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pounds per thousand) shall put up all the cigarettes and such small cigars that he manufactures or has manufactured for him, and sells or removes for consumption or sale, in packages or parcels containing five, eight, ten, twelve, fifteen, sixteen, twenty, twenty-four, forty, fifty, eighty, or one hundred cigarettes each.

(3) EXCEPTION IN CASE OF CIGARS OR CIGARETTES FOR EXPORT.--Cigars or cigarettes packed expressly for export, and which shall be exported to a foreign country under the restrictions and regulations prescribed by the Commissioner and approved by the

Secretary, shall be exempt from the provisions of this subsection. (b) MATERIAL.-Wood, metal, paper, or other materials may be used separately or in combination for packing cigars or cigarettes, under such regulations as the Commissioner may establish.

(c) ENCLOSURES AND DESIGNS.-No package of cigars or cigarettes prescribed by law shall be permitted to have packed in or attached to or connected with them, nor affixed to, branded, stamped, marked, written, or printed upon them, any paper, certificate, or instrument purporting to be or represent a ticket, chance, share or interest in, or dependent upon, the event of a lottery, nor any indecent or immoral picture, representation, print, or words, and any violation of the provisions of this subsection shall subject the offender to the penalties and punishments provided by section 2180 (1). (d) LABELS.

(1) INDICATING COMPLIANCE WITH LAW.—Every manufacturer of cigars shall securely affix, by pasting on each box containing cigars manufactured by or for him, a label, on which shall be printed, besides the number of the manufactory and the district and State in which it is situated, these words:

"NOTICE.-The manufacturer of the cigars herein contained has complied with all the requirements of law. Every person is cautioned not to use either this box for cigars again, or the stamp thereon again, nor to remove the contents of this box without destroying said stamp, under the penalties

provided by law in such cases." Cigars packed expressly for export, and which shall be exported to a foreign country under the restrictions and regulations prescribed by the Commissioner and approved by the Secretary, shall be exempt from the provisions of this subsection. Cigarettes shall be held to be cigars under the meaning of paragraph (1) of this subsection.

(2) INDICATING CLAUSE UNDER WHICH TAX PAID.—The Commissioner may, by regulation, require the manufacturer or importer to affix to each box, package, or container a conspicuous label indicating the clause of section 2000 under which the cigars therein contained have been tax-paid, which must correspond with the

tax-paid stamp on such box or container. (e) FACTORY BRAND.

(1) REQUIREMENT.—Every box of cigars or cigarettes shall, before removal from any manufactory or place where cigars or cigarettes are made, have stamped, indented, burned, or impressed into each box, in a legible and durable manner, the number of

the cigars or cigarettes contained therein, the number of the manufactory, and the number of the district and the State.

(2) EXCEPTION IN CASE OF EXPORT PACKAGES.—Cigars or cigarettes packed expressly for export, and which shall be exported to a foreign country under the restrictions and regulations prescribed by the Commissioner and approved by the Secretary, shall be exempt from the provisions of this subsection. (f) EXEMPTION IN CASE OF CIGARS OR CIGARETTES USED BY EMPLOYEES. Each employee of a manufacturer of cigars or cigarettes shall be permitted to use, for personal consumption and for experimental purposes, not to exceed 21 cigars or cigarettes per week without the manufacturer of cigars or cigarettes being required to pack the same in boxes or to stamp or pay any internal revenue tax thereon, such exemption to be allowed under such rules and regulations as the Secretary may prescribe. SEC. 2112. STAMPS. (a) AFFIXING AND CANCELING.– (1) MODE.

(A) CIGARETTES AND SMALL CIGARS.-Every manufacturer of cigarettes (including small cigars weighing not more than three pounds per thousand) shall securely affix to each of the packages or parcels described in section 2111 (a) (2) a suitable stamp denoting the tax thereon and shall properly cancel the same prior to sale or removal for consumption or sale under such regulations as the Commissioner, with the approval of the Secretary, shall prescribe.

(B) CIGARS.-

For authority of Commissioner to prescribe the method for affixing and canceling cigar stamps, see sections 3301 and 3303. (2) FURNISHING OF INSTRUMENTS.-The instruments or other means prescribed under section 3301 (a) for attaching, protecting, and canceling stamps for cigars and cigarettes shall be furnished by the United States to the persons using the stamps to be affixed therewith under such regulations as the Commissioner may

prescribe. (b) ISSUE FOR RESTAMPING.- The Commissioner may, under regulations prescribed by him with the approval of the Secretary, issue stamps for restamping packages of cigars and cigarettes which have been duly stamped but from which the stamps have been lost or destroyed by unavoidable accident.

(c) SUPPLY.—The stamps provided for under section 2002 (a) (3) shall be furnished to collectors requiring them, and collectors shall, if there be any cigar or cigarette manufacturers within their respective districts, keep on hand at all times a supply equal in amount to two months sales thereof and shall sell the same only to the cigar or cigarette manufacturers who have given bonds, as required by law, in their districts respectively, and to importers of cigars or cigarettes who are required to affix the same to imported cigars or cigarettes in the custody of customs officers. If the government of a foreign country Permits the revenue stamps of such country to be affixed in the United States to cigarettes manufactured in the United States and imported into such foreign country, then, if cigarettes manufactured in such foreign country are imported into the United States from such foreign country, the importer may, under such rules and regulations as the Commissioner with the approval of the Secretary may prescribe, have the United States revenue stamps attached to such cigarettes in such foreign country. (d) COLLECTOR'S ACCOUNT.

(1) REQUIREMENT.-Every collector shall keep an account of the number, amount, and denominate values of the stamps sold by him to each cigar or cigarette manufacturer, and to the importers described in subsection (c).

(2) CREDIT IN CASE OF SALE UNDER DISTRAINT OR FORFEITURE.-Such stamps as may be required to stamp cigars or cigarettes sold under distraint by any collector, or for stamping any cigars or cigarettes which may have been abandoned, condemned, or forfeited, and sold by order of court or of any Government officer for the benefit of the United States, may, under such rules and regulations as the Commissioner shall prescribe, be used by the collector making such sale, or furnished by a collector to a United States marshal, or to any other Government officer making such sale for the benefit of the United States, without making payment for said stamps so used or delivered; and any revenue collector using or furnishing stamps in manner as aforesaid, on presenting vouchers satisfactory to the Commissioner, shall be allowed credit for the same in settling his stamp account

with the Department. (e) DESTRUCTION ON EMPTIED PACKAGES.—Whenever any stamped box containing cigars or cigarettes is emptied, it shall be the duty of the persons in whose hands the same is to destroy utterly the stamps. thereon.

(f) ABSENCE OF STAMPS.—The absence of the proper revenue stamp on any box of cigars or cigarettes sold, or offered for sale, or kept for sale, shall be notice to all persons that the tax has not been paid thereon, and shall be prima facie evidence of the nonpayment thereof. (g) REDEMPTION OF STAMPS.

For redemption of stamps, see sections 2198 and 3304. SEC. 2113. SALES OF CIGARS AND CIGARETTES.

For limitation on sales of cigars and cigarettes, see section 2170. SEC. 2114. CROSS REFERENCES. (a) IMPORTED CIGARS AND CIGARETTES.

For stamps in case of imported cigars and cigarettes, see subsections

(b) and (c) of section 2130. (b) GENERAL STAMP PROVISIONS.—

For general provisions relating to stamps, see subchapter A of chapter

28 (sections 3300 and following). 1 The words “of the Treasury” are omitted.

SUBCHAPTER D-IMPORTATION AND EXPORTATION

Part I–Importation SEC. 2130. PACKING AND STAMPING.

(a) TOBACCO AND SNUFF.—All manufactured tobacco and snuff imported from foreign countries shall have the same stamps respectively affixed as in the case of like kinds of tobacco and snuff manufactured in the United States. Such stamps shall be affixed and canceled on all such articles so imported by the owner or importer thereof, while they are in the custody of the proper custom-house officers, and such articles shall not pass out of the custody of said officers until the stamps have been affixed and canceled. Such tobacco and snuff shall be put up in packages, as prescribed by law for like articles manufactured in the United States, before the stamps are affixed; and the owner or importer shall be liable to all the penal provisions prescribed for manufacturers of tobacco and snuff manufactured in the United States. Whenever it is necessary to take any such articles, so imported, to any place for the purpose of repacking, affixing, and canceling such stamps, other than the public stores of the United States, the collector of customs of the port where they are entered shall designate a bonded warehouse to which they shall be taken, under the control of such customs officer as he may direct.

(b) CIGARS.-All cigars imported from foreign countries shall have the same stamps affixed as prescribed by law for cigars manufactured in the United States. The stamps shall be affixed and canceled by the owner or importer of the cigars while they are in the custody of the proper custom-house officers, and the cigars shall not pass out of the custody of such officers until the stamps have been so affixed and canceled, but shall be put up in boxes containing quantities as prescribed in this chapter for cigars manufactured in the United States, before the stamps are affixed. And the owner or importer of such cigars shall be liable to all the penal provisions of this title prescribed for manufacturers of cigars manufactured in the United States. Whenever it is necessary to take any cigars so imported to any place other than the public stores of the United States, for the purpose of affixing and canceling such stamps, the collector of customs of the port where such cigars are entered shall designate a bonded warehouse to which they shall be taken, under the control of such customs officer as such collector may direct.

(c) CIGARETTES.-All cigarettes imported from a foreign country shall be packed, stamped, and the stamps canceled in a like manner as in the case of cigarettes manufactured in the United States, in addition to the import stamp indicating inspection of the customhouse before they are withdrawn therefrom.

(d) SCRAPS, CUTTINGS, AND CLIPPINGS OF TOBACCO.Scraps, cuttings, and clippings of tobacco imported from any foreign country may, after the proper customs duty has been paid thereon, be withdrawn in bulk without the payment of the internal revenue tax, and transferred as material directly to the factory of a manufacturer of tobacco or snuff, or of a cigar manufacturer, under such restrictions

and regulations as shall be prescribed by the Commissioner and approved by the Secretary.

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Part II-Exportation SEC. 2135. EXEMPTION FROM TAX.

(a) SHIPMENTS TO FOREIGN COUNTRIES AND POSSESSIONS OF THE UNITED STATES.

(1) MANUFACTURES.—Manufactured tobacco, snuff, cigars, or cigarettes may be removed for export to a foreign country or for shipment to a possession of the United States

without payment of tax, under such rules and regulations and the making of such entries, and the filing of such bonds and bills of lading as the Commissioner, with the approval of the Secretary, shall prescribe.

(2) MATERIALS.-Perique tobacco, snuff flour, fine-cut shorts, the refuse of fine-cut chewing tobacco, refuse scraps, clippings, cuttings, and sweepings of tobacco, may be sold in bulk as material, and without the payment of tax, for export under such restrictions, rules, and regulations as the Commissioner may prescribe.

(3) CIGARETTE PAPERS AND TUBES.—Under such rules and regulations as the Commissioner with the approval of the Secretary may prescribe, the taxes imposed by subsection (d) of section 2000 shall not apply in respect of cigarette papers or tubes sold for export or for shipment to a possession of the United States

and in due course so exported or shipped. (b) Cross REFERENCES.-

For provisions relating to the exemption from any internal revenue tax of articles shipped from the United States to Puerto Rico or the Virgin Islands, see sections

* 3351 and 3361. For definition of exportation, see section 2197 (b).

For exportation free of internal revenue tax, see act of June 17, 1930,

C. 497, § 317, 46 Stat. 696 (U. S. C., Title 19, § 1317). SEC. 2136. DRAWBACK.

(a) IN GENERAL.- There shall be an allowance of drawback on tobacco, snuff, cigars, or cigarettes on which the tax has been paid by suitable stamps affixed thereto before removal from the place of manufacture, when the same are exported, equal in amount to the value of the stamps found to have been so affixed; the evidence that the stamps were so affixed, and the amount of tax so paid, and of the subsequent exportation of the said tobacco, snuff, cigars, or cigarettes, to be ascertained under such regulations as shall be prescribed by the Commissioner and approved by the Secretary. Any sums found to be due under the provisions of this section shall be paid out of annual appropriations from the general fund of the Treasury: Provided, That no claim for an allowance of drawback shall be entertained or allowed until a certificate from the collector of customs at the port from which the goods have been exported, or other evidence satisfactory to the Commissioner, has been furnished, that the stamps affixed to the tobacco, snuff, cigars, or cigarettes entered and cleared for export to a foreign country were totally destroyed before such clearance; nor until the claimant has filed a bond, with good and sufficient sureties, to be

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