Date of acts imposing tax on cigars and cigarettes and rates of tax-C't'd. The act of July 1, 1862, went into operation September 1, 1862. The act of July 20, 1868, first required payment of tax on cigars by stamps. Assessment of tax on cigars removed without stamps. (§3371, p. 246.) Authority of Commissioner to examine returns of cigar manufacturers and to treat deficiency in product based on the return of one thousand cigars for every 25 pounds of tobacco as prima facie evidence of nonpayment of taxes. (See note under § 3371, p. 246.) Section 3362 provides that 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 of Internal Revenue may prescribe. This relates to cigar manufacturers as well as manufacturers of tobacco. SEC. 3395. The Commissioner of Internal Revenue shall Stamps, now prepared, furcause to be prepared, for payment of the tax upon cigars, nished, and acsuitable stamps denoting the tax thereon. Such stamps counted for. shall be furnished to collectors requiring them, and collectors shall, if there be any cigar-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-manufacturers who have given bonds and paid the special tax, as required by law, in their districts, respectively, and to importers of cigars, who are required to affix the same to imported cigars in the custody of customs officers, and to persons required by law to affix the same to cigars on hand after the first day of April, eighteen hundred and sixty-nine. Every collector shall keep an account of the number, amount, and denominate values of the stamps sold by him to each cigar-manufacturer, and to other persons above described. See sections 3445 and 3446 as amended (p. 339) as to authority Regulations authorized. branding. Section 3369 provides that such stamps as may be required to stamp cigars sold under distraint by any collector of internal revenue, or for stamping any cigars 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 of Internal Revenue 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 of Internal Revenue, shall be allowed credit for the same in settling his stamp account with the Department. In case it shall appear that any abandoned, condemned, or forfeited cigars, when offered for sale, will not bring a price equal to the tax due and payable thereon, such goods shall not be sold for consumption in the United States; and upon application made to the Commissioner of Internal Revenue, he is authorized and directed to order the destruction of such cigars by the officer in whose custody and control the same may be at the time, and in such manner and under such regulations as the Commissioner of Internal Revenue may prescribe. SEC. 3396. The Commissioner of Internal Revenue may prescribe such regulations for the inspection of cigars, cheroots, and cigarettes, and the collection of the tax thereon, as he may deem most effective for the prevention of frauds in the payment of such tax. Regulations concerning taxes on tobacco, snuff, and cigars. (Series 7, No. 8, revised; Cigar Manufacturers' Tax Manual, special, No. 85.) SEC. 3397, as amended by section 16, act of March 1, 1879 (20 Stat., Removal with. 327). Whenever any cigars are removed from any manufacout properly boxing, stamping, or tory, or place where cigars are made, without being packed in boxes as required by the provisions of this chapter, or without the proper stamp thereon denoting the tax, or without stamping, indenting, burning, or impressing into each box, in a legible and durable manner, the number of the cigars contained therein, the number of the manufactory, and the number of the district and the State, or without properly affixing thereon and canceling the stamp denoting the tax on the same, or are sold, or offered for sale, not properly boxed and stamped, they shall be forfeited to the United States. And every person who commits any of the above described offenses shall be fined for each such offense not less than one hundred dollars nor more than one thousand dollars, and imprisoned not less than six months nor more than two years. Penalty. Using fraudu. lent or imitation stamps. And every person who packs cigars in any box bearing a false or fraudulent or counterfeit stamp, or who affixes to any box containing cigars a stamp in the similitude or likeness of any stamp required to be used by the laws of the United States, whether the same be a customs or internalrevenue stamp, or who buys, receives, or has in his possession any cigars on which the tax to which they are liable has not been paid, or who removes, or causes to be removed, from any box any stamp denoting the tax on cigars, with intent to use the same, or who uses, or permits any other person to use, any stamp so removed, or who receives, buys, sells, gives away, or has in his possession any stamp so re- for export. Provided, That cigars packed expressly for export, and Cigars packed which shall be exported to a foreign country under the restrictions and regulations prescribed by the Commissioner of Internal Revenue, and approved by the Secretary of the Treasury, shall be exempt from the provisions of this section, and also from the provisions of section thirty-three hundred and ninety-three of the Revised Statutes, requiring a label to be affixed to each box. The penalties for selling cigars not properly packed and Labels for cigars bearing a resemblance to customs stamps. Provisions as to peddlers of tobacco, snuff, and cigars. (See under tobacco, § § 3381, 3382, 3383, 3384, p. 250.) Sample packages containing either a less or a greater number No other brands except legal brands. (17 Int. Rev. Rec., 55.) Cigars can not be taken out of boxes and repacked in the Öther cases on this section, United States v. 76,125 Cigars (18 Where a sheriff or constable removes cigars from a cigar fac- Stamps on boxes of cigars must be properly affixed and canceled to avoid liability to seizure. (Vol. 1, Treas. Dec. (1899), No. 19063.) Relative to canceling stamps. (See section 3445, p. 339.) of stamps evidence SEC. 3398. The absence of the proper revenue stamp on Absence any box of cigars sold, or offered for sale, or kept for sale, of nonpayment shall be notice to all persons that the tax has not been of tax. paid thereon, and shall be prima-facie evidence of the nonpayment thereof, and such cigars shall be forfeited to the United States. Section 3376 provides that every manufacturer or other person who sells, or offers for sale, any box or other package of tobacco, snuff, or cigars, having affixed thereto any fraudulent, spurious, imitation, or counterfeit stamp, or stamp that has been previously used, or sells from any such fraudulently stamped box or package, or has in his possession any box or package as afore Cigars manufactured on how stamped. said, knowing the same to be fraudulently stamped, shall, for each such offense, be fined not less than one hundred dollars nor more than five hundred dollars, and imprisoned for not less than one year nor more than three years. United States v. Edwards 17 Int. Rev. Rec., 126. SEC. 3399. Whenever cigars of any description are manshares, commis ufactured, in whole or in part, upon commission or shares, sion, or contract, or the material is furnished by one party and manufactured by another, or the material is furnished or sold by one party with an understanding or agreement with another that the cigars are to be received in payment therefor, or for any part thereof, the stamps required by law shall be affixed by the actual maker before the cigars are removed Fraud, penalty. from the place of manufacturing. And in case of fraud on the part of either of said parties in respect to said manufacture, or of any collusion on their part with intent to defraud the revenue, such material and cigars shall be forfeited to the United States; and every person engaged in such fraud or collusion shall be fined not less than one hundred dollars nor more than five thousand dollars, and imprisoned for not less than six months nor more than three years. Forfeiture of property for sell ing, etc., contra- or ry to law, using false stamps, etc. Falsely repre senting cigars to 1868. SEC. 3400. Every manufacturer of cigars who removes sells any cigars without payment of the special tax as a cigar manufacturer, or without having given bond as such, or without the proper stamps denoting the tax thereon; or who makes false or fraudulent entries of the manufacture or sale of any cigars; or makes false or fraudulent entries of the purchase or sale of leaf-tobacco, tobaccostems, or other material used in the manufacture of cigars; or who affixes any false, forged, spurious, fraudulent, or counterfeit stamp, or imitation of any stamp, required by law to any box containing any cigars, shall, in addition to the penalties elsewhere provided in this Title for such offenses, forfeit to the United States all raw material and manufactured or partly manufactured tobacco and cigars, and all machinery, tools, implements, apparatus, fixtures, boxes, barrels, and all other materials which shall be found in his possession, or in his manufactory, and used in his business as such manufacturer, together with his estate or interest in the building or factory, and the lot or tract of ground on which such building or factory is located, and all appurtenances thereunto belonging. See sections 3708 R. S., 5413, p. 392, and 5430 R. S. Forfeiture of property used for fraudulent purposes, without regard to ownership. (United States v. 230 Patented Machines, Vol. 3 Treas. Dec. (1900), Int. Rev. No. 54.) SEC. 3401. Every person who sells or offers for sale any have been made cigars representing the same to have been manufactured prior to July 20, and the tax paid thereon, prior to July twenty, eighteen hundred and sixty-eight, when the same were not so manufactured and the tax was not so paid, shall be liable to a penalty of five hundred dollars for each offense, and shall be deemed guilty of a misdemeanor, and shall be fined not Penalty. less than five hundred dollars nor more than five thousand dollars, and imprisoned not less than six months nor more than three years. gars to pay tax; SEC. 3402. All cigars imported from foreign countries Imported ci shall pay, in addition to the import duties imposed thereon, stamps, when and the tax prescribed by law for cigars manufactured in the by whom affixed. United States, and shall have the same stamps affixed. 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. And every officer of customs who permits any such cigars to pass out of his custody or control, without compliance by the owner or importer thereof with the provisions of this section relating thereto, shall be deemed guilty of a misdemeanor, and shall be fined not less than one thousand dollars nor more than five thousand dollars, and imprisoned not less than six months nor more than three years. Relative to packing and stamping imported cigars: SEC. 2804. No cigars shall be imported unless the same are As to imported cigarettes, see section 3392 as amended, p. 258. 251. As to drawback on cigars. (§ 3386, p. 253.) Instructions for stamping domestic cigars reimported. (27 Section 3377 as amended provides, "That scraps, cuttings, and SEC. 3403. All cigars of every description, on hand after the first day of April, eighteen hundred and sixty-nine, shall be taken to have been either manufactured or imported after Cigars on hand after April 1, 1869. |