TOBACCO.

SEC. 808. TOBACCO. (a) Use of Reconstituted Tobacco as a Wrapper.— Section 5702 (relating to definitions for purposes of the tobacco taxes) is amended by striking out subsections (a) and (b) (as, redesignated by section 502) and inserting in lieu thereof the following: “(a) Cigar.—‘Cigar’ means any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco (other than any roll of tobacco which is a cigarette within the meaning of subsection (b)(2)). “(b) Cigarette.—‘Cigarette’ means— “(1) any roll of tobacco wrapped in paper or in any substance not containing tobacco, and “(2) any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in paragraph (1).” (b) Credit as Well as Refund of Tax Permitted.— (1) Section 5705(a) (relating to refund of tax) is amended by striking out “Refund.—Refund of any tax imposed by this chapter shall be made” and inserting in lieu thereof “Credit or Refund.—Credit or refund of any tax imposed by this chapter or section 7652 shall be allowed or made”. (2) Section 5705(c) (relating to limitation on claim for refund) is amended by inserting “credit or” before “refund”. (3) Section 7652(a)(3) (relating to deposit of internal revenue collections on articles of Puerto Rican manufacture) is amended by inserting “(less the estimated amount necessary for payment of refunds and drawbacks)” after “transported to the United States”. 79 Stat. 165 (c) Clerical Amendments.— (1) The heading of section 5705 is amended by striking out “REFUND OR” and inserting in lieu thereof “CREDIT, REFUND, OR”. (2) The table of sections for subchapter A of chapter 52 is amended by striking out “Refund or” in the item relating to section 5705 and inserting in lieu thereof “Credit, refund, or”. (d) Effective Dates.— (1) The amendments made by subsections (a) and (b)(3) shall take effect on July 1, 1965. (2) The amendments made by subsections (b)(1), (b)(2), and (c) shall take effect on October 1, 1965.