7 U.S.C. § 618 — Existing contracts; imposition of tax on

Page 506 TITLE 7—AGRICULTURE § 617 such Department, transferred, with certain exceptions, to Secretary of the Treasury, with power vested in him to authorize their performance or performance of any of his functions, by any of such officers, agencies, and employees, by 1950 Reorg. Plan No. 26, §§ 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the Appen- dix to Title 5, Government Organization and Employ- ees. Commissioner of Internal Revenue, referred to in this section, is an officer of Department of the Treas- ury. § 617. Refund on goods exported; bond to sus- pend tax on commodity intended for export (a) Upon the exportation to any foreign coun- try (and/or to the Virgin Islands, American Samoa, the Canal Zone, and the island of Guam) of any product processed wholly or partly from a commodity with respect to which product or commodity a tax has been paid or is payable under this chapter, the tax due and payable or due and paid shall be credited or refunded. Under regulations prescribed by the Commis- sioner of Internal Revenue, with the approval of the Secretary of the Treasury, the credit or re- fund shall be allowed to the consignor named in the bill of lading under which the product is ex- ported or to the shipper or to the person liable for the tax provided the consignor waives any claim thereto in favor of such shipper or person liable for the tax. In the case of rice, a tax due under this chapter which has been paid by a tax- payment warrant shall be deemed for the pur- poses of this subsection to have been paid; and with respect to any refund authorized under this section, the amount scheduled by the Commis- sioner of Internal Revenue for refunding shall be paid, any provision of law notwithstanding. In the case of sugar beets and sugarcane, this sub- section shall be applicable to exports of products thereof to the Virgin Islands, American Samoa, the Canal Zone, and/or the island of Guam only if this chapter with respect to sugar beets and sugarcane is not made applicable thereto. The term ‘‘product’’ includes any product exported as merchandise, or as a container for merchan- dise, or otherwise. (b) Upon the giving of bond satisfactory to the Secretary of the Treasury for the faithful ob- servance of the provisions of this chapter requir- ing the payment of taxes, any person shall be entitled, without payment of the tax, to process for such exportation any commodity with re- spect to which a tax is imposed by this chapter, or to hold for such exportation any article proc- essed wholly or partly therefrom. (May 12, 1933, ch. 25, title I, § 17, 48 Stat. 40; May 9, 1934, ch. 263, §§ 12, 13, 48 Stat. 676; Mar. 18, 1935, ch. 32, § 11, 49 Stat. 48; Aug. 24, 1935, ch. 641, § 28, 49 Stat. 770; June 22, 1936, ch. 690, § 601(a), 49 Stat. 1739; Proc. No. 2695, eff. July 4, 1946, 11 F.R. 7871, 60 Stat. 1352.) Editorial Notes REFERENCES IN TEXT For definition of Canal Zone, referred to in subsec. (a), see section 3602(b) of Title 22, Foreign Relations and Intercourse. CODIFICATION References to the Philippine Islands in subsec. (a) were omitted from the Code as obsolete in view of the independence proclaimed by the President of the United States by Proc. No. 2695, cited to text, which is set out as a note under section 1394 of Title 22, Foreign Relations and Intercourse. CONSTITUTIONALITY Unconstitutionality of processing and floor stock taxes, see note set out under section 616 of this title. AMENDMENTS 1936—Subsec. (a). Act June 22, 1936, reenacted subsec. (a) for refund purposes only. 1935—Subsec. (a). Act Aug. 24, 1935, struck out first two sentences and substituted ‘‘Upon the exportation to any foreign country (and/or to the Philippine Is- lands, the Virgin Islands, American Samoa, the Canal Zone, and the island of Guam) of any product processed wholly or partly from a commodity with respect to which product or commodity a tax has been paid or is payable under this chapter, the tax due and payable or due and paid shall be credited or refunded. Under regu- lations prescribed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, the credit or refund shall be allowed to the consignor named in the bill of lading under which the product is exported or to the shipper or to the person liable for the tax provided the consignor waives any claim thereto in favor of such shipper or person liable for the tax.’’ Act Mar. 18, 1935, inserted third sentence. 1934—Subsec. (a). Act May 9, 1934, amended subsec. (a) generally. Subsec. (b). Act May 9, 1934, § 13, substituted ‘‘partly’’ for ‘‘in chief value’’. Statutory Notes and Related Subsidiaries SEPARABILITY Validity of remainder of this chapter as not affected should any of the provisions of this chapter be declared unconstitutional, see section 614 of this title. APPROPRIATIONS Appropriations for refunds, etc., see note set out under section 610 of this title. Executive Documents TRANSFER OF FUNCTIONS Functions of all officers of Department of the Treas- ury, and functions of all agencies and employees of such Department, transferred, with certain exceptions, to Secretary of the Treasury, with power vested in him to authorize their performance or performance of any of his functions, by any of such officers, agencies, and employees, by 1950 Reorg. Plan. No. 26, §§ 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the Appen- dix to Title 5, Government Organization and Employ- ees. Commissioner of Internal Revenue, referred to in this section, is an officer of Department of the Treas- ury. § 618. Existing contracts; imposition of tax on vendee; collection (a) If (1) any processor, jobber, or wholesaler has, prior to the date a tax with respect to any commodity is first imposed under this chapter, made a bona fide contract of sale for delivery on or after such date, of any article processed whol- ly or in chief value from such commodity, and if (2) such contract does not permit the addition to the amount to be paid thereunder of the whole of such tax, then (unless the contract prohibits such addition) the vendee shall pay so much of the tax as is not permitted to be added to the contract price. Page 507 TITLE 7—AGRICULTURE § 619 (b) Taxes payable by the vendee shall be paid to the vendor at the time the sale is con- summated and shall be collected and paid to the United States by the vendor in the same manner as other taxes under this chapter. In case of fail- ure or refusal by the vendee to pay such taxes to the vendor, the vendor shall report the facts to the Commissioner of Internal Revenue who shall cause collections of such taxes to be made from the vendee. (May 12, 1933, ch. 25, title I, § 18, 48 Stat. 41.) Editorial Notes CONSTITUTIONALITY Unconstitutionality of processing and floor stock taxes, see note set out under section 616 of this title. SEPARABILITY Validity of remainder of this chapter as not affected should any of the provisions of this chapter be declared unconstitutional, see section 614 of this title. Executive Documents TRANSFER OF FUNCTIONS Functions of all officers of Department of the Treas- ury, and functions of all agencies and employees of such Department, transferred, with certain exceptions, to Secretary of the Treasury, with power vested in him to authorize their performance or performance of any of his functions, by any of such officers, agencies, and employees, by 1950 Reorg. Plan No. 26, §§ 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the Appen- dix to Title 5, Government Organization and Employ- ees. Commissioner of Internal Revenue, referred to in this section, is an officer of Department of the Treas- ury. § 619. Collection of tax; provisions of internal revenue laws applicable; returns (a) The taxes provided in this chapter shall be collected by the Bureau of Internal Revenue under the direction of the Secretary of the Treasury. Such taxes shall be paid into the Treasury of the United States. (b) All provisions of law, including penalties, applicable with respect to the taxes imposed by section 600 of the Revenue Act of 1926, and the provisions of section 626 of the Revenue Act of 1932, shall, insofar as applicable and not incon- sistent with the provisions of this chapter, be applicable in respect of taxes imposed by this chapter: Provided, That the Secretary of the Treasury is authorized to permit postponement, for a period not exceeding one hundred and eighty days, of the payment of not exceeding three-fourths of the amount of the taxes covered by any return under this chapter, but postpone- ment of all taxes covered by returns under this chapter for a period not exceeding one hundred and eighty days may be permitted in cases in which the Secretary of the Treasury authorizes such taxes to be paid each month on the amount of the commodity marketed during the next pre- ceding month. (c) Repealed. June 30, 1947, ch. 166, title II, § 206(d), 61 Stat. 208. (d) Under regulations made by the Commis- sioner of Internal Revenue, with the approval of the Secretary of the Treasury, any person re- quired pursuant to the provisions of this chapter to file a return may be required to file such re- turn and pay the tax shown to be due thereon to the collector of internal revenue for the district in which the processing was done or the liability was incurred. Whenever the Commissioner of In- ternal Revenue deems it necessary, he may re- quire any person or class of persons handling or dealing in any commodity or product thereof, with respect to which a tax is imposed under the provisions of this chapter, to make a return, render under oath such statements, or to keep such records, as the Commissioner deems suffi- cient to show whether or not such person, or any other person, is liable for the tax. (May 12, 1933, ch. 25, title I, § 19, 48 Stat. 41; June 26, 1934, ch. 759, § 3, 48 Stat. 1242; Aug. 24, 1935, ch. 641, § 29, 49 Stat. 770; June 30, 1947, ch. 166, title II, § 206(d), 61 Stat. 208.) Editorial Notes REFERENCES IN TEXT Provisions of section 600 of the Revenue Act of 1926 and section 626 of the Revenue Act of 1932, referred to in subsec. (b), were incorporated in sections 2700, 2704, and 3448 of Title 26, Internal Revenue Code, 1939. See sections 4181, 4182, 4216, 4224, 5831, 6151 and 6601 of Title 26, Internal Revenue Code, 1986. CONSTITUTIONALITY Unconstitutionality of processing and floor stock taxes, see note set out under section 616 of this title. AMENDMENTS 1947—Subsec. (c). Act June 30, 1947, repealed subsec. (c) which related to loans by Reconstruction Finance Corporation. 1935—Subsec. (b). Act Aug. 24, 1935, § 29(a), among other changes, inserted at end of proviso ‘‘but post- ponement of all taxes covered by returns under this chapter for a period not exceeding one hundred and eighty days may be permitted in cases in which the Secretary of the Treasury authorizes such taxes to be paid each month on the amount of the commodity mar- keted during the next preceding month’’. Subsec. (d). Act Aug. 24, 1935, § 29(b), added subsec. (d). 1934—Subsec. (b). Act June 26, 1934, substituted ‘‘one hundred and eighty’’ for ‘‘ninety’’. Statutory Notes and Related Subsidiaries SEPARABILITY Validity of remainder of this chapter as not affected should any of the provisions of this chapter be declared unconstitutional, see section 614 of this title. Executive Documents TRANSFER OF FUNCTIONS Office of Internal Revenue Collector abolished by 1952 Reorg. Plan No. 1, § 1, eff. Mar. 14, 1952, 17 F.R. 2243, 66 Stat. 823, set out in the Appendix to Title 5, Govern- ment Organization and Employees, and by section 2 thereof a new office of district commissioner of inter- nal revenue was established. Section 4 of the Plan transferred all functions, that had been vested by stat- ute in any officer or employee of Bureau of Internal Revenue since effective date of 1950 Reorg. Plan No. 26, §§ 1, 2, 15 F.R. 4935, 64 Stat. 1280, 1281, to Secretary of the Treasury. Functions of all officers of Department of the Treas- ury, and functions of all agencies and employees of such Department, transferred, with certain exceptions, to Secretary of the Treasury, with power vested in him to authorize their performance or performance of any