120 
‘‘(C) may not be sold or held for sale for 
domestic consumption in the United States un-
less such articles are removed from their export 
packaging and repackaged by the original pro-
ducer into new packaging that does not contain 
an export label. 
‘‘(2) ALTERATIONS BY PERSONS OTHER THAN 
ORIGINAL PRODUCER.—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 producer so as to re-
move or conceal or attempt to remove or conceal (in-
cluding by the placement of a sticker over) any ex-
port label. 
‘‘(3) EXPORTS INCLUDE SHIPMENTS TO PUER-
TO
RICO.—For purposes of this section, section 
5904(d), section 5921, and such other provisions as 
the Secretary may specify by regulations, references 
to exportation shall be treated as including a ref-
erence 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 
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if it bears the mark, label, or notice required under section 
5904(b). 
‘‘Subchapter C—Penalties 
‘‘SEC. 5921. CIVIL PENALTIES. 
‘‘(a) OMITTING
THINGS
REQUIRED
OR
DOING 
THINGS FORBIDDEN.—Whoever willfully omits, neglects, 
or refuses to comply with any duty imposed upon them 
by this chapter, or to do, or cause to be done, any of the 
things required by this chapter, or does anything prohib-
ited by this chapter, shall in addition to any other penalty 
provided in this title, be liable to a penalty of $10,000, 
to be recovered, with costs of suit, in a civil action, except 
where a penalty under subsection (b) or (c) or under sec-
tion 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 pen-
alty provided in this title, be liable to a penalty of 10 per-
cent of the tax due but unpaid. 
‘‘(c) SALE OF CANNABIS OR CANNABIS PRODUCTS 
FOR EXPORT.—Every person who— 
‘‘(1) sells, relands, or receives within the juris-
diction of the United States any cannabis products 
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that have been labeled or shipped for exportation 
under this chapter, 
‘‘(2) sells or receives such relanded cannabis 
products, or 
‘‘(3) 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 $10,000 or 10 times the amount of the tax imposed 
by this chapter. All cannabis products relanded within the 
jurisdiction of the United States shall be forfeited to the 
United States and destroyed. All vessels, vehicles, and air-
craft used in such relanding or in removing such cannabis 
products from the place where relanded, shall be forfeited 
to the United States. 
‘‘(d) APPLICABILITY OF SECTION 6665.—The pen-
alties imposed by subsections (b) and (c) shall be assessed, 
collected, and paid in the same manner as taxes, as pro-
vided in section 6665(a). 
‘‘(e) CROSS REFERENCES.—For penalty for failure to 
make deposits or for overstatement of deposits, see section 
6656. 
‘‘(f) FRAUDULENT OFFENSES.—Whoever, with in-
tent to defraud the United States— 
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‘‘(1) engages in business as a cannabis business 
without filing the application and obtaining the per-
mit where required by this chapter or regulations 
thereunder, 
‘‘(2) fails to keep or make any record, return, 
report, or inventory, or keeps or makes any false or 
fraudulent record, return, report, or inventory, re-
quired by this chapter or regulations thereunder, 
‘‘(3) refuses to pay any tax imposed by this 
chapter, or attempts in any manner to evade or de-
feat the tax or the payment thereof, 
‘‘(4) sells or otherwise transfers, contrary to 
this chapter or regulations thereunder, any cannabis 
products subject to tax under this chapter, or 
‘‘(5) purchases, receives, or possesses, with in-
tent to redistribute or resell, any cannabis product— 
‘‘(A) upon which the tax has not been paid 
or determined in the manner and at the time 
prescribed by this chapter or regulations there-
under, or 
‘‘(B) that, without payment of tax pursu-
ant to section 5904, have been diverted from 
the applicable purpose or use specified in that 
section, shall, for each such offense, be fined 
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not more than $10,000, or imprisoned not more 
than 5 years, or both. 
‘‘(g) LIABILITY TO TAX.—Any person who possesses 
cannabis products in violation of subsection (f) shall be 
liable for a tax equal to the tax on such articles.’’. 
SEC. 503. REPORTS AND CONFORMING AMENDMENTS. 
(a) STUDY.—Not later than 2 years after the date 
of the enactment of this Act, and every 5 years thereafter, 
the Secretary of the Treasury, or the Secretary’s delegate, 
shall— 
(1) conduct a study concerning the characteris-
tics of the cannabis industry, including the number 
of persons operating cannabis businesses at each 
level of such industry, the volume of sales, the 
amount of tax collected each year, and the areas of 
evasion, and 
(2) submit to Congress recommendations to im-
prove the regulation of the industry and the admin-
istration of the related tax. 
(b) ANNUAL REPORTS REGARDING DETERMINATION 
OF APPLICABLE RATES.—Not later than 6 months before 
the beginning of each calendar year to which section 
5901(a)(2) of the Internal Revenue Code of 1986 (as 
added by this section) applies, the Secretary of the Treas-
ury, or the Secretary’s delegate, shall make publicly avail-
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