NAVIGATION RECEIVERS SOLD TO THE UNITED STATES.

SEC. 482. NAVIGATION RECEIVERS SOLD TO THE UNITED STATES. (a) Exemption on Sales to United States of Certain Radio Sets.—Section 3404 (a) (relating to manufacturers’ excise tax on radio receiving sets, etc.) is hereby amended by adding at the end thereof the following new sentence: “No tax shall be imposed under this subsection with respect to the sale to the United States for its exclusive use of a communication, detection, or navigation receiver of the type used in commercial, military, or marine installations.” (b) Tax-Free Sales of Radio Parts.—Section 3404 (b) (relating to manufacturers’ excise tax on component parts of radio receiving sets, etc.) is hereby amended by adding at the end thereof the following new sentence: “Under regulations prescribed by the Secretary, no tax shall be imposed under this subsection with respect to the sale of any article for use by the vendee as material in the manufacture or production of, or as a component part of, communication, detection, or navigation receivers of the type used in commercial, military, or marine installations if such receivers are to be sold by the vendee to the Unted States for its exclusive use. If any article sold tax-free to such vendee is not so used by him, or being so used the receiver is not so sold, the vendee shall be considered as the manufacturer or producer of such article.” (c) Refund in Case of Use of Parts.—Section 3443 (a) (1) (relating to credits and refunds) is hereby amended to read as follows: “(1) to a manufacturer or producer, in the amount of any tax under this chapter which has been paid with respect to the sale of— “(A) any article (other than a tire, inner tube, or automobile radio or television receiving set taxable under section 3404) purchased by him and used by him as material in the manufacture or production of, or as a component part of, an article with respect to which tax under this chapter has been paid, or which has been sold free of tax by virtue of section 3442, relating to tax-free sales; “(B) any article described in section. 3404 (b) purchased by him and used by him as material in the manufacture or production of, or as a component part of, communication, detection, or navigation receivers of the type used in commercial, military, or marine installations if such receivers have been sold by him to the United States for its exclusive use.” (d) Refund in Case of Resale to United States.—Section 3443 (a) (3) (A) is hereby amended by adding at the end thereof the following: “(vii) in the case of a communication, detection, or navigation receiver of the type used in commercial, military, or marine installations, resold to the United States for its exclusive use.” 65 Stat. 534 (e) Use by Manufacturer of Taxable Parts.—Section 3444 (b) (relating to tax on use by manufacturer of taxable articles) is hereby amended to read as follows: “(b) This section shall not apply with respect to the use by the manufacturer, producer, or importer of articles described in section 3404 (b) if such articles are used by him as material in the manufacture or production of, or as a component part of, communication, detection, or navigation receivers of the type used in commercial, military, or marine installations if such receivers are to be sold to the United States for its exclusive use.” (f) Effective Dates.—The amendments made by subsections (a) and (b) shall take effect as provided in section 490. The amendments made by subsections (c) and (e) shall be applicable with respect to articles used in receivers sold to the United States on or after the first day of the first month which begins more than ten days after the date of the enactment of this Act, and the amendment made by subsection (d) shall be applicable with respect to articles resold to the United States on or after such first day.