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three shall, so far as may be practicable, apply to any bonded manufacturing warehouse established under this Act and to the merchandise conveyed therein. [30 Stat. L. 207.]
This is from the Tariff Act of July 24, for use in the manufacture of articles 1897, ch. 11.
for exportation in accordance with this Provisions identical herewith were con- section, may be destroyed in the presence tained in the Tariff Act of Aug. 27, 1894, of an officer designated by the collector ch. 349, sec. 9.
of the port, accounted for as waste, and An accumulation of waste incident to the manufacturer relieved from the paymanufacture, and discarded by reason of ment of the duty thereon. (1902) 24 Op. being unfit for sale, from articles im- Atty.-Gen. 58. ported and held in a bonded warehouse
Sec. 3434. [Removal in bond to Pacific coast for exportation.] Any article manufactured in a bonded warehouse established under the preceding section, and situated in any of the Atlantic States, may be removed therefrom for transportation to a customs bonded warehouse at any port on the Pacific coast of the United States, for the purpose only. of being exported therefrom, under such regulations and upon the execution of such bonds or other security as the Secretary of the Treasury may prescribe. [R. S.]
Act of July 13, 1866, ch. 184, 14 Stat. L. 155.
Sec. 3444. [Collector's monthly account of articles in bonded warehouses, and articles exported.] Every collector who has charge of any warehouse in which distilled spirits, or other articles, are stored in bond, shall render a monthly account of all such articles to the Commissioner of Internal Revenue, by whom such account shall be examined and adjusted monthly, so as to exhibit a true statement of the responsibility of such collector thereon. In adjusting such account, the collector shall be charged with all the articles which may have been deposited or received under the provisions of law, in any warehouse in his district and under his control, and shall be credited with all such articles shown to have been removed therefrom according to law, including transfers to other collectors and to his successor in office, and also whatever allowances may have been made in accordance with law to any owner of such goods or articles for leakage or other losses. And every collector from whose district any distilled spirits, tobacco, snuff, or cigars are shipped in bond, under the provisions of this Title, shall render a monthly account of the same to the Commissioner of Internal Revenue, showing the amount of each article produced and shipped in bond, the amounts of which the exportation is completed according to law, and the amount remaining unaccounted for at the end of each month; also any excesses or deficiencies on the amounts originally reported as shipped. [R. S.]
Act of July 20, 1868, ch, 186, 15 Stat. L. 165; Act of June 6, 1872, ch. 315, 17 Stat. L. 255.
Sec. 3445. [Changes of stampe, instruments for attaching and canceling. ] The Commissioner of Internal Revenue may make such change in stamps, and may prescribe such instruments or other means for attaching, protecting, and canceling stamps, for tobacco, snuff, cigars, distilled spirits, and fermented liquors, or either of them, as he and the Secretary of the Treasury shall approve; such instruments to be furnished by the United States to the persons using the stamps to be affixed therewith, under such regulations as the Commissioner of Internal Revenue may prescribe. [R. S.]
Act of July 20, 1868, ch. 186, 15 Stat. L. of internal revenue, see In re Kollock, (1897) 142; Act of June 6, 1872, ch. 315, 17 Stat. 165 U. S. 537. L. 240.
Regulations promulgated under sections As to the constitutionality of legislation 3445 and 3446, R. S., have the force of law, delegating such powers to the commissioner and any failure to comply with them on the part of the vender of cigars would make him Failure to comply with regulations propunishable under the general clause of this mulgated under this section is punishable scction. (1877) 15 Op. Atty.-Gen. 191.
under section 3446, infra. (1877) 15 Op.
Atty.-Gen. 191. Sec. 3446. [Power to alter form and device of stamps -- attaching, canceling, etc.] The Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may establish and, from time to time, alter or change the form, style, character, material, and device of any stamp, mark, or label used under any provision of the laws relating to internal revenue. Such stamps shall be attached, protected, removed, canceled, obliterated, and destroyed, in such manner and by such instruments or other means as he, with the approval of the Secretary of the Treasury, may prescribe; and he is hereby authorized and empowered to make, with the approval of the Secretary of the Treasury, all needful regulations relating thereto; and all pains, penalties, fines, and forfeitures now provided by law relating to internal revenue stamps shall apply to and have full force and effect in relation to any and all stamps which may or shall be so established by the Commissioner of Internal Revenue: Provideš, Such stamps or device or instrument or means of removal or obliteration, shall entail no additional expense upon the persons required to affix or use the same. [R. S.]
The above provisions were substituted by Manner of canceling stamps on packages Act of March 1, 1879, ch. 125, sec. 18, 20 Stat. of fermented liquor, see Act of April 12, 1902, L. 351, for the section as originally enacted, ch. 500, sec. 1, supra, p. 714. which was as follows:
Failure to comply with regulations pro“ SEC. 3446. The Secretary of the Treasury mulgated under this section is punishable and the Commissioner of Internal Revenue, under this section. (1877) 15 Op. Atty.-Gen. may alter, renew, or change the form, style, 191. and device of any stamp, mark, or label used “The Hamilton Brooks cigar stamp," which under any provision of the laws relating to is a stamp to which are attached as many distilled spirits, tobacco, snuff, and cigars, coupons as there are cigars in the box to be when in their judgment necessary for the stamped, may be adopted by the commiscollection of revenue tax, or the prevention sioner. This or any other peculiar stamp, or detection of frauds thereon; and may not entailing any additional expense upon make and publish such regulations for the the parties using the same, may be adopted use of such mark, stamp, or label as they by the commissioner, and if legally estabfind requisite. But in no case shall such re- lished, and its manner of use, cancellation, newal or change extend to an abandonment and destruction properly prescribed and reguof the general character of the stamps above lated, any failure to use, cancel, and destroy, mentioned, nor to the dispensing with any as directed by such regulations, would make provisions requiring that such stamps shall the offender amenable to penalties existing be kept in book form and have thereon the March 1, 1879. (1881) 17 Op. Atty.-Gen. 111. signatures of revenue officers.” Act of July See also (1877) 15 Op. Atty.-Gen. 191, as to 20, 1868, ch, 186, 15 Stat. L. 165.
the Hunter stamp. And see, (1880) 16 Op. The provisions of this section were ex- Atty.-Gen. 443. tended to stamps for special taxes by R. S. sec. 3238, supra, p. 607.
Sec. 3447. [Where mode of assessing or collecting any tax is not provided for regulations.] Whenever the mode or time of assessing or collecting any tax which is imposed is not provided for, the Commissioner of Internal Revenue may establish the same by regulation. He may also make all such regulations, not otherwise provided for, as may have become necessary by reason of any alteration of law in relation to internal revenue. [R. S.]
Act of July 20, 1868, ch. 186, 15 Stat. L. to require monthly payments of tax upon the 166.
monthly returns required by section 27 of the Annual payments of tax. In Spreckels War Revenue Act of 1898, as that section Sugar Refining Co. 1. McClain, (C. C. A. plainly and in a distinct provision required 1902) 113 Fed. Rep. 244, it was held that this payment annually and upon annual receipts. section did not authorize the commissioner
Sec. 3315. [Restam ping tar-paid goods, when original stamps are destroyed.] The Commissioner of Juterual Revenue may, under regulations prescribed by him with the approval . ! the Secretary of the Treasury, issue stamps for restamping packages of distilled spirits, tobacco, cigars, snuff, cigarettes and fermented liquors which have been duly stamped, but from which the stamps have been lost or destroyed by unavoidable accident. [R. S.]
The above provisions were substituted by This section seems rather to apply to cases Act of March 1, 1879, ch. 125, 20 Stat. L. where stamps have once been affixed and sub338, for the section as originally enacted, sequently lost or destroyed and new ones are which was as follows:
called for in order to restamp the casks, that * SEC. 3315. The Commissioner of Internal they may not be seized for violation of law, Revenue may, under regulations prescribed though a claimant might have a remedy by him with the approval of the Secretary where the stamps were lost before being of the Treasury, issue tax-paid stamps for affixed under such circumstances as might restamping distilled spirits upon which the lead to the conclusion that they had been tax shall have been paid, but from which destroyed, and duplicates were paid for. the stamps have been lost or destroyed by Woolner v. U. S., (1877) 13 Ct. Cl. 366. unavoidable accident.” Act of June 6, 1872, ch. 315, 17 Stat. L. 245.
An Act Authorizing the Commissioner of Internal Revenue to redeem or make
allowance for internal-revenue stamps.
[SEC. 1.] [Redemption of spoiled or destroyed stamps.] That the Commissioner of Internal Revenue, subject to regulations prescribed by the Secretary of the Treasury, may, upon receipt of satisfactory evidence of the facts, make allowance for or redeem such of the stamps, issued under authority of law, to denote the payment of any internal-revenue tax, as may have been spoiled, destroyed, or rendered useless or unfit for the purpose intended, or for which the owner may have no use, or which through mistake may have been improperly or unnecessarily used, or where the rates or duties represented thereby have been excessive in amount, paid in error, or in any manner wrongfully collected. Such allowance or redemption may be made, either by giving other stamps in lieu of the stamps so allowed for or redeemed, or by refunding the amount or value to the owner thereof, deducting therefrom, in case of repayment, the percentage, if any, allowed to the purchaser thereof; but no allowance or redemption shall be made in any case until the stamps so spoiled or rendered useless shall have been returned to the Commissioner of Internal Revenue, or until satisfactory proof has been made showing the reason why the same can not be returned; or, if so required by the said Commissioner, when the person presenting the same can not satisfactorily trace the history of said stamps from their issuance to the presentation of his claim as a foresaid: Provided, That documentary and proprietary stamps issued under the provisions of “An Act to provide ways and means for war expenditures, and for other purposes," approved June thirteenth, eighteen hundred and ninety-eight, may be redeemed only when presented in quantities of two dollars or more, face value: Provided further, That no claim for the redemption of or allowance for stamps shall be allowed unless presented within two years after the purchase of said stamps from the Government, excepting documentary and proprietary stamps issued under the Act of June thirteenth, eighteen hundred and ninety-eight, which stamps may be redeemed as herein before authorized, upon presentation prior to the first day of July, nineteen hundred and four. [31 Stat. L. 177.]
The last part of the second proviso, from the words “excepting documentary and proprietary stamps
» to the end of the section, was added by Act of June 30, 1902, ch. 1327, 32 Stat. L. 506.
A provision largely parallel to the one in the text appeared in R. S. sec. 3426, as amended by Act of March 1, 1879, ch. 125, sec. 17, 20 Stat. L. 349.
Sec. 2. [Decision of Commissioner final.] That the finding of facts in and the decision of the Commissioner of Internal Revenue upon the merits of any claim presented under or authorized by this Act shall, in the absence of fraud or mistake in mathematical calculation, be final and not subject to revision by any accounting officer. [31 Stat. L. 178.]
Sec. 3. [Repeal.] That all laws and parts of laws in conflict with any of the provisions of this Act are hereby repealed. [31 Stat. L. 178.]
[Transmission of stamps.) And hereafter the transmission of internal revenue stamps to the officers of the internal revenue service shall be made through the mails of the United States in registered packages. [19 Stat. L. 152.]
This is from the Legislative, Executive, and Judicial Appropriation Act of Aug. 15, 1876, ch. 287.
Sec. 47. [Unpaid tax on articles sold or removed for sale to be estimated and collected.] That whenever any article upon which a tax is required to be paid by means of a stamp is sold or removed for sale by the manufacturer thereof, without the use of the proper stamp, in addition to the penalties imposed by law for such sale or removal, it shall be the duty of the Commissioner of Internal Revenue, within a period of not more than two years after such removal or sale, upon such information as he can obtain, to estimate the amount of the tax which has been omitted to be paid, and to make an assessment therefor upon
the manufacturer or producer of such article. He shall certify such assessment to the collector, who shall immediately demand payment of such tax, and upon the neglect or refusal of payment by such manufacturer or producer, shall proceed to collect the same in the manner provided for the collection of other assessed taxes. [28 Stat. L. 562.]
This is from the Revenue Act of Aug. 27, 1894, ch. 349.
Special provision for estimating unpaid taxes on tobacco, snuff, and cigars, see R. S. sec. 3371, supra, p. 732; on mixed flour, supra, p. 777; on filled cheese and oleomargarine, see FOOD AND DRUGS.
Sec. 3448. [Internal-revenue laws, when co-extensive with jurisdiction of United States.] The internal-revenue laws imposing taxes on distilled spirits, fermented liquors, tobacco, snuff, and cigars shall be held to extend to such articles produced anywhere within the exterior boundaries of the United States, whether the same be within a collection-district or not. [R. S.]
Act of July 20, 1868, ch. 186, 15 Stat. L. Factory, (1871) 1 Dill. (U. S.) 264; (1871) 167.
13 Op. Atty.-Gen. 546. See Boudinot v. U. Indian territories. In Cherokee Tobacco, S., (1883) 18 Ct. Cl. 716. (1870) 11 Wall. (U. S.) 616, the court held The part of the Indian Territory in which that the Act of 1868, from which this section the Indian title to the land has been extinwas taken, embraced the Indian territories, guished, and the land thrown open for settleand a prior treaty between the Cherokee ment as a part of the public domain in OklaNation and the United States, giving to the homa, is included within the provisions of Cherokees immunity from taxation as to this section. (1889) 19 Op. Atty.-Gen. 306. products sold within the territory, was an- But see (1898) 22 Op. Atty.-Gen. 232, where nulled in so far as it conflicted with the pro- the attorney-general said that while the genvisions of the statute. See also North eral Indian country ceases to be such upon the German Lloyd Steamship Co. 1. Hedden, extinction of the Indian title, the Indian (1890) 43 Fed. Rep. 17; U. S. v. Tobacco Territory," as organized and defined by metes
and bounds, does not at all cease to be such upon any such contingency, and laws applicable to that territory continue to govern it, no matter who owns the soil, excepting laws relating peculiarly to Indians. (1898) 22 Op. Atty.-Gen. 232.
Philippine Islands. - Since the Act of July
1, 1902, the provisions of this section have been inoperative in the Philippines, as section 1 of that Act provides in effect that the laws of the United States shall not apply to the Philippine Islands. (1902) 24 Op. Atty.Gen. 120.
Sec. 3449. [Removing any liquors or wines under other than trade-names penalty.] Whenever any person ships, transports, or removes any spirituous or fermented liquors or wines, under any other than the proper name or brand known to the trade as designating the kind and quality of the contents of the casks or packages containing the same, or causes such act to be done, he all forfeit said liquors or wines, and casks or packages, and be subject to pay a fine of five hundred dollars. [R. S.]
Act of July 13, 1866, ch. 184, 14 Stat. L. ceptacle into which distilled spirits have been 156.
placed for shipment or removal, either in The validity of this statute is not affected quantity or in separate small packages, as by the fact that it incidentally tends to the bottles or jugs." U. S. 1. One Hundred and discovery or suppression of private frauds. Thirty-Two Packages Spirituous Liquors, etc., It is one of the numerous regulations pre- (C. C. A. 1896) 76 Fed. Rep. 367. See Guckenscribed by the revenue laws intended to pre- heimer v. Sellers, (1897) 81 Fed. Rep. 997. vent frauds on the revenue, and is none the Shipments of unmarked packages are not less a revenue regulation because its enforce- forbidden by the statute, but the prohibition ment may tend to discourage the piracy of is against shipping under a false or misleadtrade-marks, and prevent frauds upon those ing designation. U. S. v. Twenty Boxes Corn who consume the contents of the packages. Liquor, (1902) 123 Fed. Rep. 135. See also U. S. 1. One Hundred and Thirty-Two Pack- U. S. r. Stege, (1898) 87 Fed. Rep. 553. ages Spirituous Liquors, etc., (C. C. A. 1896) Glass; this side up with care," written on 76 Fed. Rep. 367. See also U. S. 1. Campe, the top of boxes containing quart bottles of (1898) 89 Fed. Rep. 697; U. S. v. Loeb, (1892) corn whiskey, is not a false or misleading 49 Fed. Rep. 636.
designation of the contents of the package. This statute does not apply to all persons, “ It is a matter of common knowledge that but refers to shipments of spirituous or fer- packages of liquids in bottles constitute a mented liquors or wines by distillers, brew- very large proportion of shipments bearing ers, manufacturers of wines, rectifiers, and this identical caution." U. S. v. Twenty wholesale dealers. U. S. v. Twenty Boxes Boxes Corn Liquor, (1902) 123 Fed. Rep. 135. Corn Liquor, (1902) 123 Fed. Rep. 135. See “ J. D. Iler's Rochester Tonic” is a tonic U. S. v. Campe, (1898) 89 Fed. Rep. 697. and not a beer. U. S. v. J. D. Iler Brewing
“The term “package,' as used in section Co., (C. C. A. 1903) 121 Fed. Rep. 41. 3449, includes every box, barrel, or other re
Sec. 3450. [Removing or concealing articles with intent to defraud United States of tax — forfeiture and penalty.] Whenever any goods or commodities for or in respect whereof any tax is or shall be imposed, or any materials, utensils, or vessels proper or intended to be made use of for or in the making of such goods or commodities are removed, or are deposited or concealed in any place, with intent to defraud the United States of such tax, or any part thereof, all such goods and commodities, and all such materials, utensils, and vessels, respectively, shall be forfeited; and in every such case all the casks, vessels, cases, or other packages whatsoever, containing, or which shall have contained, such goods or commodities, respectively, and every vessel, boat, cart, carriage, or other conveyance whatsoever, and all horses or other animals, and all things used in the removal or for the deposit or concealment thereof, respectively, shall be forfeited. And every person who removes, deposits, or conceals, or is concerned in removing, depositing, or concealing any goods or commodities for or in respect whereof any tax is or shall be imposed, with intent to defraud the United States of such tax or any part thereof, shall be liable to a fine or penalty of not more than five hundred dollars. And all boilers, stills, or other vessels, tools and implements, used in distilling or rectifying, and forfeited under any of the provisions of this Title, and all condemned material, together with any