second offense, be fined not more than $5,000 or imprisoned in a Federal penitentiary for not more than ten years, or both, in the discretion of the court, whenever the fact of such previous conviction is established in the manner prescribed in paragraph (7) of this subsection.

(6) A person who, after having been two times convicted of selling, importing, or exporting, or conspiring to sell, import, or export, opium, coca leaves, cocaine, isonipecaine, opiate, or any salt, derivative, or preparation of opium, coca leaves, cocaine, isonipecaine, or opiate, again sells, imports, or exports, or conspires to sell, import, or export any of the said narcotic drugs, in violation of the laws of the United States, shall, upon conviction of such third offense, or any offense subsequent thereto, be fined not more than $10,000 or imprisoned in a Federal penitentiary for not more than 20 years, or both, in the discretion of the court, whenever the fact of such previous convictions is established in the manner prescribed in paragraph (7) of this subsection.

(7) Whenever it shall appear, after conviction and before or after sentence, that a person convicted of unlawfully selling, importing, or exporting, or conspiring unlawfully to sell, import, or export, any of the narcotic drugs enumerated in paragraph (5) has previously been convicted of unlawfully selling, importing, or exporting, or conspiring unlawfully to sell, import, or export, any of said narcotic drugs, in violation of the laws of the United States, it shall be the duty of the United States district attorney for the district in which such subsequent conviction was had to file an information alleging that the defendant has previously been so convicted, and further alleging the number of such previous convictions. The court in which the defendant was convicted shall cause the said defendant, whether confined in prison or otherwise, to appear before it and shall apprise him of the allegations of the information and of his right to a trial by jury as to the truth thereof. The court shall inquire of the defendant whether he is the person who has previously been convicted. If the defendant states he is not such person, or if he refuses to answer or remains silent, a plea of not guilty shall be entered by the court, and a jury shall be empaneled to determine whether the defendant is the person alleged in the information to have previously been convicted, and the number of such previous convictions. If after a trial on the sole issue of the truth of such allegations the jury determines that the defendant is in fact the person previously convicted as charged in the information, or if he acknowledges in open court, after being duly cautioned as to his rights, that he is such person, he shall be punished as prescribed in paragraph' (5) or (6) of this subsection, as the case may be, and the previous sentence of the court, if any, shall be vacated and there shall be deducted from the new sentence the amount of time actually served under the sentence so vacated.

(8) The term "person," as used in paragraphs (2), (3), and (4), includes an officer or employee of a corporation or a member or employee of a partnership, who as such officer, employee, or memThe statute reads "paragraphs."

ber is under a duty to perform the act in respect of which the violation occurs.

(c) CROSS REFERENCES.

For definition of "person", as used generally in this subchapter, see subsection (a) of section 3228.

For general penalty provisions, see part III of subchapter A of chapter 28 [sections 3320 and following] and section 3793 of chapter 38.

SEC. 2558. FORFEITURES.

(a) UNSTAMPED PACKAGES.-All unstamped packages of the drugs mentioned in section 2550 (a) found in the possession of any person, except as provided in this subchapter, shall be subject to seizure and forfeiture, and all the provisions of internal revenue laws relating to searches, seizures, and forfeiture of unstamped articles shall be extended to and made to apply to the articles taxed under this subchapter and the persons upon whom the taxes under this subchapter or part V of subchapter A of chapter 27 are imposed.

(b) SEIZED OPIUM-CONFISCATION AND DISPOSAL.

(1) PROCEDURE. All opium, coca leaves, isonipecaine, opiates, and all salts, derivatives, and preparations of opium, coca leaves, isonipecaine, and opiates, seized by the United States Government from any person or persons charged with any violation of this chapter or part V of subchapter A of chapter 27, or the act of February 9, 1909, c. 100, 35 Stat. 614, as amended by the act of Jan. 17, 1914, c. 9, 38 Stat. 275, the act of May 26, 1922 (c. 202, 42 Stat. 596), the act of June 7, 1924 (c. 352, 43 Stat. 657), and the act of June 14, 1930 (c. 488, 46 Stat. 586) (U. S. C., Title 21, §§ 171-184), shall upon conviction of the person or persons from whom seized be confiscated by and forfeited to the United States; and the Secretary is authorized to deliver for medical or scientific purposes to any department, bureau, or other agency of the United States Government, upon proper application therefor under such regulation as may be prescribed by the Secretary, any of the drugs so seized, confiscated, and forfeited to the United States. The provisions of this paragraph shall also apply to any of the aforesaid drugs seized or coming into the possession of the United States in the enforcement of this chapter, part V of subchapter A of chapter 27, or any of the above-mentioned acts, where the owner or owners thereof are unknown. None of the aforesaid drugs coming into possession of the United States under the operation of said chapter, part, or acts, or the provisions of this paragraph, shall be destroyed without certification by a committee appointed by the Secretary that they are of no value for medical or scientific purposes. (2) CROSS REFERENCE.

For authority of the Secretary to delegate such powers and duties, see subchapter D [section 2606].

(c) CROSS REFERENCE.

For general forfeiture provisions, see chapter 28 [sections 3320 and followi

[For inclusion of unstamped n

nection with the seizure and f

of the act of August 9, 1939 (F

part III of subchapter A of d section 3793 of chapter 38. ntraband article," in conarticles, see section 1 T. S. C. 781).]

SEC. 2559. REGULATIONS.

(a) MAKING AND PUBLISHING.-The Secretary shall make, prescribe, and publish all needful rules and regulations for carrying the provisions of this subchapter and part V of subchapter A of chapter 27 into effect.

(b) CROSS REFERENCE.

For authority of the Secretary to delegate such powers and duties, see subchapter D [section 2606].

SEC. 2560. PERSONNEL.

(a) APPOINTMENT.-The Secretary is authorized to appoint such agents, deputy collectors, inspectors, chemists, assistant chemists, clerks, and messengers in the field and in the Bureau of Internal Revenue in the District of Columbia as may be necessary to enforce the provisions of this subchapter and part V of subchapter A of chapter 27.

(b) CROSS REFERENCE.-.

For authority of the Secretary to delegate such powers and duties, see subchapter D [section 2606].

SEC. 2561. LAWS UNAFFECTED.

Nothing contained in this subchapter or part V of subchapter A of chapter 27 shall be construed to impair, alter, amend, or repeal any of the provisions of the act of Congress approved June 30, 1906, entitled "An Act for preventing the manufacture, sale, or transportation of adulterated or misbranded, or poisonous, or deleterious foods, drugs, medicines, and liquors, and for regulating traffic therein, and for other purposes," c. 3915, 34 Stat. 768 (U. S. C., Title 21, §§ 1-15), and any amendment thereof, or of the act approved February 9, 1909, entitled "An Act to prohibit the importation and use of opium for other than medicinal purposes," c. 100, 35 Stat. 614 (U. S. C., Title 21, §§ 171-185), and any amendment thereof.

[The act of June 30, 1906, here referred to was repealed by the act of June 25, 1938 (52 Stat. 1059, § 902 (a)), effective June 25, 1939.]

SEC. 2562. OTHER LAWS APPLICABLE.

(a) GENERAL-All administrative, special, or stamp provisions of law, including the law relating to the assessment of taxes, so far as applicable, shall be extended to and made a part of this subchapter and sections 3220, 3221, 3222, and subsection (a) of section 3224 of chapter 27.

(b) CROSS REFERENCE.

For provisions making applicable the internal revenue laws relating to the engraving, issuance, sale, accountability, cancellation, and destruction of tax-paid stamps, see subsection (b) of section 2552.

SEC. 2563. TERRITORIAL EXTENT OF LAW.

The provisions of this subchapter and part V of subchapter A of chapter 27 shall apply to the United States, the District of Columbia, the Territory of Alaska, the Territory of Hawaii, the insular possessions of the United States, and the Canal Zone.

[For exceptions to applicability of section 2563, see section 2554 (c).]

§ 2564 (a)

EXCISE TAX PROVISIONS

SEC. 2564. ADMINISTRATION IN INSULAR POSSESSIONS AND CANAL

ZONE.

(a) PUERTO RICO * * *.-In Puerto Rico * the administration of this subchapter and part V of subchapter A of chapter 27, the collection of the special tax imposed by section 3220 of chapter 27, and the issuance of the order forms specified in section 2554 shall be performed by the appropriate internal revenue officers of those governments, and all revenues collected thereunder in Puerto Rico * * shall accrue intact to the general governments thereof, respectively.

* * *

(b) CANAL ZONE.-The President is authorized and directed to issue such Executive orders as will carry into effect in the Canal Zone the intent and purpose of this subchapter and part V of subchapter A of chapter 27 by providing for the registration and the imposition of a special tax upon all persons in the Canal Zone who produce, import, compound, deal in, dispense, sell, distribute, or give away opium or coca leaves, their salts, derivatives, or preparations.

For authority of the President to exempt persons in the Virgin Islands from the order form requirements, see subsection (b) of section 2554. [For exceptions to applicability of section 2564, see section 2554 (c).] SEC. 2565. DEFINITIONS.

For definitions of the following, see the subsections of section 3228 indicated below:

Person, subsection (a).

Importer, manufacturer, or producer, subsection (b).

Wholesale dealer, subsection (c).

Retail dealer, subsection (d).

Isonipecaine, subsection (e).

Opiate, subsection (f).

SUBCHAPTER B-OPIUM FOR SMOKING

SEC. 2567. TAX.

(a) RATE. An internal revenue tax of $300 per pound shall be levied and collected upon all opium manufactured in the United States for smoking purposes.

(b) How PAID.

(1) STAMPS.-All opium prepared for smoking manufactured in the United States shall be duly stamped in such a permanent manner as to denote the payment of the internal revenue tax thereon.

(2) ASSESSMENT.

For assessment in case of omitted taxes payable by stamp, see section 3311 of chapter 28 and section 3640 of chapter 35.

SEC. 2568. STAMPS.

The provisions of law covering the engraving, issue, sale, accountability, effacement, cancellation, and the destruction of stamps relating to tobacco and snuff, as far as applicable, shall apply to stamps provided for by paragraph (1) of subsection (b) of the preceding section.

SEC. 2569. MANUFACTURERS.

(a) DEFINITION.-Every person who prepares opium suitable for smoking purposes from crude gum opium, or from any preparation

thereof, or from the residue of smoked or partially smoked opium, commonly known as yen shee, or from any mixture of the above, or any of them, shall be regarded as a manufacturer of smoking opium within the meaning of this subchapter.

(b) BOND.-Every manufacturer of opium suitable for smoking purposes shall file with the collector of the district in which his manufactory is located such bonds as the Secretary may by regulation require. But the bond required of such manufacturer shall be with sureties satisfactory to the collector, and in a penal sum of not less than $100,000; and the sum of said bond may be increased from time to time and additional sureties required, at the discretion of the collector or under instructions of the Secretary. No person shall engage in such manufacture who has not given the bond required by the Secretary.

(c) CITIZENSHIP.-No person shall engage in the manufacture of opium suitable for smoking purposes who is not a citizen of the United States.

(d) OTHER REQUIREMENTS.-Every manufacturer of opium suitable for smoking purposes shall—

(1) NOTICES AND INVENTORIES.-File with the collector of the district in which his manufactory is located such notices and inventories,

(2) BOOKS AND RETURNS.- Keep such books and render such returns of material and products,

(3) SIGNS AND FACTORY NUMBER.-Put up such signs and affix such number to his factory, and

(4) CONDUCT OF BUSINESS.-Conduct his business under such surveillance of officers and agents

as the Secretary may by regulation require.

(5) CROSS REFERENCE.

For authority of the Secretary to delegate such powers and duties, see subchapter D [section 2606].

SEC. 2570. PENALTY.

A penalty of not less than $10,000 or imprisonment for not less than five years, or both, in the discretion of the court, shall be imposed for each and every violation of this subchapter relating to opium by any person or persons.

SEC. 2571. FORFEITURE.

All opium prepared for smoking, wherever found within the United States without the stamps required by this subchapter, shall be forfeited and destroyed.

SEC. 2590. TAX.

SUBCHAPTER C-MARIHUANA

(a) RATE.-There shall be levied, collected, and paid upon all transfers of marihuana which are required by section 2591 to be carried out in pursuance of written order forms taxes at the following rates:

(1) TRANSFERS TO SPECIAL TAXPAYERS.-Upon each transfer to any person who has paid the special tax and registered under

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