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 "Îumber" 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 customs duties, 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;

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(d) [APPLICABILITY TO PUERTO RICO.-1 * * 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."

(c) [PARTIAL PAYMENTS.-]

(1) In the case of (A) a lease, (B) a contract for the sale of an article wherein it is provided that the price shall be paid by installments and title to the article sold does not pass until a future date notwithstanding partial payment by installments, (C) a conditional sale, or (D) a chattel mortgage arrangement wherein it is provided that the sales price shall be paid in installments, there shall be paid upon each payment with respect to the article that portion of the total tax which is proportionate to the portion of the total amount to be paid represented by such payment.

(2) In the application of paragraph (1) to the articles with respect to which the rate of tax is increased by the Revenue Act of 1941 or by the Revenue Act of 1940, where the lease, contract of sale, or conditional sale, and delivery thereunder

(A) was made before July 1, 1940, the total tax referred to in paragraph (1) shall be the tax at the rate in force on June 30, 1940, and not at any greater rate; or

(B) was made after June 30, 1940, and before October 1, 1941, the total tax referred to in paragraph (1) shall be the tax at the rate in force on September 30, 1941, and not at any greater rate.

(3) Despite the provisions of paragraph (1), no tax shall be imposed with respect to any article not taxable under the law in existence on the day before the date of the enactment of the Revenue Act of 1941, if with respect to such article the lease, contract for sale, or conditional sale, and delivery thereunder, was made before October 1, 1941.

[The Revenue Act of 1941 was enacted September 20, 1941.

For application of section 3441 (c) to articles subject to wartime rates, see section 1652.]

(d) [EXCEPTION-ELECTRICAL ENERGY.-]The provisions of this section shall not be applicable with respect to the tax imposed by section 3411.

SEC. 3442. TAX-FREE SALES.

Under regulations prescribed by the Commissioner with the approval of the Secretary, no tax under this chapter shall be imposed with respect to the sale of any article

(1) for use by the vendee as material in the manufacture or production of, or as a component part of, an article enumerated in this chapter;

(2) for resale by the vendee for such use by his vendee, if such article is in due course so resold;

(3) for the exclusive use of any State, Territory of the United States, or any political subdivision of the foregoing, or the District of Columbia.

For the purposes of this chapter, the manufacturer or producer to whom an article is sold under paragraph (1) or resold under paragraph (2) shall be considered the manufacturer or producer of such article. The provisions of paragraphs (1) and (2) shall not apply with respect to tires, inner tubes, or automobile radios taxable under section 3404.

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

For power of the Secretary to authorize exemptions as to articles purchased for the exclusive use of the United States, see section 307 (c) of the Revenue Act of 1943 (58 Stat. 66), as amended by section 303 of the Revenue Act of 1945 (59 Stat. 576).]

SEC. 3443. CREDITS AND REFUNDS.

(a) [AUTHORIZATION.-JA credit against tax under this chapter, or a refund, may be allowed or made

(1) [USE IN FURTHER MANUFACTURE.-]To a manufacturer or producer, in the amount of any tax under this chapter which has been paid with respect to the sale of any article (other than a tire, inner tube, or automobile radio taxable under section 3404) purchased by him and used by him as material in the manufacture or production of, or as a component part of, an article with respect to which tax under this chapter has been paid, or which has been sold free of tax by virtue of section 3442, relating to tax-free sales;

(2) [READJUSTED SALE PRICE.-] To any person who has paid tax under this chapter with respect to an article, when the price on which the tax was based is readjusted by reason of return or repossession of the article or a covering or container, or by a bona fide discount, rebate, or allowance, in the amount of that part of the tax proportionate to the part of the price which is refunded or credited;

(3) [SALE FOR GOVERNMENTAL, SEA STORE, AND CERTAIN OTHER USES. To a manufacturer, producer, or importer, in the amount of tax paid by him under this chapter with respect to the sale of any article to any vendee, if the manufacturer, producer, or importer has in his possession such evidence as the regulations may prescribe that

(A) such article was, by any person

(i) resold for the exclusive use of any State, Territory of the United States, or any political subdivision of the foregoing, or the District of Columbia or, in the case of musical instruments embraced in section 3404 (d), resold for the use of any religious or nonprofit educational institution for exclusively religious or educational pur

poses;

(ii) used or resold for use as fuel supplies, ships' stores, sea stores, or legitimate equipment on vessels of war of the United States or of any foreign nation, vessels employed in the fisheries or in the whaling business, or actually engaged in foreign trade or trade between the Atlantic and Pacific ports of the United States or between the United States and any of its possessions;

(iii) in the case of products embraced in paragraph (2) of section 3412 (c) used or resold for use otherwise than as fuel for the propulsion of motor vehicles, motor boats, or airplanes, and otherwise than in the production of such fuel: Provided, however, That no credit or refund shall be allowed or made under this paragraph in the

case of sales or uses of products commonly or commercially known or sold as gasoline, including casinghead and natural gasoline;

(iv) in the case of lubricating oils, used or resold for nonlubricating purposes;

(v) in the case of unexposed motion picture films, used or resold for use in the making of news reel motion picture films.

(B) the manufacturer, producer, or importer has repaid or agreed to repay the amount of such tax to the ultimate vendor or has obtained the consent of the ultimate vendor to the allowance of the credit or refund;

(b) [REGULATIONS.-] Credit or refund under subsection (a) shall be allowed or made only upon compliance with regulations prescribed by the Commissioner with the approval of the Secretary.

(c) [INTEREST.-] Interest shall be allowed at the rate of 6 per centum per annum with respect to any amount of tax under this chapter credited or refunded, except that no interest shall be allowed with respect to any amount of tax credited or refunded under the provisions of subsection (a) hereof.

(d) [CONDITIONS OF ALLOWANCE.-] No overpayment of tax under this chapter shall be credited or refunded (otherwise than under subsection (a)), in pursuance of a court decision or otherwise, unless the person who paid the tax establishes, in accordance with regulations prescribed by the Commissioner with the approval of the Secretary, (1) that he has not included the tax in the price of the article with respect to which it was imposed, or collected the amount of tax from the vendee, or (2) that he has repaid the amount of the tax to the ultimate purchaser of the article, or unless he files with the Commissioner written consent of such ultimate purchaser to the allowance of the credit or refund.

SEC. 3444. USE BY MANUFACTURER, PRODUCER, OR IMPORTER. (a) [GENERAL RULE.-] If

(1) any person manufactures, produces, or imports an article other than a tire, inner tube, or automobile radio taxable under section 3404 and uses it (otherwise than as material in the manufacture or production of, or as a component part of, another article to be manufactured or produced by him which will be taxable under this chapter or sold free of tax by virtue of section 3442, relating to tax-free sales), or

(2) any person manufacturers, produces, or imports a tire, inner tube, or automobile radio taxable under section 3404 and sells it on or in connection with, or with the sale of, an article taxable under section 3403 (a) or (b), relating to the tax on automobiles, or uses it,

he shall be liable for tax under this chapter in the same manner as if such article was sold by him, and the tax (if based on the price for which the article is sold) shall be computed on the price at which such or similar articles are sold, in the ordinary course of trade, by manufacturers, producers, or importers thereof, as determined by the Commissioner.