26 U.S.C. § 5712 (INTERNAL REVENUE CODE)
§ 5712. Application for permit
Every person, before commencing business as a manufacturer or importer of tobacco products or processed tobacco 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)—
(A) is, by reason of his business experience, financial standing, or trade connections or by reason of previous or current legal proceedings involving a felony violation of any other provision of Federal criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, not likely to maintain operations in compliance with this chapter,
(B) has been convicted of a felony violation of any provision of Federal or State criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, or
(C) has failed to disclose any material information required or made any material false statement in the application therefor.
(Aug. 16, 1954, ch. 736, 68A Stat. 712; Pub. L. 85–859, title II, § 202, Sept. 2, 1958, 72 Stat. 1421; Pub. L. 94–455, title XIX, §§ 1905(a)(27), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1821, 1834; Pub. L. 105–33, title IX, § 9302(h)(2)(A), (5), Aug. 5, 1997, 111 Stat. 674; Pub. L. 111–3, title VII, § 702(a)(1)(A), (b)(1), Feb. 4, 2009, 123 Stat. 108, 109.)
heading: Editorial Notes
heading: Amendments
text: 2009—Pub. L. 111–3, § 702(a)(1)(A), inserted “or processed tobacco” after “tobacco products” in introductory provisions.
Par. (3). Pub. L. 111–3, § 702(b)(1), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “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.”
1997—Pub. L. 105–33, § 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, § 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.
heading: Statutory Notes and Related Subsidiaries
heading: Effective Date of 2009 Amendment
text: Amendment by section 702(a)(1)(A) of Pub. L. 111–3 effective Apr. 1, 2009, see section 702(a)(6) of Pub. L. 111–3, set out as a note under section 5702 of this title.
Pub. L. 111–3, title VII, § 702(b)(3), Feb. 4, 2009, 123 Stat. 110, provided that: “The amendments made by this subsection [amending this section and section 5713 of this title] shall take effect on the date of the enactment of this Act [Feb. 4, 2009].”
heading: Effective Date of 1997 Amendment
text: 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.
heading: Effective Date of 1976 Amendment
text: 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.
heading: Effective Date of 1958 Amendment
text: 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.