(c) Preparations and remedies coming within the provisions of section 4702 are not subject to the tax. See §§ 151.421 to 151.423.

§ 151.122 REPACKING.-(a) Repacking narcotics is production within the intent of section 4701, and narcotics so produced are taxable, regardless of any tax previously paid thereon.

(b) Retail druggists may, under the conditions indicated in § 151.43, fill prescriptions and supply solutions for office practice without payment of tax on the narcotics furnished in such manner.

§ 151.123 INTERNATIONAL MOVEMENTS; EXPORTS; IN-TRANSIT SHIPMENTS. (a) Manufactured narcotic drugs or preparations which are subsequently exported are subject to tax whether manufactured expressly for export or not.

(b) Narcotic merchandise arriving in a port of the United States, shown by the shipping papers, i.e., either the bill of lading, manifest, or invoice, to be intended for transportation through the port, or through the United States or territorial waters thereof, to another country, and which is permitted by the Commissioner of Narcotics to be transported to a foreign destination, is not subject to tax.

(c) For customs regulations relating to merchandise in transit through the United States to foreign countries, see 19 CFR Part 18. For regulations under the Narcotic Drugs Import and Export Act relating to in-transit shipments, see 21 CFR 202.28.

§ 151.124 PERSONS LIABLE.-The tax on imported narcotics is to be paid by the importer. The tax on narcotic drugs domestically manufactured, produced, or compounded, is payable by the manufacturer, producer, or compounder.

§ 151.125 TIME OF PAYMENT.-(a) Importations.-The tax on imported narcotics must be paid before removal from customs custody. (b) Manufactured products.-The tax on narcotics domestically manufactured, produced, or compounded must be paid before sale or removal for consumption or sale.

§ 151.126 AMOUNT OF TAX.-The tax is 1 cent per ounce or fraction thereof in each package constituting a taxable unit. See § 151.127. For instance, the tax on a package containing 51⁄2 ounces will be 6 cents. The tax on a package containing less than 1 ounce will be 1 cent. The tax is measured by the entire drug content of a taxable package or container, not by the weight of the narcotic content therein.

§ 151.127 UNIT OF TAX; AMPOULES.-(a) With the exception noted in paragraph (b) of this section, the taxable unit is the smallest individual package or container. Thus if a manufacturer sells a preparation in packages containing one-tenth of an ounce each and puts 10 such packages into a larger container, it is not sufficient to place a stamp of the denomination of 1 cent on the outer container, but each of the inner packages must be separately stamped.

(b) When ampoules or other hermetically sealed units each containing only a single dose are put up in packages holding not more than 100 such units, tax may be paid on the joint contents of the entire number of units by affixing a stamp or stamps to the outer package or container.

$151.128 MANNER OF PAYMENT.-The tax is paid by attachment to the package forming the taxable unit of a stamp or stamps in sufficient amount. One or more stamps of an appropriate size shall be so affixed as to securely seal the package. In the case of bottles, cans, or other containers with stoppers, lids, or other removable closing devices, the stamp or stamps shall seal the stopper, lid, or other closing device at two opposite points.

§ 151.129 KINDS OF STAMPS.-Adhesive strip stamps are issued in the following denominations and sizes:

Sizes

11⁄2 by 4 inch___.

22 by inch__.

1 cent.

1 and 2 cents.

Denominationa

4 by

inch_

6 by 4 inch___

1, 2, 5, 6, 8, 10, and 16 cents.

1, 2, 5, 6, 8, 10, 16, 25, and 40 cents, and $1 and $1.28.

§ 151.130 PROCUREMENT OF STAMPS.-Stamps for affixing to packages or containers of narcotics will be furnished only on requisition of persons registered in Class I. The stamps are not transferable except to a successor in business who has registered and paid tax in Class I at the same location, but unused stamps may be redeemed. See § 151.461. The requisitions shall be made on Form 786. Blank requisition forms may be procured from district directors. District directors will preserve the requisitions and keep a record of the total quantity of stamps secured by each person making requisitions.

§ 151.131 MARKING CONTAINERS.-Each original stamped package containing a narcotic drug unmixed with other ingredients shall show the name or kind of narcotic drug contained therein. If the narcotic drug is mixed with some other ingredient or ingredients, the kind and quantity of narcotic to the ounce shall be shown unless the preparation is prepared in accordance with the United States Pharmacopoeia or the National Formulary. If the preparation contains more than one kind of narcotic, the name and quantity of each to the ounce shall be indicated. If the drug or preparation is in tablet, pill, ampoule, or suppository form, the quantity of each unit shall be given; if such information is given it will not be necessary, so far as this section is concerned, for the entire net weight of the contents to be shown. The packages and their contents will, however, be subject to the provisions of the Federal Food, Drug, and Cosmetic Act and regulations issued thereunder (21 CFR Part 1).

§ 151.132 IDENTIFICATION NUMBERS.-The manufacturer or producer of each package containing one ounce or more of morphine, dihydrocodeine, hydromorphone, hydrocodone, oxycodone, cocaine, methadone, isomethadone, pholcodine, alphaprodine, phenadoxone, levorphan, racemorphan, levomethorphan, racemethorphan or isonipecaine or any of their salts or derivatives, and each package containing tablets, pills, or preparations containing an aggregate of one ounce or more of any of these drugs, shall place thereon his name and location, and an individual identification number, and shall make record of such number together with the name and address of the purchaser, so arranged that upon disclosure of the identification number the identity of the purchaser can be readily ascertained. Likewise, a

wholesale dealer shall keep a record showing, as to each such package of which he disposes, the manufacturer's name, location, and identification number, the name and address of the purchaser, and the date of disposal, so arranged that upon disclosure of the identity of the manufacturer and the identification number, the identity of the purchaser can be readily ascertained. Such records shall not be made a part of the monthly returns of such manufacturer, producer, or wholesale dealer, but shall constitute separate permanent records.

§ 151.133 CANCELLATION OF STAMPS.-Stamps will be canceled by noting thereon in red or black ink or by perforation the full or abbreviated name of the manufacturer, producer, or compounder, and

the date of cancellation.

§ 151.134 REUSE OF STAMPS PROHIBITED.-A stamp once affixed to one package or container cannot lawfully be removed and affixed to another. As to refunds of amounts paid for stamps, see § 151.461.

Subpart E.-Order Forms

PROCUREMENT OF ORDER FORMS

$151.141 WRITTEN ORDER REQUIRED.-Except as otherwise provided, order forms are required for all sales or other dispositions of narcotic drugs.

§ 151.142 BY WHOM PROCURABLE.-Blank forms may be obtained only by persons who are duly qualified and registered under section 4722 or certified as purchasing exempt officials (see § 151.222 and § 151.223) and have legitimate use therefor. Order forms will not be furnished to persons registered in Class V who are not manufacturers.

§ 151.143 MANNER OF PROCUREMENT.-A person desiring and entitled to receive order forms should submit requisition on Form 679 to the district director of the internal revenue district in which he is doing business. The order forms are issued in books each containing 10 sets of original, duplicate, and triplicate forms. Blank requisitions, Form 679, may be obtained from the district director and a replacement requisition blank is included in each book of forms. Each requisition shall show the taxpayer's name, address, registry number, and class, and the number of books of order forms desired. Unless the taxpayer is registered in Class I or II, only one book of order forms will be furnished on each requisition. A charge of 10 cents is made for each book of order forms issued to other than exempt officials, and the requisition should be accompanied by remittance of the proper amount in the form of a check, cash, or money order. For procurement of order forms by exempt officials, see § 151.224.

§ 151.144 SIGNING OF REQUISITIONS.-Generally, requisitions for order forms shall be signed by the same person or persons signing the application for registration (see § 151.26). However, they may be signed by another person authorized by power of attorney previously filed with and approved by the district director. The power of attorney shall be executed on Form 1315, or a substantially similar form, in the same manner as applications for registration, shall show the signature of the person thereby authorized to sign requisitions

for order forms, and shall affirm that the signature so shown is his signature.

§ 151.145 SIGNATURES TO BE COMPARED.-Upon receipt by the district director of a requisition for order forms, the signature on such requisition shall be compared with that appearing on the application for registration or in the power of attorney (see § 151.144). Unless the district director is satisfied that the requisition is authentic, it will not be honored.

§ 151.146 PROCEDURE REGARDING ORDER FORMS.-Upon receipt of a properly executed requisition, accompanied by a sum sufficient to cover the cost of the order forms desired, the district director will issue the order forms requested. Before issuing the order forms the district director will cause to be shown thereon in a legible and permanent manner the name, address, registry number, and class number or numbers of the person to whom they are supplied, also the date of issuance and his signature or his name and the initials of the issuing employee.

151.147 REQUISITIONS TO BE FILED.-The district director will stamp each requisition with the date when filled, enter thereon the first and last serial number of the order forms sold in pursuance thereof, and file all requisitions alphabetically according to the name of the purchaser.

EXECUTION of order FORMS

§ 151.161 EXECUTION OF FORMS.-(a) Order forms are issued in triplicate and shall be executed in triplicate. They are arranged to permit the execution of the original, duplicate, and triplicate simultaneously by means of interleaved carbon sheets. The original and the triplicate, together with the intervening carbon sheet, must be furnished to the consignor, but shall not leave the possession of the person executing the order until the duplicate is made.

(b) The attachment of extra sheets to order forms is not permitted. If one order form is not sufficient to include all the items of an order, an additional form or forms shall be used. The order forms are intended solely to cover dispositions of taxable narcotic drugs and preparations to registered persons. They shall not in any case be used as prescriptions.

§ 151.162 MANNER OF PREPARATION.-(a) The order forms shall become a part of the permanent records of the registrant filling them, and are required by law to be kept available for inspection for a period of two years. The manufacturer or wholesale dealer should insist for his own protection that the order forms be prepared in such manner as to render their subsequent alteration both difficult of accomplishment and easy of detection. Purchasers also should be careful to protect order forms signed by them against subsequent alteration. Official order forms for the purchase of taxable narcotic drugs should therefore be prepared by the use of typewriter, ink, or indelible pencil, and manufacturers and wholesale dealers should return unfilled any order form executed in a less permanent manner. (b) For filing of requisitions, see § 151.147. For regulations relating to filing of order forms, see §§ 151.201 and 151.202.

151.163 DATE.-The full and exact date when the order form is actually made out shall be inserted by the purchaser. Purchasers are also required to enter, in the space provided therefor at the bottom of the form, the number of items ordered. If in any case the number of items has not been so entered by the purchaser, the order form shall be returned for completion before it is filled.

151.164 NAME AND ADDRESS OF PURCHASER.-The name, address, registry and class number, and internal revenue district of the purchaser as inserted by the district director shall not be changed by either the purchaser or consignor in any manner whatsoever. The merchandise requested on the form may be sent only to the person designated by the district director and at the locations specified by him. The name of the purchaser, as registered with the district director, and as entered by the district director on the form, shall be shown on the first line in the lower right-hand space of the form, except where the form is signed personally by an individual registrant in which event this line may be left blank. The signature of an individual purchaser acting personally, or of an individual acting for a registrant, whether acting under power of attorney or otherwise authorized, shall be entered on the second line of the lower right-hand space.

§ 151.165 SIGNING OF ORDER FORMS.-(a) Official narcotic order forms shall be signed by the purchasing registrant with ink or indelible pencil. The signature shall be in the same form as on the application for registration.

(b) The signing of such forms merely with a firm, corporate, or trade name, without indication of personal responsibility, is not permissible, but the signature of the person signing the application for registration must appear. However, they may be signed by another person authorized by power of attorney previously filed with and approved by the district director. The power of attorney shall be executed in the same manner as applications for registration, shall show the signature of the person thereby authorized to sign order forms, and shall affirm that the signature so shown is his signature. The signature of the responsible individual may not be printed or stamped on the order form, but must be shown in his own handwriting. (c) For signatures on applications for registration, see § 151.26. $151.166 QUALIFICATIONS OF PURCHASER.-The purchaser shall, at the time the order is submitted, be registered, under section 4722, at the location, in the classes, and under the registry number specified thereon by the district director, and shall have paid the special taxes necessary to qualify him in such classes for the fiscal year ending on the following June 30 or be a certified exempt official (see §§ 151.222 and 151.223). The purchaser shall likewise be qualified for the fiscal year within which the merchandise is received. Any person executing and presenting for filling an order form who at the time of such presentation is not so registered and has not paid the necessary special taxes or who is not a certified exempt official will be liable to the penalties provided by law.

§ 151.167 ITEMS.-Only one item shall be entered on each numbered line and not more than 5 items shall be entered on a single order