(a) General. All cigars and cigarettes shall, before removal, be put up by the importer in packages which shall bear the stamps, class designation, and mark, as required by this subpart. Such packages shall be of such construction as will securely contain the cigars and cigarettes therein and maintain such stamps, class designation, and mark thereon: Provided, That cigars and cigarettes removed as samples pursuant to the provisions of section 270.196a shall be exempt from the provisions of this paragraph: And provided further, That cigars imported in passengers' baggage, or by mail where the value does not exceed $250, where such cigars are for the personal consumption of the importer or for disposition as his bona fide gift, shall be exempt from the provisions of this paragraph. PAR. 3. The first sentence of section 270.191 is amended to read as follows: "Every package of large cigars subject to tax shall, before removal, have legibly imprinted thereon, or on a label securely affixed thereto, a class designation, for tax purposes, corresponding with the rate of tax imposed by section 5701 (b) (2), I. R. C., on the cigars contained therein: Provided, That cigars imported in passengers' baggage, or by mail where the value does not exceed $259, where such cigars are for the personal consumption of the importer or for disposition as his bona fide gift, shall be exempt from the provisions of this section." PAR. 4. Section 270.191a is amended to read as follows: SEC. 270.191a MARK.-Every package of cigars on which tax is paid by return shall, before removal, have legibly imprinted thereon, or on a label securely affixed thereto, the number of cigars contained in such package: Provided, That cigars imported in passengers' baggage, or by mail where the value does not exceed $250, where such cigars are for the personal consumption of the importer or for disposition as his bona fide gift, shall be exempt from the provisions of this section. PAR. 5. Section 270.230 is amended as follows: (A) Paragraph (a) and the headnote are amended to read as follows: (a) General.-Where cigars on which tax has not been paid are imported into the United States, the importer may, except as provided in paragraphs (c) and (d) of this section, pay tax thereon by filing a tax return, Form 2135, with remittance, with the district director for each removal of such cigars from customs custody subject to tax. The importer shall secure from the district director a copy of the tax return bearing acknowledgment of receipt of the remittance. Such copy shall be presented by the importer to the appropriate customs officer before such cigars are released from customs custody. When the cigars are so released, the customs officer shall endorse the copy of Form 2135 to show release of the cigars and return this copy to the importer, who shall retain such copy of the tax return for two years following the close of the calendar year in which the return was filed and shall make it available for inspection by any revenue officer upon his request. (B) By adding a new paragraph (c) to read as follows: (c) Noncommercial importations in passengers' baggage.-Where cigars on which tax has not been paid are imported into the United States in passengers' baggage, for the personal consumption of the importer or for disposition as his bona fide gift, in excess of the quantity exempted from tax by law and customs regulations, the importer shall, prior to removal, pay tax thereon by return to the collector of customs, in accordance with customs requirements. (C) By adding a new paragraph (d) to read as follows: (d) Noncommercial importations by mail.-Where cigars on which the tax has not been paid are imported into the United States by mail, for the personal consumption of the importer or for disposition as his bona fide gift, and the value does not exceed $250, the importer shall, prior to removal, pay tax thereon by return to the collector of customs, in accordance with customs requirements. PAR. 6. Section 270.231 is amended by deleting the words "to the district director" from the first sentence. PAR. 7. A new section 270.232 to read as follows is added: SEC. 270.232 CUSTOMS' COLLECTION OF INTERNAL REVENUE TAXES ON CERTAIN IMPORTATIONS OF CIGARS.-Internal revenue taxes payable on cigars imported in passengers' baggage, or by mail where the value does not exceed $250, shall be collected, accounted for, and deposited as internal revenue collections by collectors of customs, in accordance with customs requirements. This Treasury Decision shall be effective on the first day of the first month which begins not less than 30 days following the date of publication in the Federal Register. (This Treasury Decision is issued under the authority contained in section 7805 of the Internal Revenue Code of 1954 (68A Stat. 917; 26 U.S. C. 7805).) Approved December 17, 1958. NELSON P. ROSE DANA LATHAM Commissioner of Internal Revenue Acting Secretary of the Treasury (Filed by the Division of the Federal Register on December 19, 1958, 8: 48 a. m., and published in the issue of the Federal Register for December 20, 1958, 23 F. R. 9809.) PART VI ITEMS OF GENERAL INTEREST CABARET TAX EXEMPTION FOR "MILK BARS" 1 Announcement 59-4 The 20 percent Federal cabaret tax will not apply beginning January 1, 1959, to so-called "milk bars" which sell light refreshments and provide space for dancing, usually to jukebox music. This new rule is provided by the Excise Tax Technical Changes Act of 1958, Public Law 85-859, enacted September 2, 1958. To qualify for the new exemption, the following conditions must be present in the establishment: (1) No alcoholic beverages are served or permitted to be consumed. (2) Only light refreshments, such as snacks and soft drinks, are served. (3) Where space is provided for dancing, there is no charge made, and (4) Where music is provided or permitted, it is either instrumental or other music which is supplied without any charge to the operator of the establishment, or mechanical music. Under condition (3), reasonable payment by patrons for operation of a jukebox will not be considered charges for dancing privileges. 1 Based on Technical Information Release 118, dated December 12, 1958. (25) CUMULATIVE BULLETIN 1958–1 Announcement 59-5 Cumulative Bulletin 1958-1 is now available. It is the consolidation of the material published in the weekly Internal Revenue Bulletins during the first six months of 1958 (Bulletins 1958-1 through 1958-26). However, Part VI of the Internal Revenue Bulletins, containing items of general interest which are of current information only, has not been included. Offices of the Internal Revenue Service and subscribers to the Internal Revenue Bulletin service may expect to receive their copies of this publication in the very near future. Others wishing copies and subscribers wishing additional copies may purchase them at $2.00 per copy from the Superintendent of Documents, U. S. Government Printing Office, Washington 25, D. C. (26) ABBREVIATIONS The following abbreviations in current use and formerly used will appear in material published in the Bulletin. A, B, C, etc.-The names of individuals. C. F. R.-Code of Federal Regulations. Del. Order.-Delegation Order. E. T.-Estate and gift tax ruling. Em. T.-Employment tax ruling. F. A. A. A.-Federal Alcohol Administration Act. F. R.-Federal Register. G. C. M.-Chief Counsel's memorandum (formerly General Counsel's memorandum). I. R. B.-Internal Revenue Bulletin. I. T.-Income Tax ruling. M, N, X, Y, Z, etc.-The names of corporations, places or businesses according to context. M. T.-Miscellaneous tax ruling. Mim.-Published mimeograph. O. D.-Office Decision. P.L.-Public Law. P. S.-Pension, profit-sharing, stock bonus or annuity plan ruling. Rev. Proc.-Revenue Procedure. Rev. Rul.-Revenue Rulings. Sol. Op.-Solicitor's Opinion. S. P. R.-Statement of Procedural Rules. S. S. T.-Social Security tax. S. T.-Sales tax ruling. Stat.-Statutes at Large. T. C.-The Tax Court of the United States. T. D.-Treasury Decision. U.S. C.-United States Code. and y used to represent certain numbers and when used with the word "dollars" represent sums of money. (27) |