-CITE-
    26 USC CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS
           AND TUBES                                       01/03/2007

-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.

-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                                 01/03/2007

-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.

-End-



-CITE-
    26 USC Sec. 5701                                            01/03/2007

-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."

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


-End-



-CITE-
    26 USC Sec. 5702                                            01/03/2007

-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.

-End-



-CITE-
    26 USC Sec. 5703                                            01/03/2007

-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.

-End-



-CITE-
    26 USC Sec. 5704                                            01/03/2007

-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."

-End-



-CITE-
    26 USC Sec. 5705                                            01/03/2007

-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                                            01/03/2007

-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                                            01/03/2007

-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.

-MISC1-
    [Sec. 5707. Repealed. Pub. L. 89-44, title V, Sec. 501(g), June 21,
      1965, 79 Stat. 150].
      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                                            01/03/2007

-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 Robert T. Stafford
    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; Pub. L. 108-311, title IV, Sec. 408(a)(7)(E), Oct. 4,
    2004, 118 Stat. 1191.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Robert T. Stafford Disaster Relief and Emergency Assistance
    Act, referred to in subsec. (a), is Pub. L. 93-288, May 22, 1974,
    88 Stat. 143, as amended, 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                            
      2004 - Subsec. (a). Pub. L. 108-311 inserted "Robert T. Stafford"
    before "Disaster Relief and Emergency Assistance Act".
      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, formerly 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                    01/03/2007

-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                                            01/03/2007

-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.

-End-



-CITE-
    26 USC Sec. 5712                                            01/03/2007

-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.

-FOOTNOTE-
    (!1) So in original. The comma probably should be a semicolon.


-End-



-CITE-
    26 USC Sec. 5713                                            01/03/2007

-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.

-End-


-CITE-
    26 USC Subchapter C - Operations by Manufacturers and
           Importers of Tobacco Products and Cigarette
           Papers and Tubes and Export Warehouse
           Proprietors                                     01/03/2007

-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                                            01/03/2007

-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                                            01/03/2007

-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                                            01/03/2007

-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.

-End-


-CITE-
    26 USC Subchapter D - Occupational Tax                      01/03/2007

-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.                           


-STATAMEND-
                           AMENDMENT OF ANALYSIS                       
      Pub. L. 109-59, title XI, Sec. 11125(b)(20)(D), (c), Aug. 10,
    2005, 119 Stat. 1957, provided that, effective July 1, 2008, but
    inapplicable to taxes imposed for periods before such date, the
    table of sections is amended by adding at the end the following:

    5732.       Payment of tax.                                       
    5733.       Provisions relating to liability for occupational
                 taxes.                                               
    5734.       Application of State laws.                            


-MISC2-
                             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                                            01/03/2007

-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; amended Pub. L. 109-59, title XI, Sec.
    11125(b)(20)(E), Aug. 10, 2005, 119 Stat. 1957.)


-STATAMEND-
                           AMENDMENT OF SECTION                       
      Pub. L. 109-59, title XI, Sec. 11125(b)(20)(E), (c), Aug. 10,
    2005, 119 Stat. 1957, provided that, effective July 1, 2008, but
    inapplicable to taxes imposed for periods before such date, this
    section is amended by striking subsection (c) and by redesignating
    subsection (d) as (c).

      REDESIGNATION AND AMENDMENT OF SECTIONS 5142, 5143, AND 5145 AS
                           SECTIONS 5732 TO 5734
      Pub. L. 109-59, title XI, Sec. 11125(b)(20)(A)-(C), (c), Aug. 10,
    2005, 119 Stat. 1956, 1957, provided that, effective July 1, 2008,
    but inapplicable to taxes imposed for periods before such date,
    sections 5142, 5143, and 5145 of this title are redesignated
    sections 5732, 5733, and 5734, respectively, transferred to this
    subchapter, and amended as follows:
      (1) by striking "this part" each place it appears and inserting
    "this subchapter";
      (2) in section 5732, by striking "(except the tax imposed by
    section 5131)" each place it appears; and
      (3) in paragraph (2) of section 5733(c), by striking "liquors"
    both places it appears and inserting "tobacco products and
    cigarette papers and tubes".


-MISC1-
                             PRIOR PROVISIONS                         
      For prior sections 5731 and 5732, see Prior Provisions note set
    out preceding this section.

                     EFFECTIVE DATE OF 2005 AMENDMENT                 
      Amendment by Pub. L. 109-59 effective July 1, 2008, but
    inapplicable to taxes imposed for periods before such date, see
    section 11125(c) of Pub. L. 109-59, set out as a note under section
    5002 of this title.

                              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                                     01/03/2007

-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                                            01/03/2007

-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                    01/03/2007

-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                                            01/03/2007

-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.

-End-



-CITE-
    26 USC Sec. 5752                                            01/03/2007

-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.

-End-



-CITE-
    26 USC Sec. 5753                                            01/03/2007

-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                                            01/03/2007

-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(d).
          (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; Pub. L. 109-432, div. C,
    title IV, Sec. 401(f)(2)(B), Dec. 20, 2006, 120 Stat. 3050.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (c)(1). Pub. L. 109-432 substituted "5761(d)" for
    "5761(c)".
      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 2006 AMENDMENT                 
      Amendment by Pub. L. 109-432 applicable with respect to goods
    entered, or withdrawn from warehouse for consumption, on or after
    the 15th day after Dec. 20, 2006, see section 401(g) of Pub. L. 109-
    432, set out as a note under section 1681 of Title 19, Customs
    Duties.

                     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.

-End-


-CITE-
    26 USC Subchapter G - Penalties and Forfeitures             01/03/2007

-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                                            01/03/2007

-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.
    (d) Personal use quantities
      (1) In general
        No quantity of tobacco products other than the quantity
      referred to in paragraph (2) may be relanded or received as a
      personal use quantity.
      (2) Exception for personal use quantity
        Subsection (c) 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
      subsection (c).
      (3) Special rule for delivery sales
        (A) In general
          Paragraph (2) shall not apply to any tobacco product sold in
        connection with a delivery sale.
        (B) Delivery sale
          For purposes of subparagraph (A), the term "delivery sale"
        means any sale of a tobacco product to a consumer if - 
            (i) the consumer submits the order for such sale by means
          of a telephone or other method of voice transmission, the
          mail, or the Internet or other online service, or the seller
          is otherwise not in the physical presence of the buyer when
          the request for purchase or order is made, or
            (ii) the tobacco product is delivered by use of a common
          carrier, private delivery service, or the mail, or the seller
          is not in the physical presence of the buyer when the buyer
          obtains personal possession of the tobacco product.
    (e) 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).
    (f) 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; Pub. L. 109-432, div. C, title IV,
    Sec. 401(f)(1), (2)(A), Dec. 20, 2006, 120 Stat. 3049, 3050.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Harmonized Tariff Schedule of the United States, referred to
    in subsecs. (c) and (d)(2), 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                            
      2006 - Subsec. (c). Pub. L. 109-432, Sec. 401(f)(2)(A), struck
    out 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."
      Subsecs. (d) to (f). Pub. L. 109-432, Sec. 401(f)(1), added
    subsec. (d) and redesignated former subsecs. (d) and (e) as (e) and
    (f), respectively.
      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 2006 AMENDMENT                 
      Amendment by Pub. L. 109-432 applicable with respect to goods
    entered, or withdrawn from warehouse for consumption, on or after
    the 15th day after Dec. 20, 2006, see section 401(g) of Pub. L. 109-
    432, set out as a note under section 1681 of Title 19, Customs
    Duties.

                     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.

-End-



-CITE-
    26 USC Sec. 5762                                            01/03/2007

-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.

-End-



-CITE-
    26 USC Sec. 5763                                            01/03/2007

-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-