26 U.S.C. § 7653 — Shipments from the United States

Page 4003 TITLE 26—INTERNAL REVENUE CODE § 7653 Pub. L. 94–202, § 10(b), Jan. 2, 1976, 89 Stat. 1141, pro- vided that: ‘‘The amendments made by paragraphs (1) and (2) of subsection (a) [amending this section] shall apply with respect to all taxes imposed by, and col- lected after June 30, 1975, under, the internal revenue laws of the United States on articles produced in the Virgin Islands and transported to the United States.’’ EFFECTIVE DATE OF 1965 AMENDMENT Amendment by Pub. L. 89–44 effective July 1, 1965, see section 808(d)(1) of Pub. L. 89–44, set out as a note under section 5702 of this title. EFFECTIVE DATE OF 1958 AMENDMENT Amendment by Pub. L. 85–859 effective July 1, 1959, see section 210(a)(1) of Pub. L. 85–859, set out as an Ef- fective Date note under section 5001 of this title. SPECIAL COVER OVER TRANSFER RULES Pub. L. 106–170, title V, § 512(b), Dec. 17, 1999, 113 Stat. 1924, as amended by Pub. L. 106–200, § 602(a), May 18, 2000, 114 Stat. 305, provided that: ‘‘Notwithstanding sec- tion 7652 of the Internal Revenue Code of 1986, the fol- lowing rules shall apply with respect to any transfer before the first day of the month within which the date of the enactment of the Trade and Development Act of 2000 [May 18, 2000] occurs, of amounts relating to the in- crease in the cover over of taxes by reason of the amendment made by subsection (a) [amending this sec- tion]: ‘‘(1) INITIAL TRANSFER OF INCREMENTAL INCREASE IN COVER OVER.—The Secretary of the Treasury shall, within 15 days after the date of the enactment of this Act [Dec. 17, 1999], transfer an amount equal to the lesser of— ‘‘(A) the amount of such increase otherwise re- quired to be covered over after June 30, 1999, and be- fore the date of the enactment of this Act; or ‘‘(B) $20,000,000. ‘‘(2) SECOND TRANSFER OF INCREMENTAL INCREASE IN COVER OVER ATTRIBUTABLE TO PERIODS BEFORE RE- SUMPTION OF REGULAR PAYMENTS.—The Secretary of the Treasury shall transfer on the first payment date after the date of the enactment of the Trade and De- velopment Act of 2000 [May 18, 2000] an amount equal to the excess of— ‘‘(A) the amount of such increase otherwise re- quired to be covered over after June 30, 1999, and be- fore the first day of the month within which such date of enactment occurs, over ‘‘(B) the amount of the transfer described in para- graph (1).’’ PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989 For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title. PAYMENT TO PUERTO RICO OR VIRGIN ISLANDS OF AMOUNTS WITH RESPECT TO MEDICINES, ETC. UNFIT FOR BEVERAGE PURPOSES Pub. L. 99–514, title XVIII, § 1879(i)(3), Oct. 22, 1986, 100 Stat. 2907, provided that: ‘‘(A) Section 7652 of the Internal Revenue Code of 1954 [now 1986] (other than subsection (f) thereof) shall not prevent the payment to Puerto Rico or the Virgin Is- lands of amounts with respect to medicines, medicinal preparations, food products, flavors, or flavoring ex- tracts containing distilled spirits, which are unfit for beverage purposes and which are brought into the United States from Puerto Rico or the Virgin Islands on or before the date of the enactment of this Act [Oct. 22, 1986]. ‘‘(B) With respect to articles brought into the United States after September 27, 1985, subparagraph (A) shall apply only if the Secretary of the Treasury or his dele- gate is satisfied that the amounts paid to Puerto Rico or the Virgin Islands under subparagraph (A) are being repaid to the proper persons who used the distilled spir- its in such articles.’’ Executive Documents EX. ORD. NO. 10602. SECRETARY OF THE INTERIOR AS REPRESENTATIVE OF PRESIDENT Ex. Ord. No. 10602, Mar. 24, 1955, 20 F.R. 1795, provided: ‘‘By virtue of the authority vested in me by section 7652(b)(3) of the Internal Revenue Code of 1954 [now I.R.C. 1986] (Public Law 591, 83rd Congress, 68A Stat. 907), I hereby designate the Secretary of the Interior as the representative of the President to approve the obli- gation and expenditure by the government of the Vir- gin Islands of the moneys referred to in the said section 7652(b)(3).’’ DWIGHT D. EISENHOWER [Pub. L. 94–455 made various amendments to subsec. (b)(3) of this section, after which there was no longer the requirement for approval by the President or his designated representative of obligation and expenditure of specified moneys.] § 7653. Shipments from the United States (a) Tax imposed (1) Puerto Rico All articles of merchandise of United States manufacture coming into Puerto Rico shall be entered at the port of entry upon payment of a tax equal in rate and amount to the internal revenue tax imposed in Puerto Rico upon the like articles of Puerto Rican manufacture. (2) Virgin Islands There shall be imposed in the Virgin Islands upon articles imported from the United States a tax equal to the internal revenue tax im- posed in such islands upon like articles there manufactured. (b) Exemption from tax imposed in the United States Articles, goods, wares, or merchandise going into Puerto Rico, the Virgin Islands, Guam, and American Samoa from the United States shall be exempted from the payment of any tax im- posed by the internal revenue laws of the United States. (c) Drawback of tax paid in the United States All provisions of law for the allowance of drawback of internal revenue tax on articles ex- ported from the United States are, so far as ap- plicable, extended to like articles upon which an internal revenue tax has been paid when shipped from the United States to Puerto Rico, the Vir- gin Islands, Guam, or American Samoa. (d) Cross reference For the disposition of the proceeds of all taxes col- lected under the internal revenue laws of the United States on articles produced in Guam and transported into the United States or its posses- sions, or consumed in Guam, see the Act of August 1, 1950 (48 U.S.C. 1421h). (Aug. 16, 1954, ch. 736 68A Stat. 908; Pub. L. 86–70, § 22(f), June 25, 1959, 73 Stat. 146; Pub. L. 86–624, § 18(h), July 12, 1960, 74 Stat. 416; Pub. L. 94–455, title XIX, § 1906(a)(56), Oct. 4, 1976, 90 Stat. 1832.) Page 4004 TITLE 26—INTERNAL REVENUE CODE § 7654 Editorial Notes REFERENCES IN TEXT Act of August 1, 1950, referred to in subsec. (d), is act Aug. 1, 1950, ch. 512, 64 Stat. 384, known as the Organic Act of Guam, which is classified principally to chapter 8A (§ 1421 et seq.) of Title 48, Territories and Insular Possessions. For complete classification of this Act to the Code, see Short Title note set out under section 1421 of Title 48 and Tables. AMENDMENTS 1976—Subsec. (d). Pub. L. 94–455 struck out ‘‘ch. 512, 64 Stat. 392, section 30’’ after ‘‘August 1, 1950’’. 1960—Subsec. (d). Pub. L. 86–624 substituted ‘‘or its possessions’’ for ‘‘, its possessions or the Territory of Hawaii’’. 1959—Subsec. (d). Pub. L. 86–70 substituted ‘‘its pos- sessions or the Territory of Hawaii’’ for ‘‘its Territories or possessions’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1960 AMENDMENT Amendment by Pub. L. 86–624 effective Aug. 21, 1959, see section 18(k) of Pub. L. 86–624, set out as a note under section 3121 of this title. EFFECTIVE DATE OF 1959 AMENDMENT Amendment by Pub. L. 86–70 effective Jan. 3, 1959, see section 22(i) of Pub. L. 86–70, set out as a note under section 3121 of this title. § 7654. Coordination of United States and certain possession individual income taxes (a) General rule The net collection of taxes imposed by chapter 1 for each taxable year with respect to an indi- vidual to whom section 931 or 932(c) applies shall be covered into the Treasury of the specified possession of which such individual is a bona fide resident. (b) Definition and special rule For purposes of this section— (1) Net collections In determining net collections for a taxable year, an appropriate adjustment shall be made for credits allowed against the tax liability and refunds made of income taxes for the tax- able year. (2) Specified possession The term ‘‘specified possession’’ means Guam, American Samoa, the Northern Mar- iana Islands, and the Virgin Islands. (c) Transfers The transfers of funds between the United States and any specified possession required by this section shall be made not less frequently than annually. (d) Federal personnel In addition to the amount determined under subsection (a), the United States shall pay to each specified possession at such times and in such manner as determined by the Secretary— (1) the amount of the taxes deducted and withheld by the United States under chapter 24 with respect to compensation paid to mem- bers of the Armed Forces who are stationed in such possession but who have no income tax li- ability to such possession with respect to such compensation by reason of the Servicemembers Civil Relief Act (50 U.S.C. 3901 et seq.), and (2) the amount of the taxes deducted and withheld under chapter 24 with respect to amounts paid for services performed as an em- ployee of the United States (or any agency thereof) in a specified possession with respect to an individual unless section 931 or 932(c) ap- plies. (e) Regulations The Secretary shall prescribe such regulations as may be necessary to carry out the provisions of this section and sections 931 and 932, includ- ing regulations prohibiting the rebate of taxes covered over which are allocable to United States source income and prescribing the infor- mation which the individuals to whom such sec- tions may apply shall furnish to the Secretary. (Aug. 16, 1954, ch. 736, 68A Stat. 909; Pub. L. 92–606, § 1(b), Oct. 31, 1972, 86 Stat. 1495; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97–248, title III, §§ 307(a)(16), 308(a), Sept. 3, 1982, 96 Stat. 590, 591; Pub. L. 98–67, title I, § 102(a), Aug. 5, 1983, 97 Stat. 369; Pub. L. 99–514, title XII, § 1276(a), Oct. 22, 1986, 100 Stat. 2599; Pub. L. 100–647, title I, § 1012(y), Nov. 10, 1988, 102 Stat. 3530; Pub. L. 108–189, § 2(d), Dec. 19, 2003, 117 Stat. 2866; Pub. L. 115–141, div. U, title IV, § 401(a)(330), Mar. 23, 2018, 132 Stat. 1200.) Editorial Notes REFERENCES IN TEXT The Servicemembers Civil Relief Act, referred to in subsec. (d)(1), is act Oct. 17, 1940, ch. 888, 54 Stat. 1178, which is classified generally to chapter 50 (§ 3901 et seq.) of Title 50, War and National Defense. For complete classification of this Act to the Code, see section 3901 of Title 50 and Tables. AMENDMENTS 2018—Subsec. (d)(1). Pub. L. 115–141 substituted ‘‘50 U.S.C. 3901 et seq.’’ for ‘‘50 App. U.S.C. 501 et seq.’’ 2003—Subsec. (d)(1). Pub. L. 108–189 substituted ‘‘Servicemembers Civil Relief Act’’ for ‘‘Soldiers’ and Sailors’ Civil Relief Act’’. 1988—Subsec. (a). Pub. L. 100–647 substituted ‘‘an indi- vidual to whom’’ for ‘‘an individual to which’’. 1986—Pub. L. 99–514 amended section generally, sub- stituting provisions relating to coordination of United States and certain possession individual income taxes for provisions relating to coordination of United States and Guam individual income taxes. 1983—Subsec. (d). Pub. L. 98–67 repealed amendments made by Pub. L. 97–248. See 1982 Amendment note below. 1982—Subsec. (d). Pub. L. 97–248 provided that, appli- cable to payments of interest, dividends, and patronage dividends paid or credited after June 30, 1983, subsec. (d) is amended by inserting ‘‘subchapter A of’’ before ‘‘chapter 24’’. Section 102(a), (b) of Pub. L. 98–67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (§§ 301–308) of title III of Pub. L. 97–248 as of the close of June 30, 1983, and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and adminis- tered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been enacted. 1976—Subsecs. (d), (e). Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appearing. 1972—Pub. L. 92–606 substituted provisions relating to individual income taxes in Guam and their sharing by