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United States Code (Last Updated: May 24, 2014) |
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Title 26. INTERNAL REVENUE CODE |
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SubTitle E. Alcohol, Tobacco, and Certain Other Excise Taxes |
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Chapter 52. TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES |
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SubChapter A. Definitions; Rate and Payment of Tax; Exemption From Tax; and Refund and Drawback of Tax |
§ 5702. Definitions
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When used in this chapter— (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). (c) Tobacco products “Tobacco products” means cigars, cigarettes, smokeless tobacco, pipe tobacco, and roll-your-own tobacco.
(d) Manufacturer of tobacco products “Manufacturer of tobacco products” means any person who manufactures cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own tobacco, except that such term shall not include— (1) a person who produces cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own tobacco solely for the person’s own personal consumption or use, and (2) a proprietor of a customs bonded manufacturing warehouse with respect to the operation of such warehouse. Such term shall include any person who for commercial purposes makes available for consumer use (including such consumer’s personal consumption or use under paragraph (1)) a machine capable of making cigarettes, cigars, or other tobacco products. A person making such a machine available for consumer use shall be deemed the person making the removal as defined by subsection (j) with respect to any tobacco products manufactured by such machine. A person who sells a machine directly to a consumer at retail for a consumer’s personal home use is not making a machine available for commercial purposes if such machine is not used at a retail premises and is designed to produce tobacco products only in personal use quantities. (e) Cigarette paper “Cigarette paper” means paper, or any other material except tobacco, prepared for use as a cigarette wrapper.
(f) Cigarette tube “Cigarette tube” means cigarette paper made into a hollow cylinder for use in making cigarettes.
(g) Manufacturer of cigarette papers and tubes “Manufacturer of cigarette papers and tubes” means any person who manufactures cigarette paper, or makes up cigarette paper into tubes, except for his own personal use or consumption.
(h) Export warehouse “Export warehouse” means a bonded internal revenue warehouse for the storage of tobacco products or cigarette papers or tubes or any processed tobacco, upon which the internal revenue tax has not been paid, for subsequent 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.
(i) Export warehouse proprietor “Export warehouse proprietor” means any person who operates an export warehouse.
(j) Removal or remove “Removal” or “remove” means the removal of tobacco products or cigarette papers or tubes, or any processed tobacco, from the factory or from internal revenue bond under section 5704, as the Secretary shall by regulation prescribe, or release from customs custody, and shall also include the smuggling or other unlawful importation of such articles into the United States.
(k) Importer “Importer” means any person in the United States to whom nontaxpaid tobacco products or cigarette papers or tubes, or any processed tobacco, manufactured in a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States are shipped or consigned; any person who removes cigars or cigarettes for sale or consumption in the United States from a customs bonded manufacturing warehouse; and any person who smuggles or otherwise unlawfully brings tobacco products or cigarette papers or tubes, or any processed tobacco, into the United States.
(l) Determination of price on cigars In determining price for purposes of section 5701(a)(2)— (1) there shall be included any charge incident to placing the article in condition ready for use, (2) there shall be excluded— (A) the amount of the tax imposed by this chapter or section 7652, and (B) 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 (3) rules similar to the rules of section 4216(b) shall apply. (m) Definitions relating to smokeless tobacco (1) Smokeless tobacco The term “smokeless tobacco” means any snuff or chewing tobacco.
(2) Snuff The term “snuff” means any finely cut, ground, or powdered tobacco that is not intended to be smoked.
(3) Chewing tobacco The term “chewing tobacco” means any leaf tobacco that is not intended to be smoked.
(n) Pipe tobacco The term “pipe tobacco” means any tobacco which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco to be smoked in a pipe.
(o) Roll-your-own tobacco The term “roll-your-own tobacco” means any tobacco which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes or cigars, or for use as wrappers thereof.
(p) Manufacturer of processed tobacco (1) In general The term “manufacturer of processed tobacco” means any person who processes any tobacco other than tobacco products.
(2) Processed tobacco The processing of tobacco shall not include the farming or growing of tobacco or the handling of tobacco solely for sale, shipment, or delivery to a manufacturer of tobacco products or processed tobacco.
Amendments
2012—Subsec. (d). Pub. L. 112–141 inserted concluding provisions.
2009—Subsec. (h). Pub. L. 111–3, § 702(a)(5)(A), substituted “tobacco products or cigarette papers or tubes or any processed tobacco” for “tobacco products and cigarette papers and tubes”.
Subsec. (j). Pub. L. 111–3, § 702(a)(5)(B), inserted “, or any processed tobacco,” after “tobacco products or cigarette papers or tubes”.
Subsec. (k). Pub. L. 111–3, § 702(a)(5)(B), which directed insertion of “, or any processed tobacco,” after “tobacco products or cigarette papers or tubes”, was executed by making the insertion after “tobacco products or cigarette papers or tubes” both places it appeared to reflect the probable intent of Congress.
Subsec. (o). Pub. L. 111–3, § 702(d)(1), inserted “or cigars, or for use as wrappers thereof” before period.
Subsec. (p). Pub. L. 111–3, § 702(a)(4), added subsec. (p).
2000—Subsec. (f). Pub. L. 106–554, § 1(a)(7) [title III, § 315(a)(2)(B)], redesignated subsec. (g) as (f) and struck out former subsec. (f), which defined “cigarette papers”.
Subsec. (g). Pub. L. 106–554, § 1(a)(7) [title III, § 315(a)(2)(B)], redesignated subsec. (h) as (g). Former subsec. (g) redesignated (f).
Subsec. (h). Pub. L. 106–554, § 1(a)(7) [title III, § 315(a)(2)(B)], redesignated subsec. (i) as (h). Former subsec. (h) redesignated (g).
Pub. L. 106–554, § 1(a)(7) [title III, § 315(a)(2)(A)], amended heading and text of subsec. (h) generally. Prior to amendment, text read as follows: “ ‘Manufacturer of cigarette papers and tubes’ means any person who makes up cigarette paper into books or sets containing more than 25 papers each, or into tubes, except for his own personal use or consumption.”
Subsecs. (i) to (p). Pub. L. 106–554, § 1(a)(7) [title III, § 315(a)(2)(B)], redesignated subsecs. (i) to (p) as (h) to (o), respectively.
1997—Subsec. (c). Pub. L. 105–33, § 9302(g)(3)(A), substituted “pipe tobacco, and roll-your-own tobacco” for “and pipe tobacco”.
Subsec. (d). Pub. L. 105–33, § 9302(g)(3)(B)(i), substituted “pipe tobacco, or roll-your-own tobacco” for “or pipe tobacco” in introductory provisions.
Subsec. (d)(1). Pub. L. 105–33, § 9302(g)(3)(B)(ii), added par. (1) and struck out former par. (1) which read as follows: “a person who produces cigars, cigarettes, smokeless tobacco, or pipe tobacco solely for his own personal consumption or use; or”.
Subsec. (k). Pub. L. 105–33, § 9302(h)(4), inserted “under section 5704” after “internal revenue bond”.
Subsec. (p). Pub. L. 105–33, § 9302(g)(2), added subsec. (p).
1990—Subsec. (m). Pub. L. 101–508 substituted heading for one which read: “Wholesale price” and amended text generally. Prior to amendment, text read as follows: “ ‘Wholesale price’ means the manufacturer’s, or importer’s, suggested delivered price at which the cigars are to be sold to retailers, inclusive of the tax imposed by this chapter or section 7652, but exclusive of any State or local taxes imposed on cigars as a commodity, and before any trade, cash, or other discounts, or any promotion, advertising, display, or similar allowances. Where the manufacturer’s or importer’s suggested delivered price to retailers is not adequately supported by bona fide arm’s length sales, or where the manufacturer or importer has no suggested delivered price to retailers, the wholesale price shall be the price for which cigars of comparable retail price are sold to retailers in the ordinary course of trade as determined by the Secretary.”
1988—Subsec. (c). Pub. L. 100–647, § 5061(c)(1), inserted reference to pipe tobacco.
Subsec. (d). Pub. L. 100–647, § 5061(c)(2), inserted reference to pipe tobacco in introductory provisions and in par. (1).
Subsec. (o). Pub. L. 100–647, § 5061(b), added subsec. (o).
1986—Subsec. (c). Pub. L. 99–272, § 13202(b)(2), inserted reference to smokeless tobacco.
Subsec. (d). Pub. L. 99–272, § 13202(b)(3), inserted references to smokeless tobacco.
Subsec. (n). Pub. L. 99–272, § 13202(b)(4), added subsec. (n).
1976—Subsec. (k). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (m). Pub. L. 94–455, § 2128(b), added subsec. (m).
1965—Subsec. (a). Pub. L. 89–44, §§ 502(b)(3)(A), 808(a), redesignated subsec. (b) as (a), repealed former subsec. (a) which related to manufactured tobacco and, in subsec. (a) as so redesignated, allowed the use of any substance containing tobacco (other than any roll of tobacco which is a cigarette within the meaning of subsec. (b)(2) as a wrapper in addition to the leaf tobacco previously allowed.
Subsec. (b). Pub. L. 89–44, §§ 502(b)(3)(A), 808(a), redesignated subsec. (c) as (b) and permitted the use, as a wrapper for cigarettes in addition to paper and substances other than tobacco as previously allowed, any substance containing tobacco, which, because of the finished product’s appearance, tobacco type, labeling, and packaging, is likely to be offered to or purchased by consumers as cigarettes. Former subsec. (b) redesignated (a).
Subsec. (c). Pub. L. 89–44, § 502(b)(3)(A), (B), redesignated subsec. (d) as (c) and struck out reference to manufactured tobacco. Former subsec. (c) redesignated (b).
Subsec. (d). Pub. L. 89–44, § 502(b)(3)(A), (C), redesignated subsec. (e) as (d), and simplified the definition of manufacturer of tobacco products to include only persons who manufacture cigars or cigarettes and reduced the area of excluded activities so as to exclude only persons producing cigars and cigarettes solely for their own personal use and proprietors of customs bonded manufacturing warehouses with respect to the operation of such warehouses. Former subsec. (d) redesignated (c).
Subsecs. (e) to (k). Pub. L. 89–44, § 502(b)(3)(A) redesignated subsecs. (f) to (k) and (n) as (e) to (j) and (k), respectively. Former subsec. (e) redesignated (d).
Subsec. (l). Pub. L. 89–44, § 502(b)(3)(A), redesignated subsec. (o) as (l) and repealed former subsec. (l) which related to tobacco materials.
Subsec. (m). Pub. L. 89–44, § 502(b)(3)(A), repealed subsec. (m) which related to tobacco dealers.
Subsecs. (n), (o). Pub. L. 89–44, § 502(b)(3)(A), redesignated subsec. (n) and (o) as (k) and (l), respectively.
1958—Subsec. (a). Pub. L. 85–859 inserted the term “for removal, or merely removed”.
Subsecs. (b) to (d). Pub. L. 85–859 redesignated subsecs. (c), (d), and (f) as (b), (c), and (d), respectively. Former subsecs. (b), (c), and (d) redesignated (e), (b), and (c), respectively.
Subsec. (e). Pub. L. 85–859 consolidated the definitions “manufacturer of tobacco” and “manufacturer of cigars and cigarettes”, inserted the phrase “for removal, or merely removes”, excluded from the definition a proprietor of a customs bonded manufacturing warehouse with respect to the operation of the warehouse, and required bona fide associations of farmers or growers to maintain records of leaf tobacco.
Subsec. (f). Pub. L. 85–859 redesignated subsec. (g) as (f) and former subsec. (f) as (d).
Subsec. (g). Pub. L. 85–859 added subsec. (g) and redesignated former subsec. (g) as (f).
Subsec. (i). Pub. L. 85–859 substituted “into books or sets containing more than 25 papers each, or into tubes” for “into packages, books, sets, or tubes”.
Subsec. (j). Pub. L. 85–859 substituted provisions defining “export warehouse” for provisions which defined “article” as manufactured tobacco, cigars, cigarettes, and cigarette papers and tubes.
Subsec. (k). Pub. L. 85–859 added subsec. (k) and redesignated former subsec. (k) as (l).
Subsec. (l). Pub. L. 85–859 redesignated former subsec. (k) as (l) and substituted “other than manufactured tobacco, cigars, and cigarettes” for “in process, leaf tobacco, and tobacco scraps, cuttings, clippings, siftings, dust, stems, and waste”. Former subsec. (l) redesignated (m).
Subsec. (m). Pub. L. 85–859 redesignated former subsec. (l) as (m) and included within the definition persons who receive tobacco materials, other than stems and waste, for use in the production of fertilizer, insecticide, or nicotine, required associations of farmers or growers of tobacco to maintain records of all leaf tobacco acquired or received and sold or otherwise disposed of, and excluded from the definition persons who buy leaf tobacco without taking physical possession of the tobacco and qualified manufacturers of tobacco products. Former subsec. (m) redesignated (n).
Subsec. (n). Pub. L. 85–859 redesignated former subsec. (m) as (n) and substituted “tobacco products or cigarette papers or tubes” for “articles”. Former subsec. (n) redesignated (o).
Subsec. (o). Pub. L. 85–859 redesignated former subsec. (n) as (o) and substituted “tobacco products or cigarette papers or tubes” for “articles” in two places, and inserted provisions to include within the definition persons who remove cigars or cigarettes for sale or consumption in the United States from a customs bonded manufacturing warehouse.
Effective Date Of Amendment
Pub. L. 112–141, div. F, title I, § 100122(b),
Except as otherwise provided, amendment by Pub. L. 111–3 effective
Pub. L. 111–3, title VII, § 702(a)(6),
Pub. L. 111–3, title VII, § 702(d)(2),
Pub. L. 106–554, § 1(a)(7) [title III, § 315(b)],
Amendment by Pub. L. 105–33 applicable to articles removed, as defined in subsec. (k) of this section, after
Amendment by Pub. L. 101–508 applicable with respect to articles removed after
Amendment by Pub. L. 100–647 applicable to pipe tobacco removed, within the meaning of subsec. (k) of this section, after
Amendment by Pub. L. 99–272 applicable to smokeless tobacco removed after
Amendment by section 2128(b) of Pub. L. 94–455 effective on first month which begins more than 90 days after
Amendment by section 502(b)(3) of Pub. L. 89–44 applicable on and after
Pub. L. 89–44, title VIII, § 808(d)(1),
Amendment by Pub. L. 85–859 effective