the marks, labels, and notices required under section 5723 
shall be available for inspection by any internal revenue 
officer during business hours.’’. 
(b) CONSULTATION WITH HEALTH
AND HUMAN 
SERVICES.—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 section 5741 
of the Internal Revenue Code of 1986. 
SEC. 207. REPORTS. 
Section 5722 is amended— 
(1) by inserting ‘‘(a) IN GENERAL.—’’ before 
‘‘Every manufacturer’’, and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) REPORTS
BY EXPORT WAREHOUSE PROPRI-
ETORS.—Prior to exportation of tobacco products or proc-
essed tobacco from the United States, the export ware-
house proprietor shall submit a report (in such manner 
and form as the Secretary may by regulation prescribe) 
to enable the Secretary to identify the shipment and as-
sure that it reaches its intended destination.’’. 
SEC. 208. FRAUDULENT OFFENSES. 
(a) IN GENERAL.—Subsection (a) of section 5762 is 
amended— 
VerDate Sep 11 2014 
00:52 Feb 03, 2017
Jkt 069200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H729.IH
H729
SSpencer on DSK4SPTVN1PROD with BILLS
(1) by striking paragraph (1) and redesignating 
paragraphs (2) through (6) as paragraphs (1) 
through (5), respectively, and 
(2) by striking ‘‘not more than $10,000’’ and 
inserting ‘‘not more than $10,000 or an amount 
equal to 3 times the amount of the tax imposed 
under this chapter on the tobacco product involved 
(whichever is greater)’’. 
(b) OFFENSES RELATING TO DISTRIBUTION OF TO-
BACCO PRODUCTS, ETC.— 
(1) IN GENERAL.—Section 5762 (as amended 
by section 202 of this Act) is amended— 
(A) by redesignating subsection (c) as sub-
section (d), and 
(B) by inserting after subsection (b) the 
following new subsection: 
‘‘(c) OFFENSES RELATING TO DISTRIBUTION OF TO-
BACCO PRODUCTS, ETC.—It shall be unlawful— 
‘‘(1) for any person to engage in business as a 
manufacturer or importer of tobacco products, proc-
essed tobacco, or cigarette papers and tubes, as a 
wholesaler, or an export warehouse proprietor, or as 
a manufacturer, seller, or importer of tobacco pro-
duction machines without filing the bond and obtain-
VerDate Sep 11 2014 
00:52 Feb 03, 2017
Jkt 069200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H729.IH
H729
SSpencer on DSK4SPTVN1PROD with BILLS
ing the permit where required by this chapter or 
regulations thereunder, 
‘‘(2) for a manufacturer or importer of tobacco 
products, or wholesaler to knowingly ship, transport, 
deliver, or receive any tobacco products from or to 
any person other than a person who has obtained 
the permit required by this chapter, a retailer, or a 
person handling such products solely for purposes of 
shipment or delivery; except that an importer who 
has obtained the permit required by this chapter 
may receive, from a foreign manufacturer or a for-
eign distributor, foreign tobacco products that have 
not previously entered the United States, 
‘‘(3) for a manufacturer or importer of proc-
essed tobacco or a wholesaler to knowingly ship, 
transport, deliver, or receive any tobacco products or 
processed tobacco from or to any person other than 
a person who has obtained the permit required by 
this chapter, 
‘‘(4) for a manufacturer or importer of proc-
essed tobacco to knowingly ship, transport, sell, or 
deliver processed tobacco to any person other than 
a manufacturer of processed tobacco, a manufac-
turer of tobacco products, or an export warehouse 
proprietor, 
VerDate Sep 11 2014 
00:52 Feb 03, 2017
Jkt 069200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H729.IH
H729
SSpencer on DSK4SPTVN1PROD with BILLS
‘‘(5) for any person (other than the original 
manufacturer of such tobacco products or processed 
tobacco or an export warehouse proprietor author-
ized to receive any tobacco products or processed to-
bacco that have previously been exported and re-
turned to the United States) to knowingly receive 
any tobacco products or processed tobacco that have 
previously been exported and returned to the United 
States, 
‘‘(6) for any export warehouse proprietor to 
knowingly ship, transport, sell, or deliver for sale 
any tobacco products or processed tobacco to any 
person other than the original manufacturer of such 
tobacco products or processed tobacco, another ex-
port warehouse proprietor, a duty free store, or a 
foreign purchaser, 
‘‘(7) for any person (other than a manufac-
turer, wholesaler, or an export warehouse proprietor 
permitted under this chapter) to knowingly ship, 
transport, receive, or possess, for purposes of resale, 
any tobacco product or processed tobacco not in 
packages marked pursuant to regulations issued 
under section 5723, other than for direct return to 
a manufacturer for repacking or for re-exportation 
VerDate Sep 11 2014 
00:52 Feb 03, 2017
Jkt 069200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H729.IH
H729
SSpencer on DSK4SPTVN1PROD with BILLS
or to an export warehouse proprietor for re-expor-
tation, 
‘‘(8) for any manufacturer, importer, export 
warehouse proprietor, or wholesaler permitted under 
this chapter to make any false entry in, to fail to 
make an entry in, or to knowingly fail to maintain 
properly any record or report required by this chap-
ter or the regulations promulgated thereunder with 
the intent to defraud the United States, 
‘‘(9) for any person, with the intent to defraud 
the United States, to alter, mutilate, destroy, oblit-
erate, or remove any mark or label required under 
this chapter upon a tobacco product or processed to-
bacco held for sale, or to create, possess, or apply 
on any tobacco product or processed tobacco or its 
packaging any counterfeit versions of any such 
marks or labels, and 
‘‘(10) for any person to sell at retail more than 
3,000 cigarettes in any single transaction (or series 
of related transactions), or, in the case of other to-
bacco products, an equivalent quantity as deter-
mined by regulation. 
Any person violating any of the provisions of this sub-
section shall, upon conviction, be fined as provided in sec-
VerDate Sep 11 2014 
00:52 Feb 03, 2017
Jkt 069200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H729.IH
H729
SSpencer on DSK4SPTVN1PROD with BILLS
tion 3571 of title 18, United States Code, or imprisoned 
for not more than 5 years, or both.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
5762(d) (as so redesignated) is amended by striking 
‘‘and (b)’’ and inserting ‘‘, (b), and (c)’’. 
(c) OTHER OFFENSES.—Subsection (d) of section 
5762 (as so redesignated) is amended by striking ‘‘not 
more than $1,000’’ and inserting ‘‘not more than $2,500 
or an amount equal to the tax imposed under this chapter 
on the tobacco product or processed tobacco involved 
(whichever is greater)’’. 
SEC. 209. PENALTIES. 
(a) IN GENERAL.— 
(1) Subsection (a) of section 5761 is amend-
ed— 
(A) by striking ‘‘willfully’’ and inserting 
‘‘knowingly’’, and 
(B) by striking ‘‘$1,000’’ and inserting 
‘‘$10,000’’. 
(2) Subsection (b) of section 5761 is amended 
by striking ‘‘5 percent’’ and inserting ‘‘10 percent’’. 
(b) PENALTY AMOUNTS ADJUSTED
FOR INFLA-
TION.—Section 5761 is amended by redesignating sub-
section (f) as subsection (g) and inserting after subsection 
(e) the following new subsection: 
VerDate Sep 11 2014 
23:02 Feb 03, 2017
Jkt 069200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H729.IH
H729
SSpencer on DSK4SPTVN1PROD with BILLS