secretary of

the Treasury or the Secretary's delegate.

"(7) Controlled groups. - Rules similar to the rules of section

5061(e)(3) of such Code shall apply for purposes of this

subsection.

"(8) Other laws applicable. - All provisions of law, including

penalties, applicable with respect to the taxes imposed by section

5701 of such Code shall, insofar as applicable and not inconsistent

with the provisions of this subsection, apply to the floor stocks

taxes imposed by paragraph (1), to the same extent as if such taxes

were imposed by such section 5701. The Secretary may treat any

person who bore the ultimate burden of the tax imposed by paragraph

(1) as the person to whom a credit or refund under such provisions

may be allowed or made."

Section 11202(i) of Pub. L. 101-508 provided that:

"(1) Imposition of tax. - On cigarettes manufactured in or

imported into the United States which are removed before any

tax-increase date and held on such date for sale by any person,

there shall be imposed the following taxes:

"(A) Small cigarettes. - On cigarettes, weighing not more than

3 pounds per thousand, $2 per thousand.

"(B) Large cigarettes. - On cigarettes weighing more than 3

pounds per thousand, $4.20 per thousand; except that, if more

than 6 1/2 inches in length, they shall be taxable at the rate

prescribed for cigarettes weighing not more than 3 pounds per

thousand, counting each 2 3/4 inches, or fraction thereof, of

the length of each as one cigarette.

"(2) Exception for certain amounts of cigarettes. -

"(A) In general. - No tax shall be imposed by paragraph (1) on

cigarettes held on any tax-increase date by any person if -

"(i) the aggregate number of cigarettes held by such person

on such date does not exceed 30,000, and

"(ii) such person submits to the Secretary (at the time and

in the manner required by the Secretary) such information as

the Secretary shall require for purposes of this subparagraph.

For purposes of this subparagraph, in the case of cigarettes

measuring more than 6 1/2 inches in length, each 2 3/4 inches

(or fraction thereof) of the length of each shall be counted as

one cigarette.

"(B) Authority to exempt cigarettes held in vending machines. -

To the extent provided in regulations prescribed by the

Secretary, no tax shall be imposed by paragraph (1) on cigarettes

held for retail sale on any tax-increase date by any person in

any vending machine. If the Secretary provides such a benefit

with respect to any person, the Secretary may reduce the 30,000

amount in subparagraph (A) and the $60 amount in paragraph (3)

with respect to such person.

"(3) Credit against tax. - Each person shall be allowed as a

credit against the taxes imposed by paragraph (1) an amount equal

to $60. Such credit shall not exceed the amount of taxes imposed by

paragraph (1) for which such person is liable.

"(4) Liability for tax and method of payment. -

"(A) Liability for tax. - A person holding cigarettes on any

tax-increase date to which any tax imposed by paragraph (1)

applies shall be liable for such tax.

"(B) Method of payment. - The tax imposed by paragraph (1)

shall be paid in such manner as the Secretary shall prescribe by

regulations.

"(C) Time for payment. - The tax imposed by paragraph (1) shall

be paid on or before the 1st June 30 following the tax-increase

date.

"(5) Definitions. - For purposes of this subsection -

"(A) Tax-increase date. - The term 'tax-increase date' means

January 1, 1991, and January 1, 1993.

"(B) Other definitions. - Terms used in this subsection which

are also used in section 5702 of the Internal Revenue Code of

1986 shall have the respective meanings such terms have in such

section.

"(C) Secretary. - The term 'Secretary' means the Secretary of

the Treasury or his delegate.

"(6) Controlled groups. - Rules similar to the rules of section

11201(e)(6) [Pub. L. 101-508, set out in a note under section 5001

of this title] shall apply for purposes of this subsection.

"(7) Other laws applicable. - All provisions of law, including

penalties, applicable with respect to the taxes imposed by section

5701 of such Code shall, insofar as applicable and not inconsistent

with the provisions of this subsection, apply to the floor stocks

taxes imposed by paragraph (1), to the same extent as if such taxes

were imposed by such section 5701."

Section 5061(e) of Pub. L. 100-647 provided that:

"(1) Imposition of tax. - On pipe tobacco manufactured in or

imported into the United States which is removed before January 1,

1989, and held on such date for sale by any person, there is hereby

imposed a tax of 45 cents per pound (and a proportionate tax at the

like rate on all fractional parts of a pound).

"(2) Liability for tax and method of payment. -

"(A) Liability for tax. - A person holding pipe tobacco on

January 1, 1989, to which the tax imposed by paragraph (1)

applies shall be liable for such tax.

"(B) Method of payment. - The tax imposed by paragraph (1)

shall be treated as a tax imposed by section 5701 of the 1986

Code and shall be due and payable on February 14, 1989, in the

same manner as the tax imposed by such section is payable with

respect to pipe tobacco removed on or after January 1, 1989.

"(C) Treatment of pipe tobacco in foreign trade zones. -

Notwithstanding the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C.

81a) or any other provision of law, pipe tobacco which is located

in a foreign trade zone on January 1, 1989, shall be subject to

the tax imposed by paragraph (1) and shall be treated for

purposes of this subsection as held on such date for sale if -

"(i) internal revenue taxes have been determined, or customs

duties liquidated, with respect to such pipe tobacco before

such date pursuant to a request made under the first proviso of

section 3(a) of such Act [19 U.S.C. 81c(a)], or

"(ii) such pipe tobacco is held on such date under the

supervision of a customs officer pursuant to the second proviso

of such section 3(a).

"Under regulations prescribed by the Secretary of the Treasury

or his delegate, provisions similar to sections 5706 and 5708 of

the 1986 Code shall apply to pipe tobacco with respect to which

tax is imposed by paragraph (1) by reason of this subparagraph.

"(3) Pipe tobacco. - For purposes of this subsection, the term

'pipe tobacco' shall have the meaning given to such term by

subsection (o) [now subsection (n)] of section 5702 of the 1986

Code.

"(4) Exception where liability does not exceed $1,000. - No tax

shall be imposed by paragraph (1) on any person if the tax which

would but for this paragraph be imposed on such person does not

exceed $1,000. For purposes of the preceding sentence, all persons

who are treated as a single taxpayer under section 5061(e)(3) of

the 1986 Code shall be treated as 1 person."

Section 283(b) of Pub. L. 97-248, as amended by Pub. L. 97-448,

title III, Sec. 306(a)(14), Jan. 12, 1983, 96 Stat. 2405; Pub. L.

99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

"(1) Imposition of tax. - On cigarettes manufactured in or

imported into the United States which are removed before January 1,

1983, and held on such date for sale by any person, there shall be

imposed the following taxes:

"(A) Small cigarettes. - On cigarettes, weighing not more than

3 pounds per thousand, $4 per thousand;

"(B) Large cigarettes. - On cigarettes, weighing more than 3

pounds per thousand, $8.40 per thousand; except that, if more

than 6 1/2 inches in length, they shall be taxable at the rate

prescribed for cigarettes weighing not more than 3 pounds per

thousand, counting each 2 3/4 inches, or fraction thereof, of

the length of each as one cigarette.

"(2) Liability for tax and method of payment. -

"(A) Liability for tax. - A person holding cigarettes on

January 1, 1983, to which any tax imposed by paragraph (1)

applies shall be liable for such tax.

"(B) Method of payment. - The tax imposed by paragraph (1)

shall be treated as a tax imposed under section 5701 and shall be

due and payable on February 17, 1983 in the same manner as the

tax imposed under such section is payable with respect to

cigarettes removed on January 1, 1983.

"(3) Cigarette. - For purposes of this subsection, the term

'cigarette' shall have the meaning given to such term by subsection

(b) of section 5702 of the Internal Revenue Code of 1986 [formerly

I.R.C. 1954].

"(4) Exception for retailers. - The taxes imposed by paragraph

(1) shall not apply to cigarettes in retail stocks held on January

1, 1983, at the place where intended to be sold at retail."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5702, 5703 of this title.

-FOOTNOTE-

(!1) So in original. Probably should be "manufactured".

-End-

-CITE-

26 USC Sec. 5702 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter A - Definitions; Rate and Payment of Tax; Exemption From

Tax; and Refund and Drawback of Tax

-HEAD-

Sec. 5702. Definitions

-STATUTE-

When used in this chapter -

(a) Cigar

"Cigar" means any roll of tobacco wrapped in leaf tobacco or in

any substance containing tobacco (other than any roll of tobacco

which is a cigarette within the meaning of subsection (b)(2)).

(b) Cigarette

"Cigarette" means -

(1) any roll of tobacco wrapped in paper or in any substance

not containing tobacco, and

(2) any roll of tobacco wrapped in any substance containing

tobacco which, because of its appearance, the type of tobacco

used in the filler, or its packaging and labeling, is likely to

be offered to, or purchased by, consumers as a cigarette

described in paragraph (1).

(c) Tobacco products

"Tobacco products" means cigars, cigarettes, smokeless tobacco,

pipe tobacco, and roll-your-own tobacco.

(d) Manufacturer of tobacco products

"Manufacturer of tobacco products" means any person who

manufactures cigars, cigarettes, smokeless tobacco, pipe tobacco,

or roll-your-own tobacco, except that such term shall not include -

(1) a person who produces cigars, cigarettes, smokeless

tobacco, pipe tobacco, or roll-your-own tobacco solely for the

person's own personal consumption or use, and

(2) a proprietor of a customs bonded manufacturing warehouse

with respect to the operation of such warehouse.

(e) Cigarette paper

"Cigarette paper" means paper, or any other material except

tobacco, prepared for use as a cigarette wrapper.

(f) Cigarette tube

"Cigarette tube" means cigarette paper made into a hollow

cylinder for use in making cigarettes.

(g) Manufacturer of cigarette papers and tubes

"Manufacturer of cigarette papers and tubes" means any person who

manufactures cigarette paper, or makes up cigarette paper into

tubes, except for his own personal use or consumption.

(h) Export warehouse

"Export warehouse" means a bonded internal revenue warehouse for

the storage of tobacco products and cigarette papers and tubes,

upon which the internal revenue tax has not been paid, for

subsequent shipment to a foreign country, Puerto Rico, the Virgin

Islands, or a possession of the United States, or for consumption

beyond the jurisdiction of the internal revenue laws of the United

States.

(i) Export warehouse proprietor

"Export warehouse proprietor" means any person who operates an

export warehouse.

(j) Removal or remove

"Removal" or "remove" means the removal of tobacco products or

cigarette papers or tubes from the factory or from internal revenue

bond under section 5704, as the Secretary shall by regulation

prescribe, or release from customs custody, and shall also include

the smuggling or other unlawful importation of such articles into

the United States.

(k) Importer

"Importer" means any person in the United States to whom

nontaxpaid tobacco products or cigarette papers or tubes

manufactured in a foreign country, Puerto Rico, the Virgin Islands,

or a possession of the United States are shipped or consigned; any

person who removes cigars or cigarettes for sale or consumption in

the United States from a customs bonded manufacturing warehouse;

and any person who smuggles or otherwise unlawfully brings tobacco

products or cigarette papers or tubes into the United States.

(g742l) Determination of price on cigars

In determining price for purposes of section 5701(a)(2) -

(1) there shall be included any charge incident to placing the

article in condition ready for use,

(2) there shall be excluded -

(A) the amount of the tax imposed by this chapter or section

7652, and

(B) if stated as a separate charge, the amount of any retail

sales tax imposed by any State or political subdivision thereof

or the District of Columbia, whether the liability for such tax

is imposed on the vendor or vendee, and

(3) rules similar to the rules of section 4216(b) shall apply.

(m) Definitions relating to smokeless tobacco

(1) Smokeless tobacco

The term "smokeless tobacco" means any snuff or chewing

tobacco.

(2) Snuff

The term "snuff" means any finely cut, ground, or powdered

tobacco that is not intended to be smoked.

(3) Chewing tobacco

The term "chewing tobacco" means any leaf tobacco that is not

intended to be smoked.

(n) Pipe tobacco

The term "pipe tobacco" means any tobacco which, because of its

appearance, type, packaging, or labeling, is suitable for use and

likely to be offered to, or purchased by, consumers as tobacco to

be smoked in a pipe.

(g742o) Roll-your-own tobacco

The term "roll-your-own tobacco" means any tobacco which, because

of its appearance, type, packaging, or labeling, is suitable for

use and likely to be offered to, or purchased by, consumers as

tobacco for making cigarettes.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 706; Pub. L. 85-859, title II,

Sec. 202, Sept. 2, 1958, 72 Stat. 1415; Pub. L. 89-44, title V,

Sec. 502(b)(3), title VIII, Sec. 808(a), June 21, 1965, 79 Stat.

151, 164; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), title

XXI, Sec. 2128(b), Oct. 4, 1976, 90 Stat. 1834, 1921; Pub. L.

99-272, title XIII, Sec. 13202(b)(2)-(4), Apr. 7, 1986, 100 Stat.

312; Pub. L. 100-647, title V, Sec. 5061(b)-(c)(2), Nov. 10, 1988,

102 Stat. 3679; Pub. L. 101-508, title XI, Sec. 11202(g), Nov. 5,

1990, 104 Stat. 1388-419; Pub. L. 105-33, title IX, Sec.

9302(g)(2)-(3)(B), (h)(4), Aug. 5, 1997, 111 Stat. 672, 674; Pub.

L. 106-554, Sec. 1(a)(7) [title III, Sec. 315(a)(2)], Dec. 21,

2000, 114 Stat. 2763, 2763A-644.)

-MISC1-

AMENDMENTS

2000 - Subsec. (f). Pub. L. 106-554, Sec. 1(a)(7) [title III,

Sec. 315(a)(2)(B)], redesignated subsec. (g) as (f) and struck out

former subsec. (f), which defined "cigarette papers".

Subsec. (g). Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec.

315(a)(2)(B)], redesignated subsec. (h) as (g). Former subsec. (g)

redesignated (f).

Subsec. (h). Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec.

315(a)(2)(B)], redesignated subsec. (i) as (h). Former subsec. (h)

redesignated (g).

Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec. 315(a)(2)(A)],

amended heading and text of subsec. (h) generally. Prior to

amendment, text read as follows: " 'Manufacturer of cigarette

papers and tubes' means any person who makes up cigarette paper

into books or sets containing more than 25 papers each, or into

tubes, except for his own personal use or consumption."

Subsecs. (i) to (p). Pub. L. 106-554, Sec. 1(a)(7) [title III,

Sec. 315(a)(2)(B)], redesignated subsecs. (i) to (p) as (h) to (o),

respectively.

1997 - Subsec. (c). Pub. L. 105-33, Sec. 9302(g)(3)(A),

substituted "pipe tobacco, and roll-your-own tobacco" for "and pipe

tobacco".

Subsec. (d). Pub. L. 105-33, Sec. 9302(g)(3)(B)(i), substituted

"pipe tobacco, or roll-your-own tobacco" for "or pipe tobacco" in

introductory provisions.

Subsec. (d)(1). Pub. L. 105-33, Sec. 9302(g)(3)(B)(ii), added

par. (1) and struck out former par. (1) which read as follows: "a

person who produces cigars, cigarettes, smokeless tobacco, or pipe

tobacco solely for his own personal consumption or use; or".

Subsec. (k). Pub. L. 105-33, Sec. 9302(h)(4), inserted "under

section 5704" after "internal revenue bond".

Subsec. (p). Pub. L. 105-33, Sec. 9302(g)(2), added subsec. (p).

1990 - Subsec. (m). Pub. L. 101-508 substituted heading for one

which read: "Wholesale price" and amended text generally. Prior to

amendment, text read as follows: " 'Wholesale price' means the

manufacturer's, or importer's, suggested delivered price at which

the cigars are to be sold to retailers, inclusive of the tax

imposed by this chapter or section 7652, but exclusive of any State

or local taxes imposed on cigars as a commodity, and before any

trade, cash, or other discounts, or any promotion, advertising,

display, or similar allowances. Where the manufacturer's or

importer's suggested delivered price to retailers is not adequately

supported by bona fide arm's length sales, or where the

manufacturer or importer has no suggested delivered price to

retailers, the wholesale price shall be the price for which cigars

of comparable retail price are sold to retailers in the ordinary

course of trade as determined by the Secretary."

1988 - Subsec. (c). Pub. L. 100-647, Sec. 5061(c)(1), inserted

reference to pipe tobacco.

Subsec. (d). Pub. L. 100-647, Sec. 5061(c)(2), inserted reference

to pipe tobacco in introductory provisions and in par. (1).

Subsec. (o). Pub. L. 100-647, Sec. 5061(b), added subsec. (o).

1986 - Subsec. (c). Pub. L. 99-272, Sec. 13202(b)(2), inserted

reference to smokeless tobacco.

Subsec. (d). Pub. L. 99-272, Sec. 13202(b)(3), inserted

references to smokeless tobacco.

Subsec. (n). Pub. L. 99-272, Sec. 13202(b)(4), added subsec. (n).

1976 - Subsec. (k). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck

out "or his delegate" after "Secretary".

Subsec. (m). Pub. L. 94-455, Sec. 2128(b), added subsec. (m).

1965 - Subsec. (a). Pub. L. 89-44, Secs. 502(b)(3)(A), 808(a),

redesignated subsec. (b) as (a), repealed former subsec. (a) which

related to manufactured tobacco and, in subsec. (a) as so

redesignated, allowed the use of any substance containing tobacco

(other than any roll of tobacco which is a cigarette within the

meaning of subsec. (b)(2) as a wrapper in addition to the leaf

tobacco previously allowed.

Subsec. (b). Pub. L. 89-44, Secs. 502(b)(3)(A), 808(a),

redesignated subsec. (c) as (b) and permitted the use, as a wrapper

for cigarettes in addition to paper and substances other than

tobacco as previously allowed, any substance containing tobacco,

which, because of the finished product's appearance, tobacco type,

labeling, and packaging, is likely to be offered to or purchased by

consumers as cigarettes. Former subsec. (b) redesignated (a).

Subsec. (c). Pub. L. 89-44, Sec. 502(b)(3)(A), (B), redesignated

subsec. (d) as (c) and struck out reference to manufactured

tobacco. Former subsec. (c) redesignated (b).

Subsec. (d). Pub. L. 89-44, Sec. 502(b)(3)(A), (C), redesignated

subsec. (e) as (d), and simplified the definition of manufacturer

of tobacco products to include only persons who manufacture cigars

or cigarettes and reduced the area of excluded activities so as to

exclude only persons producing cigars and cigarettes solely for

their own personal use and proprietors of customs bonded

manufacturing warehouses with respect to the operation of such

warehouses. Former subsec. (d) redesignated (c).

Subsecs. (e) to (k). Pub. L. 89-44, Sec. 502(b)(3)(A)

redesignated subsecs. (f) to (k) and (n) as (e) to (j) and (k),

respectively. Former subsec. (e) redesignated (d).

Subsec. (l). Pub. L. 89-44, Sec. 502(b)(3)(A), redesignated

subsec. (o) as (l) and repealed former subsec. (l) which related to

tobacco materials.

Subsec. (m). Pub. L. 89-44, Sec. 502(b)(3)(A), repealed subsec.

(m) which related to tobacco dealers.

Subsecs. (n), (o). Pub. L. 89-44, Sec. 502(b)(3)(A), redesignated

subsec. (n) and (o) as (k) and (l), respectively.

1958 - Subsec. (a). Pub. L. 85-859 inserted the term "for

removal, or merely removed".

Subsecs. (b) to (d). Pub. L. 85-859 redesignated subsecs. (c),

(d), and (f) as (b), (c), and (d), respectively. Former subsecs.

(b), (c), and (d) redesignated (e), (b), and (c), respectively.

Subsec. (e). Pub. L. 85-859 consolidated the definitions

"manufacturer of tobacco" and "manufacturer of cigars and

cigarettes", inserted the phrase "for removal, or merely removes",

excluded from the definition a proprietor of a customs bonded

manufacturing warehouse with respect to the operation of the

warehouse, and required bona fide associations of farmers or

growers to maintain records of leaf tobacco.

Subsec. (f). Pub. L. 85-859 redesignated subsec. (g) as (f) and

former subsec. (f) as (d).

Subsec. (g). Pub. L. 85-859 added subsec. (g) and redesignated

former subsec. (g) as (f).

Subsec. (i). Pub. L. 85-859 substituted "into books or sets

containing more than 25 papers each, or into tubes" for "into

packages, books, sets, or tubes".

Subsec. (j). Pub. L. 85-859 substituted provisions defining

"export warehouse" for provisions which defined "article" as

manufactured tobacco, cigars, cigarettes, and cigarette papers and

tubes.

Subsec. (k). Pub. L. 85-859 added subsec. (k) and redesignated

former subsec. (k) as (l).

Subsec. (l). Pub. L. 85-859 redesignated former subsec. (k) as

(l) and substituted "other than manufactured tobacco, cigars, and

cigarettes" for "in process, leaf tobacco, and tobacco scraps,

cuttings, clippings, siftings, dust, stems, and waste". Former

subsec. (l) redesignated (m).

Subsec. (m). Pub. L. 85-859 redesignated former subsec. (l) as

(m) and included within the definition persons who receive tobacco

materials, other than stems and waste, for use in the production of

fertilizer, insecticide, or nicotine, required associations of

farmers or growers of tobacco to maintain records of all leaf

tobacco acquired or received and sold or otherwise disposed of, and

excluded from the definition persons who buy leaf tobacco without

taking physical possession of the tobacco and qualified

manufacturers of tobacco products. Former subsec. (m) redesignated

(n).

Subsec. (n). Pub. L. 85-859 redesignated former subsec. (m) as

(n) and substituted "tobacco products or cigarette papers or tubes"

for "articles". Former subsec. (n) redesignated (o).

Subsec. (o). Pub. L. 85-859 redesignated former subsec. (n) as

(o) and substituted "tobacco products or cigarette papers or tubes"

for "articles" in two places, and inserted provisions to include

within the definition persons who remove cigars or cigarettes for

sale or consumption in the United States from a customs bonded

manufacturing warehouse.

EFFECTIVE DATE OF 2000 AMENDMENT

Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec. 315(b)], Dec. 21,

2000, 114 Stat. 2763, 2763A-644, provided that: "The amendments

made by this section [amending this section, section 5761 of this

title, and provisions set out as a note under section 5701 of this

title] shall take effect as if included in section 9302 of the

Balanced Budget Act of 1997 [Pub. L. 105-33]."

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by Pub. L. 105-33 applicable to articles removed, as

defined in subsec. (k) of this section, after Dec. 31, 1999, with

transition rule, see section 9302(i) of Pub. L. 105-33, set out as

a note under section 5701 of this title.

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by Pub. L. 101-508 applicable with respect to articles

removed after Dec. 31, 1990, see section 11202(h) of Pub. L.

101-508, set out as a note under section 5701 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-647 applicable to pipe tobacco removed,

within the meaning of subsec. (k) of this section, after Dec. 31,

1988, with transition rule, see section 5061(d) of Pub. L. 100-647,

set out as a note under section 5701 of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99-272 applicable to smokeless tobacco

removed after June 30, 1986, see section 13202(c) of Pub. L.

99-272, set out as a note under section 5701 of this title.

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by section 2128(b) of Pub. L. 94-455 effective on first

month which begins more than 90 days after Oct. 4, 1976, see

section 2128(e) of Pub. L. 94-455, set out as a note under section

5701 of this title.

EFFECTIVE DATE OF 1965 AMENDMENT

Amendment by section 502(b)(3) of Pub. L. 89-44 applicable on and

after Jan. 1, 1966, see section 701(d) of Pub. L. 89-44, set out as

a note under section 5701 of this title.

Section 808(d)(1) of Pub. L. 89-44 provided that: "The amendments

made by subsections (a) and (b)(3) [amending this section and

section 7652 of this title] shall take effect on July 1, 1965."

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-859 effective Sept. 3, 1958, see section

210(a)(1) of Pub. L. 85-859, set out as an Effective Date note

under section 5001 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 42 section 1396b.

-End-

-CITE-

26 USC Sec. 5703 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter A - Definitions; Rate and Payment of Tax; Exemption From

Tax; and Refund and Drawback of Tax

-HEAD-

Sec. 5703. Liability for tax and method of payment

-STATUTE-

(a) Liability for tax

(1) Original liability

The manufacturer or importer of tobacco products and cigarette

papers and tubes shall be liable for the taxes imposed thereon by

section 5701.

(2) Transfer of liability

When tobacco products and cigarette papers and tubes are

transferred, without payment of tax, pursuant to section 5704,

the liability for tax shall be transferred in accordance with the

provisions of this paragraph. When tobacco products and cigarette

papers and tubes are transferred between the bonded premises of

manufacturers and export warehouse proprietors, the transferee

shall become liable for the tax upon receipt by him of such

articles, and the transferor shall thereupon be relieved of his

liability for such tax. When tobacco products and cigarette

papers and tubes are released in bond from customs custody for

transfer to the bonded premises of a manufacturer of tobacco

products or cigarette papers and tubes, the transferee shall

become liable for the tax on such articles upon release from

customs custody, and the importer shall thereupon be relieved of

his liability for such tax. All provisions of this chapter

applicable to tobacco products and cigarette papers and tubes in

bond shall be applicable to such articles returned to bond upon

withdrawal from the market or returned to bond after previous

removal for a tax-exempt purpose.

(b) Method of payment of tax

(1) In general

The taxes imposed by section 5701 shall be determined at the

time of removal of the tobacco products and cigarette papers and

tubes. Such taxes shall be paid on the basis of return. The

Secretary shall, by regulations, prescribe the period or the

event for which such return shall be made and the information to

be furnished on such return. Any postponement under this

subsection of the payment of taxes determined at the time of

removal shall be conditioned upon the filing of such additional

bonds, and upon compliance with such requirements, as the

Secretary may prescribe for the protection of the revenue. The

Secretary may, by regulations, require payment of tax on the

basis of a return prior to removal of the tobacco products and

cigarette papers and tubes where a person defaults in the

postponed payment of tax on the basis of a return under this

subsection or regulations prescribed thereunder. All

administrative and penalty provisions of this title, insofar as

applicable, shall apply to any tax imposed by section 5701.

(2) Time for payment of taxes

(A) In general

Except as otherwise provided in this paragraph, in the case

of taxes on tobacco products and cigarette papers and tubes

removed during any semimonthly period under bond for deferred

payment of tax, the last day for payment of such taxes shall be

the 14th day after the last day of such semimonthly period.

(B) Imported articles

In the case of tobacco products and cigarette papers and

tubes which are imported into the United States -

(i) In general

The last day for payment of tax shall be the 14th day after

the last day of the semimonthly period during which the

article is entered into the customs territory of the United

States.

(ii) Special rule for entry for warehousing

Except as provided in clause (iv), in the case of an entry

for warehousing, the last day for payment of tax shall not be

later than the 14th day after the last day of the semimonthly

period during which the article is removed from the 1st such

warehouse.

(iii) Foreign trade zones

Except as provided in clause (iv) and in regulations

prescribed by the Secretary, articles brought into a foreign

trade zone shall, notwithstanding any other provision of law,

be treated for purposes of this subsection as if such zone

were a single customs warehouse.

(iv) Exception for articles destined for export

Clauses (ii) and (iii) shall not apply to any article which

is shown to the satisfaction of the Secretary to be destined

for export.

(C) Tobacco products and cigarette papers and tubes brought

into the United States from Puerto Rico

In the case of tobacco products and cigarette papers and

tubes which are brought into the United States from Puerto

Rico, the last day for payment of tax shall be the 14th day

after the last day of the semimonthly period during which the

article is brought into the United States.

(D) Special rule for tax due in September

(i) In general

Notwithstanding the preceding provisions of this paragraph,

the taxes on tobacco products and cigarette papers and tubes

for the period beginning on September 16 and ending on

September 26 shall be paid not later than September 29.

(ii) Safe harbor

The requirement of clause (i) shall be treated as met if

the amount paid not later than September 29 is not less than

11/15 of the taxes on tobacco products and cigarette papers

and tubes for the period beginning on September 1 and ending

on September 15.

(iii) Taxpayers not required to use electronic funds transfer

In the case of payments not required to be made by

electronic funds transfer, clauses (i) and (ii) shall be

applied by substituting "September 25" for "September 26",

"September 28" for "September 29", and " 2/3 " for " 11/15 ".

(E) Special rule where due date falls on Saturday, Sunday, or

holiday

Notwithstanding section 7503, if, but for this subparagraph,

the due date under this paragraph would fall on a Saturday,

Sunday, or a legal holiday (as defined in section 7503), such

due date shall be the immediately preceding day which is not a

Saturday, Sunday, or such a holiday (or the immediately

following day where the due date described in subparagraph (D)

falls on a Sunday).

(3) Payment by electronic fund transfer

Any person who in any 12-month period, ending December 31, was

liable for a gross amount equal to or exceeding $5,000,000 in

taxes imposed on tobacco products and cigarette papers and tubes

by section 5701 (or 7652) shall pay such taxes during the

succeeding calendar year by electronic fund transfer (as defined

in section 5061(e)(2)) to a Federal Reserve Bank. Rules similar

to the rules of section 5061(e)(3) shall apply to the $5,000,000

amount specified in the preceding sentence.

(c) Use of government depositaries

The Secretary may authorize Federal Reserve banks, and

incorporated banks or trust companies which are depositaries or

financial agents of the United States, to receive any tax imposed

by this chapter, in such manner, at such times, and under such

conditions as he may prescribe; and he shall prescribe the manner,

time, and condition under which the receipt of such tax by such

banks and trust companies is to be treated as payment for tax

purposes.

(d) Assessment

Whenever any tax required to be paid by this chapter is not paid

in full at the time required for such payment, it shall be the duty

of the Secretary, subject to the limitations prescribed in section

6501, on proof satisfactory to him, to determine the amount of tax

which has been omitted to be paid, and to make an assessment

therefor against the person liable for the tax. The tax so assessed

shall be in addition to the penalties imposed by law for failure to

pay such tax when required. Except in cases where delay may

jeopardize collection of the tax, or where the amount is nominal or

the result of an evident mathematical error, no such assessment

shall be made until and after the person liable for the tax has

been afforded reasonable notice and opportunity to show cause, in

writing, against such assessment.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 707; Pub. L. 85-859, title II,

Sec. 202, Sept. 2, 1958, 72 Stat. 1417; Pub. L. 94-455, title XIX,

Secs. 1905(a)(25), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1821,

1834; Pub. L. 97-448, title III, Sec. 308(a), Jan. 12, 1983, 96

Stat. 2407; Pub. L. 98-369, div. A, title I, Sec. 27(c)(2), July

18, 1984, 98 Stat. 509; Pub. L. 99-509, title VIII, Sec.

8011(a)(1), Oct. 21, 1986, 100 Stat. 1951; Pub. L. 99-514, title

XVIII, Sec. 1801(c)(2), Oct. 22, 1986, 100 Stat. 2786; Pub. L.

100-647, title II, Sec. 2003(b)(1)(C), (D), Nov. 10, 1988, 102

Stat. 3598; Pub. L. 103-465, title VII, Sec. 712(c), Dec. 8, 1994,

108 Stat. 5000.)

-MISC1-

AMENDMENTS

1994 - Subsec. (b)(2)(D). Pub. L. 103-465, Sec. 712(c)(1), added

subpar. (D). Former subpar. (D) redesignated (E).

Subsec. (b)(2)(E). Pub. L. 103-465, Sec. 712(c), redesignated

subpar. (D) as (E), substituted "due date" for "14th day" in

heading, and inserted "(or the immediately following day where the

due date described in subparagraph (D) falls on a Sunday)" before

period at end.

1988 - Subsec. (b)(2)(B)(i), (ii), (C). Pub. L. 100-647

substituted "the 14th day after the last day of the semimonthly

period during which" for "the 14th day after the date on which".

1986 - Subsec. (b)(2). Pub. L. 99-509 amended par. (2) generally.

Prior to amendment par. (2), time for making of return and payment

of taxes, read as follows: "In the case of tobacco products and

cigarette papers and tubes removed after December 31, 1982, under

bond for deferred payment of tax, the last day for filing a return

and paying any tax due for each return period shall be the last day

of the first succeeding return period plus 10 days."

Subsec. (b)(3). Pub. L. 99-514 inserted last sentence.

1984 - Subsec. (b)(3). Pub. L. 98-369 added par. (3).

1983 - Subsec. (b). Pub. L. 97-448 designated existing provisions

as par. (1), struck out provisions that the Secretary prescribe the

time for making a return and the time for the payment of taxes and

that the Secretary prescribe by regulations the conditions for the

filing of additional bonds, and added par. (2).

1976 - Subsec. (a). Pub. L. 94-455, Sec. 1905(a)(25)(A), directed

that all provisions of chapter 52 applicable to tobacco products

and cigarette papers and tubes in bond be applicable to such

articles returned to bond upon withdrawal from the market or

returned to bond after previous removal for a tax-exempt purpose.

Subsec. (b). Pub. L. 94-455, Secs. 1905(a)(25)(B),

1906(b)(13)(A), struck out provisions which had authorized payment

of taxes by stamp until regulations could be promulgated to provide

for payment by return and struck out "or his delegate" after

"Secretary" in three places.

Subsec. (c). Pub. L. 94-455, Secs. 1905(a)(25)(C),

1906(b)(13)(A), redesignated subsec. (d) as (c) and struck out "or

his delegate" after "Secretary". Former subsec. (c), relating to

the use of stamps as evidence of the payment of taxes, was struck

out.

Subsecs. (d), (e). Pub. L. 94-455, Secs. 1905(a)(25)(C),

1906(b)(13)(A), redesignated subsec. (e) as (d) and struck out "or

his delegate" after "Secretary". Former subsec. (d) redesignated

(c).

1958 - Subsec. (a)(1). Pub. L. 85-859 designated part of first

sentence of subsec. (a) as par. (1) thereof and redesignated the

remainder of subsec. (a) as (b).

Subsec. (a)(2). Pub. L. 85-859 added par. (2).

Subsec. (b). Pub. L. 85-859 designated former subsec. (a), with

exception of part of the first sentence, as subsec. (b) and

substituted "tobacco products and cigarette papers and tubes" for

"articles", and inserted provisions relating to postponements, and

to payment of the tax on the basis of a return prior to removal of

the tobacco products and cigarette papers and tubes where a person

defaults in the postponed payment of the tax. Former subsec. (b)

redesignated (c).

Subsec. (c). Pub. L. 85-859 designated former subsec. (b) as (c)

and substituted "If the Secretary or his delegate shall by

regulation provide for the payment of tax by return and require the

use of" for "If the Secretary or his delegate shall, by regulation,

require the use", and "tobacco products" for "articles". Former

subsec. (c) redesignated (d).

Subsec. (d). Pub. L. 85-859 redesignated former subsec. (c) as

(d). Former subsec. (d) redesignated (e).

Subsec. (e). Pub. L. 85-859 designated former subsec. (d) as (e)

and permitted assessments in cases where delay may jeopardize

collection of the tax, or where the amount is nominal or the result

of an evident mathematical error.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-465 effective Jan. 1, 1995, see section

712(e) of Pub. L. 103-465, set out as a note under section 5061 of

this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-647 effective as if included in the

amendments made by section 8011 of the Omnibus Budget

Reconciliation Act of 1986, Pub. L. 99-509, see section 2003(b)(2)

of Pub. L. 100-647, set out as a note under section 5061 of this

title.

EFFECTIVE DATE OF 1986 AMENDMENTS

Amendment by Pub. L. 99-514 effective, except as otherwise

provided, as if included in the provisions of the Tax Reform Act of

1984, Pub. L. 98-369, div. A, to which such amendment relates, see

section 1881 of Pub. L. 99-514, set out as a note under section 48

of this title.

Amendment by Pub. L. 99-509 applicable to removals during

semimonthly periods ending on or after Dec. 31, 1986, except as

otherwise provided, see section 8011(c) of Pub. L. 99-509, set out

as a note under section 5061 of this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-369 applicable to taxes required to be

paid on or after Sept. 30, 1984, see section 27(d)(2) of Pub. L.

98-369, set out as a note under section 5001 of this title.

EFFECTIVE DATE OF 1983 AMENDMENT

Section 308(b) of Pub. L. 97-448 provided that: "The amendments

made by subsection (a) [amending this section] shall apply with

respect to tobacco products and cigarette papers and tubes removed

after December 31, 1982."

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by section 1905(a)(25) of Pub. L. 94-455 effective on

first day of first month which begins more than 90 days after Oct.

4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note

under section 5005 of this title.

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-859 effective Sept. 3, 1958, see section

210(a)(1) of Pub. L. 85-859, set out as an Effective Date note

under section 5001 of this title.

PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989

For provisions directing that if any amendments made by subtitle

A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or

title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an

amendment to any plan, such plan amendment shall not be required to

be made before the first plan year beginning on or after Jan. 1,

1989, see section 1140 of Pub. L. 99-514, as amended, set out as a

note under section 401 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6207, 6302 of this title.

-End-

-CITE-

26 USC Sec. 5704 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter A - Definitions; Rate and Payment of Tax; Exemption From

Tax; and Refund and Drawback of Tax

-HEAD-

Sec. 5704. Exemption from tax

-STATUTE-

(a) Tobacco products furnished for employee use or experimental

purposes

Tobacco products may be furnished by a manufacturer of such

products, without payment of tax, for use or consumption by

employees or for experimental purposes, in such quantities, and in

such manner as the Secretary shall by regulation prescribed.

(b) Tobacco products and cigarette papers and tubes transferred or

removed in bond from domestic factories and export warehouses

A manufacturer or export warehouse proprietor may transfer

tobacco products and cigarette papers and tubes, without payment of

tax, to the bonded premises of another manufacturer or export

warehouse proprietor, or remove such articles, without payment of

tax, for shipment to a foreign country, Puerto Rico, the Virgin

Islands, or a possession of the United States, or for consumption

beyond the jurisdiction of the internal revenue laws of the United

States; and manufacturers may similarly remove such articles for

use of the United States; in accordance with such regulations and

under such bonds as the Secretary shall prescribe. Tobacco products

and cigarette papers and tubes may not be transferred or removed

under this subsection unless such products or papers and tubes bear

such marks, labels, or notices as the Secretary shall by

regulations prescribe.

(c) Tobacco products and cigarette papers and tubes released in

bond from customs custody

Tobacco products and cigarette papers and tubes, imported or

brought into the United States, may be released from customs

custody, without payment of tax, for delivery to the proprietor of

an export warehouse, or to a manufacturer of tobacco products or

cigarette papers and tubes if such articles are not put up in

packages, in accordance with such regulations and under such bond

as the Secretary shall prescribe.

(d) Tobacco products and cigarette papers and tubes exported and

returned

Tobacco products and cigarette papers and tubes classifiable

under item 804.00 of title I of the Tariff Act of 1930 (relating to

duty on certain articles previously exported and returned) may be

released from customs custody, without payment of that part of the

duty attributable to the internal revenue tax for delivery to the

original manufacturer of such tobacco products or cigarette papers

and tubes or to the proprietor of an export warehouse authorized by

such manufacturer to receive such articles, in accordance with such

regulations and under such bond as the Secretary shall prescribe.

Upon such release such products, papers, and tubes shall be subject

to this chapter as if they had not been exported or otherwise

removed from internal-revenue bond.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 708; Pub. L. 85-859, title II,

Sec. 202, Sept. 2, 1958, 72 Stat. 1418; Pub. L. 88-342, Sec. 1(b),

June 30, 1964, 78 Stat. 234; Pub. L. 89-44, title V, Sec.

502(b)(4), June 21, 1965, 79 Stat. 151; Pub. L. 94-455, title XIX,

Secs. 1905(a)(26), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1821,

1834; Pub. L. 99-509, title VIII, Sec. 8011(a)(2), Oct. 21, 1986,

100 Stat. 1952; Pub. L. 101-239, title VII, Sec. 7508(a), Dec. 19,

1989, 103 Stat. 2370; Pub. L. 105-33, title IX, Sec. 9302(h)(1)(A),

Aug. 5, 1997, 111 Stat. 673; Pub. L. 106-476, title IV, Sec.

4002(b), Nov. 9, 2000, 114 Stat. 2177.)

-REFTEXT-

REFERENCES IN TEXT

Item 804.00 of title I of the Tariff Act of 1930, referred to in

subsec. (d), was classified to item 804.00 of the Tariff Schedules

of the United States. The Tariff Schedules of the United States

were replaced by the Harmonized Tariff Schedule of the United

States. The Harmonized Tariff Schedule of the United States is not

set out in the Code. See Publication of Harmonized Tariff Schedule

note set out under section 1202 of Title 19, Customs Duties.

-MISC1-

AMENDMENTS

2000 - Subsec. (d). Pub. L. 106-476 substituted "the original

manufacturer of such" for "a manufacturer of" and inserted

"authorized by such manufacturer to receive such articles" after

"proprietor of an export warehouse".

1997 - Subsec. (b). Pub. L. 105-33 inserted at end "Tobacco

products and cigarette papers and tubes may not be transferred or

removed under this subsection unless such products or papers and

tubes bear such marks, labels, or notices as the Secretary shall by

regulations prescribe."

1989 - Subsec. (c). Pub. L. 101-239 inserted "or to a

manufacturer of tobacco products or cigarette papers and tubes if

such articles are not put up in packages," after "export

warehouse,".

1986 - Subsec. (c). Pub. L. 99-509 struck out "to a manufacturer

of tobacco products or cigarette papers and tubes or" after "for

delivery".

1976 - Subsecs. (a), (b). Pub. L. 94-455, Sec. 1906(b)(13)(A),

struck out "or his delegate" after "Secretary".

Subsecs. (c), (d). Pub. L. 94-455, Secs. 1905(a)(26),

1906(b)(13)(A), inserted "or to the proprietor of an export

warehouse" after "to a manufacturer of tobacco products or

cigarette papers and tubes" and struck out "or his delegate" after

"Secretary".

1965 - Subsec. (c). Pub. L. 89-44, Sec. 502(b)(4), redesignated

subsec. (d) as (c), struck out all references to tobacco materials,

and repealed former subsec. (c) which related to tobacco materials

shipped or delivered in bond.

Subsecs. (d), (e). Pub. L. 89-44, Sec. 502(b)(4)(A), redesignated

subsec. (e) as (d). Former subsec. (d) redesignated (c).

1964 - Subsec. (e). Pub. L. 88-342 added subsec. (e).

1958 - Subsec. (b). Pub. L. 85-859 included transfers by export

warehouse proprietors, and substituted "tobacco products and

cigarette papers and tubes" for "articles", before "without payment

of tax".

Subsec. (c). Pub. L. 85-859 authorized shipments without payment

of tax of tobacco stems and waste only, to any person for use by

him as fertilizer or insecticide or in the production of

fertilizer, insecticide, or nicotine.

Subsec. (d). Pub. L. 85-859 substituted "tobacco products,

cigarette papers and tubes" for "articles" wherever appearing, and

struck out provisions which related to delivery to bonded premises

of manufacturers and dealers.

EFFECTIVE DATE OF 2000 AMENDMENT

Pub. L. 106-476, title IV, Sec. 4002(d), Nov. 9, 2000, 114 Stat.

2177, provided that: "The amendments made by this section [amending

this section and sections 5754 and 5761 of this title] shall take

effect 90 days after the date of the enactment of this Act [Nov 9,

2000]."

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by Pub. L. 105-33 applicable to articles removed, as

defined in section 5702(j) of this title, after Dec. 31, 1999, with

transition rule, see section 9302(i) of Pub. L. 105-33, set out as

a note under section 5701 of this title.

EFFECTIVE DATE OF 1989 AMENDMENT

Section 7508(b) of Pub. L. 101-239 provided that: "The amendment

made by subsection (a) [amending this section] shall apply to

articles imported or brought into the United States after the date

of the enactment of this Act [Dec. 19, 1989]."

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99-509 applicable to articles imported,

entered for warehousing, or brought into the United States or a

foreign trade zone after Dec. 15, 1986, see section 8011(c) of Pub.

L. 99-509, set out as a note under section 5061 of this title.

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by section 1905(a)(26) of Pub. L. 94-455 effective on

first day of first month which begins more than 90 days after Oct.

4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note

under section 5005 of this title.

EFFECTIVE DATE OF 1965 AMENDMENT

Amendment by Pub. L. 89-44 applicable on and after January 1,

1966, see section 701(d) of Pub. L. 89-44, set out as a note under

section 5701 of this title.

EFFECTIVE DATE OF 1964 AMENDMENT

Section 2 of Pub. L. 88-342 provided that the amendment made by

section 2 of Pub. L. 88-342 shall apply with respect to articles

entered, or withdrawn from warehouse, for consumption after June

30, 1964.

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-859 effective Sept. 3, 1958, see section

210(a)(1) of Pub. L. 85-859, set out as an Effective Date note

under section 5001 of this title.

REPORT

Pub. L. 106-476, title I, Sec. 4002(e), Nov. 9, 2000, 114 Stat.

2177, provided that: "The Secretary of the Treasury shall report to

Congress on the impact of requiring export warehouses to be

authorized by the original manufacturer to receive relanded

export-labeled cigarettes."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5702, 5703, 5751, 5754,

5761 of this title.

-End-

-CITE-

26 USC Sec. 5705 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter A - Definitions; Rate and Payment of Tax; Exemption From

Tax; and Refund and Drawback of Tax

-HEAD-

Sec. 5705. Credit, refund, or allowance of tax

-STATUTE-

(a) Credit or refund

Credit or refund of any tax imposed by this chapter or section

7652 shall be allowed or made (without interest) to the

manufacturer, importer, or export warehouse proprietor, on proof

satisfactory to the Secretary that the claimant manufacturer,

importer, or export warehouse proprietor has paid the tax on

tobacco products and cigarette papers and tubes withdrawn by him

from the market; or on such articles lost (otherwise than by theft)

or destroyed, by fire, casualty, or act of God, while in the

possession of ownership of the claimant.

(b) Allowance

If the tax has not yet been paid on tobacco products and

cigarette papers and tubes provided to have been withdrawn from the

market or lost or destroyed as aforesaid, relief from the tax on

such articles may be extended upon the filing of a claim for

allowance therefor in accordance with such regulations as the

Secretary shall prescribe.

(c) Limitation

Any claim for credit or refund of tax under this section shall be

filed within 6 months after the date of the withdrawal from the

market, loss, or destruction of the articles to which the claim

relates, and shall be in such form and contain such information as

the Secretary shall by regulations prescribe.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 709; Pub. L. 85-859, title II,

Sec. 202, Sept. 2, 1958, 72 Stat. 1419; Pub. L. 89-44, title VIII,

Sec. 808(b)(1), (2), (c)(1), June 21, 1965, 79 Stat. 164, 165; Pub.

L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat.

1834.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

1965 - Pub. L. 89-44, Sec. 808(c)(1), struck out "Refund or" and

inserted in lieu thereof "Credit, refund, or" in section catchline.

Subsec. (a). Pub. L. 89-44, Sec. 808(b)(1), substituted "Credit

or refund" for "Refund" in heading and struck out "Refund of any

tax imposed by this chapter shall be made", replacing it with

"Credit or refund of any tax imposed by this chapter or section

7652 shall be allowed or made".

Subsec. (c). Pub. L. 89-44, Sec. 808(b)(2), inserted "credit or"

before "refund".

1958 - Subsec. (a). Pub. L. 85-859 authorized refunds to export

warehouse proprietors, provided for refunds to be made without

interest, and eliminated provisions which authorized refunds where

the tax has been paid in error.

Subsec. (b). Pub. L. 85-859 permitted relief where a tax has not

yet been paid on tobacco products and cigarette papers and tubes

proved to have been withdrawn from the market.

Subsec. (c). Pub. L. 85-859 substituted "under this section shall

be filed within 6 months after the date of the withdrawal from the

market, loss, or destruction of the articles to which the claim

relates" for "imposed by this chapter shall be filed within 3 years

of the date of payment of tax".

EFFECTIVE DATE OF 1965 AMENDMENT

Section 808(d)(2) of Pub. L. 89-44 provided that: "The amendments

made by subsections (b)(1), (2), and (c) [amending this section]

shall take effect on October 1, 1965."

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-859 effective Sept. 3, 1958, see section

210(a)(1) of Pub. L. 85-859, set out as an Effective Date note

under section 5001 of this title.

-End-

-CITE-

26 USC Sec. 5706 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter A - Definitions; Rate and Payment of Tax; Exemption From

Tax; and Refund and Drawback of Tax

-HEAD-

Sec. 5706. Drawback of tax

-STATUTE-

There shall be an allowance of drawback of tax paid on tobacco

products and cigarette papers and tubes, when shipped from the

United States, in accordance with such regulations and upon the

filing of such bond as the Secretary shall prescribe.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 709; Pub. L. 85-859, title II,

Sec. 202, Sept. 2, 1958, 72 Stat. 1419; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary".

1958 - Pub. L. 85-859 substituted "tobacco products and cigarette

papers and tubes" for "articles".

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-859 effective Sept. 3, 1958, see section

210(a)(1) of Pub. L. 85-859, set out as an Effective Date note

under section 5001 of this title.

-End-

-CITE-

26 USC [Sec. 5707 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter A - Definitions; Rate and Payment of Tax; Exemption From

Tax; and Refund and Drawback of Tax

-HEAD-

[Sec. 5707. Repealed. Pub. L. 89-44, title V, Sec. 501(g), June 21,

1965, 79 Stat. 150]

-MISC1-

Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 709; Mar. 30,

1955, ch. 18, Sec. 3(b)(3), 69 Stat. 15; Mar. 29, 1956, ch. 115,

Sec. 3(b)(3), 70 Stat. 67; Mar. 29, 1957, Pub. L. 85-12, Sec.

3(b)(3), 71 Stat. 10; June 30, 1958, Pub. L. 85-475, Sec. 3(b)(3),

72 Stat. 259; Sept. 2, 1958, Pub. L. 85-859, title II, Sec. 202, 72

Stat. 1419; June 30, 1959, Pub. L. 86-75, Sec. 3(b)(2), 73 Stat.

158; June 30, 1960, Pub. L. 86-564, title II, Sec. 202(b)(2), 74

Stat. 291; June 30, 1961, Pub. L. 87-72, Sec. 3(b)(2), 75 Stat.

193; June 28, 1962, Pub. L. 87-508, Sec. 3(b)(2), 76 Stat. 114;

June 29, 1963, Pub. L. 88-52, Sec. 3(b)(1)(B), 77 Stat. 72; June

30, 1964, Pub. L. 88-348, Sec. 2(b)(1)(B), 78 Stat. 237, made

provision for floor stocks refunds on cigarettes, set limitations

on eligibility for credit or refunds, and made applicable existing

penalty and administrative procedures.

EFFECTIVE DATE OF REPEAL

Repeal applicable on and after July 1, 1965, see section 701(d)

of Pub. L. 89-44, set out as an Effective Date of 1965 Amendment

note under section 5701 of this title.

-End-

-CITE-

26 USC Sec. 5708 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter A - Definitions; Rate and Payment of Tax; Exemption From

Tax; and Refund and Drawback of Tax

-HEAD-

Sec. 5708. Losses caused by disaster

-STATUTE-

(a) Authorization

Where the President has determined under the Disaster Relief and

Emergency Assistance Act, that a "major disaster" as defined in

such Act has occurred in any part of the United States, the

Secretary shall pay (without interest) an amount equal to the

amount of the internal revenue taxes paid or determined and customs

duties paid on tobacco products and cigarette papers and tubes

removed, which were lost, rendered unmarketable, or condemned by a

duly authorized official by reason of such disaster occurring in

such part of the United States on and after the effective date of

this section, if such tobacco products or cigarette papers or tubes

were held and intended for sale at the time of such disaster. The

payments authorized by this section shall be made to the person

holding such tobacco products or cigarette papers or tubes for sale

at the time of the disaster.

(b) Claims

No claim shall be allowed under this section unless -

(1) filed within 6 months after the date on which the President

makes the determination that the disaster referred to in

subsection (a) has occurred; and

(2) the claimant furnishes proof to the satisfaction of the

Secretary that -

(A) he was not indemnified by any valid claim of insurance or

otherwise in respect of the tax, or tax and duty, on the

tobacco products or cigarette papers or tubes covered by the

claim, and

(B) he is entitled to payment under this section.

Claims under this section shall be filed under such regulations as

the Secretary shall prescribe.

(c) Destruction of tobacco products or cigarette papers or tubes

Before the Secretary makes payment under this section in respect

of the tax, or tax and duty, on the tobacco products or cigarette

papers or tubes condemned by a duly authorized official or rendered

unmarketable, such tobacco products or cigarette papers or tubes

shall be destroyed under such supervision as the Secretary may

prescribe, unless such tobacco products or cigarette papers or

tubes were previously destroyed under supervision satisfactory to

the Secretary.

(d) Other laws applicable

All provisions of law, including penalties, applicable in respect

of internal revenue taxes on tobacco products and cigarette papers

and tubes shall, insofar as applicable and not inconsistent with

this section, be applied in respect of the payments provided for in

this section to the same extent as if such payments constituted

refunds of such taxes.

-SOURCE-

(Added Pub. L. 85-859, title II, Sec. 202, Sept. 2, 1958, 72 Stat.

1420; amended Pub. L. 91-606, title III, Sec. 301(j), Dec. 31,

1970, 84 Stat. 1759; Pub. L. 93-288, title VII, Sec. 702(j),

formerly title VI, Sec. 602(j), May 22, 1974, 88 Stat. 164,

renumbered title VII, Sec. 702(j), Pub. L. 103-337, div. C, title

XXXIV, Sec. 3411(a)(1), (2), Oct. 5, 1994, 108 Stat. 3100; Pub. L.

94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat.

1834; Pub. L. 100-707, title I, Sec. 109(l), Nov. 23, 1988, 102

Stat. 4709.)

-REFTEXT-

REFERENCES IN TEXT

The Disaster Relief and Emergency Assistance Act, referred to in

subsec. (a), is Pub. L. 93-288, May 22, 1974, 88 Stat. 143, as

amended, known as the Robert T. Stafford Disaster Relief and

Emergency Assistance Act, which is classified principally to

chapter 68 (Sec. 5121 et seq.) of Title 42, The Public Health and

Welfare. For complete classification of this Act to the Code, see

Short Title note set out under section 5121 of Title 42 and Tables.

-MISC1-

AMENDMENTS

1988 - Subsec. (a). Pub. L. 100-707 substituted "and Emergency

Assistance Act" for "Act of 1974".

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

1974 - Subsec. (a). Pub. L. 93-288 substituted "Disaster Relief

Act of 1974" for "Disaster Relief Act of 1970".

1970 - Subsec. (a). Pub. L. 91-606 substituted "Disaster Relief

Act of 1970" for "Act of September 30, 1950 (42 U.S.C. 1855)".

EFFECTIVE DATE OF 1974 AMENDMENT

Amendment by Pub. L. 93-288 effective Apr. 1, 1974, see section

605 of Pub. L. 93-288, set out as an Effective Date note under

section 5121 of Title 42, The Public Health and Welfare.

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-606 effective Dec. 31, 1970, see section

304 of Pub. L. 91-606, set out as a note under section 165 of this

title.

EFFECTIVE DATE

Section effective Sept. 3, 1958, see section 210(a)(1) of Pub. L.

85-859, set out as a note under section 5001 of this title.

LOSSES OF TOBACCO PRODUCTS CAUSED BY DISASTER

Section 209 of Pub. L. 85-859 authorized payments, without

interest, of amounts equal to internal revenue taxes and customs

duties paid by persons suffering a major disaster, pursuant to

former act Sept. 30, 1950, ch. 1125, 64 Stat. 1109, for disasters

occurring in the United States after Dec. 31, 1954, and before

Sept. 2, 1958, in respect to tobacco products and cigarette papers

and tubes; specified persons to whom the payments would be made and

the procedure for allowance of claims; required the destruction of

such tobacco products and cigarette papers and tubes under

supervision; and made other laws applicable to such payments

insofar as not inconsistent with section 209 of Pub. L. 85-859.

-End-

-CITE-

26 USC Subchapter B - Qualification Requirements for

Manufacturers and Importers

of Tobacco Products and

Cigarette Papers and Tubes,

and Export Warehouse

Proprietors 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter B - Qualification Requirements for Manufacturers and

Importers of Tobacco Products and Cigarette

Papers and Tubes, and Export Warehouse

Proprietors

-HEAD-

SUBCHAPTER B - QUALIFICATION REQUIREMENTS FOR MANUFACTURERS AND

IMPORTERS OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES, AND

EXPORT WAREHOUSE PROPRIETORS

-MISC1-

Sec.

5711. Bond.

5712. Application for permit.

5713. Permit.

AMENDMENTS

1997 - Pub. L. 105-33, title IX, Sec. 9302(h)(2)(C), Aug. 5,

1997, 111 Stat. 674, inserted "and Importers" after "Manufacturers"

in subchapter heading.

1965 - Pub. L. 89-44, title V, Sec. 502(b)(5), June 21, 1965, 79

Stat. 151, struck out reference to dealers in tobacco materials

from subchapter heading.

-End-

-CITE-

26 USC Sec. 5711 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter B - Qualification Requirements for Manufacturers and

Importers of Tobacco Products and Cigarette

Papers and Tubes, and Export Warehouse

Proprietors

-HEAD-

Sec. 5711. Bond

-STATUTE-

(a) When required

Every person, before commencing business as a manufacturer of

tobacco products or cigarette papers and tubes, or as an export

warehouse proprietor, shall file such bond, conditioned upon

compliance with this chapter and regulations issued thereunder, in

such form, amount, and manner as the Secretary shall by regulation

prescribe. A new or additional bond may be required whenever the

Secretary considers such action necessary for the protection of the

revenue.

(b) Approval or disapproval

No person shall engage in such business until he receives notice

of approval of such bond. A bond may be disapproved, upon notice to

the principal on the bond, if the Secretary determines that the

bond is not adequate to protect the revenue.

(c) Cancellation

Any bond filed hereunder may be canceled, upon notice to the

principal on the bond, whenever the Secretary determines that the

bond no longer adequately protects the revenue.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 711; Pub. L. 85-859, title II,

Sec. 202, Sept. 2, 1958, 72 Stat. 1421; Pub. L. 89-44, title V,

Sec. 502(b)(6), June 21, 1965, 79 Stat. 151; Pub. L. 94-455, title

XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

1965 - Subsec. (a). Pub. L. 89-44 struck out reference to dealers

in tobacco materials.

1958 - Subsec. (a). Pub. L. 85-859 included export warehouse

proprietors, and substituted "manufacturer of tobacco products or

cigarette papers and tubes" for "manufacturer of articles".

EFFECTIVE DATE OF 1965 AMENDMENT

Amendment by Pub. L. 89-44 applicable on and after January 1,

1966, see section 701(d) of Pub. L. 89-44, set out as a note under

section 5701 of this title.

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-859 effective Sept. 3, 1958, see section

210(a)(1) of Pub. L. 85-859, set out as an Effective Date note

under section 5001 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5713 of this title.

-End-

-CITE-

26 USC Sec. 5712 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter B - Qualification Requirements for Manufacturers and

Importers of Tobacco Products and Cigarette

Papers and Tubes, and Export Warehouse

Proprietors

-HEAD-

Sec. 5712. Application for permit

-STATUTE-

Every person, before commencing business as a manufacturer or

importer of tobacco products or as an export warehouse proprietor,

and at such other time as the Secretary shall by regulation

prescribe, shall make application for the permit provided for in

section 5713. The application shall be in such form as the

Secretary shall prescribe and shall set forth, truthfully and

accurately, the information called for on the form. Such

application may be rejected and the permit denied if the Secretary,

after notice and opportunity for hearing, find that -

(1) the premises on which it is proposed to conduct the

business are not adequate to protect the revenue;

(2) the activity proposed to be carried out at such premises

does not meet such minimum capacity or activity requirements as

the Secretary may prescribe,(!1) or

(3) such person (including, in the case of a corporation, any

officer, director, or principal stockholder and, in the case of a

partnership, a partner) is, by reason of his business experience,

financial standing, or trade connections, not likely to maintain

operations in compliance with this chapter, or has failed to

disclose any material information required or made any material

false statement in the application therefor.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 712; Pub. L. 85-859, title II,

Sec. 202, Sept. 2, 1958, 72 Stat. 1421; Pub. L. 94-455, title XIX,

Secs. 1905(a)(27), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1821,

1834; Pub. L. 105-33, title IX, Sec. 9302(h)(2)(A), (5), Aug. 5,

1997, 111 Stat. 674.)

-MISC1-

AMENDMENTS

1997 - Pub. L. 105-33, Sec. 9302(h)(5), struck out "or" at end of

par. (1), added par. (2), and redesignated former par. (2) as (3).

Pub. L. 105-33, Sec. 9302(h)(2)(A), inserted "or importer" after

"manufacturer" in introductory provisions.

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" and struck out provision that no person subject to this

section, who was lawfully engaged in business on the date of the

enactment of the Excise Tax Technical Changes Act of 1958, be

denied the right to carry on that business pending reasonable

opportunity to make applications for permit and final action

thereon.

1958 - Pub. L. 85-859 included export warehouse proprietors, and

excluded dealers in tobacco materials.

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by Pub. L. 105-33 applicable to articles removed, as

defined in section 5702(j) of this title, after Dec. 31, 1999, with

transition rule, see section 9302(i) of Pub. L. 105-33, set out as

a note under section 5701 of this title.

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by section 1905(a)(27) of Pub. L. 94-455 effective on

first day of first month which begins more than 90 days after Oct.

4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note

under section 5005 of this title.

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-859 effective Sept. 3, 1958, see section

210(a)(1) of Pub. L. 85-859, set out as an Effective Date note

under section 5001 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5713 of this title.

-FOOTNOTE-

(!1) So in original. The comma probably should be a semicolon.

-End-

-CITE-

26 USC Sec. 5713 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter B - Qualification Requirements for Manufacturers and

Importers of Tobacco Products and Cigarette

Papers and Tubes, and Export Warehouse

Proprietors

-HEAD-

Sec. 5713. Permit

-STATUTE-

(a) Issuance

A person shall not engage in business as a manufacturer or

importer of tobacco products or as an export warehouse proprietor

without a permit to engage in such business. Such permit,

conditioned upon compliance with this chapter and regulations

issued thereunder, shall be issued in such form and in such manner

as the Secretary shall by regulation prescribe, to every person

properly qualified under sections 5711 and 5712. A new permit may

be required at such other time as the Secretary shall by regulation

prescribe.

(b) Revocation

If the Secretary has reason to believe that any person holding a

permit has not in good faith complied with this chapter, or with

any other provision of this title involving intent to defraud, or

has violated the conditions of such permit, or has failed to

disclose any material information required or made any material

false statement in the application for such permit, or has failed

to maintain his premises in such manner as to protect the revenue,

the Secretary shall issue an order, stating the facts charged,

citing such person to show cause why his permit should not be

suspended or revoked. If, after hearing, the Secretary finds that

such person has not in good faith complied with this chapter or

with any other provision of this title involving intent to defraud,

has violated the conditions of such permit, has failed to disclose

any material information required or made any material false

statement in the application therefor, or has failed to maintain

his premises in such manner as to protect the revenue, such permit

shall be suspended for such period as the Secretary deems proper or

shall be revoked.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 712; Pub. L. 85-859, title II,

Sec. 202, Sept. 2, 1958, 72 Stat. 1421; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 105-33,

title IX, Sec. 9302(h)(2)(A), Aug. 5, 1997, 111 Stat. 674.)

-MISC1-

AMENDMENTS

1997 - Subsec. (a). Pub. L. 105-33 inserted "or importer" after

"manufacturer".

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

1958 - Subsec. (a). Pub. L. 85-859 substituted "manufacturer of

tobacco products" for "manufacturer of articles", included export

warehouse proprietors, and struck out provisions which related to

dealers in tobacco materials.

Subsecs. (b), (c). Pub. L. 85-859 redesignated subsec. (c) as (b)

and struck out former subsec. (b) that required permits to be

posted.

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by Pub. L. 105-33 applicable to articles removed, as

defined in section 5702(j) of this title, after Dec. 31, 1999, with

transition rule, see section 9302(i) of Pub. L. 105-33, set out as

a note under section 5701 of this title.

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-859 effective Sept. 3, 1958, see section

210(a)(1) of Pub. L. 85-859, set out as an Effective Date note

under section 5001 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5712 of this title.

-End-

-CITE-

26 USC Subchapter C - Operations by Manufacturers and

Importers of Tobacco Products

and Cigarette Papers and

Tubes and Export Warehouse

Proprietors 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter C - Operations by Manufacturers and Importers of Tobacco

Products and Cigarette Papers and Tubes and

Export Warehouse Proprietors

-HEAD-

SUBCHAPTER C - OPERATIONS BY MANUFACTURERS AND IMPORTERS OF TOBACCO

PRODUCTS AND CIGARETTE PAPERS AND TUBES AND EXPORT WAREHOUSE

PROPRIETORS

-MISC1-

Sec.

5721. Inventories.

5722. Reports.

5723. Packages, marks, labels, and notices.

AMENDMENTS

1976 - Pub. L. 94-455, title XIX, Sec. 1905(b)(7)(D), Oct. 4,

1976, 90 Stat. 1823, substituted "and notices" for "notices, and

stamps" in item 5723.

1958 - Pub. L. 85-859, title II, Sec. 202, Sept. 2, 1958, 72

Stat. 1422, substituted "Manufacturers and Importers of Tobacco

Products and Cigarette Papers and Tubes and Export Warehouse

Proprietors" for "Manufacturers of Articles" in heading of

subchapter and inserted "marks," in item 5723.

-End-

-CITE-

26 USC Sec. 5721 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter C - Operations by Manufacturers and Importers of Tobacco

Products and Cigarette Papers and Tubes and

Export Warehouse Proprietors

-HEAD-

Sec. 5721. Inventories

-STATUTE-

Every manufacturer or importer of tobacco products or cigarette

papers and tubes, and every export warehouse proprietor, shall make

a true and accurate inventory at the time of commencing business,

at the time of concluding business, and at such other times, in

such manner and form, and to include such items, as the Secretary

shall by regulation prescribe. Such inventories shall be subject to

verification by any internal revenue officer.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 713; Pub. L. 85-859, title II,

Sec. 202, Sept. 2, 1958, 72 Stat. 1422; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 105-33,

title IX, Sec. 9302(h)(2)(A), Aug. 5, 1997, 111 Stat. 674.)

-MISC1-

AMENDMENTS

1997 - Pub. L. 105-33 inserted "or importer" after

"manufacturer".

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary".

1958 - Pub. L. 85-859 substituted "manufacturer of tobacco

products or cigarette papers and tubes" for "manufacturer of

articles" and "internal revenue officer" for "revenue officer", and

inserted provisions to include export warehouse proprietors.

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by Pub. L. 105-33 applicable to articles removed, as

defined in section 5702(j) of this title, after Dec. 31, 1999, with

transition rule, see section 9302(i) of Pub. L. 105-33, set out as

a note under section 5701 of this title.

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-859 effective Sept. 3, 1958, see section

210(a)(1) of Pub. L. 85-859, set out as an Effective Date note

under section 5001 of this title.

-End-

-CITE-

26 USC Sec. 5722 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter C - Operations by Manufacturers and Importers of Tobacco

Products and Cigarette Papers and Tubes and

Export Warehouse Proprietors

-HEAD-

Sec. 5722. Reports

-STATUTE-

Every manufacturer or importer of tobacco products or cigarette

papers and tubes, and every export warehouse proprietor, shall make

reports containing such information, in such form, at such times,

and for such periods as the Secretary shall by regulation

prescribe.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 713; Pub. L. 85-859, title II,

Sec. 202, Sept. 2, 1958, 72 Stat. 1422; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 105-33,

title IX, Sec. 9302(h)(2)(A), Aug. 5, 1997, 111 Stat. 674.)

-MISC1-

AMENDMENTS

1997 - Pub. L. 105-33 inserted "or importer" after

"manufacturer".

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary".

1958 - Pub. L. 85-859 substituted "manufacturer of tobacco

products or cigarette papers and tubes, and every export warehouse

proprietor" for "manufacturer of articles".

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by Pub. L. 105-33 applicable to articles removed, as

defined in section 5702(j) of this title, after Dec. 31, 1999, with

transition rule, see section 9302(i) of Pub. L. 105-33, set out as

a note under section 5701 of this title.

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-859 effective Sept. 3, 1958, see section

210(a)(1) of Pub. L. 85-859, set out as an Effective Date note

under section 5001 of this title.

-End-

-CITE-

26 USC Sec. 5723 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter C - Operations by Manufacturers and Importers of Tobacco

Products and Cigarette Papers and Tubes and

Export Warehouse Proprietors

-HEAD-

Sec. 5723. Packages, marks, labels, and notices

-STATUTE-

(a) Packages

All tobacco products and cigarette papers and tubes shall, before

removal, be put up in such packages as the Secretary shall by

regulation prescribe.

(b) Marks, labels, and notices

Every package of tobacco products or cigarette papers or tubes

shall, before removal, bear the marks, labels, and notices if any,

that the Secretary by regulation prescribes.

(c) Lottery features

No certificate, coupon, or other device purporting to be or to

represent a ticket, chance, share, or an interest in, or dependent

on, the event of a lottery shall be contained in, attached to, or

stamped, marked, written, or printed on any package of tobacco

products or cigarette papers or tubes.

(d) Indecent or immoral material prohibited

No indecent or immoral picture, print, or representation shall be

contained in, attached to, or stamped, marked, written, or printed

on any package of tobacco products or cigarette papers or tubes.

(e) Exceptions

Tobacco products furnished by manufacturers of such products for

use or consumption by their employees, or for experimental

purposes, and tobacco products and cigarette papers and tubes

transferred to the bonded premises of another manufacturer or

export warehouse proprietor or released in bond from customs

custody for deliver to a manufacturer of tobacco products or

cigarette papers and tubes, may be exempted from subsection (a) and

(b) in accordance with such regulations as the Secretary shall

prescribe.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 713; Pub. L. 85-859, title II,

Sec. 202, Sept. 2, 1958, 72 Stat. 1422; Pub. L. 94-455, title XIX,

Secs. 1905(a)(28), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1821,

1834.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455, Sec. 1905(a)(28)(A), substituted "and

notices" for "notices, and stamps" in section catchline.

Subsecs. (a), (e). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck

out "or his delegate" after "Secretary".

Subsec. (b). Pub. L. 94-455, Secs. 1905(a)(28)(B),

1906(b)(13)(A), struck out references to stamps in heading and in

text and struck out "or his delegate" after "Secretary".

1958 - Subsec. (a). Pub. L. 85-859 substituted "Packages" for

"Packages, labels, notices, and stamps" in heading, and substituted

"All tobacco products and cigarette papers and tubes shall, before

removal, be put up in such packages as" for "All articles shall,

before removal, be put up in packages having such labels, notices,

and stamps as" in text.

Subsec. (b). Pub. L. 85-859 added subsec. (b) and redesignated

former subsec. (b) as (c).

Subsec. (c). Pub. L. 85-859 redesignated former subsec. (b) as

(c) and substituted "tobacco products or cigarette papers or tubes"

for "articles". Former subsec. (c) redesignated (d).

Subsec. (d). Pub. L. 85-859 redesignated former subsec. (c) as

(d) and substituted "tobacco products or cigarette papers or tubes"

for "articles". Former subsec. (d) redesignated (e).

Subsec. (e). Pub. L. 85-859 redesignated former subsec. (d) as

(e), and permitted exemption of tobacco products and cigarette

papers and tubes transferred to the bonded premises of another

manufacturer or export warehouse proprietor or released in bond

from customs custody for delivery to a manufacturer of tobacco

products or cigarette papers and tubes, and eliminated provisions

which authorized exemption of articles removed for shipment to a

foreign country, Puerto Rico, the Virgin Islands, or a possession

of the United States, and so shipped.

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by section 1905(a)(28) of Pub. L. 94-455 effective on

first day of first month which begins more than 90 days after Oct.

4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note

under section 5005 of this title.

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-859 effective Sept. 3, 1958, see section

210(a)(1) of Pub. L. 85-859, set out as an Effective Date note

under section 5001 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5751, 5763 of this title.

-End-

-CITE-

26 USC Subchapter D - Occupational Tax 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter D - Occupational Tax

-HEAD-

SUBCHAPTER D - OCCUPATIONAL TAX

-MISC1-

Sec.

5731. Imposition and rate of tax.

PRIOR PROVISIONS

A prior subchapter D, relating to records of manufacturers and

importers of tobacco products, etc., was redesignated subchapter E

by Pub. L. 100-203, title X, Sec. 10512(f)(1), Dec. 22, 1987, 101

Stat. 1330-449.

Another prior subchapter D, which consisted of sections 5731 and

5732 of this title, was repealed by Pub. L. 89-44, title V, Sec.

502(b)(7), June 21, 1965, 79 Stat. 151, applicable on and after

Jan. 1, 1966.

Section 5731, acts Aug. 16, 1954, ch. 736, 68A Stat. 714; Sept.

2, 1958, Pub. L. 85-859, title II, Sec. 202, 72 Stat. 1423,

restricted the shipment and delivery of tobacco materials to

shipment and delivery pursuant to the regulations prescribed by the

Secretary or his delegate.

Section 5732, acts Aug. 16, 1954, ch. 736, 68A Stat. 714; Sept.

2, 1958, Pub. L. 85-859, title II, Sec. 202, 72 Stat. 1423,

required that a dealer in tobacco materials make statement of

shipments and delivers or give an inventory upon demand of any

internal revenue officer.

-End-

-CITE-

26 USC Sec. 5731 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter D - Occupational Tax

-HEAD-

Sec. 5731. Imposition and rate of tax

-STATUTE-

(a) General rule

Every person engaged in business as -

(1) a manufacturer of tobacco products,

(2) a manufacturer of cigarette papers and tubes, or

(3) an export warehouse proprietor,

shall pay a tax of $1,000 per year in respect of each premises at

which such business is carried on.

(b) Reduced rates for small proprietors

(1) In general

Subsection (a) shall be applied by substituting "$500" for

"$1,000" with respect to any taxpayer the gross receipts of which

(for the most recent taxable year ending before the 1st day of

the taxable period to which the tax imposed by subsection (a)

relates) are less than $500,000.

(2) Controlled group rules

All persons treated as 1 taxpayer under section 5061(e)(3)

shall be treated as 1 taxpayer for purposes of paragraph (1).

(3) Certain rules to apply

For purposes of paragraph (1), rules similar to the rules of

subparagraphs (B) and (C) of section 448(c)(3) shall apply.

(c) Certain occupational tax rules to apply

Rules similar to the rules of subpart G of part II of subchapter

A of chapter 51 shall apply for purposes of this section.

(d) Penalty for failure to register

Any person engaged in a business referred to in subsection (a)

who willfully fails to pay the tax imposed by subsection (a) shall

be fined not more than $5,000, or imprisoned not more than 2 years,

or both, for each such offense.

-SOURCE-

(Added Pub. L. 100-203, title X, Sec. 10512(f)(1), Dec. 22, 1987,

101 Stat. 1330-449.)

-MISC1-

PRIOR PROVISIONS

For prior sections 5731 and 5732, see Prior Provisions note set

out preceding this section.

EFFECTIVE DATE

Section effective Jan. 1, 1988, see section 10512(h) of Pub. L.

100-203, set out as a note under section 5081 of this title.

-End-

-CITE-

26 USC Subchapter E - Records of Manufacturers and

Importers of Tobacco Products

and Cigarette Papers and

Tubes, and Export Warehouse

Proprietors 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter E - Records of Manufacturers and Importers of Tobacco

Products and Cigarette Papers and Tubes, and

Export Warehouse Proprietors

-HEAD-

SUBCHAPTER E - RECORDS OF MANUFACTURERS AND IMPORTERS OF TOBACCO

PRODUCTS AND CIGARETTE PAPERS AND TUBES, AND EXPORT WAREHOUSE

PROPRIETORS

-MISC1-

Sec.

5741. Records to be maintained.

AMENDMENTS

1987 - Pub. L. 100-203, title X, Sec. 10512(f)(1), Dec. 22, 1987,

101 Stat. 1330-449, redesignated subchapter D as E.

1976 - Pub. L. 94-455, title XXI, Sec. 2128(d)(1), Oct. 4, 1976,

90 Stat. 1921, inserted "and Importers" in subchapter heading.

1965 - Pub. L. 89-44, title V, Sec. 502(b)(7), (8), June 21,

1965, 79 Stat. 151, struck out former subchapter D, consisting of

Secs. 5731 and 5732 relating to operations by dealers in tobacco

materials, redesignated subchapter E as D and, in heading for

subchapter D, as redesignated, struck out reference to dealers in

tobacco materials.

1958 - Pub. L. 85-859, title II, Sec. 202, Sept. 2, 1958, 72

Stat. 1423, substituted "Manufacturers of Tobacco Products and

Cigarette Papers and Tubes, Export Warehouse proprietors, and" for

"Manufacturers of Articles and" in heading of subchapter.

-End-

-CITE-

26 USC Sec. 5741 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter E - Records of Manufacturers and Importers of Tobacco

Products and Cigarette Papers and Tubes, and

Export Warehouse Proprietors

-HEAD-

Sec. 5741. Records to be maintained

-STATUTE-

Every manufacturer of tobacco products or cigarette papers and

tubes, every importer, and every export warehouse proprietor shall

keep such records in such manner as the Secretary shall by

regulation prescribe. The records required under this section shall

be available for inspection by any internal revenue officer during

business hours.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 715; Pub. L. 85-859, title II,

Sec. 202, Sept. 2, 1958, 72 Stat. 1423; Pub. L. 89-44, title V,

Sec. 502(b)(9), June 21, 1965, 79 Stat. 151; Pub. L. 94-455, title

XXI, Sec. 2128(c), Oct. 4, 1976, 90 Stat. 1921.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 inserted reference to importers, struck out

"or his delegate" after "Secretary", and provided that the required

records be available for inspection by any internal revenue officer

during business hours.

1965 - Pub. L. 89-44 struck out reference to every dealer in

tobacco materials.

1958 - Pub. L. 85-859 substituted "tobacco products or cigarette

papers and tubes, every warehouse proprietor, and every dealer" for

"articles and dealer", and "such manner" for "such form".

EFFECTIVE DATE OF 1965 AMENDMENT

Amendment by Pub. L. 89-44 applicable on and after January 1,

1966, see section 701(d) of Pub. L. 89-44, set out as a note under

section 5701 of this title.

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-859 effective Sept. 3, 1958, see section

210(a)(1) of Pub. L. 85-859, set out as an Effective Date note

under section 5001 of this title.

-End-

-CITE-

26 USC Subchapter F - General Provisions 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter F - General Provisions

-HEAD-

SUBCHAPTER F - GENERAL PROVISIONS

-MISC1-

Sec.

5751. Purchase, receipt, possession, or sale of tobacco

products and cigarette papers and tubes, after

removal.

5752. Restrictions relating to marks, labels, notices, and

packages.

5753. Disposal of forfeited, condemned, and abandoned

tobacco products, and cigarette papers and tubes.

5754. Restriction on importation of previously exported

tobacco products.

AMENDMENTS

1997 - Pub. L. 105-33, title IX, Sec. 9302(h)(1)(E)(ii), Aug. 5,

1997, 111 Stat. 674, added item 5754.

1987 - Pub. L. 100-203, title X, Sec. 10512(f)(1), Dec. 22, 1987,

101 Stat. 1330-449, redesignated subchapter E as F.

1976 - Pub. L. 94-455, title XIX, Sec. 1905(b)(7)(B)(iii), Oct.

4, 1976, 90 Stat. 1823, substituted "and packages" for "stamps, and

packages" in item 5752.

1965 - Pub. L. 89-44, title V, Sec. 502(b)(7), (10), June 21,

1965, 79 Stat. 151, 152, redesignated subchapter F as E and, in the

table of sections for subchapter E as so redesignated, struck out

reference to tobacco materials in item 5753. Former subchapter E

redesignated D.

1958 - Pub. L. 85-859, title II, Sec. 202, Sept. 2, 1958, 72

Stat. 1423, substituted "sale of tobacco products and cigarette

papers and tubes, after removal" for "sale of articles, after

removal not exempt from tax" in item 5751, included marks and

notices in item 5752, and substituted "tobacco products, cigarette

papers and tubes, and" for "articles and" in item 5753.

-End-

-CITE-

26 USC Sec. 5751 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

Subchapter F - General Provisions

-HEAD-

Sec. 5751. Purchase, receipt, possession, or sale of tobacco

products and cigarette papers and tubes, after removal

-STATUTE-

(a) Restriction

No person shall -

(1) with intent to defraud the United States, purchase,

receive, possess, offer for sale, or sell or otherwise dispose

of, after removal, any tobacco products or cigarette papers or

tubes -

(A) upon which the tax has not been paid or determined in the

manner and at the time prescribed by this chapter or

regulations thereunder; or

(B) which, after removal without payment of tax pursuant to

section 5704, have been diverted from the applicable purpose or

use specified in that section; or

(2) with intent to defraud the United States, purchase,

receive, possess, offer for sale, or sell or otherwise dispose

of, after removal, any tobacco products or cigarette papers or

tubes, which are not put up in packages as required under section

5723 or which are put up in packages not bearing the marks,

labels, and notices, as required under such section; or

(3) otherwise than with intent to defraud the United States,

purchase, receive, possess, offer for sale, or