SEC. 5701 (revised 1958)-Continued (c)(1) (amended 1959)-Continued Do... Do (date changed) Do... (date changed) Do.. (date changed) Do.. (date changed) Do.... June 30, 1960, H.R. 12381, P.L. 86–564, § 202(a) (9), 74 Stat. 290: Amended Sec. 5701 (c) (1) (as amended by P.L. 86-75, § 3(a) (7)) by striking out each place it appeared "July 1, 1960" and inserting in lieu thereof "July 1, 1961". Applicability: Indicated by the terms of the amendment. June 30, 1961, H.R. 7446, P.L. 87-72, § 3(a) (9), 75 Stat. 193: Amended Sec. 5701 (c) (1) (as amended by P.L. 86-564, § 202(a) (9)) by striking out each place it appeared "July 1, 1961" and inserting in lieu thereof "July 1, 1962". Applicability: Indicated by the terms of the amendment. June 28, 1962, H.R. 11879, P.L. 87-508, § 3(a) (8), 76 Stat. 114: Amended Sec. 5701 (c) (1) (as amended by P.L. 87-72, § 3(a) (9)) by striking out each place it appeared "July 1, 1962" and inserting in lieu thereof— "July 1, 1963". Applicability: Indicated by the terms of the amendment. June 29, 1963, H.R. 6755, P.L. 88-52, § 3(a) (9), 77 Stat. 72: Amended Sec. 5701 (c) (1) (as amended by P.L. 87-508, § 3(a) (8)) by striking out each place it appeared "July 1, 1963" and inserting in lieu thereof— "July 1, 1964". Applicability: Indicated by the terms of the amendment. June 30, 1964, H.R. 11376, P.L. 88-348, § 2(a) (9), 78 Stat. 237: Amended Sec. 5701(c)(1) (as amended by P.L. 88–52, § 3(a) (9)) by striking out each place it appeared "July 1, 1964" and inserting in lieu thereof— "July 1, 1965". Applicability: Indicated by the terms of the amendment. June 21, 1965, H.R. 8371, P.L. 89-44, § 501 (f), 79 Stat. 150: Amended Sec. 5701 (c) (1) (as amended by P.L. 88-348, § 2(a) (9)) by striking out "until July 1, 1965, and $3.50 per thousand on and after July 1, 1965". Effective Date: July 1, 1965. (Id., § 701(d), 79 Stat. 157.) SEC. 5702. DEFINITIONS (Revised 1958-72 Stat. 1415-1417): (a), (1), (m). (repealed) Effective Date: January 1, 1966. (Id., § 701 (d), 79 Stat. 157.) 670 Section 5702 (as revised by P.L. 85-859, § 202) read as follows (72 Stat. 1415–1417): "SEC. 5702. DEFINITIONS. "When used in this chapter "(a) MANUFACTURED TOBACCO.-'Manufactured tobacco' means tobacco (other than cigars and cigarettes) prepared, processed, manipulated, or packaged, for removal, or merely removed, for consumption by smoking or for use in the mouth or nose, and any tobacco (other than cigars and cigarettes), not exempt from tax under this chapter, sold or delivered to any person contrary to this chapter or regulations prescribed thereunder. "(b) CIGAR.-'Cigar' means any roll of tobacco wrapped in tobacco. "(c) CIGARETTE.-'Cigarette' means any roll of tobacco, wrapped in paper or any substance other than tobacco. "(d) TOBACCO PRODUCTS-Tobacco products' means manufactured tobacco, cigars, and cigarettes. "(e) MANUFACTURER OF TOBACCO PRODUCTS.-'Manufacturer of tobacco products' means any person who manufactures cigars or cigarettes, or who prepares, processes, manipulates, or packages, for removal, or merely removes, tobacco (other than cigars and cigarettes) for consumption by smoking or for use in the mouth or nose, or who sells or delivers any tobacco (other than cigars and cigarettes) contrary to this chapter or regulations prescribed thereunder. The term 'manufacturer of tobacco products' shall not include "(1) a person who in any manner prepares tobacco, or produces cigars or cigarettes, solely for his own personal consumption or use; or "(2) a proprietor of a customs bonded manufacturing warehouse with respect to the operation of such warehouse; or "(3) a farmer or grower of tobacco with respect to the sale of leaf tobacco of his own growth or raising, if it is in the condition as cured on the farm; or "(4) a bona fide association of farmers or growers of tobacco with respect to sales of leaf tobacco grown by farmer or grower member, if the tobacco so sold is in the condition as cured on the farm, and if the association maintains records of all leaf tobacco, acquired or received and sold or otherwise disposed of, in such manner as the Secretary or his delegate shall by regulations prescribe. (f) CIGARETTE PAPER.-'Cigarette paper' means paper, or any other material except tobacco, prepared for use as a cigarette wrapper. (g) CIGARETTE PAPERS.-Cigarette papers' means taxable books or sets of cigarette papers. "(h) CIGARETTE TUBE.-'Cigarette tube' means cigarette paper made into a hollow cylinder for use in making cigarettes. "(i) MANUFACTURER OF CIGARETTE PAPERS AND TUBES.-'Manufacturer of cigarette papers and tubes' means any person who makes up cigarette paper into books or sets containing more than 25 papers each, or into tubes, except for his own personal use or consumption. "(j) EXPORT WAREHOUSE.-'Export warehouse' means a bonded internal revenue warehouse for the storage of tobacco products and cigarette papers and tubes, upon which the internal revenue tax has not been paid, for subsequent shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, or for consumption beyond the jurisdiction of the internal revenue laws of the United States. "(k) EXPORT WAREHOUSE PROPRIETOR.-'Export warehouse proprietor' means any person who operates an export warehouse. "(1) TOBACCO MATERIALS.-"Tobacco materials' means tobacco other than manufactured tobacco, cigars, and cigarettes. "(m) DEALER IN TOBACCO MATERIALS.-'Dealer in tobacco materials' means any person who receives and handles tobacco materials for sale, shipment, or delivery to another dealer in such materials, to a manufacturer of tobacco products, or to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, or who receives tobacco materials, other than stems and waste, for use by him in the production of fertilizer, insecticide, or nicotine. The term 'dealer in tobacco materials' shall not include "(1) an operator of a warehouse who stores tobacco materials solely for a qualified dealer in tobacco materials, for a qualified manufacturer of tobacco products, for a farmer or grower of tobacco, or for a bona fide association of farmers or growers of tobacco; or "(2) a farmer or grower of tobacco with respect to the sale of leaf tobacco of his own growth or raising, or a bona fide association of farmers or growers of tobacco with respect to sales of leaf tobacco grown by farmer or grower members, if the tobacco so sold is in the condition as cured on the farm: Provided, That such association maintains records of all leaf tobacco acquired [Footnote 670 continued on following page] SEC. 5702 (revised 1958)-Continued (b)–(o)............... June 21, 1965, H.R. 8371, P.L. 89-44, § 502(b) (3) (A), 79 Stat. 151: (redesignated) Amended Sec. 5702 (as revised by P.L. 85-859, § 202, and as (a), (b). (in full) (c). (in part) amended by the above repeal of subsections (a), (1), and (m)) by redesignating subsections (b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (n), and (o) as subsections (a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k), and (1), respectively. Effective Date: January 1, 1966. (Id., § 701(d), 79 Stat. 157.) June 21, 1965, H.R. 8371, P.L. 89-44, § 808(a), 79 Stat. 164: Amended Sec. 5702 (as amended by P.L. 89-44, § 502(b)(3)(A)) by striking out subsections (a) and (b) (former subsections (b) and (c), respectively, redesignated as set forth above) and inserting in lieu thereof the following: "(a) CIGAR.-Cigar' means any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco (other than any roll of tobacco which is a cigarette within the meaning of subsection (b)(2)). "(b) CIGARETTE.-'Cigarette' means "(1) any roll of tobacco wrapped in paper or in any substance not containing tobacco, and "(2) any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in paragraph (1).” Effective Date: July 1, 1965. (Id., § 808(d) (1), 79 Stat. 165.) June 21, 1965, H.R. 8371, P.L. 89-44, § 502(b) (3) (B), 79 Stat. 151: Amended subsection (c) (former subsection (d) redesignated as set forth above) of Sec. 5702 (as revised by P.L. 85-859, § 202) by striking out "manufactured tobacco, cigars, and" and inserting in lieu thereof "cigars and". Effective Date: January 1, 1966. (Id., § 701(d), 79 Stat. 157.) Footnote 670—Continued. or received and sold or otherwise disposed of by the association, in such manner as the Secretary or his delegate shall by regulation prescribe; or "(3) a person who buys leaf tobacco on the floor of an auction warehouse, or who buys leaf tobacco from a farmer or grower, and places the tobacco on the floor of such a warehouse, or who purchases and sells warehouse receipts without taking physical possession of the tobacco covered thereby; or "(4) a qualified manufacturer of tobacco products with respect to tobacco materials received by him under his bond as such a manufacturer. "(n) REMOVAL or Remove.-'Removal' or 'remove' means the removal of tobacco products or cigarette papers or tubes from the factory or from internal revenue bond, as the Secretary or his delegate shall by regulation prescribe, or release from customs custody, and shall also include the smuggling or other unlawful importation of such articles into the United States. "(0) IMPORTER.-'Importer' means any person in the United States to whom nontaxpaid tobacco products or cigarette papers or tubes manufactured in a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States are shipped or consigned; any person who removes cigars or cigarettes for sale or consumption in the United States from a customs bonded manufacturing warehouse; and any person who smuggles or otherwise unlawfully brings tobacco products or cigarette papers or tubes into the United States." SEC. 5702 (revised 1958)-Continued (d)____ (in full) June 21, 1965, H.R. 8371, P.L. 89-44, § 502(b) (3) (C), 79 Stat. 151: Amended Sec. 5702 (as revised by P.L. 85-859, § 202, and amended as set forth above) by striking out subsection (d) (former subsection (e) redesignated as set forth above) and inserting in lieu thereof the following: "(d) MANUFACTURER OF TOBACCO PRODUCTS.-'Manufacturer of tobacco products' means any person who manufactures cigars or cigarettes, except that such term shall not include "(1) a person who produces cigars or cigarettes solely for his own personal consumption or use; or "(2) a proprietor of a customs bonded manufacturing warehouse with respect to the operation of such warehouse. Effective Date: January 1, 1966. (Id., § 701 (d), 79 Stat. 157.) SEC. 5704. EXEMPTION FROM TAX (Revised 1958-72 Stat. 14181419): (c) -- Do____ (redesignated) June 21, 1965, H.R. 8371, P.L. 89-44, § 502(b) (4) (A), 79 Stat. 151: Amended Sec. 5704 (as revised by P.L. 85-859, § 202) 671 by striking out subsection (c) (relating to tobacco materials shipped or delivered in bond). Effective Date: January 1, 1966. (Id., § 701(d), 79 Stat. 157.) June 21, 1965, H.R. 8371, P.L. 89–44, § 502(b)(4) (A), 79 Stat. 151: Amended Sec. 5704 (as amended by the above repeal of the original subsection (c)) by redesignating subsection (d) (relating to tobacco products, cigarette papers and tubes, and tobacco materials released in bond from customs custody) as subsection (c). 671 Section 5704 (as revised by P.L. 85-859, § 202) read as follows (72 Stat. 1418–1419): "SEC. 5704. EXEMPTION FROM TAX. "(a) TOBACCO PRODUCTS FURNISHED FOR EMPLOYEE USE OR EXPERIMENTAL PURPOSES.Tobacco products may be furnished by a manufacturer of such products, without payment of tax, for use or consumption by employees or for experimental purposes, in such quantities, and in such manner as the Secretary or his delegate shall by regulation prescribe. "(b) TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES TRANSFERRED OR REMOVED IN BOND FROM DOMESTIC FACTORIES AND EXPORT WAREHOUSES.-A manufacturer or export warehouse proprietor may transfer tobacco products and cigarette papers and tubes, without payment of tax, to the bonded premises of another manufacturer or export warehouse proprietor, or remove such articles, without payment of tax, for shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, or for consumption beyond the jurisdiction of the internal revenue laws of the United States; and manufacturers may similarly remove such articles for use of the United States; in accordance with such regulations and under such bonds as the Secretary or his delegate shall prescribe. "(c) TOBACCO MATERIALS SHIPPED OR DELIVERED IN BOND.-A dealer in tobacco materials or a manufacturer of tobacco products may ship or deliver tobacco materials, without payment of tax, to another such dealer or manufacturer, or to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States; or, in the case of tobacco stems and waste only, to any person for use by him as fertilizer or insecticide or in the production of fertilizer, insecticide, or nicotine; in accordance with such regulations and under such bonds as the Secretary or his delegate shall prescribe. "(d) TOBACCO PRODUCTS, CIGARETTE PAPERS AND TUBES, AND TOBACCO MATERIALS RELEASED IN BOND FROM CUSTOMS CUSTODY.-Tobacco products, cigarette papers and tubes, and tobacco materials, imported or brought into the United States, may be released from customs custody, without payment of tax, for delivery to a manufacturer of tobacco products or cigarette papers and tubes and such tobacco materials may be similarly released for delivery to a dealer in tobacco materials, in accordance with such regulations and under such bond as the Secretary or his delegate shall prescribe." SEC. 5704 (revised 1958)-Continued (c) (redesignated 1965)-Continued Do... (in full) (d) (redesignated as (c)) (e) (added) Effective Date: January 1, 1966. (Id., § 701(d), 79 Stat. 157.) June 21, 1965, H.R. 8371, P.L. 89-44, § 502(b) (4) (B), 79 Stat. 151: Amended Sec. 5704 (c) (former subsection (d) redesignated as indicated above) to read as follows: "(c) TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES RELEASED IN BOND FROM CUSTOMS CUSTODY.-Tobacco products and cigarette papers and tubes, imported or brought into the United States, may be released from customs custody, without payment of tax, for delivery to a manufacturer of tobacco products or cigarette papers and tubes, in accordance with such regulations and under such bond as the Secretary or his delegate shall prescribe." 672 Effective Date: January 1, 1966. (Id., § 701 (d), 79 Stat. 157.) June 21, 1965, H.R. 8371, P.L. 89-44, § 502(b)(4) (A), 79 Stat. 151: Amended Sec. 5704 (as revised by P.L. 85-859, § 202, and amended by the repeal of original subsection (c)) by redesignating subsection (d) as subsection (c), as indicated above. June 30, 1964, H.R. 8268, P.L. 88-342, § 1(b), 78 Stat. 234: Amended Sec. 5704 (relating to exemption from tobacco tax-as contained in the revision of Chapter 52 by P.L. 85-859, § 202) by adding at the end thereof the following new subsection (e): "(e) TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES EXPORTED AND RETURNED.-Tobacco products and cigarette papers and tubes classifiable under item 804.00 of title I of the Tariff Act of 1930 (relating to duty on certain articles previously exported and returned) may be released from customs custody, without payment of that part of the duty attributable to the internal revenue tax for delivery to a manufacturer of tobacco products or cigarette papers and tubes, in accordance with such regulations and under such bond as the Secretary or his delegate shall prescribe. Upon such release such products, papers, and tubes shall be subject to this chapter as if they had not been exported or otherwise removed from internal-revenue bond." 673 Applicability: Articles entered, or withdrawn from warehouse, for consumption after June 30, 1964-the date of enactment. (Id., § 2, 78 Stat. 234.) 672 With respect to the definition of "tobacco products", see section 5702(c) (former subsection (d) redesignated), as amended by P.L. 89-44, § 502(b) (3) (B), p. 943 above. 673 The Act of June 30, 1964 (H.R. 8268, P.L. 88-342, § 1(a), 78 Stat. 234) amended headnote 2 to subpart A of part 1 of schedule 8 of title I of the Tariff Act of 1930 (Tariff Schedules of the United States; 28 F.R., part II, Aug. 17, 1963; 77A Stat. 405, 406) by striking out "and" at the end of paragraph (a), by relettering paragraph (b) as paragraph (c), and by inserting after paragraph (a) the following new paragraph (b): "(b) tobacco products and cigarette papers and tubes classifiable under such item may be released from customs custody, without payment of that part of the duty attributable to the internal-revenue tax, for return to internal-revenue bond as provided by section 5704(e) of the Internal Revenue Code of 1954; and". |