Imágenes de páginas
PDF
EPUB

Denominations

all packages.

three pounds per thousand; and for cigarettes at the rates of tax imposed by this section: Provided, That Proviso. such stamps shall be in denominations of five, eight, ten, fifteen, twenty, fifty, and one hundred; and the laws and regulations governing the packing and removal for sale of cigarettes, and the affixing and canceling of the stamps on the packages thereof, shall apply to cigars weighing not more than three pounds per thousand. No packages of manufactured tobacco, snuff, cigars, Restrictions on 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, Lottery. nor any indecent or immoral picture, representation, print, or words; and any violation of the provisions of this paragraph shall subject the offender to the penalties Penalty. and punishments provided by section thirty-four hundred and fifty-six of the Revised Statutes.

Section 3394 was amended by section 2, act of March 3, 1875 (18 Stat., 339); section 4, act of March 3, 1883 (22 Stat., 488); section 10, act of July 24, 1897 (30 Stat., 206); section 3, act of June 13, 1898 (30 Stat., 449); section 3, act of March 2, 1901 (31 Stat., 939); section 3, act of April 12, 1902 (32 Stat., 96); act of July 1, 1902, and section 33, act of August 5, 1909 (36 Stat., 110), taking effect July 1, 1910.

"Jumbo cigars, or cigars of unusual size, to be classified as manufactured tobacco. The fact that they could be smoked did not altogether determine their character. (D'Estrinoz v. Gerker, 43 Fed. Rep., 285.)

Date of acts imposing tax on cigars and cigarettes and rates of tax.

[blocks in formation]

Date of acts imposing tax on cigars and cigarettes and rates of tax-Continued.

[merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small]

The act of July 1, 1862, went into operation September 1, 1862. The act of July 20, 1868, first required payment of tax on cigars by stamps.

Assessment of tax on cigars removed without stamps. (Sec. 3371, p. 268.)

Authority of commissioner to examine returns of cigar manufacturers and to treat deficiency in product based on the return of one thousand cigars for every 25 pounds of tobacco as prima facie evidence of nonpayment of taxes. (See note under sec. 3371, p. 268.)

Section 3362, amended, provides that 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, by one manufacturer directly to another manufacturer, or for export, under such restrictions,

rules, and regulations as the Commissioner of Internal Revenue
may prescribe. This relates to cigar manufacturers as well as
manufacturers of tobacco.

As to reimportation of articles exported in bond or with draw-
back (see sec. 26, act Aug. 5, 1909, p. 337.)

Summary of sections of the act of August 5, 1909, effective
July 1, 1910. (T. D. 1602.)

Increased rates of taxation under said act. (T. D. 1622; T. D.
1629.)

ac

SEC. 3395. The Commissioner of Internal Revenue Stamps, how prepared, furshall cause to be prepared, for payment of the tax upon nished, and cigars, suitable stamps denoting the tax thereon. Such counted for. stamps shall be furnished to collectors requiring them, and collectors shall, if there be any cigar-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-manufacturers who have given bonds and paid the special tax, as required by law, in their districts, respectively, and to importers of cigars, who are required to affix the same to imported cigars in the custody of customs officers, and to persons required by law to affix the same to cigars on hand after the first day of April, eighteen hundred and sixty-nine. Every collector shall keep an account of the Record 47. number, amount, and denominate values of the stamps sold by him to each cigar-manufacturer, and to other persons above described.

See sections 3445 and 3446 as amended (pp. 354, 355,) as to authority to prescribe how stamps shall be attached, canceled, etc. See, also, section 3369, page 267.

Porto Rico. An act to provide means for the sale of internal-
revenue stamps in the island of Porto Rico, approved June 29,
1906. (See p. 374.)

Sale of internal-revenue stamps in the island of Porto Rico,
Circular No. 679, dated July 25, 1906 (T. D. 1031).

Sale of stamps to a sheriff or constable. (25 Int. Rev. Rec.
21.)

SEC. 3396. The Commissioner of Internal Revenue Regulations authorized. may prescribe such regulations for the inspection of cigars, cheroots, and cigarettes, and the collection of the tax thereon, as he may deem most effective for the prevention of frauds in the payment of such tax.

The commissioner has authority to prescribe regulations for the inspection of cigars and the collection of the tax thereon. (Ludloff v. United States, 108 U. S., 176.)

out properly box

SEC. 3397 [, as amended by sec. 16, act of Mar. 1, 1879 Removal with(20 Stat., 327)]. Whenever any cigars are removed from ing, stamping, or any manufactory, or place where cigars are made, without branding. being packed in boxes as required by the provisions of this chapter, or without the proper stamp thereon denoting the tax, or without stamping, indenting, burning, or impressing into each box, in a legible and durable manner, the number of the cigars contained therein, the number of the manufactory, and the number of the district and the State, or without properly affixing thereon and canceling the stamp denoting the tax on the same, or are sold, or

Penalty.

Using fraudulent or imitation stamps.

Penalty.

Cigars packed for export.

stamps evidence

offered for sale, not properly boxed and stamped, they shall be forfeited to the United States. And every person who commits any of the above-described offenses shall be fined for each such offense not less than one hundred dollars nor more than one thousand dollars, and imprisoned not less than six months nor more than two years.

And every person who packs cigars in any box bearing a false or fraudulent or counterfeit stamp, or who affixes to any box containing cigars a stamp in the similitude or likeness of any stamp required to be used by the laws of the United States, whether the same be a customs or internal-revenue stamp, or who buys, receives, or has in his possession any cigars on which the tax to which they are liable has not been paid, or who removes, or causes to be removed, from any box any stamp denoting the tax on cigars, with intent to use the same, or who uses, or permits any other person to use, any stamp so removed, or who receives, buys, sells, gives away, or has in his possession any stamp so removed, or who makes any other fraudulent use of any stamp intended for cigars, or who removes from the place of manufacture any cigars not properly boxed and stamped as required by law, shall be deemed guilty of a felony, and shall be fined not less than one hundred dollars nor more than one thousand dollars, and imprisoned not less than six months nor more than three years.

Provided, That cigars packed expressly for export, and which shall be exported to a foreign country under the restrictions and regulations prescribed by the Commissioner of Internal Revenue, and approved by the Secretary of the Treasury, shall be exempt from the provisions of this section, and also from the provisions of section thirty-three hundred and ninety-three of the Revised Statutes, requiring a label to be affixed to each box.

See section 3445, page 354, relative to canceling stamps.

Affixing to a box containing domestic cigars a stamp in the similitude of a customs stamp is an indictable offense, and it is not necessary in the indictment to aver an intent to defraud the United States. (United States v. Jacoby, 12 Blatchf. 491, Fed. Cas. No. 15462.)

Where a sheriff or constable removes cigars from a cigar factory without the same being properly boxed and stamped, and sells the same unstamped, he is liable to the penalty prescribed. (1899, No. 21167.)

Stamps on boxes of cigars must be properly affixed and canceled to avoid liability to seizure. (T. D. (1899) No. 19063.)

Cigars removed from factory without stamping into each box the number of the manufactory and the number of the district and State; the natural inference is that the cigars were removed from the factory in the condition in which they were found. (Jackson v. U. S., 21 Fed. Rep., 35; 30 Int. Rev. Rec., 279.)

U. S. v. Woolheim, 11 Int. Rev. Rec., 78. Fed. Cas. No. 16761. Boxes of cigars in the hands of innocent purchasers upon which the number of the factory had not been impressed forfeitable. (U. S. v. 76, 125 Cigars, 18 Fed. Rep., 147.)

Absence of SEC. 3398. The absence of the proper revenue-stamp of nonpayment on any box of cigars sold, or offered for sale, or kept for sale, shall be notice to all persons that the tax has not

of tax.

been paid thereon, and shall be prima-facie evidence of the nonpayment thereof, and such cigars shall be forfeited to the United States.

See section 3376, page 270, (T. D. 1296.)

on

commis

SEC. 3399. Whenever cigars of any description are man-factured Cigars manuufactured, in whole or in part, upon commission or shares, shares, contract, or the material is furnished by one party and manufac- how stamped. tured by another, or the material is furnished or sold by one party with an understanding or agreement with another that the cigars are to be received in payment therefor, or for any part thereof, the stamps required by law shall be affixed by the actual maker before the cigars

are removed from the place of manufacturing. And in Fraud, penalty. case of fraud on the part of either of said parties in respect to said manufacture, or of any collusion on their part with intent to defraud the revenue, such material and cigars shall be forfeited to the United States; and every person engaged in such fraud or collusion shall be fined not less than one hundred dollars nor more than five thousand dollars, and imprisoned for not less than six months nor more than three years.

of

property for sellry to law, using

SEC. 3400. Every manufacturer of cigars who removes Forfeiture or sells any cigars without payment of the special tax as a ing, etc., contracigar manufacturer, or without having given bond as such, false stamps, etc. or without the proper stamps denoting the tax thereon; or who makes false or fraudulent entries of the manufacture or sale of any cigars; or makes false or fraudulent entries of the purchase or sale of leaf-tobacco, tobaccostems, or other material used in the manufacture of cigars; or who affixes any false, forged, spurious, fraudulent, or counterfeit stamp, or imitation of any stamp, required by law to any box containing any cigars, shall, in addition to the penalties elsewhere provided in this Title for such offenses, forfeit to the United States all raw material and manufactured or partly manufactured tobacco and cigars, and all machinery, tools, implements, apparatus, fixtures, boxes, barrels, and all other materials which shall be found in his possession, or in his manufactory, and used in his business as such manufacturer, together with his estate or interest in the building or factory, and the lot or tract of ground on which such building or factory is located, and all appurtenances thereunto belonging.

See sections 3708 Revised Statutes, 5413, page 420, and 5430,
Revised Statutes.

Machines used in violation of law, although leased from a third
person ignorant of such violation, are subject to forefeiture.
The owner is held to have acted with the knowledge that the
property would be subject to forfeiture if the business was
unlawfully conducted, and to have taken the risk. (U. S. v.
220 Patented Machines, 99 Fed., 559; T. D. 54.)

SEC. 3401. (Obsolete.) Falsely representing cigars to have been made prior to July 20, 1868.

gars to pay tax;

SEC. 3402. All cigars imported from foreign countries Imported cl shall pay, in addition to the import duties imposed thereon, stamps,when and the tax prescribed by law for cigars manufactured in the by whom affixed.

« AnteriorContinuar »