SEC. 3411. TAX ON ELECTRICAL ENERGY FOR DOMESTIC OR COMMERCIAL CONSUMPTION.

(a) [IMPOSITION AND RATE.-]There shall be imposed upon electrical energy sold for domestic or commercial consumption and not for resale a tax equivalent to 3% per centum of the price for which so sold, to be paid by the vendor under such rules and regulations as the Commissioner, with the approval of the Secretary, shall prescribe. The sale of electrical energy to an owner or lessee of a building, who purchases such electrical energy for resale to the tenants therein, shall for the purposes of this section be considered as a sale for consumption and not for resale, but the resale to the tenant shall not be considered a sale for consumption.

(b) [SPECIAL PROVISIONS.-]The provisions of sections 3441, 3444, and 3447 shall not be applicable with respect to the tax imposed by this section.

(c) [EXEMPTIONS.-]No tax shall be imposed under this section upon electrical energy sold to any State, Territory of the United States, or political subdivision thereof, or the District of Columbia. None of the provisions of this section shall apply to publicly owned electric and power plants, or to electric and power plants or systems owned and operated by cooperative or nonprofit corporations engaged in rural electrification. The right to exemption under this subsection shall be evidenced in such manner as the Commissioner, with the approval of the Secretary, may by regulation prescribe. SEC. 3412. TAX ON GASOLINE.

(a) [IMPOSITION AND RATE.-]There shall be imposed on gasoline sold by the producer or importer thereof, or by any producer of gasoline, a tax of 12 cents a gallon, except that under regulations prescribed by the Commissioner with the approval of the Secretary the tax shall not apply in the case of sales to a producer of gasoline.

(b) [USE AS SALE; PURCHASER AS PRODUCER.-]If a producer or importer uses (otherwise than in the production of gasoline) gasoline sold to him free of tax, or produced or imported by him, such use shall for the purposes of this chapter be considered a sale. Any person to whom gasoline is sold tax-free under this section shall be considered the producer of such gasoline.

(c) [DEFINITIONS.-]As used in this section

(1) the term "producer" includes a refiner, compounder, or blender, and a dealer selling gasoline exclusively to producers of gasoline, as well as a producer.

(2) the term gasoline means (A) all products commonly or commercially known or sold as gasoline (including casinghead and natural gasoline), benzol, benzene, or naphtha, regardless of their classifications or uses; and (B) any other liquid of a kind prepared, advertised, offered for sale or sold for use as, or used as, a fuel for the propulsion of motor vehicles, motor boats, or airplanes; except that it does not include any of the foregoing (other than products commonly or commercially known or sold as gasoline) sold for use otherwise than as a fuel for the propulsion of motor vehicles, motor boats, or airplanes, and otherwise than in

the manufacture or production of such fuel, and does not include kerosene, gas oil, or fuel oil.

(d) [REGISTRATION AND BOND.-] Every person subject to tax under this section or section 3413 shall, before incurring any liability for tax under such sections, register with the collector for the district in which is located his principal place of business (or, if he has no principal place of business in the United States, with the collector at Baltimore, Maryland) and shall give a bond, to be approved by such collector, conditioned that he shall not engage in any attempt, by himself or by collusion with others, to defraud the United States of any tax under such sections; that he shall render truly and completely all returns, statements, and inventories required by law or regulations in pursuance thereof and shall pay all taxes due under such sections; and that he shall comply with all requirements of law and regulations in pursuance thereof with respect to tax under such sections. Such bond shall be in such sum as the collector may require in accordance with regulations prescribed by the Commissioner with the approval of the Secretary, but not less than $2,000. The collector may from time to time require new or additional bond in accordance with this subsection. Every person who fails to register or give bond as required by this subsection, or who in connection with any purchase of gasoline or lubricating oil falsely represents himself to be registered and bonded as provided by this subsection, or who willfully makes any false statement in an application for registration under this subsection, shall upon conviction thereof be fined not more than $5,000 or imprisoned not more than five years, or both, together with the costs of prosecution. If the Commissioner finds that any manufacturer or producer has at any time evaded any Federal tax on gasoline or lubricating oil, he may revoke the registration of such manufacturer or producer, and no sale to, or for resale to, such manufacturer or producer thereafter shall be tax-free under section 3413, this section, or section 3442, but such manufacturer or producer shall not be relieved of the requirement of giving bond under this subsection.

(e) [INSPECTION OF RECORDS, RETURNS, ETC., BY STATE AND LOCAL OFFICERS.-] Under regulations prescribed by the Commissioner with the approval of the Secretary, records required to be kept with respect to taxes under section 3413 or this section, and returns, reports, and statements with respect to such taxes filed with the Commissioner or a collector, shall be open to inspection by such officers of any State or Territory or political subdivision thereof or the District of Columbia as shall be charged with the enforcement or collection of any tax on gasoline or lubricating oils. The Commissioner and each collector shall furnish to any of such officers, upon written request, certified copies of any such statements, reports, or returns filed in his office upon the payment of a fee of $1 for each 100 words or fraction thereof in the copy or copies requested.

SEC. 3413. TAX ON LUBRICATING OILS.

There shall be imposed upon lubricating oils sold in the United States by the manufacturer or producer a tax at the rate of 6 cents a gallon, to be paid by the manufacturer or producer. Every person liable for tax under this section shall register and file bond as pro

vided in section 3412 (d). Under regulations prescribed by the Commissioner with the approval of the Secretary, no tax shall be imposed under this section upon lubricating oils sold to a manufacturer or producer of lubricating oils for resale by him, but for the purposes of this chapter such vendee shall be considered the manufacturer or producer of such lubricating oils.

[For effect of revocation of registration of a manufacturer or producer, see section 3412 (d).]

SEC. 3414. PUBLICITY OF RETURNS.

For provisions with respect to publicity of returns under this subchapter, see subsection (a) (2) of section 55 [in the note following section 1604].

SUBCHAPTER B-IMPORT TAXES

Part I-Special Provisions

SEC. 3420. IMPOSITION OF TAX.

In addition to any other tax or duty imposed by law, there shall be imposed upon the following articles imported into the United States, unless treaty provisions of the United States otherwise provide, a tax at the rates specified in sections 3422 to 3425, inclusive. [For inclusion of Puerto Rico in the term "United States," see section 3430 (d).

For exemption of wearing apparel, etc., in certain cases, see paragraph 1798 of the Tariff Act of 1930, as amended (46 Stat. 683; 52 Stat. 1093, § 36; 19 U. S. C. 1201).

For exemption of supplies for certain vessels and aircraft, see section 309 of the Tariff Act of 1930, as amended (46 Stat. 690; 52 Stat. 1080, § 5 (a); 55 Stat. 602, § 3; 19 U. S. C. 1309).

For exemptions of international organizations, see section 2 (d) of the act of December 29, 1945 (59 Stat. 669; 22 U. S. C. 288a).

For exemption of articles imported for use of members of armed forces of United Nations, or for prisoners of war or civilian internees or detainees, see the joint resolution of June 27, 1942 (56 Stat. 461-462; 50 U. S. C. App. 791-795).1

SEC. 3422. PETROLEUM AND DERIVATIVES.

Crude petroleum, 1⁄2 cent per gallon; fuel oil derived from petroleum, gas oil derived from petroleum, and all liquid derivatives of crude petroleum, except lubricating oil and gasoline or other motor fuel, cent per gallon; gasoline or other motor fuel, 21⁄2 cents per gallon; lubricating oil, 4 cents per gallon; paraffin and other petroleum wax products, 1 cent per pound.

SEC. 3423. COAL.

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Coal of all sizes, grades, and classifications (except culm and duff), coke manufactured therefrom, and coal or coke briquettes, 10 cents per 100 pounds. The tax on the articles described in this section

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* * shall not be imposed upon any such article if during the preceding calendar year the exports of the articles described in this section from the United States to the country from which such article is imported have been greater in quantity than the imports into the United States from such country of the articles described in this section.

[For inclusion of Puerto Rico in the term "United States," see section 3430 (d).]

SEC. 3424. LUMBER.

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(a) Lumber, rough, or planed or dressed on one or more sides, except flooring made of maple (except Japanese maple), birch, and beech, $3 per 1,000 feet, board measure The tax imposed by this subsection shall not apply to lumber of Northern white pine (pinus strobus), Norway pine (pinus resinosa), and Western white spruce.

(b) In determining board measure for the purposes of this section no deduction shall be made on account of planing, tonguing, and grooving. As used in this section, the term "lumber" includes sawed timber. This subsection shall apply (1) unless in conflict with any international obligation of the United States or (2) if so in conflict, then on the termination of such obligation otherwise than in connection with the undertaking by the United States of a new obligation which continues such conflict.

SEC. 3425. COPPER.

Copper-bearing ores and concentrates and articles provided for in paragraph 316, 380, 381, 387, 1620, 1634, 1657, 1658, or 1659 of the Tariff Act of 1930 [46 Stat. 613, 626, 627, 674, 675, 676; 19 U. S. C. 1001, 1201], 4 cents per pound on the copper contained therein: Provided, That no tax under this section shall be imposed on copper in any of the foregoing which is lost in metallurgical processes: Provided further, That ores or concentrates usable as a flux or sulphur reagent in copper smelting and/or converting and having a copper content of not more than 15 per centum, when imported for fluxing purposes, shall be admitted free of said tax in an aggregate amount of not to exceed in any one year 15,000 tons of copper content. All articles dutiable under the Tariff Act of 1930 [46 Stat. 590; 19 U. S. C., chapter 4], not provided for heretofore in this section, in which copper (including copper in alloys) is the component material of chief value, 3 cents per pound. All articles dutiable under the Tariff Act of 1930, not provided for heretofore in this section, containing 4 per centum or more of copper by weight, 3 per centum ad valorem or 4 of 1 cent per pound, whichever is the lower. The Secretary is authorized to prescribe all necessary regulations for the enforcement of the provisions of this section.

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[For restrictions on the applicability of section 3425, see the acts of March 13, 1942 (56 Stat. 171, c. 180), as amended August 8, 1947 (61 Stat. 917, c. 515, § 1), April 29, 1947 (61 Stat. 56, c. 45), and March 31, 1949 (81st Cong., Pub. Law 33), in Appendix II.]

Part II-Special Administrative Provisions

SEC. 3430. APPLICABILITY OF TARIFF PROVISIONS.

The tax imposed by section 3420 shall be levied, assessed, collected, and paid in the same manner as a duty imposed by the Tariff Act of 1930, 46 Stat. 590, 672 (U. S. C. Title 19, c. 4) and shall be treated for the purposes of all provisions of law relating to the customs revenue as a duty imposed by such act, except that

(a) [TAX BASE.-] the value on which such tax shall be based shall be the sum of (1) the dutiable value (under section 503 of such act [46 Stat. 731; 19 U. S. C. 1503]) of the article, plus (2) the customsduties, if any, imposed thereon under any provision of law;

(b) [ADDITIONAL DUTY AND FLEXIBLE TARIFF PROVISIONS.-] for the purposes of section 489 of such act (relating to additional duties in certain cases of undervaluation) [46 Stat. 725; 19 U. S. C. 1489] such tax shall not be considered an ad valorem rate of duty or a duty based upon or regulated in any manner by the value of the article, and for the purposes of section 336 of such act (the so-called flexible tariff provision) [46 Stat. 701; 19 U. S. C. 1336] such tax shall not be considered a duty; (d) [APPLICABILITY TO PUERTO RICO. -] * for the purposes of taxes under sections1 3422 to 3425, inclusive, the term "United States" includes Puerto Rico.

*

[For lading on certain vessels as exportation, for the purpose of section 3430, see section 3451.

For restriction on construction of taxes as customs duties, see section 528 of the Tariff Act of 1930, as added June 25, 1938 (52 Stat. 1087, § 20; 19 U. S. C. 1528).]

SEC. 3431. RULES AND REGULATIONS.

The Secretary shall prescribe and publish all needful rules and regulations for the enforcement of this subchapter. SEC. 3432. CROSS REFERENCE.

For tax on importation of sugar, see section 3500.

SUBCHAPTER C-GENERAL ADMINISTRATIVE PROVISIONS SEC. 3440. DEFINITION OF SALE.

For the purposes of this chapter, the lease of an article (including any renewal or any extension of a lease or any subsequent lease of such article) by the manufacturer, producer, or importer shall be considered a taxable sale of such article.

SEC. 3441. SALE PRICE.

(a) [CONTAINERS, PACKING AND TRANSPORTATION CHARGES.-In determining, for the purposes of this chapter, the price for which an article is sold, there shall be included any charge for coverings and containers of whatever nature, and any charge incident to placing the article in condition packed ready for shipment, but there shall be excluded the amount of tax imposed by this chapter, whether or not stated as a separate charge. A transportation, delivery, insurance, installation, or other charge (not required by the foregoing sentence to be included) shall be excluded from the price only if the amount thereof is established to the satisfaction of the Commissioner, in accordance with the regulations.

(b) [CONSTRUCTIVE SALE PRICE.-] If an article is

(1) sold at retail,

(2) sold on consignment, or

(3) sold (otherwise than through an arm's length transaction) at less than the fair market price,

the tax under this chapter shall (if based on the price for which the article is sold) be computed on the price for which such articles are sold, in the ordinary course of trade, by manufacturers or producers thereof, as determined by the Commissioner.

1 The statute reads "section."