Sec. 202. Machines used to manufacture or package tobacco products or processed tobacco
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/bill/115/hr/729/ih/section-202A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 5762 is amended— by redesignating subsection
(b)as subsection (c), and by inserting after subsection
(a)the following new subsection: Any tobacco production machine may be sold, leased, imported, exported, delivered, or otherwise made available only to persons— lawfully engaged in— the sale, lease, importation, exportation, or delivery of such machines, the manufacture or packaging of tobacco products or processed tobacco, or the application of unique identification markings onto tobacco product or processed tobacco packages pursuant to section 5723, and that have all Federal, State, local, and Indian tribal government permits, registrations, and licenses required to engage in such activities. No tobacco production machine shall knowingly be manufactured for or be (directly or indirectly) sold, leased, imported, exported, delivered, or otherwise made available to any person engaged in the illegal manufacture, distribution, or sale of counterfeit or contraband tobacco products or processed tobacco, unique identification markings, or other tax-payment indicia. Every person having possession or custody of, or having control over, the installation of any tobacco production machine shall register such machine with the Secretary immediately on its being installed, by subscribing and filing with the Secretary a statement, in writing, setting forth the particular place where such machine is installed, the kind of machine and its capacity, the owner thereof, the owner’s place of residence, and the purpose for which the machine has been or is intended to be used. Under regulations prescribed by the Secretary, this paragraph shall not apply to any tobacco production machine not used or intended to be used— for the manufacture or production of cigarette or cigars, or to manufacture any other tobacco product or processed tobacco, to package any tobacco product or processed tobacco, or to apply unique identification markings to any package. Any person selling, leasing, importing, exporting, delivering, or otherwise making available a tobacco production machine shall maintain and keep records, as the Secretary prescribes by regulation, relating to any transfers of the machine, including the name, address, other contact information, and any permit, registration, or license number of the person receiving delivery of the machine, or to whom the machine is otherwise transferred, as the case may be. Any record required to be maintained and kept under subparagraph
(A)shall be kept for the 5-year period beginning on the first date such record is required to be so maintained and kept. Such records shall be available for inspection by any internal revenue officer during business hours. An ordinary commercial record or invoice shall satisfy the requirements of this paragraph if such record or invoice contains all of the information required under subparagraph (A). Whoever knowingly violates paragraph (1), (2), or
(3)shall, for each offense, be fined not more than $10,000 or an amount equal to 3 times the fair market value of the tobacco product machine involved (whichever is greater), or imprisoned not more than five years, or both. Whoever knowingly violates paragraph
(4)shall, for each offense, be fined not more than $10,000. . Section 5702 is amended by adding at the end the following new subsection: The term tobacco production machine means any machine (or component integral to the operation of such a machine) used to manufacture or package tobacco products or processed tobacco or to apply unique identification markings or other tax-payment indicia to packages of tobacco products or processed tobacco. Such term includes any machine used to produce tobacco products for compensation, lease, or hire, or otherwise used in a commercial setting. . Subsection
(c)of section 5762 (as so redesignated) is amended by striking subsection
(a)and inserting subsections
(a)and
(b). The amendment made by this section shall apply to transfers more than 6 months after the date of the enactment of this Act.