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SEC. 2171. UNLAWFUL REMOVAL FROM MANUFACTORY, FORFEITURE AND PENALTY.

(a) FORFEITURE.-Whenever any cigars or cigarettes are removed from any manufactory, or place where cigars or cigarettes are made, without

(1) PACKING.-Being packed in boxes as required by the provisions of this chapter; or

(2) STAMPING. The proper stamp thereon denoting the tax; or (3) BRANDING. Stamping, indenting, burning, or impressing, into each box, in a legible and durable manner, the number of the cigars or cigarettes contained therein, the number of the manufactory, and the number of the district and the State; or (4) AFFIXING AND CANCELING STAMP.-Properly affixing to the box and canceling the stamp denoting the tax; they shall be forfeited to the United States.

(b) PENALTY.—

(1) BOXING AND STAMPING.-Every person who removes from the place of manufacture any cigars or cigarettes not properly boxed and stamped as required by law shall be deemed guilty of a felony, and shall be fined not less than $100 nor more than $1,000, and imprisoned not less than six months nor more than three years.

(2) OTHER ACTS.-Every person who commits any of the offenses described in subsection (a) of this section or subsection (b) of section 2170 shall be fined for each such offense not less than $100 nor more than $1,000, and imprisoned not less than six months nor more than two years.

(c) EXEMPTION IN CASE OF EXPORTATION.-Cigars or cigarettes packed expressly for export, and which shall be exported to a foreign country under the restrictions and regulations prescribed by the Commissioner and approved by the Secretary, shall be exempt from the provisions of this section.

SEC. 2172. FRAUDULENT USE OF STAMPS, PENALTY.

Every person who

(a) PACKING IN BOXES BEARING FALSE STAMPS.-Packs cigars or cigarettes in any box bearing a false or fraudulent or counterfeit stamp; or

(b) AFFIXING FALSE STAMPS.-Affixes to any box containing cigars or cigarettes a stamp in the similitude or likeness of any stamp required to be used by the laws of the United States, whether the same be a customs or internal revenue stamp; or

(c) REMOVAL OF STAMPS.-Removes, or causes to be removed, from any box any stamp denoting the tax on cigars or cigarettes, with intent to use the same; or

(d) REUSE OF STAMPS.-Uses or permits any other person to use any stamp so removed; or

(e) TRAFFICKING IN USED STAMPS.-Receives, buys, sells, gives away, or has in his possession any stamp so removed; or

(f) OTHER FRAUDULENT USES.-Makes any other fraudulent use of any stamp intended for cigars or cigarettes;

shall be deemed guilty of a felony, and shall be fined not less than $100 nor more than $1,000, and imprisoned not less than six months nor more than three years.

SEC. 2173. UNLAWFUL PURCHASE, RECEIPT, POSSESSION, OR SALE, PENALTIES.

(a) CIGARS NOT TAX-PAID.-Every person who buys, receives, or has in his possession any cigars or cigarettes on which the tax to which they are liable has not been paid shall be deemed guilty of a felony and shall be fined not less than $100 nor more than $1,000, and imprisoned not less than six months nor more than three years.

(b) CIGARS NOT PROPERLY BRANDED OR STAMPED.-Every person who purchases or receives for sale any cigars or cigarettes which have not been branded or stamped according to law shall be liable to a penalty of $50 for each such offense.

SEC. 2174. SALE OF IMPORTED CIGARS IMPROPERLY PACKED AND STAMPED, PENALTY.

Every person who sells or offers for sale any imported cigars or cigarettes, or cigars or cigarettes purporting or claimed to have been imported, not put in packages and stamped as provided by this chapter, shall be fined not less than $500 nor more than $5,000, and be imprisoned not less than six months nor more than two years. SEC. 2175. ABSENCE OF STAMP, FORFEITURE.

In case of the absence of the proper revenue stamp on any box of cigars or cigarettes sold, or offered for sale, or kept for sale, such cigars or cigarettes shall be forfeited to the United States.

SEC. 2176. EMPTY BOXES.

(a) PENALTIES.

(1) DESTRUCTION OF STAMPS.-Any person who willfully neglects or refuses to destroy, as required in section 2112 (e), the stamps on any empty stamped box which contained cigars or cigarettes shall, for each such offense, be fined not exceeding $50 and imprisoned not less than ten days nor more than six months.

(2) TRAFFICKING. Any person who fraudulently gives away or accepts from another, or who sells or buys for packing cigars or cigarettes any empty stamped box which contained cigars or cigarettes, shall, for each such offense, be fined not exceeding $100 and be imprisoned not more than one year.

(3) REFILLING.-Any person who uses for packing cigars or cigarettes any empty stamped box which contained cigars or cigarettes shall, for each such offense, be fined not exceeding $100 and be imprisoned not more than one year.

(b) DESTRUCTION. Any revenue officer may destroy any emptied cigar or cigarette box upon which a cigar or cigarette stamp is found. SEC. 2177. FRAUDULENT CLAIM FOR DRAWBACK, PENALTY.

For penalty imposed in the case of fraudulent claims for drawback;

see section 3326.

SUBPART B-MANUFACTURERS AND CUSTOMS OFFICERS

SEC. 2180. MANUFACTURERS.

(a) MANUFACTURING WITHOUT BOND, PENALTY. Every person who manufactures cigars or cigarettes of any description without first giving bond as required in section 2033 shall be fined not less than $100. nor more than $5,000, and imprisoned not less than three months nor more than five years.

(b) SELLING OR REMOVING WITHOUT BOND, FORFEITURE.-Every manufacturer of cigars or cigarettes who removes or sells any cigars or cigarettes without having given bond as such manufacturer shall, in addition to the penalties elsewhere provided in this chapter for such offenses, forfeit to the United States all raw material and manufactured or partly manufactured tobacco, cigars, and cigarettes, and all machinery, tools, implements, apparatus, fixtures, boxes, barrels, and all other materials which shall be found in his possession, or in his manufactory, and used in his business as such manufacturer, together with his estate or interest in the building or factory, and the lot or tract of ground on which such building or factory is located, and all appurtenances thereunto belonging.

(c) NEGLECT TO PUT UP SIGN, PENALTY.-Any manufacturer of cigars or cigarettes neglecting to place and keep on the side or end of the building within which his business is carried on, so that it can be distinctly seen, the sign required under section 2034 shall, on conviction, be fined not less than $100 nor more than $500.

(d) REFUSAL OR WILLFUL NEGLECT TO DELIVER INVENTORY, PENALTY. In case any person engaged in the manufacture of cigars or cigarettes refuses or willfully neglects to deliver the inventory required under section 2036, he shall be fined not less than $500 nor more than $5,000, and imprisoned not less than six months nor more than three years.

(e) REFUSAL OR WILLFUL NEGLECT TO KEEP BOOKS, PENALTY.-In case any person engaged in the manufacture of cigars or cigarettes refuses or willfully neglects to keep the account required under section 2037, he shall be fined not less than $500 nor more than $5,000, and imprisoned not less than six months nor more than three years.

(f) REFUSAL OR WILLFUL NEGLECT TO FURNISH A MONTHLY ABSTRACT, PENALTY.—In case any person engaged in the manufacture of cigars or cigarettes refuses or willfully neglects to furnish the abstract required under section 2038, he shall be fined not less than $500 nor more than $5,000, and imprisoned not less than six months nor more than three years.

(g) SALE OR REMOVAL WITHOUT PROPER STAMPS.

(1) FORFEITURE.-Every manufacturer of cigars or cigarettes who removes or sells any cigars or cigarettes without the proper stamps denoting the tax thereon shall, in addition to the penalties elsewhere provided in this chapter for such offenses, forfeit to the United States all raw material and manufactured or partly manufactured tobacco, cigars, and cigarettes, and all machinery, tools, implements, apparatus, fixtures, boxes, barrels, and all other materials which shall be found in his possession or in his manufac

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tory, and used in his business as such manufacturer, together with his estate or interest in the building or factory, and the lot or tract of ground on which such building or factory is located, and all appurtenances thereunto belonging.

(2) PENALTY.—

For penalties for such offenses, see section 2171 (b).

(h) FALSE ENTRIES, FORFEITURE.-Every manufacturer of cigars or cigarettes who makes false or fraudulent entries of the manufacture or sale of any cigars or cigarettes, or makes false or fraudulent entries of the purchase or sale of leaf tobacco, tobacco stems, or other material used in the manufacture of cigars or cigarettes, shall, in addition to the penalties elsewhere provided in this title for such offenses, forfeit to the United States all raw material and manufactured or partly manufactured tobacco, cigars, and cigarettes, and all machinery, tools, implements, apparatus, fixtures, boxes, barrels, and all other materials which shall be found in his possession, or in his manufactory, and used in his business as such manufacturer, together with his estate or interest in the building or factory, and the lot or tract of ground on which such building or factory is located, and all appurtenances thereunto belonging.

(i) AFFIXING FALSE OR FRAUDULENT STAMPS.

(1) FORFEITURE.-Every manufacturer of cigars or cigarettes who affixes any false, forged, spurious, fraudulent, or counterfeit stamp, or imitation of any stamp, required by law to any box containing any cigars or cigarettes shall, in addition to the penalties elsewhere provided for such offenses, forfeit to the United States all raw material and manufactured or partly manufactured tobacco, cigars, and cigarettes, and all machinery, tools, implements, apparatus, fixtures, boxes, barrels, and all other materials which shall be found in his possession, or in his manufactory, and used in his business as such manufacturer, together with his estate or interest in the building or factory, and the lot or tract of ground on which such building or factory is located, and all appurtenances thereunto belonging.

(2) PENALTY.

For penalty for such offense, see section 2172 (b).

(j) OMISSION OR REMOVAL OF LABEL, PENALTY.-Every manufacturer of cigars or cigarettes who neglects to affix the label required under section 2111 (d) (1) to any box containing cigars or cigarettes made by or for him, or sold or offered for sale by or for him, and every person who removes any such label, so affixed, from any such box, shall be fined $50 for each box in respect to which such offense is committed.

(k) COLLUSION IN CASE OF MANUFACTURE ON COMMISSION, SHARES, OR CONTRACT.-In case of fraud on the part of either of the persons referred to in section 2001 (b) (2), or of any collusion on their part with intent to defraud the revenue

(1) FORFEITURE.-Such material, cigars, or cigarettes shall be forfeited to the United States; and

(2) PENALTY.-Every person engaged in such fraud or collusion shall be fined not less than $100 nor more than $5,000, and

imprisoned for not less than six months nor more than three years.

(1) OFFENSES NOT SPECIFICALLY COVERED.-If any manufacturer of cigars or cigarettes shall knowingly or willfully omit, neglect, or refuse to do or cause to be done any of the things required by law in the carrying on or conducting of his business, or shall do anything by this title prohibited, if there be no specific penalty or punishment imposed by any other section of this chapter for the neglecting, omitting, or refusing to do, or for the doing or causing to be done, the thing required or prohibited

(1) PENALTY. He shall pay a penalty of $1,000; and

(2) FORFEITURE. All tobacco, cigars, or cigarettes found in his manufactory shall be forfeited to the United States.

SEC. 2181. CUSTOMS OFFICERS.

Every officer of customs who permits any cigars or cigarettes imported into the United States from foreign countries to pass out of his custody or control, without compliance by the owner or importer thereof with the provisions of section 2130 (b), shall be fined not less than $1,000 nor more than $5,000, and imprisoned not less than six months nor more than three years.

SUBCHAPTER F-MISCELLANEOUS PROVISIONS

SEC. 2190. DISPOSAL OF FORFEITED TOBACCO, SNUFF, CIGARS, AND CIGARETTES.

In case it shall appear that any abandoned, condemned, or forfeited tobacco, snuff, cigars, or cigarettes, when offered for sale, will not bring a price equal to the tax due and payable thereon, such goods shall not be sold for consumption in the United States; and upon api lication made to the Commissioner, he is authorized to order the destruction of such tobacco, snuff, cigars, or cigarettes by the officer in whose custody and control the same may be at the time, and in such manner and under such regulations as the Commissioner may prescribe, or he may, under such regulations, order delivery of such tobacco, snuif, cigars, or cigarettes, without payment of any tax, to any hospital maintained by the United States for the use of present or former members of the military or naval forces of the United States.

SEC. 2191. INSPECTION OF CIGARS AND CIGARETTES.

The Commissioner may prescribe such regulations for the inspection of cigars and cigarettes and the collection of the tax thereon as he may deem most effective for the prevention of frauds in the payment of such tax.

SEC. 2192. INSPECTION OF PEDDLER'S CERTIFICATE.

Any internal revenue agent may demand production of and inspect the collector's certificate for peddlers.

SEC. 2193. RECORD OF MANUFACTURERS.

(a) TOBACCO AND SNUFF. Every collector shall keep a record, in a book or books provided for that purpose, to be open to the inspection of only the proper officers of internal revenue, including deputy col

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