Page:United States Statutes at Large Volume 96 Part 2.djvu/814

 96 STAT. 2176

PUBLIC LAW 97-424—JAN. 6, 1983 in the same manner as if such article were sold at retail by him. "(B)

EXEMPTION FOR USE IN FURTHER MANUFACTURE.—

Subparagraph (A) shall not apply to use of an article as material in the manufacture or production of, or as a component part of, another article to be manufactured or produced by him. "(C) COMPUTATION OP TAX.—In the case of any person made liable for tax by subparagraph (A), the tax shall be computed on the price at which similar articles are sold at retail in the ordinary course of trade, as determined by the Secretary. "(b) DETERMINATION OF PRICE.—

"(1) IN GENERAL.—In determining price for purposes of this subchapter— "(A) there shall be included any charge incident to placing the article in condition ready for use, "(B) there shall be excluded— "(i) the amount of the tax imposed by this subchapter, "(ii) if stated as a separate charge, the amount of any retail sales tax imposed by any State or political subdivision thereof or the District of Columbia, whether the liability for such tax is imposed on the vendor or vendee, and "(iii) the fair market value (including any tax imposed by section 4071) at retail of any tires (not including any metal rim or rim base), and "(C) the price shall be determined without regard to any trade-in. "(2) SALES NOT AT ARM'S LENGTH.—In the case of any article sold (otherwise than through an arm's-length transaction) at less than the fair market price, the tax under this subchapter shall be computed on the price for which similar articles are sold at retail in the ordinary course of trade, as determined by the Secretary. "(c) CERTAIN COMBINATIONS NOT TREATED AS MANUFACTURE.—For

purposes of this subchapter (other than subsection (a)(3)(B)), a person shall not be treated as engaged in the manufacture of any article by reason of merely combining such article with any equipment or other item listed in section 4063(d). "(d) CERTAIN OTHER RULES MADE APPLICABLE.—Under regulations prescribed by the Secretary, rules similar to the rules of—"(1) subsections (c) and (d) of section 4216 (relating to partial payments), and (2) section 4222 (relating to registration), shall apply for purposes of this subchapter. 26 USC 4053.

"SEC. 4053. EXEMPTIONS.

"(a) EXEMPTION OP SPECIFIED ARTICLES.—No tax shall be imposed under section 4051 on any article specified in subsection (a) of section 4063. "(b) CERTAIN EXEMPTIONS MADE APPLICABLE.—The exemptions rovided by section 4221(a) are hereby extended to the tax imposed y section 4051."

E

(2) TECHNICAL AND CONFORMING AMENDMENTS.—

�