Page:United States Statutes at Large Volume 102 Part 4.djvu/710

 102 STAT. 3680

PUBLIC LAW 100-647—NOV. 10, 1988 tobacco" and inserting in lieu thereof "smokeless tobacco, or pipe tobacco". (3) The chapter heading for chapter 52 of the 1986 Code is amended to read as follows:

"CHAPTER 52—CIGARS, CIGARETTES, SMOKELESS TOBACCO. PIPE TOBACCO, AND CIGARETTE PAPERS AND TUBES". (4) The table of chapters for subtitle E is amended by striking the item relating to chapter 52 and inserting in lieu thereof the following new item: "Chapter 52. Cigars, cigarettes, smokeless tobacco, pipe tobacco, and cigarette papers and tubes". 26 USC 5701

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(d) EFFECTIVE D A T E. —

(1) IN GENERAL.—The amendments made by this section shall apply to pipe tobacco removed (within the meaning of section 5702(k) of the 1986 Code) after December 31, 1988. (2) TRANSITIONAL RULE.—Any person who— (A) on the date of the enactment of this Act, is engaged in business as a manufacturer of pipe tobacco, and (B) before January 1, 1989, submits an application under subchapter B of chapter 52 of the 1986 Code to engage in such business, may, notwithstanding such subchapter B, continue to engage in such business pending final action on such application. Pending such final action, all provisions of chapter 52 of the 1986 Code shall apply to such applicant in the same manner and to the same extent as if such applicant were a holder of a permit to manufacture pipe tobacco under such chapter 52. (e) FLOOR STOCKS TAX.— (1) IMPOSITION OF TAX.—On pipe tobacco manufactured in or

imported into the United States which is removed before January 1, 1989, and held on such date for sale by any person, there is hereby imposed a tax of 45 cents per pound (and a proportionate tax at the like rate on all fractional parts of a pound). (2) LIABILITY FOR TAX AND METHOD OF PAYMENT.— (A) LIABILITY FOR TAX.—A person holding pipe tobacco on

January 1, 1989, to which the tax imposed by paragraph (1) applies shall be liable for such tax. (B) METHOD OF PAYMENT.—The tax imposed by paragraph

(1) shall be treated as a tax imposed by section 5701 of the 1986 Code and shall be due and payable on February 14, 1989, in the same manner as the tax imposed by such section is payable with respect to pipe tobacco removed on or after January 1, 1989. (C) TREATMENT OF PIPE TOBACCO IN FOREIGN TRADE

ZONES.—Notwithstanding the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) or any other provision of law, pipe tobacco which is located in a foreign trade zone on January 1, 1989, shall be subject to the tax imposed by paragraph (1) and shall be treated for purposes of this subsection as held on such date for sale if— (i) internal revenue taxes have been determined, or customs duties liquidated, with respect to such pipe

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