-CITE-
26 USC CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS
AND TUBES 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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.
(l) 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.
(o) 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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 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.
This paragraph shall not prevent the sale or delivery of tobacco
products or cigarette papers or tubes directly to consumers from
proper packages, nor apply to such articles when so sold or
delivered.
(b) Liability to tax
Any person who possesses tobacco products or cigarette papers or
tubes in violation of subsection (a)(1) or (a)(2) shall be liable
for a tax equal to the tax on such articles.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 716; Pub. L. 85-859, title II,
Sec. 202, Sept. 2, 1958, 72 Stat. 1424; Pub. L. 94-455, title XIX,
Sec. 1905(b)(7)(A), Oct. 4, 1976, 90 Stat. 1823.)
-MISC1-
AMENDMENTS
1976 - Subsec. (a)(2), (3). Pub. L. 94-455 substituted "and
notices" for "notices, and stamps".
1958 - Pub. L. 85-859 substituted "tobacco products and cigarette
papers and tubes, after removal" for "articles, after removal, not
exempt from tax" in section catchline.
Subsec. (a) amended generally by Pub. L. 85-859, which included
within the restrictions, purchase, receipt, possession, offer for
sale, or sale of other disposition of tobacco products or cigarette
papers or tubes, after removal, upon which the tax has not been
paid or determined, or which after removal without payment of tax
have been diverted from the applicable purpose or use specified in
section 5704, and to provide that par. (3) shall not prevent the
delivery of tobacco products or cigarette papers or tubes directly
to consumers from proper packages, nor apply to such articles when
so delivered.
Subsec. (b). Pub. L. 85-859 substituted "tobacco products or
cigarette papers or tubes in violation of subsection (a)(1) or
(a)(2) shall be liable for a tax equal to the tax on such articles"
or "articles in violation of subsection (a) of this section, shall
incur liability to the tax thereon in addition to the penalties
prescribed elsewhere in this title".
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by 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 5762 of this title.
-End-
-CITE-
26 USC Sec. 5752 01/19/04
-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. 5752. Restrictions relating to marks, labels, notices, and
packages
-STATUTE-
No person shall, with intent to defraud the United States,
destroy, obliterate, or detach any mark, label, or notice
prescribed or authorized, by this chapter or regulations
thereunder, to appear on, or be affixed to, any package of tobacco
products or cigarette papers or tubes, before such package is
emptied.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 716; Pub. L. 85-859, title II,
Sec. 202, Sept. 2, 1958, 72 Stat. 1424; Pub. L. 94-455, title XIX,
Sec. 1905(b)(7)(B)(i), Oct. 4, 1976, 90 Stat. 1823.)
-MISC1-
AMENDMENTS
1976 - Pub. L. 94-455 struck out reference to stamps in the
section catchline and in the text and struck out provisions which
had enumerated violations involving the misuse of tax stamps.
1958 - Pub. L. 85-859 included marks and notices in the
catchline, limited the penalties to cases where there is intent to
defraud the United States, and prohibited the destruction,
obliteration, or detachment of any mark, label, notice or stamp
before a package of tobacco products or cigarette papers or tubes
is emptied.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by 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 5762 of this title.
-End-
-CITE-
26 USC Sec. 5753 01/19/04
-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. 5753. Disposal of forfeited, condemned, and abandoned tobacco
products, and cigarette papers and tubes
-STATUTE-
If it appears that any forfeited, condemned, or abandoned tobacco
products, or cigarette papers and tubes, when offered for sale,
will not bring a price equal to the tax due and payable thereon,
and the expenses incident to the sale thereof, such articles shall
not be sold for consumption in the United States but shall be
disposed of in accordance with such regulations as the Secretary
shall prescribe.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 716; Pub. L. 85-859, title II,
Sec. 202, Sept. 2, 1958, 72 Stat. 1425; Pub. L. 89-44, title V,
Sec. 502(b)(11), June 21, 1965, 79 Stat. 152; 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".
1965 - Pub. L. 89-44 struck out references to tobacco materials
wherever appearing in heading and text.
1958 - Pub. L. 85-859 substituted "tobacco products, cigarette
papers and tubes" for "articles" wherever appearing.
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 Sec. 5754 01/19/04
-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. 5754. Restriction on importation of previously exported
tobacco products
-STATUTE-
(a) Export-labeled tobacco products
(1) In general
Tobacco products and cigarette papers and tubes manufactured in
the United States and labeled for exportation under this chapter
-
(A) may be transferred to or removed from the premises of a
manufacturer or an export warehouse proprietor only if such
articles are being transferred or removed without tax in
accordance with section 5704;
(B) may be imported or brought into the United States, after
their exportation, only if such articles either are eligible to
be released from customs custody with the partial duty
exemption provided in section 5704(d) or are returned to the
original manufacturer of such article as provided in section
5704(c); and
(C) may not be sold or held for sale for domestic consumption
in the United States unless such articles are removed from
their export packaging and repackaged by the original
manufacturer into new packaging that does not contain an export
label.
(2) Alterations by persons other than original manufacturer
This section shall apply to articles labeled for export even if
the packaging or the appearance of such packaging to the consumer
of such articles has been modified or altered by a person other
than the original manufacturer so as to remove or conceal or
attempt to remove or conceal (including by the placement of a
sticker over) any export label.
(3) Exports include shipments to Puerto Rico
For purposes of this section, section 5704(d), section 5761,
and such other provisions as the Secretary may specify by
regulations, references to exportation shall be treated as
including a reference to shipment to the Commonwealth of Puerto
Rico.
(b) Export label
For purposes of this section, an article is labeled for export or
contains an export label if it bears the mark, label, or notice
required under section 5704(b).
(c) Cross references
(1) For exception to this section for personal use, see
section 5761(c).
(2) For civil penalties related to violations of this
section, see section 5761(c).
(3) For a criminal penalty applicable to any violation of
this section, see section 5762(b).
(4) For forfeiture provisions related to violations of this
section, see section 5761(c).
-SOURCE-
(Added Pub. L. 105-33, title IX, Sec. 9302(h)(1)(E)(i), Aug. 5,
1997, 111 Stat. 673; amended Pub. L. 106-476, title IV, Sec.
4002(a), Nov. 9, 2000, 114 Stat. 2176.)
-MISC1-
AMENDMENTS
2000 - Pub. L. 106-476 reenacted section catchline without change
and amended text generally. Prior to amendment, text read as
follows:
"(a) In General. - Tobacco products and cigarette papers and
tubes previously exported from the United States may be imported or
brought into the United States only as provided in section 5704(d).
For purposes of this section, section 5704(d), section 5761, and
such other provisions as the Secretary may specify by regulations,
references to exportation shall be treated as including a reference
to shipment to the Commonwealth of Puerto Rico.
"(b) Cross Reference. -
"For penalty for the sale of tobacco products and cigarette
papers and tubes in the United States which are labeled for
export, see section 5761(c)."
EFFECTIVE DATE OF 2000 AMENDMENT
Amendment by Pub. L. 106-476 effective 90 days after Nov. 9,
2000, see section 4002(d) of Pub. L. 106-476, set out as a note
under section 5704 of this title.
EFFECTIVE DATE
Section 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 an Effective Date
of 1997 Amendment note under section 5701 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5761 of this title; title
19 section 1681a.
-End-
-CITE-
26 USC Subchapter G - Penalties and Forfeitures 01/19/04
-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 G - Penalties and Forfeitures
-HEAD-
SUBCHAPTER G - PENALTIES AND FORFEITURES
-MISC1-
Sec.
5761. Civil penalties.
5762. Criminal penalties.
5763. Forfeitures.
AMENDMENTS
1987 - Pub. L. 100-203, title X, Sec. 10512(f)(1), Dec. 22, 1987,
101 Stat. 1330-449, redesignated subchapter F as G.
1965 - Pub. L. 89-44, title V, Sec. 502(b)(7), June 21, 1965, 79
Stat. 151, redesignated subchapter G as F. Former subchapter F
redesignated E.
1958 - Pub. L. 85-859, title II, Sec. 202, Sept. 2, 1958, 72
Stat. 1425, substituted "Penalties and Forfeitures" for "Fines,
Penalties, and Forfeitures" in subchapter heading.
-End-
-CITE-
26 USC Sec. 5761 01/19/04
-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 G - Penalties and Forfeitures
-HEAD-
Sec. 5761. Civil penalties
-STATUTE-
(a) Omitting things required or doing things forbidden
Whoever willfully omits, neglects, or refuses to comply with any
duty imposed upon him by this chapter, or to do, or cause to be
done, any of the things required by this chapter, or does anything
prohibited by this chapter, shall in addition to any other penalty
provided in this title, be liable to a penalty of $1,000, to be
recovered, with costs of suit, in a civil action, except where a
penalty under subsection (b) or (c) or under section 6651 or 6653
or part II of subchapter A of chapter 68 may be collected from such
person by assessment.
(b) Failure to pay tax
Whoever fails to pay any tax imposed by this chapter at the time
prescribed by law or regulations, shall, in addition to any other
penalty provided in this title, be liable to a penalty of 5 percent
of the tax due but unpaid.
(c) Sale of tobacco products and cigarette papers and tubes for
export
Except as provided in subsections (b) and (d) of section 5704 -
(1) every person who sells, relands, or receives within the
jurisdiction of the United States any tobacco products or
cigarette papers or tubes which have been labeled or shipped for
exportation under this chapter,
(2) every person who sells or receives such relanded tobacco
products or cigarette papers or tubes, and
(3) every person who aids or abets in such selling, relanding,
or receiving,
shall, in addition to the tax and any other penalty provided in
this title, be liable for a penalty equal to the greater of $1,000
or 5 times the amount of the tax imposed by this chapter. All
tobacco products and cigarette papers and tubes relanded within the
jurisdiction of the United States shall be forfeited to the United
States and destroyed. All vessels, vehicles, and aircraft used in
such relanding or in removing such products, papers, and tubes from
the place where relanded, shall be forfeited to the United States.
This subsection and section 5754 shall not apply to any person who
relands or receives tobacco products in the quantity allowed entry
free of tax and duty under subchapter IV of chapter 98 of the
Harmonized Tariff Schedule of the United States. No quantity of
tobacco products other than the quantity referred to in the
preceding sentence may be relanded or received as a personal use
quantity. This subsection and section 5754 shall not apply to any
person who relands or receives tobacco products in the quantity
allowed entry free of tax and duty under chapter 98 of the
Harmonized Tariff Schedule of the United States, and such person
may voluntarily relinquish to the Secretary at the time of entry
any excess of such quantity without incurring the penalty under
this subsection. No quantity of tobacco products other than the
quantity referred to in the preceding sentence may be relanded or
received as a personal use quantity.
(d) Applicability of section 6665
The penalties imposed by subsections (b) and (c) shall be
assessed, collected, and paid in the same manner as taxes, as
provided in section 6665(a).
(e) Cross references
For penalty for failure to make deposits or for overstatement
of deposits, see section 6656.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 717; Pub. L. 85-859, title II,
Sec. 202, Sept. 2, 1958, 72 Stat. 1425; Pub. L. 97-34, title VII,
Secs. 722(a)(3), 724(b)(5), Aug. 13, 1981, 95 Stat. 342, 345; Pub.
L. 97-448, title I, Sec. 107(b), Jan. 12, 1983, 96 Stat. 2391; Pub.
L. 98-369, div. A, title VII, Sec. 714(h)(2), July 18, 1984, 98
Stat. 962; Pub. L. 101-239, title VII, Sec. 7721(c)(4), (5), Dec.
19, 1989, 103 Stat. 2399; Pub. L. 105-33, title IX, Sec.
9302(h)(1)(B)-(D), Aug. 5, 1997, 111 Stat. 673; Pub. L. 106-476,
title IV, Secs. 4002(c), 4003(a), Nov. 9, 2000, 114 Stat. 2177;
Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec. 315(a)(3)], Dec. 21,
2000, 114 Stat. 2763, 2763A-644.)
-REFTEXT-
REFERENCES IN TEXT
The Harmonized Tariff Schedule of the United States, referred to
in subsec. (c), 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. (c). Pub. L. 106-554 inserted at end "This
subsection and section 5754 shall not apply to any person who
relands or receives tobacco products in the quantity allowed entry
free of tax and duty under chapter 98 of the Harmonized Tariff
Schedule of the United States, and such person may voluntarily
relinquish to the Secretary at the time of entry any excess of such
quantity without incurring the penalty under this subsection. No
quantity of tobacco products other than the quantity referred to in
the preceding sentence may be relanded or received as a personal
use quantity."
Pub. L. 106-476, Sec. 4003(a), inserted at end "This subsection
and section 5754 shall not apply to any person who relands or
receives tobacco products in the quantity allowed entry free of tax
and duty under subchapter IV of chapter 98 of the Harmonized Tariff
Schedule of the United States. No quantity of tobacco products
other than the quantity referred to in the preceding sentence may
be relanded or received as a personal use quantity."
Pub. L. 106-476, Sec. 4002(c), which directed amendment of the
last sentence of subsec. (c) by substituting "the jurisdiction of
the United States shall be forfeited to the United States and
destroyed. All vessels, vehicles, and aircraft used in such
relanding or in removing such products, papers, and tubes from the
place where relanded, shall be forfeited to the United States." for
"the jurisdiction of the United States" and all that followed
through the end period, was executed by making the substitution for
"the jurisdiction of the United States, and all vessels, vehicles,
and aircraft used in such relanding or in removing such products,
papers, and tubes from the place where relanded, shall be forfeited
to the United States." in the second sentence of subsec. (c) to
reflect the probable intent of Congress and the intervening
retroactive amendments by Pub. L. 106-476, Sec. 4003(a), and Pub.
L. 106-554. See above.
1997 - Subsec. (a). Pub. L. 105-33, Sec. 9302(h)(1)(C),
substituted "subsection (b) or (c)" for "subsection (b)".
Subsec. (c). Pub. L. 105-33, Sec. 9302(h)(1)(B), added subsec.
(c). Former subsec. (c) redesignated (d).
Subsec. (d). Pub. L. 105-33, Sec. 9302(h)(1)(D), substituted "The
penalties imposed by subsections (b) and (c)" for "The penalty
imposed by subsection (b)".
Pub. L. 105-33, Sec. 9302(h)(1)(B), redesignated subsec. (c) as
(d). Former subsec. (d) redesignated (e).
Subsec. (e). Pub. L. 105-33, Sec. 9302(h)(1)(B), redesignated
subsec. (d) as (e).
1989 - Subsec. (a). Pub. L. 101-239, Sec. 7721(c)(4), inserted
"or part II of subchapter A of chapter 68" after "or 6653".
Subsec. (c). Pub. L. 101-239, Sec. 7721(c)(5), substituted "6665"
for "6662" in heading and "6665(a)" for "6662(a)" in text.
1984 - Subsec. (c). Pub. L. 98-369 substituted "section 6662" for
"section 6660" in heading and "section 6662(a)" for "section
6660(a)" in text.
1983 - Subsec. (c). Pub. L. 97-448 substituted "section 6660" for
"section 6659" in heading, and substituted "section 6660(a)" for
"section 6659(a)" in text.
1981 - Subsec. (c). Pub. L. 97-34, Sec. 724(b)(5), added subsec.
(c). Former subsec. (c), which related to applicability of section
6656 to failure to make deposit of taxes imposed under subchapter A
on the prescribed date and imposition of penalty, was struck out.
Subsec. (d). Pub. L. 97-34, Secs. 722(a)(3), 724(b)(5), added
subsec. (d). Former subsec. (d), which related to applicability of
section 6660 and penalties imposed by subsections (b) and (c) to be
assessed, collected, and paid in the manner as taxes provided in
section 6660(a), was struck out. See subsec. (c).
1958 - Subsec. (a). Pub. L. 85-859 struck out reference to
section 6652 of this title.
Subsec. (b). Pub. L. 85-859 substituted provisions relating to
failure to pay tax for provisions which made persons willfully
failing to pay a tax liable, in addition to any other penalty
provided in this title, to a penalty of the amount of the tax
evaded, or not paid.
Subsec. (c). Pub. L. 85-859 substituted provisions relating to
failure to make deposit of taxes for provisions which authorized a
penalty of 5 percent of the tax due but unpaid where a person
failed to pay tax at the time prescribed, and required the
penalties to be added to the tax and assessed and collected at the
same time, in the same manner, and as a part of the tax.
Subsec. (d). Pub. L. 85-859 added subsec. (d). Similar provisions
were formerly contained in subsec. (c) of this section.
EFFECTIVE DATE OF 2000 AMENDMENTS
Amendment by Pub. L. 106-554 effective as if included in section
9302 of the Balanced Budget Act of 1997, Pub. L. 105-33, see
section 1(a)(7) [title III, Sec. 315(b)] of Pub. L. 106-554, set
out as a note under section 5702 of this title.
Amendment by section 4002 of Pub. L. 106-476 effective 90 days
after Nov. 9, 2000, see section 4002(d) of Pub. L. 106-476, set out
as a note under section 5704 of this title.
Pub. L. 106-476, title IV, Sec. 4003(b), Nov. 9, 2000, 114 Stat.
2178, provided that: "The amendment made by this section [amending
this section] 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 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
Amendment by Pub. L. 101-239 applicable to returns the due date
for which (determined without regard to extensions) is after Dec.
31, 1989, see section 7721(d) of Pub. L. 101-239, set out as a note
under section 461 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective as if included in the
provision of the Tax Equity and Fiscal Responsibility Act of 1982,
Pub. L. 97-248, to which such amendment relates, see section 715 of
Pub. L. 98-369, set out as a note under section 31 of this title.
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by Pub. L. 97-448 effective, except as otherwise
provided, as if it had been included in the provision of the
Economic Recovery Tax Act of 1981, Pub. L. 97-34, to which such
amendment relates, see section 109 of Pub. L. 97-448, set out as a
note under section 1 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by section 722(a)(3) of Pub. L. 97-34 applicable to
returns filed after Dec. 31, 1981, see section 722(a)(4) of Pub. L.
97-34, set out as a note under section 5684 of this title.
Amendment by section 724(b)(5) of Pub. L. 97-34 applicable to
returns filed after Aug. 13, 1981, see section 724(c) of Pub. L.
97-34, set out as a note under section 6656 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 5754 of this title.
-End-
-CITE-
26 USC Sec. 5762 01/19/04
-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 G - Penalties and Forfeitures
-HEAD-
Sec. 5762. Criminal penalties
-STATUTE-
(a) Fraudulent offenses
Whoever, with intent to defraud the United States -
(1) Engaging in business unlawfully
Engages in business as a manufacturer or importer of tobacco
products or cigarette papers and tubes, or as an export warehouse
proprietor, without filing the bond and obtaining the permit
where required by this chapter or regulations thereunder; or
(2) Failing to furnish information or furnishing false
information
Fails to keep or make any record, return, report, or inventory,
or keeps or makes any false or fraudulent record, return, report,
or inventory, required by this chapter or regulations thereunder;
or
(3) Refusing to pay or evading tax
Refuses to pay any tax imposed by this chapter, or attempts in
any manner to evade or defeat the tax or the payment thereof; or
(4) Removing tobacco products or cigarette papers or tubes
unlawfully
Removes, contrary to this chapter or regulations thereunder,
any tobacco products or cigarette papers or tubes subject to tax
under this chapter; or
(5) Purchasing, receiving, possessing, or selling tobacco
products or cigarette papers or tubes unlawfully
Violates any provision of section 5751(a)(1) or (a)(2); or
(6) Destroying, obliterating, or detaching marks, labels, or
notices before packages are emptied
Violates any provision of section 5752;
shall, for each such offense, be fined not more than $10,000, or
imprisoned not more than 5 years, or both.
(b) Other offenses
Whoever, otherwise than as provided in subsection (a), violates
any provision of this chapter, or of regulations prescribed
thereunder, shall, for each such offense, be fined not more than
$1,000, or imprisoned not more than 1 year, or both.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 717; Pub. L. 85-859, title II,
Sec. 202, Sept. 2, 1958, 72 Stat. 1425; Pub. L. 89-44, title V,
Sec. 502(b)(12), June 21, 1965, 79 Stat. 152; Pub. L. 94-455, title
XIX, Sec. 1905(b)(7)(B)(ii), Oct. 4, 1976, 90 Stat. 1823; Pub. L.
105-33, title IX, Sec. 9302(h)(2)(A), Aug. 5, 1997, 111 Stat. 674.)
-MISC1-
AMENDMENTS
1997 - Subsec. (a)(1). Pub. L. 105-33 inserted "or importer"
after "manufacturer".
1976 - Subsec. (a)(6). Pub. L. 94-455 redesignated par. (7) as
(6), and in par. (6) as so redesignated substituted "or notices"
for "notices, or stamps" and "section 5752;" for "section 5752(a);
or". Former par. (6), relating to the affixing of improper stamps,
was struck out.
Subsec. (a)(7). Pub. L. 94-455 redesignated par. (7) as (6).
Subsec. (a)(8) to (11). Pub. L. 94-455 struck out pars. (8) to
(11) which related to emptying packages without destroying stamps,
possessing emptied packages bearing stamps, refilling packages
bearing stamps, and detaching stamps or possessing used stamps.
1965 - Subsec. (a)(1). Pub. L. 89-44, Sec. 502(b)(12)(A), struck
out reference to a dealer in tobacco materials.
Subsec. (a)(2). Pub. L. 89-44, Sec. 502(b)(12)(B), struck out
reference to statements.
1958 - Subsec. (a). Pub. L. 85-859 included export warehouse
proprietors in par. (1), struck out provisions in pars. (6) and (9)
to (11) which related to labels and notices, and added pars. (7)
and (8).
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 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 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 5754 of this title.
-End-
-CITE-
26 USC Sec. 5763 01/19/04
-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 G - Penalties and Forfeitures
-HEAD-
Sec. 5763. Forfeitures
-STATUTE-
(a) Tobacco products and cigarette papers and tubes unlawfully
possessed
(1) Tobacco products and cigarette papers and tubes possessed
with intent to defraud
All tobacco products and cigarette papers and tubes which,
after removal, are possessed with intent to defraud the United
States shall be forfeited to the United States.
(2) Tobacco products and cigarette papers and tubes not property
packaged
All tobacco products and cigarette papers and tubes not in
packages as required under section 5723 or which are in packages
not bearing the marks, labels, and notices, as required under
such section, which, after removal, are possessed otherwise than
with intent to defraud the United States, shall be forfeited to
the United States. This paragraph shall not apply to tobacco
products or cigarette papers or tubes sold or delivered directly
to consumers from proper packages.
(b) Personal property of qualified manufacturers, qualified
importers, and export warehouse proprietors, acting with intent
to defraud
All tobacco products and cigarette papers and tubes, packages,
machinery, fixtures, equipment, and all other materials and
personal property on the premises of any qualified manufacturer or
importer of tobacco products or cigarette papers and tubes, or
export warehouse proprietor, who, with intent to defraud the United
States, fails to keep or make any record, return, report, or
inventory, or keeps or makes any false or fraudulent record,
return, report, or inventory, required by this chapter; or refuses
to pay any tax imposed by this chapter, or attempts in any manner
to evade or defeat the tax or the payment thereof; or removes,
contrary to any provision of this chapter, any article subject to
tax under this chapter, shall be forfeited to the United States.
(c) Real and personal property of illicit operators
All tobacco products, cigarette papers and tubes, machinery,
fixtures, equipment, and other materials and personal property on
the premises of any person engaged in business as a manufacturer or
importer of tobacco products or cigarette papers and tubes, or
export warehouse proprietor, without filing the bond or obtaining
the permit, as required by this chapter, together with all his
right, title, and interest in the building in which such business
is conducted, and the lot or tract of ground on which the building
is located, shall be forfeited to the United States.
(d) General
All property intended for use in violating the provisions of this
chapter, or regulations thereunder, or which has been so used,
shall be forfeited to the United States as provided in section
7302.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 718; Pub. L. 85-859, title II,
Sec. 202, Sept. 2, 1958, 72 Stat. 1426; Pub. L. 89-44, title V,
Sec. 502(b)(13), June 21, 1965, 79 Stat. 152; Pub. L. 94-455, title
XIX, Sec. 1905(b)(7)(C), Oct. 4, 1976, 90 Stat. 1823; Pub. L.
105-33, title IX, Sec. 9302(h)(2)(A), (B), Aug. 5, 1997, 111 Stat.
674.)
-MISC1-
AMENDMENTS
1997 - Subsec. (b). Pub. L. 105-33 inserted "qualified
importers," after "manufacturers," in heading and "or importer"
after "manufacturer" in text.
Subsec. (c). Pub. L. 105-33, Sec. 9302(h)(2)(A), inserted "or
importer" after "manufacturer".
1976 - Subsec. (a)(2). Pub. L. 94-455, Sec. 1905(b)(7)(C)(i),
substituted "and notices" for "notices, and stamps".
Subsec. (b). Pub. L. 94-455, Sec. 1905(b)(7)(C)(ii), struck out
"internal revenue stamps," after "packages,".
1965 - Subsec. (b). Pub. L. 89-44, Sec. 502(b)(13)(A), struck out
references to tobacco materials, dealers in tobacco materials, and
statements.
Subsec. (c). Pub. L. 89-44, Sec. 502(b)(13)(B), struck out
references to tobacco materials and dealers in tobacco materials.
1958 - Subsec. (a). Pub. L. 85-859 substituted "tobacco products
and cigarette papers and tubes" for "articles" wherever appearing
and inserted provisions making par. (2) inapplicable to tobacco
products or cigarette papers for tubes delivered directly to
consumers from proper packages.
Subsecs. (b), (c). Pub. L. 85-859 included property of export
warehouse proprietors.
Subsec. (d). Pub. L. 85-859 included property intended for use,
or used, in violating regulations under this chapter.
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 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 Jan. 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 on 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-
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