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(b) OTHER LAWS APPLICABLE.-All provisions of law relating to the engraving, issuance, sale, accountability, cancellation, and destruction of tax-paid stamps provided for in the internal revenue laws shall, insofar as applicable and not inconsistent with this subchapter, be extended and made to apply to stamps provided for in section 2590 (c) (1).

(c) CROSS REFERENCE.

For general provisions relating to stamps, see part I of subchapter A of chapter 28 [sections 3300 and following].

SEC. 2593. UNLAWFUL POSSESSION.

(a) PERSONS IN GENERAL.-It shall be unlawful for any person who is a transferee required to pay the transfer tax imposed by section 2590 (a) to acquire or otherwise obtain any marihuana without having paid such tax; and proof that any person shall have had in his possession any marihuana and shall have failed, after reasonable notice and demand by the collector, to produce the order form required by section 2591 to be retained by him shall be presumptive evidence of guilt under this section and of liability for the tax imposed by section 2590 (a).

(b) GOVERNMENT AND STATE OFFICIALS. No liability shall be imposed by virtue of this section upon any duly authorized officer of the Treasury Department engaged in the enforcement of this subchapter and part VI of subchapter A of chapter 27, or upon any duly authorized officer of any State, or Territory, or of any political subdivision thereof, or the District of Columbia, or of any insular possession of the United States, who shall be engaged in the enforcement of any law or municipal ordinance dealing with the production, sale, prescribing, dispensing, dealing in, or distributing of marihuana. SEC. 2594. RECORDS, STATEMENTS, AND RETURNS.

(a) GENERAL REQUIREMENT.-Every person liable to any tax imposed by this subchapter or part VI of subchapter A of chapter 27 shall keep such books and records, render under oath such statements, make such returns, and comply with such rules and regulations as the Secretary may from time to time prescribe.

(b) RETURN BY REGISTRANTS OF MARIHUANA.—

For returns by registrants of marihuana, see section 3233 (a) of chapter 27.

SEC. 2595. INSPECTION OF RETURNS, ORDER FORMS, AND PRESCRIPTIONS.

The order forms and copies thereof and the prescriptions and records required to be preserved under the provisions of section 2591 and the statements or returns filed in the office of the collector of the district under the provisions of section 3233 shall be open to inspection by officers, agents, and employees of the Treasury Department duly authorized for that purpose, and such officers of any State or Territory, or of any political subdivision thereof, or the District of Columbia, or of any insular possession of the United States as shall be charged with the enforcement of any law or municipal ordinance regulating the production, sale, prescribing, dispensing, dealing in, or distributing of marihuana. Each collector shall

be authorized to furnish, upon written request, copies of any of the said statements or returns filed in his office to any of such officials of any State or Territory, or political subdivision thereof, or the District of Columbia, or any insular possession of the United States as shall be entitled to inspect the said statements or returns filed in the office of the said collector, upon the payment of a fee of $1 for each 100 words or fraction thereof in the copy or copies so requested.

SEC. 2596. PENALTIES.

Any person who is convicted of a violation of any provision of this subchapter or part VI of subchapter A of chapter 27 shall be fined not more than $2,000 or imprisoned not more than five years, or both, in the discretion of the court.

SEC. 2597. BURDEN OF PROOF.

It shall not be necessary to negative any exemptions set forth in this subchapter or part VI of subchapter A of chapter 27 in any complaint, information, indictment, or other writ or proceeding laid or brought under this subchapter or part VI of subchapter A of chapter 27 and the burden of proof of any such exemption shall be upon the defendant. In the absence of the production of evidence by the defendant that he has complied with the provisions of section 3231 relating to registration, or that he has complied with the provisions of section 2591 relating to order forms, he shall be presumed not to have complied with such provisions of such sections, as the case may be.

SEC. 2598. FORFEITURES.

(a) UNLAWFUL IMPORTATION, MANUFACTURE, OR TRANSFER.-Any marihuana which has been imported, manufactured, compounded, transferred, or produced in violation of any of the provisions of this subchapter or part VI of subchapter A of chapter 27 shall be subject to seizure and forfeiture and, except as inconsistent with the provisions of such subchapter and part, all the provisions of internal revenue laws relating to searches, seizures, and forfeitures are extended to include marihuana.

(b) OWNERSHIP BY VIOLATORS.-Any marihuana which may be seized by the United States Government from any person or persons charged with any violation of this subchapter or part VI of subchapter A of chapter 27 shall upon conviction of the person or persons from whom seized be confiscated by and forfeited to the United States.

(c) UNKNOWN OWNERSHIP.-Any marihuana seized or coming into the possession of the United States in the enforcement of this subchapter or part VI of subchapter A of chapter 27, the owner or owners of which are unknown, shall be confiscated by and forfeited. to the United States.

(d) DISPOSAL.-The Secretary is hereby directed to destroy any marihuana confiscated by and forfeited to the United States under this section or to deliver such marihuana to any department, bureau, or other agency of the United States Government, upon proper application therefor, under such regulations as may be prescribed by the Secretary.

SEC. 2599. REGULATIONS.

The Secretary is authorized to make, prescribe, and publish all necessary rules and regulations for carrying out the provisions of this subchapter and part VI of subchapter A of chapter 27.

SEC. 2600. DELEGATION OF POWERS.

The Secretary is authorized to confer or impose any of the rights, privileges, powers, and duties conferred or imposed upon him by this subchapter or part VI of subchapter A of chapter 27 upon such officers or employees of the Treasury Department as he shall designate or appoint.

SEC. 2601. OTHER LAWS APPLICABLE.

All provisions of law (including penalties) applicable in respect of the taxes imposed by section 2550 of this chapter and section 3220 of chapter 27 shall, insofar as not inconsistent with this subchapter and part VI of subchapter A of chapter 27, be applicable in respect of the taxes imposed by such subchapter and part.

SEC. 2602. TERRITORIAL EXTENT OF LAW.

The provisions of this subchapter and part VI of subchapter A of chapter 27 shall apply to the several States, the District of Ĉolumbia, the Territory of Alaska, the Territory of Hawaii, and the insular possessions of the United States

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SEC. 2603. ADMINISTRATION IN INSULAR POSSESSIONS.

(a) PUERTO RICO.-In Puerto Rico the administration of this subchapter and part VI of subchapter A of chapter 27, the collection of the special taxes and transfer taxes, and the issuance of the order forms provided for in section 2591 shall be performed by the appropriate internal revenue officers of that government, and all revenues collected under this subchapter and part VI of subchapter A of chapter 27 in Puerto Rico shall accrue intact to the general government thereof.

(b) VIRGIN ISLANDS.-The President shall be authorized and directed to issue such Executive orders as will carry into effect in the Virgin Islands the intent and purpose of this subchapter and part VI of subchapter A of chapter 27 by providing for the registration with appropriate officers and the imposition of the special and transfer taxes upon all persons in the Virgin Islands who import, manufacture, produce, compound, sell, deal in, dispense, prescribe, administer, or give away marihuana.

SEC. 2604. DEFINITIONS.

For definitions of the following, see the subsections of section 3238 indicated below:

Person, subsection (a).

Producer, subsection (c).

Marihuana, subsection (b).

Transfer or transferred, subsection (d).

SUBCHAPTER D-DELEGATION OF POWERS AND DUTIES BY THE SECRETARY

SEC. 2606. AUTHORIZATION.

The Secretary is authorized to confer or impose any of the rights, privileges, powers, and duties in respect of narcotic drugs conferred upon him by subchapters A and B of this chapter and part V of subchapter A of chapter 27 upon the Commissioner of Narcotics, or any officer or employee of the Bureau of Narcotics, and to confer or impose upon the Commissioner of Internal Revenue, or any of the officers or employees of the Bureau of Internal Revenue, any of such rights, privileges, powers, and duties which, in the opinion of the Secretary, may be necessary in connection with internal revenue taxes.

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CHAPTER 24-WHITE PHOSPHORUS MATCHES

SEC. 2650. WHITE PHOSPHORUS DEFINED.

For the purposes of this chapter, the words "white phosphorus" shall be understood to mean the common poisonous white or yellow phosphorus used in the manufacture of matches and not to include the nonpoisonous forms or the nonpoisonous compounds of white or yellow phosphorus.

SEC. 2651. TAX.

(a) RATE. Upon white phosphorus matches manufactured, sold, or removed there shall be levied and collected a tax at the rate of 2 cents per 100 matches.

(b) BY WHOM PAID.-The tax imposed by subsection (a) shall be paid by the manufacturer.

(c) How PAID.—

(1) STAMPS. The tax imposed by subsection (a) shall be represented by adhesive stamps.

(2) ASSESSMENT.-Whenever any manufacturer of white phosphorus matches sells or removes any such matches without the use of the stamps required by this chapter, it shall be the duty of the Commissioner, subject to the limitations prescribed in section 3312, upon satisfactory proof, to estimate the amount of tax which has been omitted to be paid, and to make an assessment therefor and certify the same to the collector, who shall collect the same according to law. The tax so assessed shall be in addition to the penalties imposed by law for such sale or removal.

SEC. 2652. STAMPS.

(a) PREPARED BY COMMISSIONER.-The Commissioner shall cause to be prepared suitable and special stamps for payment of the tax on white phosphorus matches provided for by this chapter.

(b) FURNISHED BY COLLECTOR. Such stamps shall be furnished to collectors, who shall sell the same only to duly qualified manufac

turers.

(c) ACCOUNT KEPT BY COLLECTOR. Every collector shall keep an account of the number and denominate values of the stamps sold by him to each manufacturer.

(d) OTHER LAWS APPLICABLE.

For provision making other laws relating to stamps apply to the stamps provided by this section, see section 2659.

SEC. 2653. REQUIREMENTS ON MANUFACTURERS. (a) PACKING.

(1) NUMBER IN PACKAGES.-All white phosphorus matches shall be packed by the manufacturer thereof in packages containing 100, 200, 500, 1,000, or 1,500 matches each, which shall then be packed by the manufacturer in packages containing not less than 14,400 matches.

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