SUBPART B-MANUFACTURERS AND CUSTOMS OFFICERS SEC. 2180. MANUFACTURERS. (a) MANUFACTURING WITHOUT BOND, PENALTY.-Every person who manufactures cigars or cigarettes of any description without first giving bond as required in section 2033 shall be fined not less than $100 nor more than $5,000, and imprisoned not less than three months nor more than five years. (b) SELLING OR REMOVING WITHOUT BOND, FORFEITURE.-Every manufacturer of cigars or cigarettes who removes or sells any cigars or cigarettes without having given bond as such manufacturer shall, in addition to the penalties elsewhere provided in this chapter for such offenses, forfeit to the United States all raw material and manufactured or partly manufactured tobacco, cigars, and cigarettes, 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. (c) NEGLECT TO PUT UP SIGN, PENALTY.-Any manufacturer of cigars or cigarettes neglecting to place and keep on the side or end of the building within which his business is carried on, so that it can be distinctly seen, the sign required under section 2034 shall, on conviction, be fined not less than $100 nor more than $500. (d) REFUSAL OR WILLFUL NEGLECT TO DELIVER INVENTORY, PENALTY. In case any person engaged in the manufacture of cigars or cigarettes refuses or willfully neglects to deliver the inventory required under section 2036, he shall be fined not less than $500 nor more than $5,000, and imprisoned not less than six months nor more than three years. (e) REFUSAL OR WILLFUL NEGLECT TO KEEP BOOKS, PENALTY.-In case any person engaged in the manufacture of cigars or cigarettes refuses or willfully neglects to keep the account required under section 2037, he shall be fined not less than $500 nor more than $5,000, and imprisoned not less than six months nor more than three years. (f) REFUSAL OR WILLFUL NEGLECT TO FURNISH A MONTHLY ABSTRACT, PENALTY.-In case any person engaged in the manufacture of cigars or cigarettes refuses or willfully neglects to furnish the abstract required under section 2038, he shall be fined not less than $500 nor more than $5,000, and imprisoned not less than six months nor more than three years. (g) SALE OR REMOVAL WITHOUT PROPER STAMPS.— (1) FORFEITURE.-Every manufacturer of cigars or cigarettes who removes or sells any cigars or cigarettes without the proper stamps denoting the tax thereon shall, in addition to the penalties elsewhere provided in this chapter for such offenses, forfeit to the United States all raw material and manufactured or partly manufactured tobacco, cigars, and cigarettes, and all machinery, tools, implements, apparatus, fixtures, boxes, barrels, and all other materials which shall be found in his possession or in his manufac 85186-49- -9 tory, 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. (2) PENALTY. For penalties for such offenses, see section 2171 (b). (h) FALSE ENTRIES, FORFEITURE.-Every manufacturer of cigars or cigarettes who makes false or fraudulent entries of the manufacture or sale of any cigars or cigarettes, or makes false or fraudulent entries of the purchase or sale of leaf tobacco, tobacco stems, or other material used in the manufacture of cigars or cigarettes, 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, cigars, and cigarettes, 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. (i) AFFIXING FALSE OR FRAUDULENT STAMPS. (1) FORFEITURE.-Every manufacturer of cigars or cigarettes who affixes any false, forged, spurious, fraudulent, or counterfeit stamp, or imitation of any stamp, required by law to any box containing any cigars or cigarettes shall, in addition to the penalties elsewhere provided for such offenses, forfeit to the United States all raw material and manufactured or partly manufactured tobacco, cigars, and cigarettes, 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. (2) PENALTY. For penalty for such offense, see section 2172 (b). (j) OMISSION OR REMOVAL OF LABEL, PENALTY.-Every manufacturer of cigars or cigarettes who neglects to affix the label required under section 2111 (d) (1) to any box containing cigars or cigarettes made by or for him, or sold or offered for sale by or for him, and every person who removes any such label, so affixed, from any such box, shall be fined $50 for each box in respect to which such offense is committed. (k) COLLUSION IN CASE OF MANUFACTURE ON COMMISSION, SHARES, OR CONTRACT.-In case of fraud on the part of either of the persons referred to in section 2001 (b) (2), or of any collusion on their part with intent to defraud the revenue (1) FORFEITURE. Such material, cigars, or cigarettes shall be forfeited to the United States; and (2) PENALTY. Every person engaged in such fraud or collusion shall be fined not less than $100 nor more than $5,000, and imprisoned for not less than six months nor more than three years. (1) OFFENSES NOT SPECIFICALLY COVERED.-If any manufacturer of cigars or cigarettes shall knowingly or willfully omit, neglect, or refuse to do or cause to be done any of the things required by law in the carrying on or conducting of his business, or shall do anything by this title prohibited, if there be no specific penalty or punishment imposed by any other section of this chapter for the neglecting, omitting, or refusing to do, or for the doing or causing to be done, the thing required or prohibited (1) PENALTY.-He shall pay a penalty of $1,000; and (2) FORFEITURE. All tobacco, cigars, or cigarettes found in his manufactory shall be forfeited to the United States. SEC. 2181. CUSTOMS OFFICERS. Every officer of customs who permits any cigars or cigarettes imported into the United States from foreign countries to pass out of his custody or control, without compliance by the owner or importer thereof with the provisions of section 2130 (b), shall be fined not less than $1,000 nor more than $5,000, and imprisoned not less than six months nor more than three years. SUBCHAPTER F-MISCELLANEOUS PROVISIONS SEC. 2190. DISPOSAL OF FORFEITED TOBACCO, SNUFF, CIGARS, AND CIGARETTES. In case it shall appear that any abandoned, condemned, or forfeited tobacco, snuff, cigars, or cigarettes, 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, he is authorized to order the destruction of such tobacco, snuff, cigars, or cigarettes 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 may prescribe, or he may, under such regulations, order delivery of such tobacco, snuff, cigars, or cigarettes, without payment of any tax, to any hospital maintained by the United States for the use of present or former members of the military or naval forces of the United States. SEC. 2191. INSPECTION OF CIGARS AND CIGARETTES. The Commissioner may prescribe such regulations for the inspection of cigars 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. SEC. 2192. INSPECTION OF PEDDLER'S CERTIFICATE. Any internal revenue agent may demand production of and inspect the collector's certificate for peddlers. SEC. 2193. RECORD OF MANUFACTURERS. (a) TOBACCO AND SNUFF.-Every collector shall keep a record, in a book or books provided for that purpose, to be open to the inspection of only the proper officers of internal revenue, including deputy col lectors and internal revenue agents, of the name and residence of every person engaged in the manufacture of tobacco or snuff in his district, the place where such manufacture is carried on, and the number of the manufactory; and he shall enter in said record, under the name of each manufacturer, a copy of every inventory required by law to be made by such manufacturer, and an abstract of his monthly returns. (b) CIGARS AND CIGARETTES.-Every collector shall keep a record, in a book provided for that purpose, to be open to the inspection of only the proper officers of internal revenue, including deputy collectors and internal revenue agents, of the name and residence of every person engaged in the manufacture of cigars or cigarettes in his district, the place where such manufacture is carried on, and the number of the manufactory; and he shall enter in said record, under the name of each manufacturer, an abstract of his inventory and monthly returns. SEC. 2194. RECORDS, STATEMENTS, AND RETURNS. Every person liable to any tax imposed by this chapter, or for the collection thereof, shall keep such records, render under oath such statements, make such returns, and comply with such rules and regulations, as the Commissioner with the approval of the Secretary may from time to time prescribe. [For right of Secretary of Agriculture to have access to tobacco records to obtain names and addresses of growers selling tobacco on auction markets, see section 5 of the act of January 14, 1929 (45 Stat. 1080; 7 U. S. C. 505) and section 5 of the Tobacco Inspection Act (49 Stat. 732; 7 U. S. C. 511d).] SEC. 2195. RULES AND REGULATIONS. For authority of the Commissioner, with the approval of the Secretary, to prescribe and publish all needful rules and regulations for the enforcement of this chapter, see section 3791. SEC. 2196. OTHER LAWS APPLICABLE. All administrative, special, or stamp provisions of law, including the law relating to the assessment of taxes, so far as applicable, shall be extended to and made a part of this chapter. SEC. 2197. TERRITORIAL EXTENT OF LAW. (a) IN GENERAL.-The internal revenue laws imposing taxes on tobacco, snuff, cigars, or cigarettes shall be held to extend to such articles produced anywhere within the exterior boundaries of the United States, whether the same be within a collection district or not. (b) EXPORTATION FREE OF INTERNAL REVENUE TAX.-The shipment or delivery of manufactured tobacco, snuff, cigars, cigarettes, or cigarette papers or tubes, for consumption beyond the jurisdiction of the internal revenue laws of the United States, as defined by subsection (a), shall be deemed exportation within the meaning of the internal revenue laws applicable to the exportation of such articles without payment of internal revenue tax. SEC. 2198. REDEMPTION OF STAMPS ON PACKAGES WITHDRAWN FROM MARKET. Internal revenue stamps affixed to packages of tobacco, snuff, cigars, or cigarettes which, after removal from factory or customhouse for * * consumption or sale, the manufacturer or importer withdraws from the market, may, under regulations prescribed by the Commissioner 1 with the approval of the Secretary, be redeemed if claim for their redemption is presented by the manufacturer or importer within three years after the year of issue as indicated by the number or symbol printed thereon by the Government, irrespective of the date of their purchase. Stamps of any issue shall not be sold until those of the previous year's issue have been disposed of or later than one year after the year of issue. SEC. 2199. CROSS REFERENCES. For general provisions relating to stamps, information and returns, assessment, collection, and refunds, see sections 3300 to 3313 and chapters 34 to 37, inclusive [sections 3600 and following]. 1 The words "of Internal Revenue" are omitted. 2 The words "of the Treasury" are omitted. |