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SUBCHAPTER D-IMPORTATION AND EXPORTATION

Part I-Importation

SEC. 2130. PACKING AND STAMPING.

(a) TOBACCO AND SNUFF.-All manufactured tobacco and snuff imported from foreign countries shall have the same stamps respectively affixed as in the case of like kinds of tobacco and snuff manufactured in the United States. Such stamps shall be affixed and canceled on all such articles so imported by the owner or importer thereof, while they are in the custody of the proper custom-house officers, and such articles shall not pass out of the custody of said officers until the stamps have been affixed and canceled. Such tobacco and snuff shall be put up in packages, as prescribed by law for like articles manufactured in the United States, before the stamps are affixed; and the owner or importer shall be liable to all the penal provisions prescribed for manufacturers of tobacco and snuff manufactured in the United States. Whenever it is necessary to take any such articles, so imported, to any place for the purpose of repacking, affixing, and canceling such stamps, other than the public stores of the United States, the collector of customs of the port where they are entered shall designate a bonded warehouse to which they shall be taken, under the control of such customs officer as he may direct.

(b) CIGARS.—All cigars imported from foreign countries shall have the same stamps affixed as prescribed by law for cigars manufactured in the United States. The stamps shall be affixed and canceled by the owner or importer of the cigars while they are in the custody of the proper custom-house officers, and the cigars shall not pass out of the custody of such officers until the stamps have been so affixed and canceled, but shall be put up in boxes containing quantities as prescribed in this chapter for cigars manufactured in the United States, before the stamps are affixed. And the owner or importer of such cigars shall be liable to all the penal provisions of this title prescribed for manufacturers of cigars manufactured in the United States. Whenever it is necessary to take any cigars so imported to any place other than the public stores of the United States, for the purpose of affixing and canceling such stamps, the collector of customs of the port where such cigars are entered shall designate a bonded warehouse to which they shall be taken, under the control of such customs officer as such collector may direct.

(c) CIGARETTES.-All cigarettes imported from a foreign country shall be packed, stamped, and the stamps canceled in a like manner as in the case of cigarettes manufactured in the United States, in addition to the import stamp indicating inspection of the customhouse before they are withdrawn therefrom.

(d) SCRAPS, CUTTINGS, AND CLIPPINGS OF TOBACCO.-Scraps, cuttings, and clippings of tobacco imported from any foreign country may, after the proper customs duty has been paid thereon, be withdrawn in bulk without the payment of the internal revenue tax, and transferred as material directly to the factory of a manufacturer of tobacco or snuff, or of a cigar manufacturer, under such restrictions

and regulations as shall be prescribed by the Commissioner and approved by the Secretary.

Part II-Exportation

SEC. 2135. EXEMPTION FROM TAX.

(a) SHIPMENTS TO FOREIGN COUNTRIES AND POSSESSIONS OF THE UNITED STATES.

* * *

(1) MANUFACTURES.-Manufactured tobacco, snuff, cigars, or cigarettes may be removed for export to a foreign country or for shipment to a possession of the United States without payment of tax, under such rules and regulations and the making of such entries, and the filing of such bonds and bills of lading as the Commissioner, with the approval of the Secretary, shall prescribe.

(2) MATERIALS.-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, for export under such restrictions, rules, and regulations as the Commissioner may prescribe.

(3) CIGARETTE PAPERS AND TUBES.-Under such rules and regulations as the Commissioner with the approval of the Secretary may prescribe, the taxes imposed by subsection (d) of section 2000 shall not apply in respect of cigarette papers or tubes sold for export or for shipment to a possession of the United States and in due course so exported or shipped.

(b) CROSS REFERENCES.

*

For provisions relating to the exemption from any internal revenue tax of articles shipped from the United States to Puerto Rico * or the Virgin Islands, see sections

* *

*3351 and 3361.

For definition of exportation, see section 2197 (b).

For exportation free of internal revenue tax, see act of June 17, 1930, c. 497, § 317, 46 Stat. 696 (U. S. C., Title 19, § 1317).

SEC. 2136. DRAWBACK.

(a) IN GENERAL.-There shall be an allowance of drawback on tobacco, snuff, cigars, or cigarettes on which the tax has been paid by suitable stamps affixed thereto before removal from the place of manufacture, when the same are exported, equal in amount to the value of the stamps found to have been so affixed; the evidence that the stamps were so affixed, and the amount of tax so paid, and of the subsequent exportation of the said tobacco, snuff, cigars, or cigarettes, to be ascertained under such regulations as shall be prescribed by the Commissioner and approved by the Secretary. Any sums found to be due under the provisions of this section shall be paid out of annual appropriations from the general fund of the Treasury: Provided, That no claim for an allowance of drawback shall be entertained or allowed until a certificate from the collector of customs at the port from which the goods have been exported, or other evidence satisfactory to the Commissioner, has been furnished, that the stamps affixed to the tobacco, snuff, cigars, or cigarettes entered and cleared for export to a foreign country were totally destroyed before such clearance; nor until the claimant has filed a bond, with good and sufficient sureties, to be

approved by the collector of the district from which the goods are shipped, in a penal sum double the amount of the tax for which said claim is made, that he will procure, within a reasonable time, evidence satisfactory to the Commissioner that said tobacco, snuff, cigars, or cigarettes have been landed at any port without the jurisdiction of the United States, or that after shipment the same were lost at sea, and have not been relanded within the limits of the United States. (b) SHIPMENTS TO PUERTO RICO * * *

For provisions relating to the allowance of drawback of internal revenue tax on articles shipped to Puerto Rico see sections 3361 and * *

* * *

SEC. 2137. REFUND TO EXPORTER INSTEAD OF MANUFACTURER.

Under such rules and regulations as the Commissioner with the approval of the Secretary may prescribe, the amount of any internal revenue tax erroneously or illegally collected in respect of articles exported or shipped under section 2135 (a) (1) and (3) may be refunded to the exporter or shipper of the articles, instead of to the manufacturer, if the manufacturer waives any claim for the amount so to be refunded.

SUBCHAPTER E-PENALTIES AND FORFEITURES

Part I-Penalties and Forfeitures Common to Tobacco, Snuff, Cigars, and Cigarettes

SEC. 2150. FAILURE TO REGISTER, PENALTY.

Every dealer in leaf tobacco, manufacturer of tobacco, manufacturer of cigars or cigarettes, or peddler of tobacco who fails to register with the collector as required under sections 2051, 2011, 2031, and 2071, respectively, shall be subject to a penalty of $50.

SEC. 2151. FRAUDULENTLY STAMPED PACKAGES, POSSESSION, SALE OF, OR FROM, PENALTY.

Every manufacturer or other person who

(a) Sells or offers for sale any box or other package of tobacco, snuff, cigars, or cigarettes, having affixed thereto any fraudulent, spurious, imitation, or counterfeit stamp, or stamp that has been previously used; or

or

(b) Sells from any such fraudulently stamped box or package;

(c) Has in his possession any box or package as aforesaid, knowing the same to be fraudulently stamped;

shall, for each such offense, be fined not less than $100 nor more than $500, and imprisoned for not less than one year nor more than three

years.

SEC. 2152. PEDDLING UNLAWFULLY, PENALTY.

Every person who

(a) FAILURE TO OBTAIN CERTIFICATE.-Is found peddling tobacco, snuff, cigars, or cigarettes, without having previously obtained the collector's certificate as provided for in section 2074; or

(b) FAILURE TO GIVE BOND.- Is found peddling tobacco, snuff, cigars, or cigarettes, without having given the bond required under section 2073; or

(c) FAILURE TO AFFIX SIGN.--Fails to have affixed to his wagon, in a conspicuous place, a sign, painted in oil colors, or gilded, giving his full name, business, and collection district; or

(d) SELLING IN UNAUTHORIZED PACKAGES.-Sells tobacco, snuff, cigars, or cigarettes otherwise than in full and original packages as put up by the manufacturer; or

(e) POSSESSION OF USED STAMPS.-Has in his possession any internal revenue stamp which has been removed from any box or other package of tobacco, snuff, cigars, or cigarettes; or

(f) POSSESSION OF BROKEN PACKAGES WITH UNDESTROYED STAMPS. Has in his possession any empty or partially emptied box or other package which has been used for tobacco, snuff, cigars, or cigarettes, the stamp or stamps on which have not been destroyed;

shall, for each such offense, be fined not less than $100 nor more than $500, or imprisoned not less than six months nor more than one year, or both, at the discretion of the court.

SEC. 2153. PEDDLER'S CERTIFICATE, REFUSAL TO PERMIT INSPECTION, PENALTY.

Refusal or failure to produce for inspection the collector's certificate for peddlers, when demanded by any internal revenue agent, shall subject the party guilty thereof to a fine of not more than $500 and to imprisonment not more than 12 months.

SEC. 2154. PEDDLERS, FORFEITURES RELATING TO.

(a) OFFENSES MENTIONED IN SECTION 2152.-Any collector or deputy collector finding any person peddling tobacco, snuff, cigars, or cigarettes in the act of offending as to any of the offenses mentioned in section 2152 may seize the horse or horses, mule or mules, wagon and contents, or pack, bundle, or basket, of any such person; and the collector shall thereupon proceed upon such seizure as provided in subsection (b).

(b) REFUSAL TO PERMIT INSPECTION OF CERTIFICATE.-Whenever any peddler refuses to exhibit the collector's certificate for peddlers on demand of any officer of internal revenue, said officer may seize the horse or mule, wagon, and contents, or pack, bundle, or basket, of any person so refusing; and the collector of the district in which the seizure occurs may, on ten days' notice, published in any newspaper in the district, or served personally on the peddler, or at his dwelling house, require such peddler to show cause, if any he has, why the horses or mules, wagons, and contents, pack, bundle, or basket so seized shall not be forfeited. In case no sufficient cause is shown, proceedings for the forfeiture of the property seized shall be taken under the general provisions of the internal revenue laws relating to forfeitures.

SEC. 2155. RELANDING UNLAWFULLY WHEN SHIPPED FOR EXPORT, PENALTY AND FORFEITURE.

(a) PENALTY. Every person who, with the intent to defraud the revenue laws of the United States, relands or causes to be relanded, within the jurisdiction of the United States, any manufactured tobacco, snuff, cigars, or cigarettes, which have been shipped for exportation under the provisions of section 2135, without properly entering such tobacco, snuff, cigars, or cigarettes at a customhouse, and paying the proper customs and internal revenue tax thereon, or who receives such relanded tobacco, snuff, cigars, or cigarettes, and every person who aids or abets in such relanding or receiving such tobacco, snuff, cigars, or cigarettes, shall, on conviction, be fined not exceeding $5,000, or imprisoned not more than three years; and

(b) FORFEITURE.-All tobacco, snuff, cigars, cigarettes so relanded shall be forfeited to the United States.

SEC. 2156. INFORMATION, RETURNS, AND PAYMENT OF TAX, VIOLATIONS RELATING TO; PENALTIES.

(a) [FAILURE TO FILE RETURNS, SUBMIT INFORMATION, OR PAY TAX. Any person required under this chapter to pay any tax, or required by law or regulations made under authority thereof to make a return, keep any records, or supply any information, for the purposes of the computation, assessment, or collection of any tax imposed by this chapter, who willfully fails to pay such tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof, be fined not more than $10,000, or imprisoned for not more than one year, or both, together with the costs of prosecution.

(b) [FAILURE TO COLLECT AND PAY OVER TAX, OR ATTEMPT TO EVADE OR DEFEAT TAX-CRIMINAL PENALTY.-] Any person required under this chapter to collect, account for, and pay over any tax imposed by this chapter, who willfully fails to collect or truthfully account for and pay over such tax, and any person who willfully attempts in any manner to evade or defeat any tax imposed by this chapter or the payment thereof, shall, in addition to other penalties provided by law, be guilty of a felony, and, upon conviction thereof, be fined not more than $10,000, or imprisoned for not more than five years, or both, together with the costs of prosecution.

(c) [FAILURE TO COLLECT AND PAY OVER TAX, OR ATTEMPT TO EVADE OR DEFEAT TAX-CIVIL PENALTY.-] Any person who willfully fails to pay, collect, or truthfully account for and pay over any tax imposed by this chapter, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty of the amount of the tax evaded, or not paid, collected, or accounted for and paid over, to be assessed and collected in the same manner as taxes are assessed and collected. No penalty shall be assessed under this subsection for any offense for which a penalty may be assessed under authority of section 3612.

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