Page:United States Statutes at Large Volume 72 Part 1.djvu/1460

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PUBLIC LAW 85-859-SEPT. 2, 1958

[72 S T A T.

"(c) STAMPS TO EVIDENCE THE TAX.—If the Secretary or his delegate shall by regulation provide for the payment of tax by return and require the use of stamps to evidence the tax imposed by this chapter or to indicate compliance therewith, the Secretary or his delegate shall cause to be prepared suitable stamps to be issued to manufacturers and importers of tobacco products, to be used and accounted for, in accordance with such regulations as the Secretary or his delegate shall prescribe. " (d) U S E OF (TGVERNMENT DEposrrARiES.—The Secretary or his

delegate may authorize Federal Reserve banks, and incorporated banks or trust companies which are depositaries or financial agents of the United States, to receive any tax imposed by this chapter, in such manner, at such times, and under such conditions as he may prescribe; and he shall prescribe the manner, time, and condition under which the receipt oi such tax by such banks and trust companies is to be treated as payment for tax purposes. "(e) ASSESSMENT.—Whenever any tax required to be paid by this chapter is not paid in full at the time required for such payment, it shall be the duty of the Secretary or his delegate, subject to the limitations prescribed in section 6501, on proof satisfac'^ory to him, to determine the amount of tax which has been omitted to be paid, and to make an assessment therefor against the person liable for the tax. The tax so assessed shall be in addition to the penalties imposed by law for failure to pay such tax when required. Except in cases where delay may jeopardize collection of the tax, or where the amount is nominal or the result of an evident mathematical error, no such assessment shall be made until and after the person liable for the tax has been afforded reasonable notice and opportunity to show cause, in writing, against such assessment. "SEC. 5704. EXEMPTION FROM TAX. " (a) TOBACCO PRODUCTS FURNISHED FOR EMPLOYEE U S E OR EXPERIMENTAL PURPOSES.—Tobacco products may be furnished by a manu-

facturer of such products, without payment of tax, for use or consumption by employees or for experimental purposes, in such quantities, and in such manner as the Secretary or his delegate shall by regulation prescribe. " (b) TOBACCO PRODUCTS AND CICXAREITE PAPERS AND TUBES TRANSFERRED O REMOVED I N BOND FROM DOMF>STIC FACTORIES AND EXPORT R

WAREHOUSES.—A manufacturer or export warehouse proprietor may transfer tobacco products and cigarette papers and tubes, without payment of tax, to the bonded premises of another manufacturer or export warehouse proprietor, or remove such articles, without payment of tax, for shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, or for consumption beyond the jurisdiction of the internal revenue laws of the United States; and manufacturers may similarly remove such articles for use of the United States; in accordance with such regulations and under such bonds as the Secretary or his delegate shall prescribe. " (c) TOBACCO MATERIALS SHIPPED OR DELIVERED

I N BOND.—-A

dealer in tobacco materials or a manufacturer of tobacco products may ship or deliver tobacco materials, without payment of tax, to another such dealer or manufacturer, or to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States; or, in the case of tobacco stems and waste only, to any person for use by him as fertilizer or insecticide or in the production of fertilizer, insecticide, or nicotine; in accordance with such regulations and under such bonds as the Secretary or his delegate shall prescribe.

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