SUBCHAPTER D-DELEGATION OF POWERS AND DUTIES BY THE SECRETARY

SEC. 2606. AUTHORIZATION.

The Secretary is authorized to confer or impose any of the rights, privileges, powers, and duties in respect of narcotic drugs conferred upon him by subchapters A and B of this chapter and part V of subchapter A of chapter 27 upon the Commissioner of Narcotics, or any officer or employee of the Bureau of Narcotics, and to confer or impose upon the Commissioner of Internal Revenue, or any of the officers or employees of the Bureau of Internal Revenue, any of such rights, privileges, powers, and duties which, in the opinion of the Secretary, be necessary in connection with internal revenue taxes.

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CHAPTER 24-WHITE PHOSPHORUS MATCHES

SEC. 2650. WHITE PHOSPHORUS DEFINED.

For the purposes of this chapter, the words "white phosphorus" shall be understood to mean the common poisonous white or yellow phosphorus used in the manufacture of matches and not to include the nonpoisonous forms or the nonpoisonous compounds of white or yellow phosphorus.

SEC. 2651. TAX.

(a) RATE.-Upon white phosphorus matches manufactured, sold, or removed there shall be levied and collected a tax at the rate of 2 cents per 100 matches.

(b) BY WHOM PAID.-The tax imposed by subsection (a) shall be paid by the manufacturer.

(c) How PAID.

(1) STAMPS. The tax imposed by subsection (a) shall be represented by adhesive stamps.

(2) ASSESSMENT.-Whenever any manufacturer of white phosphorus matches sells or removes any such matches without the use of the stamps required by this chapter, it shall be the duty of the Commissioner, subject to the limitations prescribed in section 3312, upon satisfactory proof, to estimate the amount of tax which has been omitted to be paid, and to make an assessment therefor and certify the same to the collector, who shall collect the same according to law. The tax so assessed shall be in addition to the penalties imposed by law for such sale or removal.

SEC. 2652. STAMPS.

(a) PREPARED BY COMMISSIONER.-The Commissioner shall cause to be prepared suitable and special stamps for payment of the tax on white phosphorus matches provided for by this chapter.

(b) FURNISHED BY COLLECTOR.-Such stamps shall be furnished to collectors, who shall sell the same only to duly qualified manufac

turers.

(c) ACCOUNT KEPT BY COLLECTOR.-Every collector shall keep an account of the number and denominate values of the stamps sold by him to each manufacturer.

(d) OTHER LAWS APPLICABLE.

For provision making other laws relating to stamps apply to the stamps provided by this section, see section 2659.

SEC. 2653. REQUIREMENTS ON MANUFACTURERS. (a) PACKING.

(1) NUMBER IN PACKAGES.-All white phosphorus matches shall be packed by the manufacturer thereof in packages containing 100, 200, 500, 1,000, or 1,500 matches each, which shall then be packed by the manufacturer in packages containing not less than 14,400 matches.

(2) STAMPING.-The manufacturer shall affix to every package containing 100, 200, 500, 1,000, or 1,500 matches an adhesive stamp of the required value and shall place thereon the initials of his name and the date on which such stamp is affixed, so that the same may not again be used.

(3) FACTORY NUMBER.-Every manufacturer of matches shall mark, brand, affix, stamp, or print, in such manner as the Commissioner shall prescribe, on every package of white phosphorus matches manufactured, sold, or removed by him, the factory number required under subsection (c).

(4) LABEL. Every manufacturer of white phosphorus matches shall securely affix by pasting on each original package containing stamped packages of white phosphorus matches manufactured by him a label, on which shall be printed, besides the number of the manufactory and the district in which it is situated, these words: "NOTICE. The manufacturer of the white phosphorus matches herein contained has complied with all the requirements of law. Every person is cautioned not to use again the stamps on the packages herein contained under the penalty provided by law in such cases."

(b) BOOKS AND RETURNS. Every manufacturer of white phosphorus matches shall file with the collector of the district in which his manufactory is located such notices and inventories, keep such books and render such returns in relation to the business, and conduct his business under such surveillance of officers and agents as the Commissioner, with the approval of the Secretary, may by regulation require.

(c) FACTORY NUMBER AND SIGNS.-Every manufacturer of white phosphorus matches shall put up such signs and affix such number to his factory as the Commissioner, with the approval of the Secretary, may by regulation require.

(d) BONDS.-Every manufacturer of white phosphorus matches shall file with the collector of the district in which his manufactory is located such bonds as the Commissioner, with the approval of the Secretary, may by regulation require. The bond required of such manufacturer shall be with sureties satisfactory to the collector and in the penal sum of not less than $1,000; 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 Commissioner.

(e) REGISTRATION.-Every manufacturer of white phosphorus matches shall register with the collector of the district his name or style, place of manufactory, and the place where such business is to be carried on.

SEC. 2654. IMPORTATION.

White phosphorus matches, manufactured wholly or in part in any foreign country, shall not be entitled to entry at any of the ports of the United States, and the importation thereof is prohibited. All matches imported into the United States shall be accompanied by such certificate of official inspection by the government of the country in which such matches were manufactured as shall satisfy the Secretary that they are not white phosphorus matches. The Secretary is authorized

§ 2654

EXCISE TAX PROVISIONS

and directed to prescribe such regulations as may be necessary for the enforcement of the provisions of this section.

SEC. 2655. EXPORTATION.

It shall be unlawful to export from the United States any white phosphorus matches. The Secretary shall have power to issue such regulations to customs officers as are necessary to the enforcement of this section.

SEC. 2656. PENALTIES.

(a) CONCEALMENT.-Every manufacturer of matches who, to evade the tax chargeable thereon or any part thereof, hides or conceals, or causes to be hidden or concealed, or removes or conveys away, or deposits or causes to be removed or conveyed away from or deposited in any place any white phosphorus matches, shall for each offense be fined not more than $1,000 and be imprisoned not more than two years, or both.

(b) SELLING UNSTAMPED MATCHES.-Every manufacturer of matches who manufacturers, sells, removes, distributes, or offers to sell or distribute white phosphorus matches without there being affixed thereto an adhesive stamp, denoting the tax required by this chapter, effectually canceled as provided by subsection (a) (2) of section 2653, shall for each offense be fined not more than $1,000 and be imprisoned not more than two years.

(c) FAILURE TO CANCEL STAMPS.-Every person who fraudulently makes use of an adhesive stamp to denote any tax imposed by section 2651 (a) without effectually canceling such stamp as provided in section 2653 (a) (2) shall forfeit the sum of $50 for every stamp in respect to which such offense is committed.

(d) USE OF INSUFFICIENT STAMPS.-Every person who affixes a stamp on any package of white phosphorus matches denoting a less amount of tax than that required by law shall for each offense be fined not more than $1,000 or be imprisoned not more than two years, or both.

(e) REUSING STAMPS.-Every person who removes, defaces, or causes or permits or suffers the removal or defacement of any such stamp, or who uses any stamp or any package to which any stamp is affixed to cover any other white phosphorus matches than those originally contained in such package with such stamp when first used, to evade the tax imposed by this chapter, shall for every such package in respect to which any such offense is committed be fined $50.

(f) FRAUD. Every manufacturer of white phosphorus matches who defrauds or attempts to defraud the United States of the tax imposed by this chapter, or any part thereof, shall be fined not more than $5,000 or be imprisoned not more than three years, or both.

(g) FAILURE TO REGISTER.-Every manufacturer of white phosphorus matches who fails to register as provided and required in subsection (e) of section 2653 shall be subject to a penalty of not more than $500.

(h) OMISSION OF FACTORY NUMBER FROM PACKAGES.-Every manufacturer of white phosphorus matches who omits to mark, brand, affix, stamp, or print the factory number required under sec

tion 2653 (c) on every package of white phosphorus matches manufactured, sold, or removed by him shall be fined not more than $50 for each package in respect of which such offense is committed.

(i) OMISSION OF LABEL FROM PACKAGES.-Every manufacturer of white phosphorus matches who neglects to affix the label required by section 2653 (a) (4) to any original package containing stamped packages of white phosphorus matches made by him or sold or removed by or for him, and every person who removes any such label so affixed from any such original package, shall be fined not more than $50 for each package in respect of which such offense is committed.

(j) EXPORTATION OF MATCHES.-Any person guilty of violation of section 2655 shall be fined not less than $1,000 and not more than $5,000.

(k) OFFENSES NOT SPECIFICALLY COVERED.-If any manufacturer of white phosphorus matches, or any importer or exporter of matches, shall omit, neglect, or refuse to do or cause to be done any of the things required by law in carrying on or conducting his business, or shall do anything by this chapter prohibited, if there be no specific penalty or punishment imposed by any other provision 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, he shall be fined $1,000 for each offense.

(1) COUNTERFEITING AND SIMILAR OFFENSES.

For counterfeiting and similar offenses, see section 2659 (a).

SEC. 2657. FORFEITURES.

(a) CONCEALMENT.-If any manufacturer of matches, to evade the tax chargeable thereon or any part thereof, hides or conceals, or causes to be hidden or concealed, or removes or conveys away, or deposits or causes to be removed or conveyed away from or deposited in any place any white phosphorus matches, all such matches shall be forfeited.

(b) REMOVAL OR DEFACEMENT OF STAMPS.-If any person removes, defaces, or causes or permits or suffers the removal or defacement of any stamp affixed to any package of white phosphorus matches, or uses any stamp or any package to which any stamp is affixed to cover any other white phosphorus matches than those originally contained in such package with such stamp when first used, to evade the tax imposed by this chapter, all such matches shall be forfeited.

(c) UNSTAMPED MATCHES. All packages of white phosphorus matches subject to tax under this chapter that shall be found without stamps as herein provided shall be forfeited to the United States.

(d) MATCHES EXPORTED.-Any white phosphorus matches exported or attempted to be exported shall be confiscated to the United States and destroyed in such manner as may be prescribed by the Secretary, who shall have power to issue such regulations to customs officers as are necessary to the enforcement of this subsection.

(e) FRAUD.-Every manufacturer of white phosphorus matches who defrauds or attempts to defraud the United States of the tax imposed by this chapter, or any part thereof, shall forfeit the factory and manufacturing apparatus used by him and all the white phos