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26 U.S.C. § 5704 — Exemption from tax
Federal law — U.S. Code and appendices · legal_authorities
**(a) Tobacco products furnished for employee use or experimental purposes** Tobacco products may be furnished by a manufacturer of such products, without payment of tax, for use or consumption by employees or for experimental purposes, in such quantities, and in such manner as the Secretary shall by regulation prescribed.
**(b) Tobacco products and cigarette papers and tubes transferred or removed in bond from domestic factories and export warehouses** A manufacturer or export warehouse proprietor may transfer tobacco products and cigarette papers and tubes, without payment of tax, to the bonded premises of another manufacturer or export warehouse proprietor, or remove such articles, without payment of tax, for shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, or for consumption beyond the jurisdiction of the internal revenue laws of the United States; and manufacturers may similarly remove such articles for use of the United States; in accordance with such regulations and under such bonds as the Secretary shall prescribe. Tobacco products and cigarette papers and tubes may not be transferred or removed under this subsection unless such products or papers and tubes bear such marks, labels, or notices as the Secretary shall by regulations prescribe.
**(c) Tobacco products and cigarette papers and tubes released in bond from customs custody** Tobacco products and cigarette papers and tubes, imported or brought into the United States, may be released from customs custody, without payment of tax, for delivery to the proprietor of an export warehouse, or to a manufacturer of tobacco products or cigarette papers and tubes if such articles are not put up in packages, in accordance with such regulations and under such bond
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Source location: Title 26, Chapter 52, § 5704; chapter-052-tobacco-products-and-cigarette-papers-and-tubes.md
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**(a) Tobacco products furnished for employee use or experimental purposes** Tobacco products may be furnished by a manufacturer of such products, without payment of tax, for use or consumption by employees or for experimental purposes, in such quantities, and in such manner as the Secretary shall by regulation prescribed.
**(b) Tobacco products and cigarette papers and tubes transferred or removed in bond from domestic factories and export warehouses** A manufacturer or export warehouse proprietor may transfer tobacco products and cigarette papers and tubes, without payment of tax, to the bonded premises of another manufacturer or export warehouse proprietor, or remove such articles, without payment of tax, for shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, or for consumption beyond the jurisdiction of the internal revenue laws of the United States; and manufacturers may similarly remove such articles for use of the United States; in accordance with such regulations and under such bonds as the Secretary shall prescribe. Tobacco products and cigarette papers and tubes may not be transferred or removed under this subsection unless such products or papers and tubes bear such marks, labels, or notices as the Secretary shall by regulations prescribe.
**(c) Tobacco products and cigarette papers and tubes released in bond from customs custody** Tobacco products and cigarette papers and tubes, imported or brought into the United States, may be released from customs custody, without payment of tax, for delivery to the proprietor of an export warehouse, or to a manufacturer of tobacco products or cigarette papers and tubes if such articles are not put up in packages, in accordance with such regulations and under such bond as the Secretary shall prescribe.
**(d) Tobacco products and cigarette papers and tubes exported and returned** Tobacco products and cigarette papers and tubes classifiable under item 804.00 of title I of the Tariff Act of 1930 (relating to duty on certain articles previously exported and returned) may be released from customs custody, without payment of that part of the duty attributable to the internal revenue tax for delivery to the original manufacturer of such tobacco products or cigarette papers and tubes or to the proprietor of an export warehouse authorized by such manufacturer to receive such articles, in accordance with such regulations and under such bond as the Secretary shall prescribe. Upon such release such products, papers, and tubes shall be subject to this chapter as if they had not been exported or otherwise removed from internal-revenue bond.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Cigars** On cigars, manufactured in or imported into the United States, there shall be imposed the following taxes:
(1) **Small cigars** — On cigars, weighing not more than 3 pounds per thousand, $50.33 per thousand;
(2) **Large cigars** — On cigars weighing more than 3 pounds per thousand, a tax equal to 52.75 percent of the price for which sold but not more than 40.26 cents per cigar.
Cigars not exempt from tax under this chapter which are removed but not intended for sale shall be taxed at the same rate as similar cigars removed for sale.
**(b) Cigarettes** On cigarettes, manufactured in or imported into the United States, there shall be imposed the following taxes:
(1) **Small cigarettes** — On cigarettes, weighing not more than 3 pounds per thousand, $50.33 per thousand;
(2) **Large cigarettes** — On cigarettes, weighing more than 3 pounds per thousand, $105.69 per thousand; except that, if more than 6½ inches in length, they shall be taxable at the rate prescribed for cigarettes weighing not more than 3 pounds per thousand, counting each 2¾ inches, or fraction thereof, of the length of each as one cigarette.
**(c) Cigarette papers** On cigarette papers, manufactured in or imported into the United States, there shall be imposed a tax of 3.15 cents for each 50 papers or fractional part thereof; except that, if cigarette papers measure more than 6½ inches in length, they shall be taxable at the rate prescribed, counting each 2¾ inches, or fraction thereof, of the length of each as one cigarette paper.
**(d) Cigarette tubes** On cigarette tubes, manufactured in or imported into the United States, there shall be imposed a tax of 6.30 cents for each 50 tubes or fractional part thereof, except that if cigarette tubes measure more than 6½ inches in length, th
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 5701
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General** The distiller or importer of distilled spirits shall be liable for the taxes imposed thereon by section 5001(a)(1).
**(b) Domestic distilled spirits**
(1) **Liability of persons interested in distilling** — Every proprietor or possessor of, and every person in any manner interested in the use of, any still, distilling apparatus, or distillery, shall be jointly and severally liable for the taxes imposed by law on the distilled spirits produced therefrom.
(2) **Exception** — A person owning or having the right of control of not more than 10 percent of any class of stock of a corporate proprietor of a distilled spirits plant shall not be deemed to be a person liable for the tax for which such proprietor is liable under the provisions of paragraph (1). This exception shall not apply to an officer or director of such corporate proprietor.
**(c) Proprietors of distilled spirits plants**
(1) **Bonded storage** — Every person operating bonded premises of a distilled spirits plant shall be liable for the internal revenue tax on all distilled spirits while the distilled spirits are stored on such premises, and on all distilled spirits which are in transit to such premises (from the time of removal from the transferor’s bonded premises) pursuant to application made by him. Such liability for the tax on distilled spirits shall continue until the distilled spirits are transferred or withdrawn from bonded premises as authorized by law, or until such liability for tax is relieved by reason of the provisions of section 5008(a). Nothing in this paragraph shall relieve any person from any liability imposed by subsection (a) or (b).
(2) **Transfers in bond** — When distilled spirits are transferred in bond in accordance with the provisions of section 5212, persons li
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 5005
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
#### Publication of Harmonized Tariff Schedule
The Harmonized Tariff Schedule of the United States is not published in the Code. A current version of the Harmonized Tariff Schedule is maintained and published periodically by the United States International Trade Commission and is available at their website and for sale by the Superintendent of Documents, U.S. Government Publishing Office, Washington, D.C. 20402.
#### Reference to Tariff Schedules To Be Treated as Reference to Harmonized Tariff Schedule
Reference in any law to “Tariff Schedules of the United States”, “the Tariff Schedules”, “such Schedules”, and any other general reference to the old Schedules to be treated as reference to Harmonized Tariff Schedule, see [section 3012 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3012&num=0&edition=prelim).
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Rate of tax**
(1) **General** — There is hereby imposed on all distilled spirits produced in or imported into the United States a tax at the rate of $13.50 on each proof gallon and a proportionate tax at the like rate on all fractional parts of a proof gallon.
(2) **Products containing distilled spirits** — All products of distillation, by whatever name known, which contain distilled spirits, on which the tax imposed by law has not been paid, and any alcoholic ingredient added to such products, shall be considered and taxed as distilled spirits.
(3) **Wines containing more than 24 percent alcohol by volume** — Wines containing more than 24 percent of alcohol by volume shall be taxed as distilled spirits.
(4) **Distilled spirits withdrawn free of tax** — Any person who removes, sells, transports, or uses distilled spirits, withdrawn free of tax under section 5214(a) or section 7510, in violation of laws or regulations now or hereafter in force pertaining thereto, and all such distilled spirits shall be subject to all provisions of law relating to distilled spirits subject to tax, including those requiring payment of the tax thereon; and the person so removing, selling, transporting, or using the distilled spirits shall be required to pay such tax.
(5) **Denatured distilled spirits or articles** — Any person who produces, withdraws, sells, transports, or uses denatured distilled spirits or articles in violation of laws or regulations now or hereafter in force pertaining thereto, and all such denatured distilled spirits or articles shall be subject to all provisions of law pertaining to distilled spirits that are not denatured, including those requiring the payment of tax thereon; and the person so producing, withdrawing, selling, transporting, or using the dena
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 5001
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Collection by return** The taxes on distilled spirits, wines, and beer shall be collected on the basis of a return. The Secretary shall, by regulation, prescribe the period or event for which such return shall be filed, the time for filing such return, the information to be shown in such return, and the time for payment of such tax.
**(b) Exceptions** Notwithstanding the provisions of subsection (a), any taxes imposed on, or amounts to be paid or collected in respect of, distilled spirits, wines, and beer under—
(1) section 5001(a)(4), (5), or (6),
(2) section 5006(c) or (d),
(3) section 5041(f),
(4) section 5043(a)(3),
(5) section 5054(a)(3) or (4), or
(6) section 5505(a),
shall be immediately due and payable at the time provided by such provisions (or if no specific time for payment is provided, at the time the event referred to in such provision occurs). Such taxes and amounts shall be assessed and collected by the Secretary on the basis of the information available to him in the same manner as taxes payable by return but with respect to which no return has been filed.
**(c) Import duties** The internal revenue taxes imposed by this part shall be in addition to any import duties unless such duties are specifically designated as being in lieu of internal revenue tax.
**(d) Time for collecting tax on distilled spirits, wines, and beer**
(1) **In general** — Except as otherwise provided in this subsection, in the case of distilled spirits, wines, and beer to which this part applies (other than subsection (b) of this section) which are withdrawn under bond for deferred payment of tax, the last day for payment of such tax shall be the 14th day after the last day of the semimonthly period during which the withdrawal occurs.
(2) **Imported articles** — In t
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 5061
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Export-labeled tobacco products**
(1) **In general** — Tobacco products and cigarette papers and tubes manufactured in the United States and labeled for exportation under this chapter—
(A) may be transferred to or removed from the premises of a manufacturer or an export warehouse proprietor only if such articles are being transferred or removed without tax in accordance with section 5704;
(B) may be imported or brought into the United States, after their exportation, only if such articles either are eligible to be released from customs custody with the partial duty exemption provided in section 5704(d) or are returned to the original manufacturer of such article as provided in section 5704(c); and
(C) may not be sold or held for sale for domestic consumption in the United States unless such articles are removed from their export packaging and repackaged by the original manufacturer into new packaging that does not contain an export label.
(2) **Alterations by persons other than original manufacturer** — This section shall apply to articles labeled for export even if the packaging or the appearance of such packaging to the consumer of such articles has been modified or altered by a person other than the original manufacturer so as to remove or conceal or attempt to remove or conceal (including by the placement of a sticker over) any export label.
(3) **Exports include shipments to Puerto Rico** — For purposes of this section, section 5704(d), section 5761, and such other provisions as the Secretary may specify by regulations, references to exportation shall be treated as including a reference to shipment to the Commonwealth of Puerto Rico.
**(b) Export label** For purposes of this section, an article is labeled for export or contains an export label if
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 5754
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Omitting things required or doing things forbidden** Whoever willfully omits, neglects, or refuses to comply with any duty imposed upon him by this chapter, or to do, or cause to be done, any of the things required by this chapter, or does anything prohibited by this chapter, shall in addition to any other penalty provided in this title, be liable to a penalty of $1,000, to be recovered, with costs of suit, in a civil action, except where a penalty under subsection (b) or (c) or under section 6651 or 6653 or part II of subchapter A of chapter 68 may be collected from such person by assessment.
**(b) Failure to pay tax** Whoever fails to pay any tax imposed by this chapter at the time prescribed by law or regulations, shall, in addition to any other penalty provided in this title, be liable to a penalty of 5 percent of the tax due but unpaid.
**(c) Sale of tobacco products and cigarette papers and tubes for export** Except as provided in subsections (b) and (d) of section 5704—
(1) every person who sells, relands, or receives within the jurisdiction of the United States any tobacco products or cigarette papers or tubes which have been labeled or shipped for exportation under this chapter,
(2) every person who sells or receives such relanded tobacco products or cigarette papers or tubes, and
(3) every person who aids or abets in such selling, relanding, or receiving,
shall, in addition to the tax and any other penalty provided in this title, be liable for a penalty equal to the greater of $1,000 or 5 times the amount of the tax imposed by this chapter. All tobacco products and cigarette papers and tubes relanded within the jurisdiction of the United States shall be forfeited to the United States and destroyed. All vessels, vehicles, and aircraft used in such re
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 5761
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Federal law — U.S. Code and appendices · legal_authorities
Page 3265
TITLE 26—INTERNAL REVENUE CODE
§ 5704
day’’ in heading, and inserted ‘‘(or the immediately fol-
lowing day where the due date described in subpara-
graph (D) falls on a Sunday)’’ before period at end.
1988—Subsec. (b)(2)(B)(i), (ii), (C). Pub. L. 100–647 sub-
stituted ‘‘the 14th day after the last day of the semi-
monthly period during which’’ for ‘‘the 14th day after
the date on which’’.
1986—Subsec. (b)(2). Pub. L. 99–509 amended par. (2)
generally. Prior to amendment par. (2), time for mak-
ing of return and payment of taxes, read as follows: ‘‘In
the case of tobacco products and cigarette papers and
tubes removed after December 31, 1982, under bond for
deferred payment of tax, the last day for filing a return
and paying any tax due for each return period shall be
the last day of the first succeeding return period plus
10 days.’’
Subsec. (b)(3). Pub. L. 99–514 inserted last sentence.
1984—Subsec. (b)(3). Pub. L. 98–369 added par. (3).
1983—Subsec. (b). Pub. L. 97–448 designated existing
provisions as par. (1), struck out provisions that the
Secretary prescribe the time for making a return and
the time for the payment of taxes and that the Sec-
retary prescribe by regulations the conditions for the
filing of additional bonds, and added par. (2).
1976—Subsec. (a). Pub. L. 94–455, § 1905(a)(25)(A), di-
rected that all provisions of chapter 52 applicable to to-
bacco products and cigarette papers and tubes in bond
be applicable to such articles returned to bond upon
withdrawal from the market or returned to bond after
previous removal for a tax-exempt purpose.
Subsec.
(b).
Pub.
L.
94–455,
§§ 1905(a)(25)(B),
1906(b)(13)(A), struck out provisions which had author-
ized payment of taxes by stamp until regulations could
be promulgated to
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 5704
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