26 U.S.C. § 5000C — Imposition of tax on certain foreign pro-

Page 3132 TITLE 26—INTERNAL REVENUE CODE § 5000C signed to incorporate 1 or more ultraviolet lamps and intended for the irradiation of an individual by ultraviolet radiation, with wave- lengths in air between 200 and 400 nanometers, to induce skin tanning. (2) Exclusion of phototherapy services Such term does not include any phototherapy service performed by a licensed medical professional. (c) Payment of tax (1) In general The tax imposed by this section shall be paid by the individual on whom the service is per- formed. (2) Collection Every person receiving a payment for serv- ices on which a tax is imposed under sub- section (a) shall collect the amount of the tax from the individual on whom the service is performed and remit such tax quarterly to the Secretary at such time and in such manner as provided by the Secretary. (3) Secondary liability Where any tax imposed by subsection (a) is not paid at the time payments for indoor tan- ning services are made, then to the extent that such tax is not collected, such tax shall be paid by the person who performs the serv- ice. (Added Pub. L. 111–148, title X, § 10907(b), Mar. 23, 2010, 124 Stat. 1020.) Editorial Notes PRIOR PROVISIONS A prior section 5000B, added Pub. L. 111–148, title IX, § 9017(a), Mar. 23, 2010, 124 Stat. 872, which related to tax on elective cosmetic medical procedures, and section 9017(c) of Pub. L. 111–148, which provided that the amendments made by section 9017 of Pub. L. 111–148 were applicable to procedures performed on or after Jan. 1, 2010, were not set out in the Code in view of Pub. L. 111–148, title X, § 10907(a), Mar. 23, 2010, 124 Stat. 1020, which provided that the provisions of, and amendments made by, section 9017 of Pub. L. 111–148 were deemed null, void, and of no effect. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 111–148, title X, § 10907(d), Mar. 23, 2010, 124 Stat. 1021, provided that: ‘‘The amendments made by this section [enacting this section] shall apply to serv- ices performed on or after July 1, 2010.’’ CHAPTER 50—FOREIGN PROCUREMENT Sec. 5000C. Imposition of tax on certain foreign procure- ment. § 5000C. Imposition of tax on certain foreign pro- curement (a) Imposition of tax There is hereby imposed on any foreign person that receives a specified Federal procurement payment a tax equal to 2 percent of the amount of such specified Federal procurement payment. (b) Specified Federal procurement payment For purposes of this section, the term ‘‘speci- fied Federal procurement payment’’ means any payment made pursuant to a contract with the Government of the United States for— (1) the provision of goods, if such goods are manufactured or produced in any country which is not a party to an international pro- curement agreement with the United States, or (2) the provision of services, if such services are provided in any country which is not a party to an international procurement agree- ment with the United States. (c) Foreign person For purposes of this section, the term ‘‘foreign person’’ means any person other than a United States person. (d) Administrative provisions (1) Withholding The amount deducted and withheld under chapter 3 shall be increased by the amount of tax imposed by this section on such payment. (2) Other administrative provisions For purposes of subtitle F, any tax imposed by this section shall be treated as a tax im- posed by subtitle A. (Added Pub. L. 111–347, title III, § 301(a)(1), Jan. 2, 2011, 124 Stat. 3666.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 111–347, title III, § 301(a)(3), Jan. 2, 2011, 124 Stat. 3666, provided that: ‘‘The amendments made by this subsection [enacting this section] shall apply to payments received pursuant to contracts entered into on and after the date of the enactment of this Act [Jan. 2, 2011].’’ PROHIBITION ON REIMBURSEMENT OF FEES Pub. L. 111–347, title III, § 301(b), Jan. 2, 2011, 124 Stat. 3666, provided that: ‘‘(1) IN GENERAL.—The head of each executive agency shall take any and all measures necessary to ensure that no funds are disbursed to any foreign contractor in order to reimburse the tax imposed under section 5000C of the Internal Revenue Code of 1986. ‘‘(2) ANNUAL REVIEW.—The Administrator for Federal Procurement Policy shall annually review the con- tracting activities of each executive agency to monitor compliance with the requirements of paragraph (1). ‘‘(3) EXECUTIVE AGENCY.—For purposes of this sub- section, the term ‘executive agency’ has the meaning given the term in section 4 of the Office of Federal Pro- curement Policy Act ([former] 41 U.S.C. 403) [see 41 U.S.C. 133].’’ APPLICATION Pub. L. 111–347, title III, § 301(c), Jan. 2, 2011, 124 Stat. 3666, provided that: ‘‘This section [enacting this section and provisions set out as notes under this section] and the amendments made by this section shall be applied in a manner consistent with United States obligations under international agreements.’’ CHAPTER 50A—DESIGNATED DRUGS Sec. 5000D. Designated drugs during noncompliance peri- ods. § 5000D. Designated drugs during noncompliance periods (a) In general There is hereby imposed on the sale by the manufacturer, producer, or importer of any des-