Source: https://irc.bloombergtax.com/public/uscode/doc/irc/section_7652
Timestamp: 2020-07-04 15:19:11
Document Index: 446642135

Matched Legal Cases: ['§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652', '§ 7652']

Internal Revenue Code, § 7652. Shipments To The United States
§ 7652
I.R.C. § 7652(a) Puerto Rico
I.R.C. § 7652(a)(1) Rate Of Tax —
I.R.C. § 7652(a)(2) Payment Of Tax —
I.R.C. § 7652(a)(3) Deposit Of Internal Revenue Collections —
I.R.C. § 7652(b) Virgin Islands
I.R.C. § 7652(b)(1) Taxes Imposed In The United States —
I.R.C. § 7652(b)(2) Exemption From Tax Imposed In The Virgin Islands —
I.R.C. § 7652(b)(3) Disposition Of Internal Revenue Collections —
I.R.C. § 7652(b)(3)(A) —
I.R.C. § 7652(b)(3)(B) —
I.R.C. § 7652(c) Articles Containing Distilled Spirits —
I.R.C. § 7652(d) Articles Other Than Articles Containing Distilled Spirits —
I.R.C. § 7652(d)(1) Value Added Requirement For Puerto Rico —
I.R.C. § 7652(d)(1)(A) —
I.R.C. § 7652(d)(1)(B) —
the direct costs of processing operations performed in Puerto Rico, equals or exceeds 50 percent of the value of such article as of the time it is brought into the United States.
I.R.C. § 7652(d)(2) Prohibition Of Federal Excise Tax Subsidies
I.R.C. § 7652(d)(2)(A) In General —
I.R.C. § 7652(d)(2)(B) Federal Excise Tax Subsidy —
For purposes of this paragraph, the term “Federal excise tax subsidy” means any subsidy--
I.R.C. § 7652(d)(2)(B)(i) —
I.R.C. § 7652(d)(2)(B)(ii) —
in an amount per value or volume of production greater than, the subsidy which Puerto Rico or the Virgin Islands offers generally to industries producing articles not subject to Federal excise taxes.
I.R.C. § 7652(d)(3) Direct Costs Of Processing Operations —
For purposes of this subsection, the term “direct cost of processing operations” has the same meaning as when used in section 213 of the Caribbean Basin Economic Recovery Act.
I.R.C. § 7652(e) Shipments Of Rum To The United States
I.R.C. § 7652(e)(1) Excise Taxes On Rum Covered Into Treasuries Of Puerto Rico And Virgin Islands —
I.R.C. § 7652(e)(2) Secretary Prescribes Formula —
I.R.C. § 7652(e)(3) Rum Defined —
For purposes of this subsection, the term “rum” means any article classified under subheading 2208.40.00 of the Harmonized Tariff Schedule of the United States (19 U.S.C. 1202).
I.R.C. § 7652(e)(4) Coordination With Subsections (a) And (b) —
I.R.C. § 7652(e)(5) Determination Of Amount Of Taxes Collected —
I.R.C. § 7652(f) Limitation On Cover Over Of Tax On Distilled Spirits —
I.R.C. § 7652(f)(1) —
$10.50 ($13.25 in the case of distilled spirits brought into the United States after June 30, 1999, and before January 1, 2022), or
I.R.C. § 7652(f)(2) —
the tax imposed under subsection (a)(1) of section 5001, determined as if subsection (c)(1) of such section did not apply, on each proof gallon.
I.R.C. § 7652(g) Drawback For Medicinal Alcohol, Etc. —
In the case of medicines, medicinal preparations, food products, flavors, flavoring extracts, or perfume containing distilled spirits, which are unfit for beverage purposes and which are brought into the United States from Puerto Rico or the Virgin Islands--
I.R.C. § 7652(g)(1) —
subpart B of part II of subchapter A of chapter 51 shall be applied as if--
I.R.C. § 7652(g)(1)(A) —
I.R.C. § 7652(g)(1)(B) —
I.R.C. § 7652(g)(2) —
I.R.C. § 7652(h) Manner Of Cover Over Of Tax Must Be Derived From This Title —
No amount shall be covered into the treasury of Puerto Rico or the Virgin Islands with respect to taxes for which cover over is provided under this section unless made in the manner specified in this section without regard to--
I.R.C. § 7652(h)(1) —
I.R.C. § 7652(h)(2) —
(Aug. 16, 1954, ch. 736, 68A Stat. 907 ; Sept. 2, 1958, Pub. L. 85-859, title II, 204(17), (18), 72 Stat. 1430; June 21, 1965, Pub. L. 89-44, title VIII, 808(b)(3), 79 Stat. 164; Jan. 2, 1976, Pub. L. 94-202, 10(a), 89 Stat. 1141; Oct. 4, 1976, Pub. L. 94-455, title XIX, 1906(a)(55), (b) (13)(A), 90 Stat. 1832, 1834; Aug. 5, 1983, Pub. L. 98-67, title II, 221(a), 97 Stat. 395; Dec. 8, 1983, Pub. L. 98-213, 5(c), 97 Stat. 1460; July 18, 1984, Pub. L. 98-369, div. B, title VI, 2681(a), 2682(a), 98 Stat. 1172, 1174; Oct. 22, 1986, Pub. L. 99-514, title XVIII, 1879(i)(1), 100 Stat. 2907; Aug. 23, 1988, Pub. L. 100-418, title I, 1214(p)(1), 102 Stat. 1159; Aug. 10, 1993, Pub. L. 103-66, title XIII, Sec. 13227(e), 107 Stat. 312; Dec. 8, 1994, Pub. L. 103-465, title I, 136, 108 Stat. 4809; May 18, 2000, Pub. L. 106-200, title VI, Sec. 602, 114 Stat. 251; Mar. 9, 2002, Pub. L. 107-147, title VI, Sec. 609(a), 116 Stat. 21; Oct. 4, 2004, Pub. L. 108-311, title III, Sec. 305, 118 Stat. 1166; Aug. 10, 2005, Pub. L. 109-59, title XI, Sec. 11125(b)(22), 119 Stat. 1144; Dec. 20, 2006, Pub. L. 109-432, div. A, title I, Sec. 114(a), 120 Stat. 2922; Pub. L. 110-343, div. C, title III, Sec. 308(a), Oct. 3, 2008, 122 Stat. 3765; Pub. L. 111-312, title VII, Sec. 755, Dec. 17, 2010, 124 Stat. 3296; Pub. L. 112-240, title III, Sec. 329, Jan. 2, 2013, 126 Stat. 2313; Pub. L. 113-295, Div. A, title I, Sec. 140(a), Dec. 19, 2014, 128 Stat. 4010; Pub. L. 114-113, Div. Q, title I, Sec. 172(a), Dec. 18, 2015; Pub. L. 115-97, Sec. 13807(b), Dec. 22, 2017, 131 Stat. 2054; Pub. L. 115-123, Div. D, title II, Sec. 41102, Feb. 9, 2018, 132 Stat. 64.)
2018 - Subsec. (e)(5). Pub. L. 115-123, Sec. 41102(b)(1), added par. (5).
Subsec. (f)(1). Pub. L. 115-123, Sec. 41102(a)(1), amended par. (1) by substituting “January 1, 2022” for “January 1, 2017”.
2017 - Subsec. (f)(2). Pub. L. 115-97, Sec. 13807(b), amended par. (2) by substituting “section 5001(a)(1)” for “subsection (a)(1) of section 5001, determined as if subsection (c)(1) of such section did not apply”.
2015 - Subsec. (f)(1). Pub. L. 114-113, Div. Q, Sec. 172(a), amended par. (1) by substituting “January 1, 2017” for “January 1, 2015”.
2014 - Subsec. (f)(1). Pub. L. 113-295, Div. A, title I, Sec. 140(a), amended par. (1) by substituting “January 1, 2015” for “January 1, 2014”.
2013 - Subsec. (f)(1). Pub. L. 112-240, Sec. 329(a), amended par. (1) by substituting “January 1, 2014” for “January 1, 2012”.
2010- Subsec. (f)(1). Pub. L. 111-312, Sec. 755(a), amended par. (1) by substituting “2012” for “2010”.
2008 - Subsec. (f)(1). Pub. L. 110-343, Div. C, Sec. 308(a), amended par. (1) by substituting “2010” for “2008”.
2006 - Subsec. (f)(1). Pub. L. 109-432, Sec. 114(a), amended par. (1) by substituting “2008” for “2006”.
2005 - Subsec. (g)(1). Pub. L. 109-59, Sec. 11125(b)(22), amended par. (1) by substituting “subpart B” for “subpart F” and “section 5111” for “section 5131(a)”.
2004-Subsec. (f)(1). Pub. L. 108-311, Sec. 305(a), amended par. (1) by substituting “January 1, 2006” for “January 1, 2004”.
2002-Subsec. (f)(1). Pub. L. 107-147, Sec. 609, amended par. (1) by substituting “January 1, 2004” for “January 1, 2002”.
2000-Subsec. (b)(3). Pub. L. 106-200 amended par. (3) by revising the material preceding subpar. (B). Before amendment it read as follows:
“(3) Disposition of internal revenue collections
“Beginning with the calendar quarter ending September 30, 1975, and quarterly thereafter, the Secretary shall determine the amount of all taxes imposed by, and collected during the quarter under, the internal revenue laws of the United States on articles produced in the Virgin Islands and transported to the United States. The amount so determined less 1 percent and less the estimated amount of refunds or credits shall be subject to disposition as follows:
Subsec. (h). Pub. L. 106-200 added subsec. (h).
1999-Subsec. (f)(1). Pub. L. 106-170 amended par. (1). Before amendment, it read as follows:
(1) $10.50 ($11.30 in the case of distilled spirits brought into the United States during the 5-year period beginning on October 1, 1993), or
1994--Subsec. (g). Pub. L. 103-465 substituted “flavoring extracts or perfume” for “or flavoring extracts”.
1993—Subsec. (f)(1). Pub. L. 103-66, Sec. 13227(e), amended par. (1). Before amendment, it read as follows:
“(1) $10.50, or”.
1988--Subsec. (e)(3). Pub. L. 100-418 substituted “subheading 2208.40.00 of the Harmonized Tariff Schedule of the United States” for “item 169.13 or 169.14 of the Tariff Schedules of the United States”.
1986--Subsec. (g). Pub. L. 99-514 added subsec. (g).
1984--Subsecs. (c)-(e). Pub. L. 98-369, 2681(a), added subsecs. (c) and (d) and redesignated former subsec. (c) as (e).
Subsec. (f). Pub. L. 98-369, 2682(a), added subsec. (f).
1983--Subsec. (b)(3). Pub. L. 98-213, 5(c), amended language of Pub. L. 94-455, 1906(a)(55). See 1976 Amendment note below.
Subsec. (c). Pub. L. 98-67 added subsec. (c).
1976--Subsec. (a)(2). Pub. L. 94-455, 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (b)(3). Pub. L. 94-455, 1906(b)(13)(A), struck out “or his delegate” after “Secretary” in provisions following subpar. (B).
Pub. L. 94-455, 1906(a)(55)(B), as amended by Pub. L. 98-213, 5(c)(1), substituted “emergency relief purposes and essential public projects” for “emergency relief purposes and essential public projects, with the prior approval of the President or his designated representative” in provisions following subpar. (B). Prior to amendment by Pub. L. 98-213, the latter phrase had been substituted for “approved emergency relief purposes and essential public projects as provided in subparagraph (B)”.
Pub. L. 94-455, 1906(a)(55)(C), struck out “including payments under subparagraph (B)” after “public projects only” in provisions following subpar. (B).
Subsec. (b)(3)(A). Pub. L. 94-455, 1906(a)(55)(D), as added by Pub. L. 98-213, 5(c)(2), struck out proviso after “determine” requiring approval of the President or his designated representative before such moneys may be obligated or expended.
Subsec. (b)(3)(B), (C). Pub. L. 94-455, 1906(a)(55)(A), redesignated subpar. (C) as (B). Former subpar. (B) relating to disposition of internal revenue collections in Virgin Islands for fiscal years ending June 30, 1955 and 1956 was struck out.
Pub. L. 94-202 substituted “calendar quarter ending September 30, 1975, and quarterly” for “fiscal year ending June 30, 1954, and annually” and “quarter” for “fiscal year” in provisions preceding subpar. (A), substituted “paid over, as soon as practicable after the close of the quarter,” for “paid over” and “quarter” for “fiscal year” in subpar. (A), and substituted “with respect to the four calendar quarters immediately preceding the beginning” for “at the beginning” in provisions following subpar. (C).
1965--Subsec. (a)(3). Pub. L. 89-44 inserted “(less the estimated amount necessary for payment of refunds and drawbacks)” after “transported to the United States”.
1958--Subsec. (a)(1). Pub. L. 85-859, 204(17), substituted “section 5314” for “section 5318”.
Subsec. (b)(1). Pub. L. 85-859, 204(18), substituted “section 5314” for “section 5318”.
Amendment by Pub. L. 115-123, Sec. 41102(a), effective for distilled spirits brought into the United States after December 31, 2016.
Amendment by Pub. L. 115-123, Sec. 41102(b), effective for distilled spirits brought into the United States after December 31, 2017.
Amendment by Pub. L. 115-97, Sec. 13807(b), effective for distilled spirits removed after December 31, 2017.
Pub. L. 115-123, Sec. 41111, provided the following:
“SEC. 41111. RULE OF CONSTRUCTION FOR CRAFT BEVERAGE MODERNIZATION AND TAX REFORM.
‘‘SEC. 13809. RULE OF CONSTRUCTION.
‘Nothing in this subpart, the amendments made by this subpart, or any regulation promulgated under this subpart or the amendments made by this subpart, shall be construed to preempt, supersede, or otherwise limit or restrict any State, local, or tribal law that prohibits or regulates the production or sale of distilled spirits, wine, or malt beverages.’.
Amendment by Pub. L. 114-113, Div. Q, Sec. 172(a), effective for distilled spirits brought into the United States after December 31, 2014.
Amendment by Pub. L. 113-295, Div. A, Sec. 140(a), effective for distilled spirits brought into the United States after December 31, 2013.
Amendment by Pub. L. 112-240, Sec. 329(a), effective for distilled spirits brought into the United States after December 31, 2009.
Amendment by Pub. L. 111-312, Sec. 755(a), effective for distilled spirits brought into the United States after December 31, 2011.
Amendment by Pub. L. 110-343, Div. C, Sec. 308(a), effective for distilled spirits brought into the United States after December 31, 2007.
Amendment by Pub. L. 109-432, Sec. 114(a), effective for articles brought into the United States after December 31, 2005.
Amendments by Pub. L. 109-59, Sec. 11125(b)(22), effective July 1, 2008, but does not apply to taxes imposed for periods before such date.
Amendment by Pub. L. 108-311, Sec. 305(a), effective for articles brought into the United States after December 31, 2003.
Amendment by Pub. L. 107-147, Sec. 609, effective for articles brought into the United States after December 31, 2001.
Amendment by Pub. L. 106-200 effective with respect to transfers or payments made after the date of the enactment of this Act [Enacted: May 18, 2000].
Amendment by Pub. L. 106-170 effective July 1, 1999.
Amendment by Pub. L. 103-465 effective Jan. 1, 1995.
Amendment by Sec. 13227(e) of Pub. L. 103-66 effective October 1, 1993.
Amendment by Pub. L. 100-418 effective Jan. 1, 1989, and applicable with respect to articles entered on or after such date, see section 1217(b)(1) of Pub. L. 100-418, set out as an Effective Date note under section 3001 of Title 19, Customs Duties.
Section 1879(i)(2) of Pub. L. 99-514 provided that: “The amendment made by paragraph (1) [amending this section] shall apply to articles brought into the United States after the date of the enactment of this Act [Oct. 22, 1986].”
Section 2681(b) of Pub. L. 98-369, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(1) In general.--Except as provided in paragraph (2), the amendments made by subsection (a) [amending this section] shall apply with respect to articles brought into the United States on or after March 1, 1984.
“(2) Exception for Puerto Rico for periods before January 1, 1985.--
“(A) In general.--Subject to the limitations of subparagraphs (B) and (C), the amendments made by subsection (a) [amending this section] shall not apply with respect to articles containing distilled spirits brought into the United States from Puerto Rico after February 29, 1984, and before January 1, 1985.
“(B) $130,000,000 limitation.--In the case of such articles brought into the United States after February 29, 1984, and before July 1, 1984, the aggregate amount payable to Puerto Rico by reason of subparagraph (A) shall not exceed the excess of--
“(ii) the aggregate amount payable to Puerto Rico under section 7652(a) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954 ] with respect to such articles which were brought into the United States after June 30, 1983, and before March 1, 1984, and which would not meet the requirements of section 7652(c) of such Code.
“(C) $75,000,000 limitation.--The aggregate amount payable to Puerto Rico by reason of subparagraph (A) shall not exceed $75,000,000 in the case of articles--
“(3) Limitation on incentive payments to united states distillers.--
“(A) In general.--In the case of articles to which this paragraph applies, the aggregate amount of incentive payments paid to any United States distiller with respect to such articles shall not exceed the limitation described in subparagraph (C).
“(B) Articles to which paragraph applies.--This paragraph shall apply to any article containing distilled spirits described in clauses (i) through (iv) of paragraph (2)(C).
“(C) Limitation.--
“(i) In general.--The limitation described in this subparagraph is $1,500,000.
“(ii) Special rule.--The limitation described in this subparagraph shall be zero with respect to any distiller who was not entitled to or receiving incentive payments as of March 1, 1984.
“(D) Payments in excess of limitation.--If any United States distiller receives any incentive payment with respect to articles to which this paragraph applies in excess of the limitation described in subparagraph (C), such distiller shall pay to the United States the total amount of such incentive payments with respect to such articles in the same manner, and subject to the same penalties, as if such amount were tax due and payable under section 5001 of such Code on the date such payments were received.
“(E) Incentive payments.--
“(i) In general.--For purposes of this paragraph, the term “incentive payment” means any payment made directly or indirectly by the commonwealth of Puerto Rico to any United States distiller as an incentive to engage in redistillation operations.
“(ii) Transportation payments excluded.--Such term shall not include any payment of a direct cost of transportation to or from Puerto Rico with respect to any article to which this paragraph applies.”
Section 2682(b) of Pub. L. 98-369 provided that “The amendment made by this section [amending this section] shall apply to articles containing distilled spirits brought into the United States after September 30, 1985.”
Section 221(b) of Pub. L. 98-67 provided that: “The amendment made by subsection (a) [amending this section] shall apply to articles imported into the United States after June 30, 1983.”
Section 10(b) of Pub. L. 94-202 provided that: “The amendments made by paragraphs (1) and (2) of subsection (a) [amending this section] shall apply with respect to all taxes imposed by, and collected after June 30, 1975, under, the internal revenue laws of the United States on articles produced in the Virgin Islands and transported to the United States.”
Amendment by Pub. L. 89-44 effective July 1, 1965, see section 808(d)(1) of Pub. L. 89-44, set out as a note under section 5702 of this title.
Amendment by Pub. L. 85-859 effective July 1, 1959, see section 210(a)(1) of Pub. L. 85-859, set out as an Effective Date note under section 5001 of this title.
Section 512(b) of Pub. L. 106-170, as amended by Pub. L. 106-200, Sec. 602(a), provided that:
“(b) SPECIAL COVER OVER TRANSFER RULES.--Notwithstanding section 7652 of the Internal Revenue Code of 1986, the following rules shall apply with respect to any transfer before the first day of the month within which the date of the enactment of the Trade and Development Act of 2000 [Enacted: May 18, 2000] occurs, of amounts relating to the increase in the cover over of taxes by reason of the amendment made by subsection (a):
“(1) INITIAL TRANSFER OF INCREMENTAL INCREASE IN COVER OVER.--The Secretary of the Treasury shall, within 15 days after the date of the enactment of this Act, transfer an amount equal to the lesser of--
“(A) the amount of such increase otherwise required to be covered over after June 30, 1999, and before the date of the enactment of this Act, or
“(2) SECOND TRANSFER OF INCREMENTAL INCREASE FOR COVER OVER ATTRIBUTABLE TO PERIODS BEFORE RESUMPTION OF REGULAR PAYMENTS.--The Secretary of the Treasury shall transfer on the first payment date after the enactment of the Trade and Development Act of 2000 an amount equal to the excess of--
“(A) the amount of such increase otherwise required to be covered over after June 30, 1999, and before before the first day of the month within which such date of enactment occurs, over
Section 1879(i)(3) of Pub. L. 99-514 provided that:
Ex. Ord. No. 10602, Mar. 24, 1955, 20 F.R. 1795, provided: “By virtue of the authority vested in me by section 7652(b)(3) of the Internal Revenue Code of 1954 [now I.R.C. 1986 ] (Public Law 591, 83rd Congress, 68A Stat. 907 ), I hereby designate the Secretary of the Interior as the representative of the President to approve the obligation and expenditure by the government of the Virgin Islands of the moneys referred to in the said section 7652(b)(3).”