SEC. 2038. MONTHLY ABSTRACTS.

Every person engaged in the manufacture of cigars or cigarettes shall, on or before the tenth day of each and every month, furnish to the collector of the district a true and accurate abstract from the book required under section 2037, verified by his oath, of all such purchases, sales, and removals made during the month next preceding.

SEC. 2039. ADDITIONAL REQUIREMENTS ON CIGARETTE MANUFACTURERS PURCHASING CIGARETTE TUBES.

Every manufacturer of cigarettes purchasing any cigarette paper made up into tubes shall

(a) BOND.-Give bond in an amount and with sureties satisfactory to the Commissioner that he will use such tubes in the manufacture of cigarettes or pay thereon a tax equivalent to the tax imposed by section 2000 (d); and

(b) RECORDS AND RETURNS.-Keep such records and render under oath such returns as the Commissioner finds necessary to show the disposition of all tubes purchased or imported by such manufacturer of cigarettes.

SEC. 2040. PURCHASES OF LEAF TOBACCO FROM OTHER MANUFACTURERS OR DEALERS.

It shall be lawful for any licensed manufacturer of cigars or ciga rettes to purchase leaf tobacco of any other licensed manufacturer or dealer in quantities less than the original package, for use in his own manufactory exclusively.

Part III-Definition and Requirements of Dealers in Leaf Tobacco SEC. 2050. DEFINITION.

(a) GENERAL. Every person shall be regarded as a dealer in leaf tobacco whose business it is, for himself or on commission, to sell, or offer for sale, or consign for sale on commission, leaf tobacco.

(b) FARMERS, GROWERS, AND COOPERATIVE ASSOCIATIONS.-A farmer or grower of tobacco or a tobacco growers' cooperative association shall not be regarded as a dealer in leaf tobacco in respect to the leaf tobacco produced by him or handled by such association: Provided, That such cooperative associations shall be required to keep available records of all purchases and sales of tobacco, such records to be open to inspection by the agents of the Government. As used in this subsection, the term "tobacco growers' cooperative association" means an association of farmers or growers of tobacco organized and operated as sales agent for the purpose of marketing the tobacco produced by its members and turning back to them the proceeds of sales, less the necessary selling expenses, on the basis of the quantity and quality of tobacco furnished by them.

SEC. 2051. REGISTRATION.

Every dealer in leaf 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. 2052. STATEMENT OF LOCATION OF BUSINESS AND PLACES OF STORAGE.

Every dealer in leaf tobacco shall file with the collector of the district in which his business is 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 his business is to be carried on, and the exact location of each place where leaf tobacco is held by him on storage, and, whenever he adds to or discontinues any of his leaf tobacco storage places, he shall give immediate notice to the collector of the district in which he is registered.

SEC. 2053. BOND.

Every dealer in leaf tobacco shall give a bond with surety, satisfactory to, and to be approved by, the collector of the district, in such penal sum as the collector may require, not less than $500; and a new bond may be required in the discretion of the collector, or under the instructions of the Commissioner.

SEC. 2054. CERTIFICATE AND NUMBER.

Every dealer in leaf tobacco shall be assigned a number by the collector of the district, which number shall appear in every inventory, invoice, and report rendered by the dealer, who shall also obtain certificates from the collector of the district setting forth the place where his business is carried on and the places designated by the dealer as the places of storage of his tobacco, which certificates shall be posted conspicuously within the dealer's registered place of business, and within each designated place of storage.

SEC. 2055. INVENTORY.

Every dealer in leaf tobacco shall make and deliver to the collector of the district a true inventory of the quantity of the different kinds of tobacco held or owned, and where stored 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 day of January, such inventory to be made under oath and rendered in such form as may be prescribed by the Commissioner.

SEC. 2056. RECORDS AND INVOICES.

Every dealer in leaf tobacco shall render such invoices and keep such records as shall be prescribed by the Commissioner, and shall enter therein, day by day, and upon the same day on which the circumstance, thing, or act to be recorded is done or occurs, an accurate account of the number of hogsheads, tierces, cases, and bales, and quantity of leaf tobacco contained therein, purchased or received by him, on assignment, consignment, for storage, by transfer or otherwise, and of whom purchased or received, and the number of hogsheads, tierces, cases, and bales, and the quantity of leaf tobacco contained therein, sold by him, with the name and residence in each instance of the person to whom sold, and if shipped, to whom shipped, and to what district; such records shall be kept at his place of business at all times and preserved for a period of two years, and the same shall be open at all hours for the inspection of any internal revenue officer or agent.

SEC. 2057. MONTHLY REPORTS.

Every dealer in leaf tobacco, on or before the tenth day of each month, shall furnish to the collector of the district a true and complete report of all purchases, receipts, sales, and shipments of leaf. tobacco made by him during the month next preceding, which report shall be verified and rendered in such form as the Commissioner, with the approval of the Secretary, shall prescribe.

SEC. 2058. DEMAND STATEMENT OF SALES.

It shall be the duty of any dealer in leaf tobacco, or in any material used in manufacturing tobacco, snuff, cigars, or cigarettes, on demand of any officer of internal revenue, to render a true and complete statement, under oath, of the quantity and amount of such leaf tobacco or materials sold or delivered to any person named in such demand, and in case of refusal or neglect to render such statement, or if there is cause to believe such statement to be incorrect or fraudulent, the collector shall make an examination of persons, books, and papers, in the manner provided in relation to frauds and evasions.

SEC. 2059. RESTRICTIONS ON SALES OR SHIPMENTS.

Sales or shipments of leaf tobacco by a dealer in leaf tobacco shall be in quantities of not less than a hogshead, tierce, case, or bale, except loose leaf tobacco comprising the breaks on warehouse floors, and except to a duly registered manufacturer of cigars for use in his own manufactory exclusively.

Dealers in leaf tobacco shall make shipments of leaf tobacco only to other dealers in leaf tobacco, to registered manufacturers of tobacco, snuff, cigars, or cigarettes, or for export.

SEC. 2060. TAX FOR VIOLATING SECTIONS 2057 AND 2059.

Upon all leaf tobacco sold, removed, or shipped by any dealer in leaf tobacco in violation of the provisions of section 2059, or in respect to which no report has been made by such dealer in accordance with the provisions of section 2057, there shall be levied, assessed, collected, and paid a tax equal to the tax then in force upon manufactured tobacco, such tax to be assessed and collected in the same manner as the tax on manufactured tobacco.

Part IV-Definition and Requirements of Peddlers of Tobacco SEC. 2070. DEFINITION.

Any person who sells or offers to sell and deliver manufactured tobacco, snuff, cigars, or cigarettes, travelling from place to place, in the town or through the country, shall be regarded as a peddler of tobacco: Provided, That manufacturers of, jobbers, and wholesale dealers in, manufactured tobacco, snuff, cigars, and cigarettes, and the agents or salesmen of such manufacturers, jobbers, and wholesale dealers, traveling from place to place, in the town or through the country, and selling and delivering or offering to sell and deliver such products only to dealers shall not be construed to be peddlers. SEC. 2071. REGISTRATION.

Every peddler 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. 2072. STATEMENT.

Every peddler of tobacco, before commencing to peddle tobacco, snuff, cigars, or cigarettes, shall furnish to the collector of his district a statement accurately setting forth the place of his residence, and, if in a city, the street and number of the street where he resides; the State or States through which he proposes to travel; also whether he proposes to sell his own manufactures or the manufactures of others, and, if he sells for other parties, the person for whom he sells.

SEC. 2073. BOND.

Every peddler of tobacco shall give a bond in the sum of $500, to be approved by the collector of the district, conditioned that he shall not engage in any attempt, by himself or by collusion with others, to defraud the Government of any tax on tobacco, snuff, cigars, or cigarettes; that he shall neither sell, nor offer for sale, any tobacco, snuff, cigars, or cigarettes, except in original and full packages, as the law requires the same to be put up and prepared by the manufacturer for sale, or for removal for sale or consumption, and except such packages of tobacco, snuff, cigars, or cigarettes as bear the manufacturer's label or caution notice, and his legal marks and brands, and genuine internal revenue stamps which have never before been used.

SEC. 2074. CERTIFICATE.

Every peddler of tobacco shall obtain a certificate from the collector of his collection district, who is authorized and directed to issue the same, giving the name of the peddler, his residence, and the fact of his having filed the required bond; and shall on de nand of any officer of internal revenue produce and exhibit his certificate.

SEC. 2075. SIGN.

Every peddler of tobacco traveling with a wagon shall a fix and keep on the same, in a conspicuous place, a sign painted in oil colors, or gilded, giving his full name, business, and collection district.

SEC. 2076. RESTRICTIONS ON SALES.

For restrictions on sales, see sections 2104 and 2170 (a) (2).

SUBCHAPTER C-PACKING, STAMPING, AND SELLING

SEC. 2100. PACKAGES.

REQUIREMENTS

Part I-Tobacco and Snuff

All manufactured tobacco shall be put up and prepared by the manufacturer for sale, or removal for sale or consumption, in packages of the following description and in no other manner:

(a) SIZE.

(1) SMOKING AND CHEWING TOBACCO AND SNUFF.- All smoking tobacco, snuff, fine-cut chewing tobacco, all cut and granulated tobacco, all shorts, the refuse of fine-cat caewing, which has passed through a riddle of 36 meses to te sare id, and all refuse, scraps, clippings, cuttings, and s.. eepis of topace, and all other kinds of tobacco not otherwise provided i, in packages containing one-eighth of an ounce, tireo-eighths of an ounce, and

further packages with a difference between each package and the one next smaller of one-eighth of an ounce up to and including three ounces, and further packages with a difference between each package and the one next smaller of one-fourth of an ounce up to and including four ounces, and further packages with a difference between each package and the one next smaller of one ounce up to and including 16 ounces: Provided, That snuff may, at the option of the manufacturer, be put up in bladders and in jars containing not exceeding 20 pounds.

(2) CAVENDISH, PLUG, AND TWIST TOBACCO.-All cavendish, plug, and twist tobacco, in wooden packages not exceeding 200 pounds net weight. And every such wooden package shall have printed or marked thereon the manufacturer's name and place of manufacture, the registered number of the manufactory, and the gross weight, the tare, and the net weight of the tobacco in each package.

(b) MATERIAL.-Wood, metal, paper, or other materials may be used separately or in combination for packing tobacco and snuff under such regulations as the Commissioner may establish.

(c) EXCEPTIONS.

(1) EXPORT PACKAGES.-The limitations and descriptions of packages contained in subsection (a) shall not apply to tobacco and snuff transported in bond for exportation and actually exported.

(2) LEAF TOBACCO SOLD BY PERSONS REGARDED AS MANUFACTURERS. All tobacco sold in the manner described in section 2010 (a) (2) by persons defined as manufacturers of tobacco thereunder shall be regarded as manufactured tobacco and shall be put up and prepared by such manufacturer in such packages only as the Commissioner, with the approval of the Secretary, shall prescribe.

(d) ENCLOSURES AND DESIGNS.-No packages of manufactured tobacco or snuff, prescribed by law, shall be permitted to have packed in, or attached to, or connected with them, nor affixed to, branded, stamped, marked, written, or printed upon them, any paper, certificate, or instrument purporting to be or represent a ticket, chance, share or interest in, or dependent upon, the event of a lottery, nor any indecent or immoral picture, representation, print, or words; and any violation of the provisions of this subsection shall subject the offender to the penalties and punishment provided by section 2161 (m). (e) LABEL.-Every manufacturer of tobacco or snuff shall, in addition to all other requirements of this title relating to tobacco, print on each package, or securely affix by pasting on each package containing tobacco or snuff manufactured by or for him, a label on which shall be printed the number of the manufactory, the district and State in which it is situated, and these words:

"NOTICE. The manufacturer of this tobacco has complied with all requirements of law. Every person is cautioned, under penalties of law, not to use this package for tobacco again.' This subsection shall not apply to tobacco or snuff transported in bond for exportation and actually exported.