Counterfeiting obligations or securities of the United States, Dealing in counterfeit securities (sec. 154, Criminal Code, act MANUFACTURE OF ARTICLES INTENDED FOR EXPORTATION IN BONDED WAREHOUSES. factured of im portation. SEC. 23. [Act of Aug. 5, 1909 (36 Stat., 88).] That, Articles manuall articles manufactured in whole or in part of im- ported materials ported materials, or of materials subject to internal-intended for exrevenue tax, and intended for exportation without being charged with duty, and without having an internalrevenue stamp affixed thereto, shall, under such regulations as the Secretary of the Treasury may prescribe, in order to be so manufactured and exported, be made and manufactured in bonded warehouses similar to those known and designated in Treasury Regulations as bonded warehouses, class six: Provided, That the manufacturer of such articles shall first give satisfactory bonds for the Manufacturer faithful observance of all the provisions of law and of such regulations as shall be prescribed by the Secretary of the Treasury: Provided further, That the manufacture Manufacture of of distilled spirits from grain, starch, molasses, or sugar, not permitted in including all dilutions or mixtures of them or either of them, shall not be permitted in such manufacturing warehouses. Whenever goods manufactured in any bonded warehouse established under the provisions of the preceding paragraph shall be exported directly therefrom or shall be duly laden for transportation and immediate exportation under the supervision of the proper officer who shall be duly designated for that purpose, such goods shall be exempt from duty and from the requirements relating to revenue stamps. to give bond. distilled spirits such warehouses. What empt. is ex can be conveyed to turing ware Any materials used in the manufacture of such goods, Materials and any packages, coverings, vessels, brands, and labels bonded manufac used in putting up the same may, under the regulations house without of the Secretary of the Treasury, be conveyed without payment of tax. the payment of revenue tax or duty into any bonded manufacturing warehouse, and imported goods may, under the aforesaid regulations, be transferred without the exaction of duty from any bonded warehouse into any bonded manufacturing warehouse; but this privilege shall not be held to apply to implements, machinery, or apparatus to be used in the construction or repair of any bonded manufacturing warehouse or for the prosecution of the business carried on therein. be withdrawn ex No articles or materials received into such bonded, No articles to manufacturing warehouse shall be withdrawn or removed cept for shiptherefrom except for direct shipment and exportation or ment. for transportation and immediate exportation in bond to foreign countries or to the Philippine Islands under the supervision of the officer duly designated therefor by the Account to be kept by collector. List to be filed with Secretary of Treasury. When articles manufactured can be withdrawn. Sec. 3433 made applicable. Certain articles intended for ex manufactured in houses. ware collector of the port, who shall certify to such shipment and exportation, or ladening for transportation, as the case may be, describing the articles by their mark or otherwise, the quantity, the date of exportation, and the name of the vessel: Provided, That the waste material or by-products incident to the processes of manufacture in said bonded warehouses may be withdrawn for domestic consumption on the payment of duty equal to the duty which would be assessed and collected, by law, if such waste or byproducts were imported from a foreign country. All labor performed and services rendered under these provisions shall be under the supervision of a duly designated officer of the customs and at the expense of the manufacturer. A careful account shall be kept by the collector of all merchandise delivered by him to any bonded manufacturing warehouse, and a sworn monthly return, verified by the customs officers in charge, shall be made by the manufacturers containing a detailed statement of all imported merchandise used by him in the manufacture of exported articles. Before commencing business the proprietor of any manufacturing warehouse shall file with the Secretary of the Treasury a list of all the articles intended to be manufactured in such warehouse, and state the formula of manufacture and the names and quantities of the ingredients to be used therein. Articles manufactured under these provisions may be withdrawn under such regulations as the Secretary of the Treasury may prescribe for transportation and delivery into any bonded warehouse at an exterior port for the sole purpose of immediate export therefrom. The provisions of Revised Statutes thirty-four hundred and thirty-three shall, so far as may be practicable, apply to any bonded manufacturing warehouse established under this Act and to the merchandise conveyed therein. This section is mainly a reproduction of section 15 of the tariff act of July 24, 1897 (30 Stat., 207). See Internal Revenue Compilation of 1900, page 297, amendments being in italics. SEC. 3433 [as amended by sec. 10, act of Oct. 1, 1890 (26 portation to be Stat., 614)]. All medicines, preparations, compositions, bonded perfumery, cosmetics, cordials, and other liquors manufactured wholly or in part of domestic spirits, intended for exportation, as provided by law, in order to be manufactured and sold or removed, without being charged with duty, and without having a stamp affixed thereto, Regulations. shall, under such regulations as the Secretary of the Treasury may prescribe, be made and manufactured in warehouses similarly constructed to those known and designated in Treasury regulations as bonded warehouses, class two: Provided, That such manufacturer1 shall first give satisfactory bonds to the collector of internal revenue for the faithful observance of all the provisions of law and the regulations as aforesaid, in amount not less than half Bonds. 1 This word "manufacturer" is erroneously printed "manufactory" in Revised Statutes, edition of 1878. goods. and Articles materials used in warehouse. of that required by the regulations of the Secretary of the Treasury from persons allowed bonded warehouses. Such goods, when manufactured in such warehouses, may be Removing removed for exportation, under the direction of the proper officer having charge thereof, who shall be designated by the Secretary of the Treasury, without being charged with duty, and without having a stamp affixed thereto. Any manufacturer of the articles aforesaid, or of any of them, having such bonded warehouse as aforesaid, shall be at liberty, under such regulations as the Secretary of the Treasury may prescribe, to convey therein any materials to be used in such manufacture which are allowed by the provisions of law to be exported free from tax or duty, as well as the necessary materials, implements, packages, vessels, brands, and labels for the preparation, putting up, and export of the said manufactured articles; and every article so used shall be exempt from the payment of stamp and excise duty by such manufacturer. ed materials in Articles and materials so to be used may be transferred Use of importfrom any bonded warehouse in which the same may be, bond. under such regulations as the Secretary of the Treasury may prescribe, into any bonded warehouse in which such manufacture may be conducted, and may be used in such manufacture, and when so used shall be exempt from stamp and excise duty; and the receipt of the officer in charge, as aforesaid, shall be received as a voucher for the manufacture of such articles. Any materials imported into the United States may, under such rules as the Secretary of the Treasury may prescribe, and under the direction of the proper officer, be removed in original packages from on shipboard, or from the bonded warehouse in which the same may be, into the bonded warehouse in which such manufacture may be carried on, for the purpose of being used in such manufacture, without payment of duties thereon, and may there be used in such manufacture. No article so removed, nor any article manufactured in said bonded warehouse, shall be taken therefrom except for exportation, under the direction of the proper officer having charge thereof, as aforesaid, whose certificate, describing the articles by their marks, or otherwise, the quantity, the date of importation, and name of vessel, with such additional particulars as may from time to time be required, shall be received by the collector of customs in cancellation of the bonds, or return of the amount of foreign import duties. etc. All labor performed and services rendered under these supervision, regulations shall be under the supervision of an officer of the customs, and at the expense of the manufacturer. (Regulations of the Secretary of Treasury relating to the establishment of bonded manufacturing warehouses (Customs Regulations 1908.) (Treasury Department Document 2464, Division of Customs, May 6, 1907.) (T. D. 30458, Mar. 22, 1910; T. D. 30516, Apr. 9, 1910; T. D. 30927, Sept. 15, 1910.) Withdrawal of spirits by manu fumery, etc. [SEC. 3433a.] [Sec. 20, act of Mar. 1, 1879 (20 Stat., 327), facturer of per- as amended by sec. 14, act of May 28, 1880 (21 Stat., 145).] That under such regulations and requirements as to stamps, bonds, and other security as shall be prescribed by the Commissioner of Internal Revenue, any manufacturer of medicines, preparations, compositions, perfumeries, cosmetics, cordials, and other liquors, for export, manufacturing the same in a duly constituted manufacturing warehouse, shall be authorized to withdraw, in original packages, from any distillery-warehouse, so much distilled spirits as he may require for the said purpose, without the payment of the internal-revenue tax thereon. Allowance leakage. Drawback. Equal to per cent. for the [SEC. 3433b.] [Sec. 15, act of May 28, 1880 (21 Stat., 145).] That where spirits are withdrawn from distillery warehouses for transfer to manufacturing warehouses, under the provisions of this act, it shall be lawful, under such rules and regulations and limitations as shall be prescribed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, for an allowance to be made for leakage or loss by any unavoidable accident, and without any fraud or negligence of the distiller, owner, exporter, carrier, or their agents or employees, occurring during transportation from a distillery warehouse to a manufacturing warehouse. See Regulations, No. 29, relative to transportation and exportation of distilled spirits in bond free of tax. SEC. 3434. Superseded by sec. 23 of the act of Aug. 5, 1909, last paragraph but one, p. 334. DRAWBACK. SEC. 25. [Act of Aug. 5, 1909 (36 Stat., 90).] That where imported materials on which duties have been paid are used in the manufacture of articles manufactured or produced in the United States, there shall be allowed on the exportation of such articles a drawback equal in amount to the duties paid on the materials used, less one per centum of such duties: Provided, That when the articles exported are made in part from domestic materials duty paid, less I the imported materials, or the parts of the articles made from such materials, shall so appear in the completed articles that the quantity or measure thereof may be ascertained: And provided further, That the drawback on any article allowed under existing law shall be continued at the rate herein provided. That the imported materials used in the manufacture or production of articles entitled to drawback of customs duties when exported shall, in all cases where drawback of duties paid on such materials is claimed, be identified, the quantity of such materials used and the amount of duties paid thereon shall be ascertained, the facts of the manufacture or production of such articles in the United States and their exportation therefrom shall be determined, and the drawback due thereon shall be paid to the manufacturer, producer, or exporter, to the agent of either, or to the person to whom such manufacturer, producer, exporter, or agent shall in writing order such drawback paid, under such regulations as the Secretary of the Treasury shall prescribe. tax on domestic toilet prepara That on the exportation of medicinal or toilet prepara- Equal to the tions (including perfumery) hereafter manufactured or alcohol used in produced in the United States in part from domestic medicinal and alcohol on which an internal-revenue tax has been paid, tions. there shall be allowed a drawback equal in amount to the tax found to have been paid on the alcohol so used: Provided, That no other than domestic tax-paid alcohol shall have been used in the manufacture or production of such preparations. Such drawback shall be determined and paid under such rules and regulations, and upon the filing of such notices, bonds, bills of lading, and other evidence of payment of tax and exportation, as the Secretary of the Treasury shall prescribe. * * Drawback on medicinal and toilet preparations manufactured Drawback on medicinal and toilet preparations manufactured by section 3689, Revised Statutes. (17 Comp. Dec., 24.) Free entry of domestic products exported and returned. (Dept. Cir. No. 64, Oct. 29, 1907.) the internal-rev reimported on nal-revenue tax paid, was re SEC. 26. [Reimportation of articles exported in bond or Duty equal to with drawback. Act of Aug. 5, 1909 (36 Stat., 90).] That enue tax to be upon the reimportation of articles once exported, of the paid on articles growth, product, or manufacture of the United States, which no interupon which no internal tax has been assessed or paid, or was paid, or, if upon which such tax has been paid and refunded by allow- funded. ance or drawback, there shall be levied, collected, and paid a duty equal to the tax imposed by the internalrevenue laws upon such articles, except articles manufactured in bonded warehouses and exported pursuant to law, which shall be subject to the same rate of duty as if originally imported, but proof of the identity of such articles shall be made under general regulations to be prescribed by the Secretary of the Treasury. This section is mainly a reproduction of section 27 of the tariff act of July 24 1897 (30 Stat., 210), Internal Revenue Compilation of 1900, page 298, amendment being in italics. SEC. 3437. Whenever any article upon which a tax is required to be paid by means of a stamp is sold or removed for sale by the manufacturer thereof, without the use of the proper stamp, in addition to the penalties imposed by law for such sale or removal, it shall be the duty of the Commissioner of Internal Revenue, within a period of not more than two years after such removal or sale, upon such information as he can obtain, to estimate the amount of the tax which has been omitted to be paid, and to make an assessment therefor upon the manufacturer or producer of such article. He shall certify such assessment to the collector, who shall immediately demand payment 72170°-11- -22 Assessment of when article is stamp taxes removed without being stamped. |