SEC. 2101. TOBACCO IN BULK.

Perique tobacco, snuff flour, fine-cut shorts, the refuse of fine-cut chewing tobacco, refuse scraps, clippings, cuttings, and sweepings of tobacco, may be sold in bulk as material, and without the payment of tax, by one manufacturer directly to another manufacturer, or for export, under such restrictions, rules, and regulations as the Commissioner may prescribe.

SEC. 2102. SNUFF FLOUR.

Snuff flour, when sold, or removed for use or consumption, shall be put up in packages in the same manner as snuff.

SEC. 2103. STAMPS.

(a) AFFIXING AND CANCELING.

(1) MODE. The stamps provided for in section 2002 (a) (1) shall be affixed and canceled in the mode prescribed by the Commissioner, and stamps when used on any wooden package shall be canceled by sinking a portion of the same into the wood with a steel die.

(2) FURNISHING OF INSTRUMENTS.-The instruments or other means prescribed under section 3301 (a) for attaching, protecting, and canceling stamps for tobacco and snuff shall be furnished by the United States to the persons using the stamps to be affixed therewith, under such regulations as the Commissioner may prescribe.

(3) CROSS REFERENCE.—

For general provisions relating to the attachment and cancellation of stamps, see sections 3301 and 3303.

(b) ISSUE FOR RESTAMPING.-The Commissioner may, under regulations prescribed by him with the approval of the Secretary, issue stamps for restamping packages of tobacco and snuff which have been duly stamped but from which the stamps have been lost or destroyed by unavoidable accident.

(c) SUPPLY.-The stamps provided for under section 2002 (a) (1) shall be furnished to the collectors requiring them, and each collector shall keep at all times a supply equal in amount to three months' sale thereof, and shall sell the same only to the manufacturers of tobacco and snuff in their respective districts who have given bonds. as required by law, and to owners or consignees of tobacco or snuff, upon the requisition of the proper customhouse officer having the custody of such tobacco or snuff.

(d) COLLECTOR'S ACCOUNT.

(1) REQUIREMENT.-Every collector shall keep an account of the number, amount, and demominate values of stamps sold by him to each manufacturer or other person aforesaid.

(2) CREDIT IN CASE OF SALE UNDER DISTRAINT OR FORFEITURE. Such stamps as may be required to stamp tobacco or snuff, sold under distraint by any collector, or for stamping any tobacco or snuff, which may have been abandoned, condemned, or forfeited, and sold by order of court or of any Government officer for the benefit of the United States, may, under such rules and regulations as the Commissioner shall prescribe, be used by the collector making such sale, or furnished by a collector to a United

States marshal, or to any other Government officer making such sale for the benefit of the United States, without making payment for said stamps so used or delivered; and any revenue collector using or furnishing stamps in manner as aforesaid, on presenting vouchers satisfactory to the Commissioner, shall be allowed credit for the same in settling his stamp account with the Department.

(e) EMPTIED PACKAGES.-Whenever any stamped box, bag, vessel, wrapper, or envelope of any kind, containing tobacco or snuff, is emptied, the stamp or stamps thereon shall be destroyed by the person in whose hands the same may be.

(f) ABSENCE OF STAMPS.-The absence of the proper stamp on any package of manufactured tobacco or snuff shall be notice to all persons that the tax has not been paid thereon, and shall be prima facie evidence of the nonpayment thereof.

(g) CROSS REFERENCES.

IMPORTED TOBACCO AND SNUFF. For stamps in case of imported tobacco or snuff, see section 2130 (a).

REDEMPTION OF STAMPS.-For redemption of stamps, see sections 2198 and 3304.

GENERAL STAMP PROVISIONS. For general provisions relating to stamps, see subchapter A of chapter 28 [sections 3300 and following]. SEC. 2104. SALES OF TOBACCO.

(a) LIMITATION AS TO PACKAGES.-No manufactured tobacco shall be sold or offered for sale unless put up in packages and stamped as prescribed in this chapter, except at retail by retail dealers from the packages authorized by section 2100.

(b) LIMITATION ON DEALERS IN LEAF TOBACCO.

For restrictions on sales and shipments by dealers in leaf tobacco to manufacturers of tobacco, see section 2059.

(c) SALES OF LEAF TOBACCO TO CIGAR MANUFACTURERS.

For authority of licensed manufacturers of cigars and cigarettes to purchase leaf tobacco from other registered manufacturers or registered dealers in small quantities, see section 2040.

Part II-Cigars and Cigarettes

SEC. 2110. CLASSIFICATION.

(a) CIGARS. All rolls of tobacco, or any substitute therefor, wrapped with tobacco, shall be classed as cigars.

(b) CIGARETTES.-All rolls of tobacco, or any substitute therefor, wrapped in paper or any substance other than tobacco, shall be classed as cigarettes.

SEC. 2111. PACKAGES. (a) SIZE.

(1) CIGARS. All cigars weighing more than three pounds per thousand shall be packed in boxes not before used for that purpose containing, respectively, three, five, seven, ten, twelve, thirteen, twenty, twenty-five, fifty, one hundred, two hundred, two hundred fifty, or five hundred cigars each.

(2) CIGARETTES AND SMALL CIGARS.-Every manufacturer of cigarettes (including small cigars weighing not more than three

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pounds per thousand) shall put up all the cigarettes and such small cigars that he manufactures or has manufactured for him, and sells or removes for consumption or sale, in packages or parcels containing five, eight, ten, twelve, fifteen, sixteen, twenty, twenty-four, forty, fifty, eighty, or one hundred cigarettes each.

(3) EXCEPTION IN CASE OF CIGARS OR CIGARETTES FOR EXPORT.-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 subsection, (b) MATERIAL.-Wood, metal, paper, or other materials may be used separately or in combination for packing cigars or cigarettes, under such regulations as the Commissioner may establish.

(c) ENCLOSURES AND DESIGNS.-No package of cigars or cigarettes 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 punishments provided by section 2180 (1),

(d) LABELS.

(1) INDICATING COMPLIANCE WITH LAW.-Every manufacturer of cigars shall securely affix, by pasting on each box containing cigars manufactured by or for him, a label, on which shall be printed, besides the number of the manufactory and the district and State in which it is situated, these words:

"NOTICE.- he manufacturer of the cigars herein contained has complied with all the requirements of law. Every person is cautioned not to use either this box for cigars again, or the stamp thereon again, nor to remove the contents of this box without destroying said stamp, under the penalties provided by law in such cases."

shall

Cigars 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, be exempt from the provisions of this subsection. Cigarettes shall be held to be cigars under the meaning of paragraph (1) of this subsection.

(2) INDICATING CLAUSE UNDER WHICH TAX PAID. -The Commissioner may, by regulation, require the manufacturer or importer to affix to each box, package, or container a conspicuous label indicating the clause of section 2000 under which the cigars therein contained have been tax-paid, which must correspond with the tax-paid stamp on such box or container.

(e) FACTORY BRAND.

(1) REQUIREMENT.-Every box of cigars or cigarettes shall, before removal from any manufactory or place where cigars or cigarettes are made, have stamped, indented, burned, or impressed 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.

(2) EXCEPTION IN CASE OF EXPORT PACKAGES.-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 subsection.

(f) EXEMPTION IN CASE OF CIGARS OR CIGARETTES USED BY EMPLOYEES. Each employee of a manufacturer of cigars or cigarettes shall be permitted to use, for personal consumption and for experimental purposes, not to exceed 21 cigars or cigarettes per week without the manufacturer of cigars or cigarettes being required to pack the same in boxes or to stamp or pay any internal revenue tax thereon, such exemption to be allowed under such rules and regulations as the Secretary may prescribe.

SEC. 2112. STAMPS.

(a) AFFIXING AND CANCELING.

(1) MODE.

(A) CIGARETTES AND SMALL CIGARS. Every manufacturer of cigarettes (including small cigars weighing not more than three pounds per thousand) shall securely affix to each of the packages or parcels described in section 2111 (a) (2) a suitable stamp denoting the tax thereon and shall properly cancel the same prior to sale or removal for consumption or sale under such regulations as the Commissioner, with the approval of the Secretary, shall prescribe.

(B) CIGARS.

For authority of Commissioner to prescribe the method for affixing and canceling cigar stamps, see sections 3301 and 3303.

(2) FURNISHING OF INSTRUMENTS. The instruments or other means prescribed under section 3301 (a) for attaching, protecting, and canceling stamps for cigars and cigarettes shall be furnished by the United States to the persons using the stamps to be affixed therewith under such regulations as the Commissioner may prescribe.

(b) ISSUE FOR RESTAMPING.-The Commissioner may, under regulations prescribed by him with the approval of the Secretary, issue stamps for restamping packages of cigars and cigarettes which have been duly stamped but from which the stamps have been lost or destroyed by unavoidable accident.

(c) SUPPLY.-The stamps provided for under section 2002 (a) (3) shall be furnished to collectors requiring them, and collectors shall, if there be any cigar or cigarette manufacturers within their respective districts, keep on hand at all times a supply equal in amount to two months' sales thereof and shall sell the same only to the cigar or cigarette manufacturers who have given bonds, as required by law, in their districts respectively, and to importers of cigars or cigarettes who are required to affix the same to imported cigars or cigarettes in the custody of customs officers. If the government of a foreign country permits the revenue stamps of such country to be affixed in the United States to cigarettes manufactured in the United States and

imported into such foreign country, then, if cigarettes manufactured in such foreign country are imported into the United States from such foreign country, the importer may, under such rules and regulations as the Commissioner with the approval of the Secretary may prescribe, have the United States revenue stamps attached to such cigarettes in such foreign country.

(d) COLLECTOR'S ACCOUNT.—

1

(1) REQUIREMENT.-Every collector shall keep an account of the number, amount, and denominate values of the stamps sold by him to each cigar or cigarette manufacturer, and to the importers described in subsection (c).

(2) CREDIT IN CASE OF SALE UNDER DISTRAINT OR FORFEITURE. Such stamps as may be required to stamp cigars or cigarettes sold under distraint by any collector, or for stamping any cigars or cigarettes which may have been abandoned, condemned, or forfeited, and sold by order of court or of any Government officer for the benefit of the United States, may, under such rules and regulations as the Commissioner shall prescribe, be used by the collector making such sale, or furnished by a collector to a United States marshal, or to any other Government officer making such sale for the benefit of the United States, without making payment for said stamps so used or delivered; and any revenue collector using or furnishing stamps in manner as aforesaid, on presenting vouchers satisfactory to the Commissioner, shall be allowed credit for the same in settling his stamp account with the Department.

(e) DESTRUCTION ON EMPTIED PACKAGES.-Whenever any stamped box containing cigars or cigarettes is emptied, it shall be the duty of the persons in whose hands the same is to destroy utterly the stamps thereon.

(f) ABSENCE OF STAMPS.-The absence of the proper revenue stamp on any box of cigars or cigarettes sold, or offered for sale, or kept for sale, shall be notice to all persons that the tax has not been paid thereon, and shall be prima facie evidence of the nonpayment thereof. (g) REDEMPTION OF STAMPS.

For redemption of stamps, see sections 2198 and 3304. SEC. 2113. SALES OF CIGARS AND CIGARETTES.

For limitation on sales of cigars and cigarettes, see section 2170.

SEC. 2114. CROSS REFERENCES.

(a) IMPORTED CIGARS AND CIGARETTES.

For stamps in case of imported cigars and cigarettes, see subsections (b) and (c) of section 2130.

(b) GENERAL STAMP PROVISIONS.—

For general provisions relating to stamps, see subchapter A of chapter 28 [sections 3300 and following].

1 The words "of the Treasury" are omitted.