Page:United States Statutes at Large Volume 72 Part 1.djvu/1327

 72 S T A T. ]

PUBLIC LAW 85-859-SEPT. 2, 1958

1285

tary or his delegate shall prescribe to carry out the purpose of this paragraph. "(2) EXPORT.—Subject to such regulations as the Secretary or his delegate may prescribe for the purpose of this paragraph, in the case of any sale or resale for export, the Secretary or his delegate may relieve the purchaser or the second purchaser, or both, from the requirement of registering under this section. " (3) CERTAIN PURCHASES AND SALES BY THE UNITED STATES.—

Subsection (a) shall apply to purchases and sales by the United States only to the extent provided by regulations prescribed by the Secretary or his delegate. " (4) MECHANICAL PENCILS, FOUNTAIN PENS, AND BALL POINT

PENS.—Subsection (a) shall not apply in the case of mechanical pencils, fountain pens, and ball point pens subject to the tax imposed by section 4201 sold by the manufacturer for export or for resale for export.

26 USC 42oi.

" (c) REVOCATION OR SUSPENSION OF REGISTRATION.—Under regula-

tions prescribed by the S ^ r e t a r y or his delegate, the registration of any person under this section may be revoked or suspended if the Secretary or his delegate determines— "(1) that such person has used such registration to avoid the payment of any tax imposed by this chapter, or to postpone or in any manner to interfere with the collection of any such tax, or "(2) that such revocation or suspension is necessary to protect the revenue. The revocation or suspension under this subsection shall be in addition to any penalty provided by law for any act or failure to act. " (d) REGISTRATION I N THE CASE OF CERTAIN OTHER EXEMPTIONS.—

The provisions of this section may be extended to, and made applicable with respect to, the exemptions provided by sections 4063(b), 4083, 4093, and 4182 (b), and the exemptions authorized under section 4293 in respect of the taxes imposed by this chapter, to the ex- 26 USC 4063, tent provided by regulations prescribed by the Secretary or his dele- 4293'. gate. "(e) DEFINITIONS.—Terms used in this section which are defined in section 4221(d) shall have the meaning given to them by section 4221 (d). "SEC. 4223. SPECIAL RULES RELATING TO FURTHER MANUFACTURE. " (a) PURCHASING MANUFACTURER To B E TREATED AS THE M A N U -

FACTURER.—For purposes of this chapter, a manufacturer or producer to whom an article is sold or resold free of tax under section 4221 (a)(1) for use by him in further manufacture shall be treated as the manufacturer or producer of such article. " (b) COMPUTATION OF T A X. — I f the manufacturer or producer re-

ferred to in subsection (a) incurs liability for tax under this chapter on his sale or use of an article referred to in subsection (^) and the tax is based on the price for which the article is sold, the article shall be treated as having been sold by him—• "(1) at the price for which the article was sold by him (or, where the tax is on his use of the article, at the price referred to in section 4218(d)); or "(2) if he so elects and establishes such price to the satisfaction of the Secretary or his delegate— " (A) at the price for which the article was sold to him; or " (B) at the price for which the article was sold by the person who (without regard to subsection (a)) is the manufacturer, producer, or importer of such article.

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