Page:United States Statutes at Large Volume 53 Part 1.djvu/425

 416 CODIFICATION OF INTERNAL REVENUE LAWS on articles manufactured or produced with the use of duty-paid materials; (d) Such tax (except tax under sections 3422 to 3425, inclusive) shall be imposed in full notwithstanding any provision of law grant- ing exemption from or reduction of duties to products of any possession of the United States; and for the purposes of taxes under section 3422 to 3425, inclusive, the term "United States" includes Puerto Rico. SEC. 3431. RULES AND REGULATIONS. The Secretary shall prescribe and publish all needful rules and regulations for the enforcement of this subchapter. SEC. 3432. CROSS REFERENCE. For tax on importation of sugar, see section 3500. SUBCHAPTER C-GENERAL ADMINISTRATIVE PROVISIONS SEC. 3440. DEFINITION OF SALE. For the purposes of this chapter, the lease of an article shall be considered the sale of such article. SEC. 3441. SALE PRICE. (a) In determining, for the purposes of this chapter, the price for which an article is sold, there shall be included any charge for coverings and containers of whatever nature, and any charge inci- dent to placing the article in condition packed ready for shipment, but there shall be excluded the amount of tax imposed by this chap- ter, whether or not stated as a separate charge. A transportation, de- livery, insurance, installation, or other charge (not required by the foregoing sentence to be included) shall be excluded from the price only if the amount thereof is established to the satisfaction of the Commissioner, in accordance with the regulations. (b) If an article is- (1) sold at retail; (2) sold'on consignment; or (3 sold (otherwise than through an arm's length transaction) at less than the fair market price; the tax under this chapter shall (if based on the price for which the article is sold) be computed on the price for which such articles are sold, in the ordinary course of trade, by manufacturers or producers thereof, as determined by the Commissioner. (c) In the case of (1) a lease, (2) a contract for the sale of an article wherein it is provided that the price shall be paid by install- ments and title to the article sold does not pass until a future date notwithstanding partial payment by installments, or (3) a condi- tional sale, there shall be paid upon each payment with respect to the article that portion of the total tax which is proportionate to the portion of the total amount to be paid represented by such payment. (d) The provisions of this section shall not be applicable with respect to the tax imposed by section 3411. SEC. 3442. TAX-FREE SALES. Under regulations prescribed by the Commissioner with the ap- proval of the Secretary, no tax under this chapter shall be imposed with respect to the sale of any article- (1) for use by the vendee as material in the manufacture or production of, or as a component part of, an article enumerated in this chapter; (2) for resale by the vendee for such use by his vendee, if such article is in due course so resold; (3) for the exclusive use of the United States, any State, Terri- tory of the United States, or any political subdivision of the fore- going, or the District of Columbia.

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