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PUBLIC LAW 86-869-SEPT. 2, 1958 "(c)

AUTOMOBILE

PARTS, R'ADIO COMPONENTS,

[72 S T A T. CAMERA

LENSES,

ETC.—If any person manufactures, produces, or imports a part or 26 USC 4061. accessory taxable under section 4061(b), a radio or television component taxable under section 4141, or a camera lens taxable under 26 USC 4171. section 4171, and uses it (otherwise than as material in the manufacture or production of, or as a component part of, any other article to be manufactured or produced by him), then he shall be liable for tax under this chapter in the same manner as if such article were sold by him. " (d) COMPUTATION or TAX.—Except as provided in section 4223 (b), in any case in which a person is made liable for tax by the preceding provisions of this section, the tax (if based on the price for which the article is sold) shall be computed on the price at which such or similar articles are sold, in the ordinary course of trade, by manufacturers, producers, or importers, thereof, as determined by the Secretary or his delegate." SEC. 119. UNIFORM SYSTEM OF EXEMPTIONS; REGISTRATION; ETC. 26 USC 4061. (a) IN GENERAL.—Chapter 32 (manufacturers excise taxes) is amended by striking out sections 4220 to 4225, inclusive, and by inserting after section 4219 the following:

"Subchapter G—Exemptions, Registration, Etc. "Sec. "Sec. "Sec. "Sec. "Sec.

Certain tax-free sales. Registration. Special rules relating to further manufacture. Exemption for articles taxable as jewelry. Exemption of articles manufactured or produced byIndians. "Sec. 4226. Floor stocks taxes. "Sec. 4227. Cross references. "SEC. 4221. CERTAIN TAX-FREE SALES. " (a) GENERAL RULE.—Under regulations prescribed by the Secretary or his delegate, no tax shall be imposed under this chapter on the sale by the manufacturer of an article— " (1) for use by the purchaser for further manufacture, or for resale by the purchaser to a second purchaser for use by such second purchaser in further manufacture, "(2) for export, or for resale by the purchaser to a second purchaser for export, "(3) for use by the purchaser as supplies for vessels or aircraft, "(4) to a State or local government for the exclusive use of a State or local government, or "(5) to a nonprofit educational organization for its exclusive use, but only if such exportation or use is to occur before any other use. "(b)

4221. 4222. 4223. 4224. 4225.

PROOF OF KESALE FOR FURTHER MANUIACTURE;

PROOF OF

EXPORT.—Where an article has been sold free of tax under subsection (a)" (1) for resale by the purchaser to a second purchaser for use by such second purchaser in further manufacture, or "(2) for export, or for resale by the purchaser to a second purchaser for export, subsection (a) shall cease to apply in respect of such sale of such article unless, within the 6-monm period which begins on the date of the sale by the manufacturer (or, if earlier, on the date of shipment by the manufacturer), the manufacturer receives proof that the article has been exported or resold for use in further manufacture. "(c)

MANUFACTURER

RELIEVED

FROM

LIABILITY

IN

CERTAIN

CASES.—In the case of any article sold free of tax under this section

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