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CHAPTER 15 TOBACCO, SNUFF, CIGARS, AND
SUBCHAPTER A-RATE AND PAYMENT OF TAX
SEC. 2000. RATE OF TAX.
(a) TOBACCO AND SNUFF.-Upon all tobacco and snuff manufactured in or imported into the United States, and sold by the manufacturer or importer, or removed for consumption or sale, there shall be levied, collected, and paid the following taxes:
(1) SNUFF. On snuff, manufactured of tobacco or any substitute for tobacco, ground, dry, damp, pickled, scented, or otherwise, of all descriptions, when prepared for use, a tax of 18 cents per pound.
(2) TOBACCO.-On all chewing and smoking tobacco, fine-cut, cavendish, plug or twist, cut or granulated, of every description; on tobacco twisted by hand or reduced into a condition to be consumed, or in any manner other than the ordinary mode of drying and curing, prepared for sale or consumption, even if prepared without the use of any machine or instrument, and without being pressed or sweetened; and on all fine-cut shorts and refuse scraps, clippings, cuttings, and sweepings of tobacco, a tax of 18 cents per pound.
The tax imposed by this subsection shall be in addition to any import duties imposed upon imported tobacco and snuff.
(b) SNUFF FLOUR.-Snuff flour, when sold, or removed for use or consumption, shall be taxed as snuff.
(c) CIGARS AND CIGARETTES. Upon cigars and cigarettes manufactured in or imported into the United States, which are sold by the manufacturer or importer, or removed for consumption or sale, there shall be levied, collected, and paid the following taxes:
(1) CIGARS.-On cigars of all descriptions made of tobacco, or any substitute therefor, and weighing not more than three pounds per thousand, 75 cents per thousand;
On cigars made of tobacco, or any substitute therefor, and weighing more than three pounds per thousand, if manufactured or imported to retail at not more than 21⁄2 cents each, $2.50 per thousand;
If manufactured or imported to retail at more than 21⁄2 cents each and not more than 4 cents each, $3.00 per thousand;
If manufactured or imported to retail at more than 4 cents each and not more than 6 cents each, $4.00 per thousand;
If manufactured or imported to retail at more than 6 cents each and not more than 8 cents each, $7.00 per thousand;
If manufactured or imported to retail at more than 8 cents each and not more than 15 cents each, $10.00 per thousand;
If manufactured or imported to retail at more than 15 cents each and not more than 20 cents each, $15.00 per thousand;
If manufactured or imported to retail at more than 20 cents each, $20.00 per thousand.
Whenever in this subsection reference is made to cigars manufactured or imported to retail at not over a certain price each, then in determining the tax to be paid regard shall be had to the ordinary retail price of a single cigar in its principal market.
(2) CIGARETTES.-On cigarettes made of tobacco, or any substitute therefor, and weighing not more than three pounds per thousand, $3.50 per thousand;
Weighing more than three pounds per thousand, $8.40 per thousand; except that if more than 6%1⁄2 inches in length they shall be taxable at the rate provided in the preceding paragraph, counting each 24 inches (or fraction thereof) of the length of each as one cigarette.
The tax imposed by this subsection shall be in addition to any import duties imposed upon imported cigars and cigarettes.
(d) CIGARETTE PAPER.-There shall be levied, collected, and paid upon cigarette paper made up into packages, books, sets, or tubes, made up in or imported into the United States and sold by the manufacturer or importer to any person (other than to a manufacturer of cigarettes for use by him in the manufacture of cigarettes), the following taxes:
On each package, book, or set containing more than 25 but not more than 50 papers, 1⁄2 cent;
Containing more than 50 but not more than 100 papers, 1 cent; Containing more than 100 papers, 1⁄2 cent for each 50 papers or fractional part thereof; and
Upon tubes, 1 cent for each 50 tubes or fractional part thereof.
[For exemption from tax under section 2000 of articles sold for export or for shipment to a possession of the United States, see section 2135(a).] SEC. 2001. TAXPAYER.
(a) MANUFACTURER OR IMPORTER.-The taxes imposed by section 2000 shall be paid by the manufacturer or importer.
(b) MANUFACTURER ON COMMISSION, SHARES, OR CONTRACT.
(1) TOBACCO AND SNUFF.- -Whenever tobacco or snuff of any description is manufactured, in whole or in part, upon commission or shares, or the material from which any such articles are made, or are to be made, is furnished by one person and made and manufactured by another, or the material is furnished or sold by one person with an understanding or agreement with another that the manufactured article is to be received in payment therefor or for any part thereof, the stamps required by law shall be affixed by the actual maker or manufacturer before the article passes from the place of making or manufacturing.
(2) CIGARS AND CIGARETTES.-Whenever cigars or cigarettes of any description are manufactured, in whole or in part, upon commission or shares, or the material is furnished by one party and manufactured by another, or the material is furnished or sold by one party with an understanding or agreement with
another that the cigars or cigarettes are to be received in payment therefor, or for any part thereof, the stamps required by law shall be affixed by the actual maker before the cigars or cigarettes are removed from the place of manufacturing.
SEC. 2002. PAYMENT OF TAX.
(1) TOBACCO AND SNUFF.-The Commissioner shall cause to be prepared suitable and special stamps for the payment of the tax on tobacco and snuff, which shall indicate the weight and class of the article on which payment is to be made.
(2) SNUFF FLOUR.-Snuff flour, when sold or removed for use or consumption, shall be stamped in the same manner as snuff.
(3) CIGARS AND CIGARETTES.-The Commissioner shall cause to be prepared, for payment of the tax upon cigars and cigarettes, suitable stamps denoting the tax thereon.
(1) TOBACCO, SNUFF, CIGARS, AND CIGARETTES.-Whenever any manufacturer of tobacco, snuff, cigars, or cigarettes sells, or removes for sale or consumption, any tobacco, snuff, cigars, or cigarettes, upon which a tax is required to be paid by stamps, without the use of the proper stamps, 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. The tax so assessed shall be in addition to the penalties imposed by law for such sale or removal: Provided, however, That no such assessment shall be made until and after notice to the manufacturer of the alleged sale and removal to show cause against said assessment; and the Commissioner shall, upon a full hearing of all the evidence, determine what assessment, if any, should be made.
(2) SNUFF FLOUR.
For provision taxing snuff flour as snuff, see section 2000 (b). (c) OTHER METHODS.-Whether or not the method of collecting any tax imposed by section 2000 is specifically provided herein, any such tax may, under regulations prescribed by the Commissioner with the approval of the Secretary, be collected by stamp, coupon, serial-numbered ticket, or such other reasonable device or method as may be necessary or helpful in securing a complete and prompt collection of the tax. All administrative and penalty provisions of subchapters A, B, and C of chapter 11, in so far as applicable, shall apply to the collection of any tax which the Commissioner determines or prescribes shall be collected in such manner.
SEC. 2003. CROSS REFERENCES.
(a) TAX ON LEAF TOBACCO.
For tax on leaf tobacco unlawfully sold, removed, or shipped, see section 2060.
(b) EXEMPTION AND DRAWBACK.
For exemption and drawback in case of exportation, see sections 2135 and 2136.
SUBCHAPTER B-MANUFACTURERS, DEALERS, AND PEDDLERS
Part I-Definition and Requirements of Tobacco and Snuff
SEC. 2010. DEFINITION.
(a) MANUFACTURER OF TOBACCO.
(1) MANUFACTURER OF TOBACCO OR SNUFF.-Every person whose business it is to manufacture tobacco or snuff for himself, or who employs others to manufacture tobacco or snuff, whether such manufacture be by cutting, pressing, grinding, crushing, or rubbing of any raw or leaf tobacco, or otherwise preparing raw or leaf tobacco, or manufactured or partially manufactured tobacco or snuff, or the putting up for use or consumption of scraps, waste, clippings, stems, or deposits of tobacco resulting from any process of handling tobacco, or by the working or preparation of leaf tobacco, tobacco stems, scraps, clippings, or waste, by sifting, twisting, screening, or any other process, shall be regarded as a manufacturer of tobacco.
(2) SELLERS OF LEAF TOBACCO.-Every person shall also be regarded as a manufacturer of tobacco whose business it is to sell leaf tobacco in quantities less than a hogshead, case, or bale; or who sells directly to consumers, or to persons other than duly registered dealers in leaf tobacco, or duly registered manufacturers of tobacco, snuff, cigars, or cigarettes, or to persons who purchase in packages for export.
(b) FARMERS AND GROWERS.-Farmers and growers of tobacco who sell leaf tobacco of their own growth and raising shall not be regarded as manufacturers of tobacco.
SEC. 2011. REGISTRATION.
Every manufacturer of tobacco shall register with the collector of the district his name, or style, place of residence, trade, or business, and the place where such trade or business is to be carried on.
SEC. 2012. STATEMENT.
Every person, before commencing the manufacture of tobacco or snuff, shall furnish, without previous demand therefor, to the collector of the district where the manufacture is to be carried on, a statement in duplicate, subscribed under oath, setting forth the place, and, if in a city, the street and number of the street, where the manufacture is to be carried on; the number of cutting-machines, presses, snuff-mills, hand-mills, or other machines; the name, kind, and quality of the article manufactured or proposed to be manufactured; and when the same is manufactured by him as agent for any other person, or to be sold and delivered to any other person under a special contract, the name and residence and business or occupation of the person for whom the said article is to be manufactured or to whom it is to be delivered.
SEC. 2013. BOND.
Every person, before commencing the manufacture of tobacco or snuff, shall give a bond, to be approved by the collector of the dis
trict, in the sum of not less than $2,000 nor more than $20,000, to be fixed by the collector of the district, according to the quantum of business proposed to be done by the manufacturer, with right of appeal by the manufacturer to the Commissioner in respect to the amount of said bond, conditioned that he shall not engage in any attempt, by himself or by collusion with others, to defraud the Government of any tax on his manufactures; that he shall render truly and completely all the returns, statements, and inventories prescribed by law or regulations; that whenever he adds to the number of cutting-machines, presses, snuff-mills, hand-mills, or other mills or machines enumerated in the statement required under section 2012, he shall immediately give notice thereof to the collector of the district; that he shall stamp, in accordance with law, all tobacco and snuff manufactured by him before he removes any part thereof from the place of manufacture; that he shall not knowingly sell, purchase, expose, or receive for sale any manufactured tobacco or snuff which has not been stamped as required by law; and that he shall comply with all the requirements of law relating to the manufacture of tobacco or snuff. Additional sureties may be required by the collector from time to time.
SEC. 2014. CERTIFICATE.
Every manufacturer of tobacco shall obtain a certificate from the collector of the district, who is directed to issue the same, setting forth the kind and number of machines, presses, snuff-mills, handmills, or other mills and machines enumerated in the statement required under section 2012; which certificate shall be posted in a conspicuous place within the manufactory.
SEC. 2015. SIGN.
Every manufacturer of tobacco shall place and keep on the side or end of the building wherein his business is carried on, so that it can be distinctly seen, a sign, with letters thereon not less than three inches in length, painted in oil-colors or gilded, giving his full name and business.
SEC. 2016. FACTORY NUMBER.
Every collector shall cause the several manufactories of tobacco or snuff in his district to be numbered consecutively, which numbers shall not be thereafter changed, except for reasons satisfactory to himself and approved by the Commissioner.
SEC. 2017. INVENTORY.
Every person engaged in the manufacture of tobacco or snuff shall make and deliver to the collector of the district a true inventory, in such form as may be prescribed by the Commissioner, and verified by his own oath, of the quantity of each of the different kinds of tobacco, snuff flour, snuff, stems, scraps, clippings, waste, tin-foil, licorice, sugar, gum, and other materials held or owned by him on the first day of January of each year, or at the time of commencing and at the time of concluding business, if before or after the first of January; setting forth what portion of said goods and materials, and what kinds, were manufactured and produced by him and what was purchased from others. The collector shall make personal ex