[CIRCULAR No. 19.] REGULATIONS CONCERNING THE INSPECTION AND STAMPING OF CIGARS. TREASURY DEPARTMENT, OFFICE OF INTERNAL REVENUE, WASHINGTON, August 9, 1864. The law provides no mode by which the Inspector shall be legally informed of the value of the cigars he is called upon to inspect. He is, therefore, required in making his valuation to act upon his own knowledge of the market value of the inspected article, exclusive of the tax, of which value he should be careful to keep himself well informed. After the cigars have been packed in bundles, boxes, or packages, in the shape in which they are exhibited for sale, or sold, the Inspector will affix the stamp, indicating the rate of tax according to the value of the cigars, EXCLUSIVE OF THE TAX, pursuant to the 94th section of the act of Congress. In estimating the value he will include the cost of production, packing, boxing, inspecting, and whatever may be properly regarded as a part of the expense of putting the commodity into a complete and final condition for the market. And when the cigars have once been packed, labelled, and stamped, the packages cannot be broken, or the cigars repacked, or divested of the stamps affixed to such packages or boxes, while in the possession, control, or custody of the manufacturer, or his agent or agents, without rendering them liable for a re-inspection; and, where the value of the cigars is found to be more than was fixed on the first inspection, stamps denoting higher rates of tax must be affixed; and any such re-packing or removal of the Inspector's stamp without such re-inspection must be regarded as a fraudulent transaction, rendering such cigars liable to seizure and forfeiture. For reasons stated above, the Inspector will affix to all cigars, which he values at $3, $4, and $5, a stamp denoting a tax of $3. On cigars which he values above $5 and up to $15, he will affix a stamp denoting a tax of $8. On cigars which he values above $15 and up to $30, he will affix a stamp denoting a tax of $15. On cigars which he values above $30 and up to $45, he will affix a stamp denoting a tax of $25; and on cigars which he values above $45, he will affix a stamp denoting a tax of $40 per thousand. The Inspector will visit, as often as may be deemed necessary by the Assessor, each manufactory of cigars in his district. Before stamping he will satisfy himself that each package or box is entirely made up of cigars of one quality. Care will be exer cised in affixing the stamps to so attach them to the bundle, package, or box, that they cannot be opened or broken without effacing or destroying the stamps. When a single stamp will not sufficiently protect a box, bundle, or package, the Inspector is required to attach so many stamps as will. No other person than an Inspector, duly appointed by the Secretary of the Treasury, is authorized to affix stamps, and the affixing of stamps by any other person will render the cigars liable to forfeiture under section 94, and any Inspector who may consent to or may have knowledge of such fraudulent stamping, will, on the facts being brought to the knowledge of this office, be dismissed. spector. Whenever an Inspector, by sickness or otherwise, becomes Disability of indisqualified for the performance of his duty, and his place cannot be conveniently supplied by another Inspector, notice must immediately be given, by the Assessor, to this office, and, if necessary, the nomination of another person as Inspector forwarded to take his place. In no case will it be proper for an Inspector to inspect or affix stamps on cigars of his own manufacture. Inspector not to affix stamp to ci gars of his own manufacture. Record of inspec tion. The Inspector will also keep a record of all cigars which he inspects, and the rates of tax to which they are liable, giving at the same time the names and places of business of the persons or firms for whom the same are inspected, and the number for each, and at the end of each month he will render to the Assessor of the district, on the form provided by this office, a full account of all the cigars he has thus inspected and stamped. The Circular of July 14th, relating to stamps on cigars, &c., is Circular of July hereby superseded so far as relates to the schedule by which Ínspectors shall determine the rate of tax. 14th. JOSEPH J. LEWIS, Commissioner. [SPECIAL, No. 5.] INSTRUCTIONS CONCERNING THE ASSESSMENT OF TOBACCO, SNUFF, AND CIGARS. Instructions re lating to fraudu snuff. TREASURY DEPARTMENT, OFFICE OF INTERNAL REVENUE, WASHINGTON, August 9, 1864. Information has been given to this office that many manufaclent sales of tobac- turers have made returns. as for the month of June or for co, cigars, and previous months of tobacco, snuff, and cigars not bona fide sold, or removed for consumption or sale, during those months. It has been stated that colorable sales have been made, and taxes paid according to the rates under the former acts, with the view of avoiding the additional tax required by the act of June 30, 1864. Sales made by a manufacturer to his foreman, or to some convenient friend or man of straw, with the view of a re-transfer to the manufacturer, or of a sale afterwards to his use, though possession may have been delivered to such foreman or other person, will not affect the right of the Government to the increased tax. Such sale is fraudulent, so far as the Government is concerned, whatever it may be between the parties, and ought not to be recognized as valid by the officers of Internal Revenue. Upon the sale, or consumption, or removal for consumption or sale, or removal from the place of manufacture of such articles after the 1st of July, the tax thereon became due and must be paid at the increased rates, pursuant to the last act. Articles which in June or previous months were the subjects of such colorable sales, remaining actually the property of the manufacturer, though in other hands for his use, and actually sold during the month of July, ought to have been returned as belonging in the weekly returns of that month; and Assessors and Assistant Assessors should be careful to see that those returns include all such articles as really belonged to the manufacturer, though they may have been subjects of pretended sales and deliveries. There may be articles on hand, which, in order to avoid the increased tax, were pretended to be sold, and which may be hereafter actually sold. These ought to be hereafter returned, and the same caution, herein enjoined as to the returns for the month of July, ought to be observed as to the returns of subsequent months. This course is rendered necessary in order to secure to the Government its just dues, and to protect the fair dealer from fraudulent competition. It is therefore the duty of Assessors to scrutinize carefully all returns which have been made by manufacturers of tobacco, snuff, and cigars, since the 1st of July, or which may hereafter be made. Under section 90, manufacturers of tobacco, snuff, and cigars are required to make weekly returns of the amounts of each made or manufactured, and sold or consumed, or removed for consumption or sale, or removed from the place of manufacture, during the week; and also render an account of the full value of the same as shown by actual sales. Whenever it shall appear that cigars have actually been sold by the manufacturer at prices which would render them liable to a higher rate of tax than that denoted by the Inspector's stamp, or when it shall be discovered that articles have been fraudulently returned under former rates, and that the manufacturer is legally liable to the increased tax under the instructions herein given, the assessor will immediately proceed to reassess such cigars for the additional tax to which actual sales show them to have been liable. The assessment and collection of such additional tax may be enforced as provided in section 84, or proceedings may be commenced under section 48, or section 89, as either may be applicable, and an investigation may be had under section 14. The enclosed declaration, required by section 91, has been prepared by the Commissioner. This declaration should have been made and signed by every manufacturer of tobacco, snuff, and cigars, on the last day of July. In all cases where it has not yet been made and signed substantially in the form now prescribed by the Commissioner, Assessors must be particular to require it now as of that time, and at the end of every month hereafter. It is evidently contemplated by the law that this declaration may be an essential aid in the discovery of possible fraud, and it is therefore of the utmost importance that it be strictly required of every manufacturer of tobacco, cigars, &c. Each declaration will be carefully dated and filed in the office of the Assessor, subject to the inspection of any officer of Internal Revenue. JOSEPH J. LEWIS, Commissioner. TO BE LEFT WITH PARTY SIGNING DECLARATION. 24 * DECLARATION BY THE MANUFACTURER OF TOBACCO, SNUFF, OR CIGARS. Declaration by I.___ manufacturer of snuff. do solemnly declare, tobacco, cigars, and that during the period commencing on the 1st day of July, 1864, and ending on the 31st day of July, 1864, no tobacco, snuff, or cigars, of any description whatsoever, which were subject or liable to any tax under the act to provide internal revenue to support the Government, to pay interest on the public debt, and for other purposes, approved June 30, 1864, and which, during that time, were made or manufactured or owned by, or were in the possession of the undersigned, or of the firm of at of which I am a member, doing business were removed, carried, or sent, or caused or suffered or known to have been removed, carried, or sent, from the premises of the undersigned, or of the firm of which I am a member, either by myself, or any member, agent, or employé of myself or the firm aforesaid, except such of said articles as were duly assessed, according to the provisions of said act, and the duties imposed on said articles by said act fully paid, and except also such as were removed under bond, according to law. NOTE.-When a person requires time to make a special or additional return to the assessor, in order to enable him consistently to sign the above declaration, further and reasonable time should be given for that purpose. |