AMENDMENTS OF SUBTITLE E; ALCOHOL, TOBACCO, AND CERTAIN OTHER EXCISE TAXES.

SEC. 1905. AMENDMENTS OF SUBTITLE E; ALCOHOL, TOBACCO, AND CERTAIN OTHER EXCISE TAXES. (a) In General.— (1) Amendment of section 5005.— Section 5005(c)(2) (relating to transfers in bond of distilled spirits) is amended by striking out the last two sentences and inserting in lieu thereof the following: “Such relief from liability shall be effective from the time of removal from the transferor’s bonded premises, or from the time of divestment of interest, whichever is later.” (2) Amendments of section 5008.— (A) Section 5008(b)(1) (relating to abatement, remission, refund, and allowance for loss of destruction of distilled spirits) is amended by inserting immediately after “the tax imposed by this chapter” the following: “or by section 7652”. (B) Section 5008(b)(2) is amended by striking out “the taxes imposed under section 5001(a)(1)” and all that follows and inserting in lieu thereof the following: “the taxes imposed under section 5001(a)(1), under subpart B of this part, or under section 7652 on the spirits so destroyed, to the proprietor of the distilled spirits plant who withdrew the distilled spirits on payment or determination of tax.” (C) Subsections (c)(1) and (d)(1) of section 5008 are each amended by inserting immediately after “under section 5001(a)(1)” the following: “or under section 7652”. (D) Section 5008(d)(1) is amended by striking out “, on or after July 1, 1959,”. (3) Amendment of section 5009.— Section 5009(b)(3) is amended by striking out “46 Stat. 694;”. (4) Amendment of section 5025.— Section 5025 (j) (relating to stabilization of distilled spirits) is amended by striking out “the bottling of distilled spirits,” and inserting in lieu thereof “the bottling of distilled spirits, or preparatory to exportation,”. (5) Amendment of section 5054.— Section 5054 (relating to determination and collection of tax on beer) is amended by striking out subsection (c) (relating to stamps or other devices as 90 STAT. 1819evidence of payment of tax) and by redesignating subsection (d) as subsection (c). (6) Amendments of section 5061.— (A) Section 5061(a) (relating to collections of alcohol taxes) is amended by striking out the last sentence. (B) Section 5061(b) (relating to methods of collection) is amended to read as follows: “(b) Exceptions.— Notwithstanding the provisions of subsection (a), any taxes imposed on, or amounts to be paid or collected in respect of, distilled spirits, wines, rectified distilled spirits and wines, and beer under— “(1) section 5001(a)(5), (6),or (7), “(2) section 5006(c) or (d), “(3) section 5026(a)(2), “(4) section 5041 (d), “(5) section5043(a)(3), “(6) section5054(a)(3) or (4),or “(7) section5505(a), shall be immediately due and payable at the time provided by such provisions (or if no specific time for payment is provided, at the time the event referred to in such provision occurs). Such taxes and amounts shall be assessed and collected by the Secretary on the basis of the information available to him in the same manner as taxes payable by return but with respect to which no return has been filed.” (C) Section 5061(c) (relating to applicability of other provisions of law) is amended to read as follows: “(c) Import Duties.— The internal revenue taxes imposed by this part shall be in addition to any import duties unless such duties are specifically designated as being in lieu of internal revenue tax.” (7) Amendment of section 5113.— Section 5113(f)(1) (relating to retail dealers in liquors) is amended by striking out “wines or beer” and inserting in lieu thereof “distilled spirits, wines, or beer”. (8) Amendments of section 5117.— Section 5117 (relating to prohibited purchases by dealers) is amended by redesignating subsection (b) as subsection (c) and by inserting after subsection (a) the fol lowing new subsection: “(b) Limited Retail Dealers.— A limited retail dealer may lawfully purchase distilled spirits for resale from a retail dealer in liquors.” (9) Amendment of section 5121.— Section 5121(c) (relating to limited retail dealers) is amended to read as follows: “(c) Limited Retail Dealers.— Every limited retail dealer shall pay a special tax of $4.50 for each calendar month in which sales are made as such dealer; except that the special tax shall be $2.20 for each calendar month in which only sales of beer or wine are made.” (10) Amendment of section 3122.— Section 5122(c) (relating to definition of limited retail dealer) is amended by striking out “beer or wine” each place it appears and inserting in lieu thereof “distilled spirits, wine, or beer”. (11) Amendment of section 5131.— Section 5131(a) (relating to eligibility for drawback) is amended by striking out “produced in a domestic registered distillery or industrial alcohol plant and withdrawn from bond, or using distilled spirits withdrawn from the bonded premises of a distilled spirits plant,”. 90 STAT. 1820 (12) Amendment of section 5142.— Section 5142(c) (relating to payment of occupational taxes) is amended to read as follows: “(c) How Paid.— “(1) Payment by return.— The special taxes imposed by this part shall he paid on the basis of a return under such regulations as the Secretary shall prescribe. “(2) Stamp denoting payment of tax.— After receiving a properly executed return and remittance of any special tax imposed by this subpart, the Secretary shall issue to the taxpayer an appropriate stamp as a receipt denoting payment of the tax. This paragraph shall not apply in the case of a return covering liability for a past period.” (13) Amendments of section 5171.— Section 5171(b) (relating to permits for operation of business as distillers, etc.) is amended— (A) in paragraph (1), by striking out “49 Stat. 978;”, and (B) by striking out paragraph (3) (relating to continuance of business after June 30, 1959, pending application for permit). (14) Amendment of section 5174.— Section 5174(a)(2)(A) (relating to withdrawal bonds for distilled spirits) is amended by striking out “such spirits” and inserting in lieu thereof “distilled spirits from bond”. (15) Amendment of section 5232.— Section 5232(a) (relating to transfer of imported distilled spirits) is amended by striking out “and the importer” and inserting in lieu thereof “and the importer, or the person bringing such distilled spirits into the United States,”. (16) Amendment of section 5233.— Section 5233(b)(4) (relating to bottling requirements) is amended by striking out “49 Stat. 977;”. (17) Amendment of section 5234.— The first sentence of section 5234(a)(2) (relating to the mingling of distilled spirits) is amended by striking out “8 years” and inserting in lieu thereof “20 years”. (18) Amendment of section 5314.— Section 5314(a)(2) (relating to application of certain provisions to Puerto Rico) is amended by striking out “section 5001(a)(4)” and inserting in lieu thereof “section 5001(a)(10)”. _ (19) Repeal of section 5315.— Section 5315 (relating to the status of certain distilled spirits on July 1, 1959) is repealed. (20) Amendments of section 5368.— (A) The heading of section 5368 is amended to read as follows: “SEC. 5368. GAUGING AND MARKING.” (B) Section 5368(b) (relating to removal of wines) is amended to read as follows: “(b) Marking.— Wines shall be removed in such containers (including vessels, vehicles, and pipelines) bearing such marks and labels, evidencing compliance with this chapter, as the Secretary may by regulations prescribe.” (21) Amendment of section 5392.— Section 5392(f)(defining own production) is amended by striking out “49 Stat. 990;”. (22) Amendments of section 5601.— Section 5601(b) (relating to presumptions in the case of criminal penalties) is amended to read as follows: 90 STAT. 1821 “(b) Presumption.— Whenever on trial for violation of subsection (a)(4) the defendant is shown to have been at the site or place where, and at the time when, the business of a distiller or rectifier was so engaged in or carried on, such presence of the defendant shall be deemed sufficient, evidence to authorize conviction, unless the defendant explains such presence, to the satisfaction of the jury (or of the court when tried without jury).” (23) Amendments of section 5685.— (A) Section 5685(a) (relating to penalty for possession of devices for emitting gas, smoke, etc.) is amended by striking out “section 5848” and inserting in lieu thereof “section 5845”. (B) Section 5685(c) (relating to forfeiture of firearms, devices, etc.) is amended by striking out “section 5862” and inserting in lieu thereof “section 5872”. (C) Section 5685(d) (relating to the definition of machine gun) is amended to read as follows: “(d) Definition of Machine Gun.— As used in this section, the term ‘machine gun’ means a machine gun as defined in section 5845(b).” (24) Amendment of section 5701.— Section 5701(e) (relating to imported tobacco products, etc.) is amended by striking out “such articles” and inserting in lieu thereof “such articles, unless such import duties are imposed in lieu of internal revenue tax”. (25) Amendments of section 5703.— (A) Section 5703(a)(2) (relating to transfer of liability for tobacco taxes) is amended by adding at the end thereof the following new sentence: “All provisions of this chapter applicable to tobacco products and cigarette, papers and tubes in bond shall be applicable to such articles returned to bond upon withdrawal from the market or returned to bond after previous removal for a tax-exempt purpose.” (B) The second sentence of section 5703(b) (relating to method of payment of tobacco taxes) is amended by striking out “, except that the taxes shall continue to be paid by stamp until the Secretary or his delegate provides, by regulations, for the payment, of the taxes on the basis of a return”. (C) Section 5703 is amended by striking out subsection (c) (relating to stamps to evidence tobacco taxes) and by redesignating subsections (d) and (e) as subsections (c) and (d), respectively. (26) Amendments of section 3704.— Subsections (c) and (d) of section 5704 (relating to exemptions from tobacco taxes) are each amended by inserting after “to a manufacturer of tobacco products or cigarette papers and tubes” the following: “or to the proprietor of an export warehouse”. (27) Amendment of section 5712.— Section 5712 (relating to application for permit) is amended by striking out the last sentence. (28) Amendments of section 572a.— (A) The heading of section 5723 is amended by striking out “NOTICES, AND STAMPS” and inserting in lieu thereof “AND NOTICES”. (B) Section 5723(b) (relating to marks, and so forth, on packages) is amended to rend as follows: “(b) Marks, Labels, and Notices.— Every package of tobacco products or cigarette papers or tubes shall, before removal, bear the marks, labels, and notices, if any, that the Secretary by regulation prescribes.” 90 STAT. 1822 (b) Conforming and Clerical Amendments.— (1) Amendments conforming to amendment of section 5054.— (A) Section 5676 (relating to beer stamp penalties) is repealed. (B) The table of sections for part III of subchapter J of chapter 51 is amended by striking out the item relating to section 5676. (2) Amendments conforming to amendments of section 5081.— (A) Section 5007(b)(1) is amended by striking out the second sentence. (B) Section 5026(b) is amended by striking out “Except as provided in subsection (a)(2), the taxes” and inserting in lieu thereof “The taxes”. (C) Section 5043(b) is amended by striking out “Except as provided in subsection (a)(3), the taxes” and inserting in lieu thereof “The taxes”. (D) Section 5662 is amended by striking out “stamp,” each place it appears. (E) (i) Section 5689 (relating to penalty and forfeiture for tampering with a stamp machine) is repealed. (ii) The table of sections for part IV of subchapter J of chapter 51 is amended by striking out the item relating to section 5689. (iii) Section 5061 is amended by striking out subsection (d). (3) Amendments conforming to amendment of section 5142.— (A) (i) Section 5104 (relating to method of payment of tax on stills) is repealed. (ii) The table of sections for subpart C of part II of subchapter A of chapter 51 is amended by striking out the item relating to section 5104. (B) Section 5111(a) is amended by striking out the second sentence. (C) Section 5121(a) is amended by striking out the second sentence. (D) (i) Section 5144 (relating to supply of stamps) is repealed. (ii) The table of sections for subpart G of part II of subchapter A of chapter 51 is amended by striking out the item relating to section 5144. (E) Section 5148(3) is amended by striking out “penalties” and inserting in lieu thereof “penalties, authority for assessments,”. (4) Amendment conforming to the repeal of section 5315.— The table of sections for part III of subchapter E of chapter 51 is amended by striking out the item relating to section 5315. (5) Amendment conforming to the amendment of section 5358.— The item relating to section 5368 in the table of sections for part II of subchapter E of chapter 51 is amended to read as follows: “Sec. 5368. Gauging and marking.” (6) Amendments conforming to the amendment of section 5001.— 90 STAT. 1823 (A) Section 5105 (b)(2) is amended by striking out “, 5601 (b)(1),”. (B) Section 5177(b)(2) is amended by striking out “5601 (b)(2),” and inserting in lieu thereof “5601 (b),”. (C) Section 5179(b)(1) is amended by striking out “, 5601 (b)(1)”. (D) Section 5222(d) is amended by striking out “5601(b)(3), 5601(b)(4)”. (E) Section 5505(i) is amended by striking out “5601(b)(1),”. (7) Amendments conforming to the amendment of section 5723.— (A) Paragraphs (2) and (3) of section 5751(a) are each amended by striking out “notices, and stamps” and inserting in lieu thereof “and notices”. (B) (i) Section 5752 is amended to read as follows: “SEC. 5752. RESTRICTIONS RELATING TO MARKS, LABELS, NOTICES, AND PACKAGES. “No person shall, with intent to defraud the United States, destroy, obliterate, or detach any mark, label, or notice prescribed or authorized, by this chapter or regulations thereunder, to appear on, or be affixed to, any package of tobacco products or cigarette papers or tubes, before such package is emptied.” (ii) Section 5762(a) is amended by striking out paragraphs (8), (7), (8), (9), (10), and (11) and inserting in lieu thereof the following: “(6) Destroying, obliterating, or detaching marks, labels, or notices before packages are emptied.— Violates any provision of section 5752;”. (iii) The item relating to section 5752 in the table of sections for subchapter E of chapter 52 is amended to read as follows: “Sec. 5752. Restrictions relating to marks, labels, notices, and packages.” (C) (i) Section 5763(a)(2) is amended by striking out “notices, and stamps” and inserting in lieu thereof “and notices”. (ii) Section 5763(b) is amended by striking out “internal revenue stamps,”. (D) The item relating to section 5723 in the table of sections for subchapter C of chapter 52 is amended to read as follows: “Sec. 5723. Packages, marks, labels, and notices.” (c) Amendments to Provisions Referring to Territories.— (1) Section 5114(b) is amended by striking out “or Territory” each place it appears and by striking out “Territories,”. (2) Section 5214(a)(2) is amended by striking out “or Territory” each place it appears. (3) Section 5272(b) is amended by striking out “and Territories”. (4) Section 5362(c)(9) is amended by striking out “and Territories”. (5) Section 5551(b)(2) is amended by striking out “Territory, or”. (6) Section 5685(a) is amended by striking out “Territory or”. 90 STAT. 1824 (d) Effective Date.— The amendments made by this section shall take effect on the first day of the first month which begins more than 90 days after the date of the enactment of this Act.