identifier onto the marking, enabling law enforcement au-
thentication, production control, and tracking and tracing 
of the product or processed tobacco bearing the marking.’’. 
(d) REGULATIONS.—The Secretary of the Treasury 
shall consult with the Secretary of Health and Human 
Services as may be appropriate to carry out the purposes 
of subsection (f), and paragraphs (2), (3), and (4) of sub-
section (b), of section 5723 of the Internal Revenue Code 
of 1986 (as added by this section). 
SEC. 204. WHOLESALERS AND MANUFACTURERS, IMPORT-
ERS, AND SELLERS OF TOBACCO PRODUC-
TION MACHINES REQUIRED TO HAVE PER-
MIT. 
(a) WHOLESALERS.—Section 5712 is amended by in-
serting ‘‘, as a wholesaler,’’ after ‘‘or processed tobacco’’. 
(b) MANUFACTURERS, IMPORTERS, AND SELLERS OF 
TOBACCO
PRODUCTION
MACHINES.—Section 5712 is 
amended by striking ‘‘or as an export warehouse propri-
etor’’ and inserting ‘‘, as an export warehouse proprietor, 
or as a manufacturer, seller, or importer of tobacco pro-
duction machines’’. 
SEC. 205. CONDITIONS OF PERMIT. 
(a) ISSUANCE.—Subsection (a) of section 5713 is 
amended to read as follows: 
‘‘(a) ISSUANCE.— 
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‘‘(1) IN GENERAL.—A person shall not engage 
in business as a manufacturer or importer of tobacco 
products or processed tobacco, as a wholesaler, as an 
export warehouse proprietor, or as a manufacturer, 
seller, lessor, or importer of tobacco production ma-
chines 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 Sec-
retary shall by regulation prescribe, to every person 
properly qualified under sections 5711 and 5712. 
Any entity granted such a permit is not eligible to 
provide any services the Secretary may elect to pro-
cure to facilitate the purposes of section 5723. Per-
mit holders shall automatically count output and 
register, record, and transmit the quantities meas-
ured, in the form, conditions, and time limits estab-
lished by the Secretary. A new permit may be re-
quired at such other time as the Secretary shall by 
regulation prescribe. 
‘‘(2) CONDITIONS.—The Secretary shall not 
issue a permit under this section unless— 
‘‘(A) the applicant is in compliance with 
the requirements of— 
‘‘(i) this chapter, 
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‘‘(ii) chapter 114 of title 18, United 
States Code, 
‘‘(iii) the Act of October 19, 1949 (15 
U.S.C. 375 et seq.; commonly referred to 
as the ‘Jenkins Act’), 
‘‘(iv) the Fair and Equitable Tobacco 
Reform Act of 2004, and any amendments 
made thereby, 
‘‘(v) the Family Smoking Prevention 
and Tobacco Control Act, and any amend-
ments made thereby, 
‘‘(vi) the Prevent All Cigarette Traf-
ficking Act of 2009, and any amendments 
made thereby, and 
‘‘(vii) any related regulations there-
under, 
as in effect on the date of the issuance of the 
permit, 
‘‘(B) the applicant certifies that the appli-
cant is in compliance with all other Federal, 
State, local, and Indian tribal laws relating to 
the taxation, manufacture, importation, expor-
tation, distribution, marketing, sale, or trans-
portation of tobacco products, processed to-
bacco, or tobacco production machines, as in ef-
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fect on the date of the issuance of the permit, 
and 
‘‘(C) the applicant identifies in the applica-
tion any violation of a law described in subpara-
graph (A) or (B) by the applicant resulting in 
a penalty under any such law during the 5-year 
period ending on the date of the application.’’. 
(b) SUSPENSION
OR REVOCATION.—Subparagraph 
(A) of section 5713(b)(1) is amended by inserting ‘‘or any 
other law described in subparagraph (A) or (B) of sub-
section (a)(2)’’ after ‘‘this chapter’’. 
SEC. 206. RECORDS TO BE MAINTAINED. 
(a) IN GENERAL.—Section 5741 is amended— 
(1) by inserting ‘‘(a) IN GENERAL.—’’ before 
‘‘Every manufacturer’’, 
(2) by inserting ‘‘every wholesaler,’’ after 
‘‘every importer,’’, 
(3) by striking ‘‘such records’’ and inserting 
‘‘records concerning the chain of custody of the to-
bacco products and processed tobacco (including the 
foreign country of final destination for packages 
marked for export) and the serial numbers, marks, 
labels, and notices required under section 5723, and 
such other records’’, and 
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(4) by adding at the end the following new sub-
sections: 
‘‘(b) RETAILERS.—Retailers shall maintain records 
of receipt, and any non-retail sale or delivery, of tobacco 
products and processed tobacco. Such records shall be 
available to the Secretary for inspection and audit. An or-
dinary commercial record or invoice shall satisfy the re-
quirements of this subsection if such record shows the date 
of receipt, from whom tobacco products or processed to-
bacco were received, and the quantity of tobacco products 
or processed tobacco received (or, in the case of non-retail 
sale or delivery, the date of sale or delivery, to whom the 
tobacco products or processed tobacco were sold or deliv-
ered, and the quantity of the tobacco products or proc-
essed tobacco sold or delivered). To the extent the Sec-
retary determines that the records maintained by retail 
entities licensed pursuant to section 555(b) of the Tariff 
Act of 1930 (19 U.S.C. 1555(b)) satisfy the recordkeeping 
requirements of this section, no additional records shall 
be required for such entities under this section. The pre-
ceding provisions of this subsection shall not be construed 
to limit or preclude other recordkeeping requirements im-
posed on any retailer. 
‘‘(c) RECORDS CONCERNING MARKS AND CHAIN OF 
CUSTODY.—Records concerning the chain of custody and 
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