113 HR 2990 IH: Smuggled Tobacco Prevention Act of 2013
U.S. House of Representatives
2013-08-02
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title and table of
contents
(a)This Act may be cited as the Smuggled Tobacco Prevention Act of
2013
or the STOP
Act
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title and table of contents.
TITLE I—Amendments to Internal Revenue Code of 1986
Sec. 101. Amendment of 1986 code.
Sec. 102. Machines used to manufacture or package tobacco
products or processed tobacco.
Sec. 103. Improved marking and labeling.
Sec. 104. Wholesalers and manufacturers, importers, and sellers
of tobacco production machines required to have permit.
Sec. 105. Conditions of permit.
Sec. 106. Records to be maintained.
Sec. 107. Reports.
Sec. 108. Fraudulent offenses.
Sec. 109. Penalties.
Sec. 110. Coordination with other government
officials.
Sec. 111. Definitions.
Sec. 112. Conforming amendments.
Sec. 113. Effective date.
TITLE II—Import Fraud
Sec. 201. Maximum penalty for importation of tobacco products
and cigarette papers and tubes by fraudulent means.
TITLE III—Exclusions regarding Indian Tribes and Tribal
matters
Sec. 301. Exclusions regarding Indian Tribes and Tribal
matters.
<enum>I</enum><header>Amendments to
Internal Revenue Code of 1986</header>
<section id="H51A6A4DD2C88489E9886D3C58ACB648A"><enum>101.</enum><header>Amendment of
1986 code</header><text display-inline="no-display-inline">Except as otherwise
expressly provided, whenever in this title an amendment or repeal is expressed
in terms of an amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or other provision of the
Internal Revenue Code of 1986.</text>
</section><section display-inline="no-display-inline" id="H097D53179F454A9C8A941B73C1C914D0"><enum>102.</enum><header>Machines used
to manufacture or package tobacco products or processed tobacco</header>
<subsection display-inline="no-display-inline" id="H2EF6E9C572434DF9A3B14418BE1B684E"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 5762 is
amended—</text>
<paragraph id="H1B289A73C45D47829B7DAD18872E2219"><enum>(1)</enum><text>by redesignating
subsection (b) as subsection (c), and</text>
</paragraph><paragraph id="H32D79A0945A5496696EE54B882A6847A"><enum>(2)</enum><text>by inserting after
subsection (a) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H2533FA9B46A24A0189B982A8DFCA7C8E" style="OLC">
<subsection id="H42F9CBA14E634FAD86FFCE541903D336"><enum>(b)</enum><header>Machines used To
manufacture or package tobacco products or processed tobacco</header>
<paragraph id="H72B0CE7C698A4EDE97E418F5C9A37C00"><enum>(1)</enum><header>Transfer of
manufacturing machines to licensed persons</header><text display-inline="yes-display-inline">Any tobacco production machine may be sold,
leased, imported, exported, delivered, or otherwise made available only to
persons—</text>
<subparagraph id="HB21EA75BC03C4C5EB121BC6B7B0961F3"><enum>(A)</enum><text>lawfully engaged
in—</text>
<clause id="HEEB740243E6B4FF3AEC0A8009E2C59F3"><enum>(i)</enum><text>the sale, lease,
importation, exportation, or delivery of such machines,</text>
</clause><clause id="H7D583A303B4E4F3D81D0A12EE547BF06"><enum>(ii)</enum><text>the manufacture
or packaging of tobacco products or processed tobacco, or</text>
</clause><clause id="HC3AB80F401A44B5DB9DB5B36609355CA"><enum>(iii)</enum><text display-inline="yes-display-inline">the application of unique identification
markings onto tobacco product or processed tobacco packages pursuant to section
5723, and</text>
</clause></subparagraph><subparagraph id="H238F75B98C3A4C3CA65ED85A8869C265"><enum>(B)</enum><text>that have all
Federal, State, local, and Indian tribal government permits, registrations, and
licenses required to engage in such activities.</text>
</subparagraph></paragraph><paragraph id="H1632E06D2FB64BD5AB6378E7AF167076"><enum>(2)</enum><header>Transfer of
machines to persons engaged in illegal manufacture of contraband</header><text display-inline="yes-display-inline">No tobacco production machine shall
knowingly be manufactured for or be (directly or indirectly) sold, leased,
imported, exported, delivered, or otherwise made available to any person
engaged in the illegal manufacture, distribution, or sale of counterfeit or
contraband tobacco products or processed tobacco, unique identification
markings, or other tax-payment indicia.</text>
</paragraph><paragraph id="HB459F5A039A145C39989E4AE7B22895C"><enum>(3)</enum><header>Registration of
machines</header>
<subparagraph id="H70B2FDC7224C46258BA671B368453081"><enum>(A)</enum><header>In
general</header><text>Every person having possession or custody of, or having
control over, the installation of any tobacco production machine shall register
such machine with the Secretary immediately on its being installed, by
subscribing and filing with the Secretary a statement, in writing, setting
forth the particular place where such machine is installed, the kind of machine
and its capacity, the owner thereof, the owner’s place of residence, and the
purpose for which the machine has been or is intended to be used.</text>
</subparagraph><subparagraph id="HDC42BAC46F1848B690894AE64BFCC517"><enum>(B)</enum><header>Exception</header><text>Under
regulations prescribed by the Secretary, this paragraph shall not apply to any
tobacco production machine not used or intended to be used—</text>
<clause id="H686A8E88C9374008ACF7213F094CD652"><enum>(i)</enum><text>for the
manufacture or production of cigarette or cigars, or to manufacture any other
tobacco product or processed tobacco,</text>
</clause><clause id="H9D49B03B5F33479FAB4B8C3EE1896CFF"><enum>(ii)</enum><text>to package any
tobacco product or processed tobacco, or</text>
</clause><clause id="H5B4EB01DEB9543AABF4EA3346766627C"><enum>(iii)</enum><text>to apply unique
identification markings to any package.</text>
</clause></subparagraph></paragraph><paragraph id="H8FD73BD227E74D01838646D1FFD9AE4F"><enum>(4)</enum><header>Records</header>
<subparagraph id="H99DA32754F994678A3ECDFF371554485"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Any person selling,
leasing, importing, exporting, delivering, or otherwise making available a
tobacco production machine shall maintain and keep records, as the Secretary
prescribes by regulation, relating to any transfers of the machine, including
the name, address, other contact information, and any permit, registration, or
license number of the person receiving delivery of the machine, or to whom the
machine is otherwise transferred, as the case may be.</text>
</subparagraph><subparagraph id="H3F3608BBC956489A82529C2DAC90FBA1"><enum>(B)</enum><header>5-Year holding
period for records</header><text>Any record required to be maintained and kept
under subparagraph (A) shall be kept for the 5-year period beginning on the
first date such record is required to be so maintained and kept.</text>
</subparagraph><subparagraph id="HD33926F54E5E48A7926FDF0C75163358"><enum>(C)</enum><header>Availability of
records</header><text>Such records shall be available for inspection by any
internal revenue officer during business hours.</text>
</subparagraph><subparagraph id="HEB21E009E4054CA7B2FCDFB6204A84FB"><enum>(D)</enum><header>Safe
harbor</header><text>An ordinary commercial record or invoice shall satisfy the
requirements of this paragraph if such record or invoice contains all of the
information required under subparagraph (A).</text>
</subparagraph></paragraph><paragraph commented="no" id="H5A4CF788C68A48B4AD2E1BDBDC7B922D"><enum>(5)</enum><header>Violations</header>
<subparagraph id="H7750562BADE04740837EB2FD69969EB5"><enum>(A)</enum><header>In
general</header><text>Whoever knowingly violates paragraph (1), (2), or (3)
shall, for each offense, be fined not more than $10,000 or an amount equal to 3
times the fair market value of the tobacco product machine involved (whichever
is greater), or imprisoned not more than five years, or both.</text>
</subparagraph><subparagraph id="HF5FD09DF10AA416E963C9614C3C77C1F"><enum>(B)</enum><header>Recordkeeping</header><text>Whoever
knowingly violates paragraph (4) shall, for each offense, be fined not more
than
$10,000.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H91133348FD2A49C1ABD717F632D3D124"><enum>(b)</enum><header>Tobacco
production machine</header><text>Section 5702 is amended by adding at the end
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HA507B7085BBB45AA84A43D31D4193816" style="OLC">
<subsection id="H23DCCAFD407749A99E84E689D51A0EB9"><enum>(q)</enum><header>Tobacco
production machine</header><text display-inline="yes-display-inline">The term
<term>tobacco production machine</term> means any machine (or component
integral to the operation of such a machine) used to manufacture or package
tobacco products or processed tobacco or to apply unique identification
markings or other tax-payment indicia to packages of tobacco products or
processed tobacco. Such term includes any machine used to produce tobacco
products for compensation, lease, or hire, or otherwise used in a commercial
setting.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HED382C82385642DCA6088D49F907C285"><enum>(c)</enum><header>Conforming
amendment</header><text>Subsection (c) of section 5762 (as so redesignated) is
amended by striking <quote>subsection (a)</quote> and inserting
<quote>subsections (a) and (b)</quote>.</text>
</subsection><subsection id="H6BDB58D5F4FA42EB8546B24C889D4F93"><enum>(d)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to transfers
more than 6 months after the date of the enactment of this Act.</text>
</subsection></section><section id="H40A74BC213C94181A5F342A068496760"><enum>103.</enum><header>Improved
marking and labeling</header>
<subsection id="H11389CBB7CC1420CAE25AC5BE446EA78"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (b) of
section 5723 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H57D4A94D3F0741CD9A41C808E78C46F5" style="OLC">
<subsection id="HAA765F38CDB24D679CD2442BB2D3EE21"><enum>(b)</enum><header>Marks, labels,
and notices</header>
<paragraph id="HCB65666D0306473EA5FAC33B1228F6AB"><enum>(1)</enum><header>In
general</header><text>Subject to paragraphs (2), (3), and (4), every package of
tobacco products, processed tobacco, or cigarette papers or tubes shall, before
removal, bear the marks, labels, and notices that the Secretary by regulation
prescribes.</text>
</paragraph><paragraph id="H5B150BC47F8948B68469A54F776F2DDB"><enum>(2)</enum><header>Marking
requirements for domestic market</header>
<subparagraph id="H5A7756DBC4034825ABBC31698B0B3193"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Each person who is a
manufacturer or importer of tobacco products or processed tobacco shall (in
accordance with regulations prescribed by the Secretary) ensure that, before
any product intended for sale or distribution within the United States is
removed, a unique identification marking is affixed to or forms part of each
package of tobacco product or processed tobacco manufactured or imported by
such person for sale or distribution.</text>
</subparagraph><subparagraph id="HE901FC7543F2423E9553970548E14393"><enum>(B)</enum><header>Markings on
individual packages</header><text display-inline="yes-display-inline">Any
markings required to be placed on a tobacco product or processed tobacco
package by this subsection shall be placed on the innermost sealed container
visible from the outside of the individual package. For any tobacco product or
processed tobacco package that contains multiple smaller packages of tobacco
products or processed tobacco, any markings required to be so placed on tobacco
product or processed tobacco packages shall be placed on all the individual
tobacco product or processed tobacco packages.</text>
</subparagraph><subparagraph id="H2BB57BF63D114FA19323852B0449AAAA"><enum>(C)</enum><header>Markings on
aggregate packing modes</header><text display-inline="yes-display-inline">To
facilitate efficient tracking and tracing of tobacco products or processed
tobacco through the distribution system, all manufacturers or importers of
tobacco products or processed tobacco shall, in addition to such unique
identification marking, also, in accordance with regulations prescribed by the
Secretary, ensure that unique identification markings are affixed to or form
part of aggregate packing modes (such as cartons, cases, and master cases for
cigarettes). The Secretary shall determine the size, location, and methods for
such markings. The Secretary shall establish regulations requiring that all
persons within the distribution chain, up to but not including the ultimate
retailer, utilize the unique identification markings on aggregate packing modes
to facilitate the tracking and tracing of tobacco products or processed tobacco
through the distribution system.</text>
</subparagraph></paragraph><paragraph id="H80F09530D50A4C73A546812D4DB56E5F"><enum>(3)</enum><header>Marking
requirements for exports</header><text>A unique identification marking shall be
affixed to or form part of each package of tobacco product or processed tobacco
that is exported, or sold for export, that distinguishes it from those products
or processed tobacco intended for sale or distribution within the United
States. The Secretary shall by regulation prescribe the size, location, and
other characteristics of such marking, and it may contain a serial number that
is assigned to the country of export, except that no such serial number shall
be required on tobacco products or processed tobacco sold at retail to
consumers by duty free stores for consumption beyond the jurisdiction of the
internal revenue laws of the United States. Such tobacco products or processed
tobacco shall instead bear markings indicating the tobacco product or processed
tobacco is only for duty-free sale to consumers, as prescribed through
regulation by the Secretary, before the product or processed tobacco is
removed.</text>
</paragraph><paragraph id="H3BF553F6F8204BD881492B1989E31C33"><enum>(4)</enum><header>Authorization of
federal unique identification marking</header><text>Not later than 3 years
after the date of the enactment of the <short-title>Smuggled Tobacco Prevention Act of 2013</short-title>, the
Secretary shall by regulation require the use of a unique identification
marking on all products subject to tax under this
chapter.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H6104E0B1E4E94BA580159088C7937BEE"><enum>(b)</enum><header>Unique
identification marking</header><text>Section 5723 is amended by adding at the
end the following new subsection:</text>
<quoted-block id="HD3BE3571697842D6966EE5F84038E145" style="OLC">
<subsection id="H47D958F5DE9641C4B276A40EE4B514C1"><enum>(f)</enum><header>Unique
identification marking</header>
<paragraph id="H47980410E6DD449DB90159A7FC015385"><enum>(1)</enum><header>In
general</header><text>No tobacco product or processed tobacco may be sold,
offered for sale, distributed, mailed, or otherwise delivered for final sale to
any consumer in the United States unless the unique identification marking that
meets the requirements of this section (and any regulations prescribed
thereunder) is affixed to or forms part of the package in which it is
contained.</text>
</paragraph><paragraph id="H59F35EE9210C48138A65CF6C249F6C33"><enum>(2)</enum><header>System
specifications</header>
<subparagraph id="H8EC9DDA4871F4FE2B6CAC622104343B5"><enum>(A)</enum><text>The Secretary
shall design such system to coordinate and avoid interference with State,
local, and Indian tribal tax stamps and markings, facilitate collection of the
tax imposed by this chapter, impede contraband tobacco trafficking, minimize
counterfeit marking, allow for more effective tracking and tracing of tobacco
products and processed tobacco, facilitate the enforcement of related Federal
laws, and utilize such available technology as may promote the purposes of this
chapter.</text>
</subparagraph><subparagraph id="HD5A7E127C42840F7BE466E118C52445E"><enum>(B)</enum><text>The Secretary
shall prescribe the method and manner in which such unique identification
markings are to be distributed, purchased, and applied to or made part of
tobacco product and processed tobacco packages, and may provide for the
cancellation of such markings.</text>
</subparagraph><subparagraph id="HDC7F087DBD6347ADA90243645D72B1AB"><enum>(C)</enum><text>The unique
identification marking must provide (through the marking or record associated
with the marking) such information as the Secretary by regulation prescribes,
including:</text>
<clause id="HB5F01137140841EF950AC3D009199242"><enum>(i)</enum><text>A
unique serial number or tracking code for each tobacco product or processed
tobacco package or aggregate package.</text>
</clause><clause id="HAA2288AC003B49B180345B9AD45760FE"><enum>(ii)</enum><text>The name and
address of the person purchasing the marking (and, if different, of the person
ensuring the marking is affixed to or made part of the package).</text>
</clause><clause id="HB8E9E998CC0B4DC6BD171F5DEC097836"><enum>(iii)</enum><text>The name and
address of the first unrelated person purchasing or otherwise receiving the
tobacco product or processed tobacco from the person who ensures the marking is
affixed to or made part of the package and the date of such purchase or
receipt.</text>
</clause></subparagraph><subparagraph id="HC20CC9B9BB5443A6A19CDC101E9F5DC1"><enum>(D)</enum><text>The information
described in subparagraph (C) may be required to, to the extent
practicable—</text>
<clause id="H2EA370A89ADA4CAFB6B53C5A04DEF6F5"><enum>(i)</enum><text>be
cryptographically encrypted, and</text>
</clause><clause id="HA18AABAE6FCC446EB096F44C3251CD70"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="HBE931C388A464EED84D3AD7D9B9ABED5"><enum>(I)</enum><text>be readable by a
portable scanning device (or similar device) to be utilized by regulatory and
law enforcement officials at the time and place of inspection, or</text>
</subclause><subclause id="H6497CFA717F74FA296051B874344D2D2" indent="up1"><enum>(II)</enum><text>be otherwise accessible remotely at such
time and place.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="HF13C0277CB9942EF85E649BAA6F1B91A"><enum>(3)</enum><header>Unrelated
person</header><text>For purposes of this subsection, the term <term>unrelated
person</term> means a person other than a related person within the meaning of
section 267(b) or
707(b)(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC4F1D5A273254300A9989E2A5B774E31"><enum>(c)</enum><header>Definitions</header><text>Section
5723, as amended by subsection (b), is amended by adding at the end the
following new subsections:</text>
<quoted-block id="HD3D90E11214F43C5A565C2C8C2B724EB" style="OLC">
<subsection id="HE4FFD72ADFD54D60BEB1B95A2D1CA769"><enum>(g)</enum><header>Package
defined</header><text>For purposes of this section, the term
<term>package</term> means a pack, box, carton, or container of any kind or, if
no other container, any wrapping (including cellophane), in which a tobacco
product or processed tobacco is sold, offered for sale, distributed, or
otherwise delivered for final sale to any consumer.</text>
</subsection><subsection id="H127367EA4DBA4438A6FE33765EAFE055"><enum>(h)</enum><header>Unique
identification marking defined</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>unique identification marking</term> means a device in such design and
denomination as the Secretary authorizes by regulation that is affixed to or
made part of a package of a tobacco product or processed tobacco. Such markings
shall contain overt security features for public authentication and covert
security features embedding a unique, secure, encrypted identifier onto the
marking, enabling law enforcement authentication, production control, and
tracking and tracing of the product or processed tobacco bearing the
marking.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H7E75B0D73AE34DF28825F86DF9794787"><enum>(d)</enum><header>Regulations</header><text>The
Secretary of the Treasury shall consult with the Secretary of Health and Human
Services as may be appropriate to carry out the purposes of subsection (f), and
paragraphs (2), (3), and (4) of subsection (b), of section 5723 of the Internal
Revenue Code of 1986 (as added by this section).</text>
</subsection></section><section id="H962D60AC7879481083B9A6DD8F3DC91D"><enum>104.</enum><header>Wholesalers and
manufacturers, importers, and sellers of tobacco production machines required
to have permit</header>
<subsection id="HF1DEEDB0196445479303C88375DD7D14"><enum>(a)</enum><header>Wholesalers</header><text display-inline="yes-display-inline">Section 5712 is amended by inserting
<quote>, as a wholesaler,</quote> after <quote>or processed
tobacco</quote>.</text>
</subsection><subsection id="H67443582FAE248208AB12659F5CB21FC"><enum>(b)</enum><header>Manufacturers,
importers, and sellers of tobacco production machines</header><text display-inline="yes-display-inline">Section 5712 is amended by striking
<quote>or as an export warehouse proprietor</quote> and inserting <quote>, as
an export warehouse proprietor, or as a manufacturer, seller, or importer of
tobacco production machines</quote>.</text>
</subsection></section><section id="H6518AB52794048128DAEC8B350C47D93"><enum>105.</enum><header>Conditions of
permit</header>
<subsection id="HD89720AFF3F840398BE23FFA7C0CCE8C"><enum>(a)</enum><header>Issuance</header><text display-inline="yes-display-inline">Subsection (a) of section 5713 is amended
to read as follows:</text>
<quoted-block id="H337564DA81434AC295764EDFCB2633E5" style="OLC">
<subsection id="H0FAED0AB55AD4EB58BFEF8E4E7B5FF6F"><enum>(a)</enum><header>Issuance</header>
<paragraph id="H550EC0F5304241F29719B51AEA5906D4"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">A person shall not
engage in business as a manufacturer or importer of tobacco products or
processed tobacco, as a wholesaler, as an export warehouse proprietor, or as a
manufacturer, seller, lessor, or importer of tobacco production machines
without a permit to engage in such business. Such permit, conditioned upon
compliance with this chapter and regulations issued thereunder, shall be issued
in such form and in such manner as the Secretary shall by regulation prescribe,
to every person properly qualified under sections 5711 and 5712. Any entity
granted such a permit is not eligible to provide any services the Secretary may
elect to procure to facilitate the purposes of section 5723. Permit holders
shall automatically count output and register, record, and transmit the
quantities measured, in the form, conditions, and time limits established by
the Secretary. A new permit may be required at such other time as the Secretary
shall by regulation prescribe.</text>
</paragraph><paragraph id="H30A607D032304BB1A09477BEE48EF197"><enum>(2)</enum><header>Conditions</header><text>The
Secretary shall not issue a permit under this section unless—</text>
<subparagraph id="H4FD7AB644A544A9C927CAA136EFB27CC"><enum>(A)</enum><text>the applicant is
in compliance with the requirements of—</text>
<clause id="H5905E8EBD75E491397DEACA567064C9D"><enum>(i)</enum><text>this
chapter,</text>
</clause><clause id="H11F08B90952F496A8EA0B5A20D33F4BB"><enum>(ii)</enum><text>chapter 114 of
title 18, United States Code,</text>
</clause><clause id="H194D4229F0AE4A6587E212A13090C56D"><enum>(iii)</enum><text display-inline="yes-display-inline">the Act of October 19, 1949 (15 U.S.C. 375
et seq.; commonly referred to as the <term>Jenkins Act</term>),</text>
</clause><clause id="H5B189A1E135345FB82E3171DE7C3A596"><enum>(iv)</enum><text display-inline="yes-display-inline">the Fair and Equitable Tobacco Reform Act
of 2004, and any amendments made thereby,</text>
</clause><clause id="H3BF70CB54218408A822DEA3427C77B82"><enum>(v)</enum><text display-inline="yes-display-inline">the Family Smoking Prevention and Tobacco
Control Act, and any amendments made thereby,</text>
</clause><clause id="HB76F29673AA14A5592442C47FCA7952B"><enum>(vi)</enum><text display-inline="yes-display-inline">the Prevent All Cigarette Trafficking Act
of 2009, and any amendments made thereby, and</text>
</clause><clause id="HB5790DCD5C4743F1BAC1E3FE05AD4B0A"><enum>(vii)</enum><text>any related
regulations thereunder,</text>
</clause><continuation-text continuation-text-level="subparagraph">as in
effect on the date of the issuance of the permit,</continuation-text></subparagraph><subparagraph id="H1C9911649E864B018709B447D366E289"><enum>(B)</enum><text display-inline="yes-display-inline">the applicant certifies that the applicant
is in compliance with all other Federal, State, local, and Indian tribal laws
relating to the taxation, manufacture, importation, exportation, distribution,
marketing, sale, or transportation of tobacco products, processed tobacco, or
tobacco production machines, as in effect on the date of the issuance of the
permit, and</text>
</subparagraph><subparagraph id="H3991565C8FE548F48746BAA9CEF26325"><enum>(C)</enum><text display-inline="yes-display-inline">the applicant identifies in the application
any violation of a law described in subparagraph (A) or (B) by the applicant
resulting in a penalty under any such law during the 5-year period ending on
the date of the
application.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7B46E59A28CB4D398E82358932DE012E"><enum>(b)</enum><header>Suspension or
revocation</header><text>Subparagraph (A) of section 5713(b)(1) is amended by
inserting <quote>or any other law described in subparagraph (A) or (B) of
subsection (a)(2)</quote> after <quote>this chapter</quote>.</text>
</subsection></section><section id="H389D4FEF258D434EA714F35DFCF59DB0"><enum>106.</enum><header>Records to be
maintained</header>
<subsection id="H29A05A40FC624F29AC6A1EB8B26137F6"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 5741 is
amended—</text>
<paragraph id="H7B78FF6C6F7E4D68844670B582E83FAB"><enum>(1)</enum><text>by inserting
<quote>(a) <header-in-text level="subsection" style="OLC">In
general</header-in-text>.—</quote> before <quote>Every
manufacturer</quote>,</text>
</paragraph><paragraph id="H1893EB8A7B3440C49EF6ABAC7C932E2A"><enum>(2)</enum><text>by inserting
<quote>every wholesaler,</quote> after <quote>every importer,</quote>,</text>
</paragraph><paragraph id="H5AF34894993D46F091D288077BE761DD"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>such records</quote> and
inserting <quote>records concerning the chain of custody of the tobacco
products and processed tobacco (including the foreign country of final
destination for packages marked for export) and the serial numbers, marks,
labels, and notices required under section 5723, and such other
records</quote>, and</text>
</paragraph><paragraph id="H26E6B43B5A4E4794AF7DB4645539D05A"><enum>(4)</enum><text>by adding at the
end the following new subsections:</text>
<quoted-block id="HDF6D56321681447192E8630A82E5E04C">
<subsection id="H35F8A320279C45A79B854F3E7AED7D81"><enum>(b)</enum><header>Retailers</header><text display-inline="yes-display-inline">Retailers shall maintain records of
receipt, and any non-retail sale or delivery, of tobacco products and processed
tobacco. Such records shall be available to the Secretary for inspection and
audit. An ordinary commercial record or invoice shall satisfy the requirements
of this subsection if such record shows the date of receipt, from whom tobacco
products or processed tobacco were received, and the quantity of tobacco
products or processed tobacco received (or, in the case of non-retail sale or
delivery, the date of sale or delivery, to whom the tobacco products or
processed tobacco were sold or delivered, and the quantity of the tobacco
products or processed tobacco sold or delivered). To the extent the Secretary
determines that the records maintained by retail entities licensed pursuant to
section 555(b) of the Tariff Act of 1930 (<external-xref legal-doc="usc" parsable-cite="usc/19/1555">19 U.S.C. 1555(b)</external-xref>) satisfy the
recordkeeping requirements of this section, no additional records shall be
required for such entities under this section. The preceding provisions of this
subsection shall not be construed to limit or preclude other recordkeeping
requirements imposed on any retailer.</text>
</subsection><subsection id="H60E24A364A5C450489715ABB41C50973"><enum>(c)</enum><header>Records
concerning marks and chain of custody</header><text>Records concerning the
chain of custody and the marks, labels, and notices required under section 5723
shall be available for inspection by any internal revenue officer during
business
hours.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H5AD74ABC846B44C791A94AB1F21619AD"><enum>(b)</enum><header>Consultation
with Health and Human Services</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall consult
with the Secretary of Health and Human Services as may be appropriate to carry
out the purposes of <external-xref legal-doc="usc" parsable-cite="usc/26/5741">section 5741</external-xref> of the Internal Revenue Code of 1986.</text>
</subsection></section><section id="HFD04B9F45D2A46F2AB6E2F3E3C1AE7DA"><enum>107.</enum><header>Reports</header><text display-inline="no-display-inline">Section 5722 is amended—</text>
<paragraph id="H687471FFF1F844AE82614F820BCF9C3B"><enum>(1)</enum><text>by inserting
<quote>(a) <header-in-text level="subsection" style="OLC">In
general</header-in-text>.—</quote> before <quote>Every manufacturer</quote>,
and</text>
</paragraph><paragraph id="H124B41D21C0044CF99BE2CFB68C8C06C"><enum>(2)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H9CA409FF02204698A9FE3D1066794EB0" style="OLC">
<subsection id="HEE937A890AAE4B69983D73699EF5A913"><enum>(b)</enum><header>Reports by
export warehouse proprietors</header><text>Prior to exportation of tobacco
products or processed tobacco from the United States, the export warehouse
proprietor shall submit a report (in such manner and form as the Secretary may
by regulation prescribe) to enable the Secretary to identify the shipment and
assure that it reaches its intended
destination.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HA91E3485EE5F46CDBB317CCA410F3D28"><enum>108.</enum><header>Fraudulent
offenses</header>
<subsection id="H7A0C378B7C8046C6BBF39CF27170FD5F"><enum>(a)</enum><header>In
general</header><text>Subsection (a) of section 5762 is amended—</text>
<paragraph id="HBB1FB2570C4641EDBF91B1107AA7462A"><enum>(1)</enum><text>by striking
paragraph (1) and redesignating paragraphs (2) through (6) as paragraphs (1)
through (5), respectively, and</text>
</paragraph><paragraph id="H1DA922ABD49B427582D9B58222D04042"><enum>(2)</enum><text>by striking
<quote>not more than $10,000</quote> and inserting <quote>not more than $10,000
or an amount equal to 3 times the amount of the tax imposed under this chapter
on the tobacco product involved (whichever is greater)</quote>.</text>
</paragraph></subsection><subsection id="H6904DDB9AC3141EBAE0DF9A4B1E1B55F"><enum>(b)</enum><header>Offenses
relating to distribution of tobacco products, etc</header>
<paragraph id="H70572E3C640545C99C0F6C4F997B0080"><enum>(1)</enum><header>In
general</header><text>Section 5762 (as amended by section 102 of this Act) is
amended—</text>
<subparagraph id="HAF4F50B11AB1499585A39FA1FF073A9F"><enum>(A)</enum><text>by redesignating
subsection (c) as subsection (d), and</text>
</subparagraph><subparagraph id="HFACC17C7EC77402A8AB777546D23E1D6"><enum>(B)</enum><text>by inserting after
subsection (b) the following new subsection:</text>
<quoted-block id="HEAAF265E4DB44C5AB6E2480FA5327C08">
<subsection id="HE8ACD938E40D4E68808667854C462FE4"><enum>(c)</enum><header>Offenses
relating to distribution of tobacco products, etc</header><text>It shall be
unlawful—</text>
<paragraph id="HFE8660BC766F470CBAD5AD9F04F480CF"><enum>(1)</enum><text>for any person to
engage in business as a manufacturer or importer of tobacco products, processed
tobacco, or cigarette papers and tubes, as a wholesaler, or an export warehouse
proprietor, or as a manufacturer, seller, or importer of tobacco production
machines without filing the bond and obtaining the permit where required by
this chapter or regulations thereunder,</text>
</paragraph><paragraph id="H351232FD6E4F4E0CA8E04CC65D4C336D"><enum>(2)</enum><text display-inline="yes-display-inline">for a manufacturer or importer of tobacco
products, or wholesaler to knowingly ship, transport, deliver, or receive any
tobacco products from or to any person other than a person who has obtained the
permit required by this chapter, a retailer, or a person handling such products
solely for purposes of shipment or delivery; except that an importer who has
obtained the permit required by this chapter may receive, from a foreign
manufacturer or a foreign distributor, foreign tobacco products that have not
previously entered the United States,</text>
</paragraph><paragraph commented="no" id="H0FD3FC1866534D9BB872E259D73BB9F9"><enum>(3)</enum><text>for a manufacturer
or importer of processed tobacco or a wholesaler to knowingly ship, transport,
deliver, or receive any tobacco products or processed tobacco from or to any
person other than a person who has obtained the permit required by this
chapter,</text>
</paragraph><paragraph id="H2B819AB04A0A43A29C5B984C3CCB3E4B"><enum>(4)</enum><text display-inline="yes-display-inline">for a manufacturer or importer of processed
tobacco to knowingly ship, transport, sell, or deliver processed tobacco to any
person other than a manufacturer of processed tobacco, a manufacturer of
tobacco products, or an export warehouse proprietor,</text>
</paragraph><paragraph id="H9921B4B0536748F981512FA0DE80CA09"><enum>(5)</enum><text>for any person
(other than the original manufacturer of such tobacco products or processed
tobacco or an export warehouse proprietor authorized to receive any tobacco
products or processed tobacco that have previously been exported and returned
to the United States) to knowingly receive any tobacco products or processed
tobacco that have previously been exported and returned to the United
States,</text>
</paragraph><paragraph id="HE5ED228B05D648D8985F5653105B78FE"><enum>(6)</enum><text>for any export
warehouse proprietor to knowingly ship, transport, sell, or deliver for sale
any tobacco products or processed tobacco to any person other than the original
manufacturer of such tobacco products or processed tobacco, another export
warehouse proprietor, a duty free store, or a foreign purchaser,</text>
</paragraph><paragraph id="H8FF02B3AEBA448C790BCD6C9E43ADEEC"><enum>(7)</enum><text>for any person
(other than a manufacturer, wholesaler, or an export warehouse proprietor
permitted under this chapter) to knowingly ship, transport, receive, or
possess, for purposes of resale, any tobacco product or processed tobacco not
in packages marked pursuant to regulations issued under section 5723, other
than for direct return to a manufacturer for repacking or for re-exportation or
to an export warehouse proprietor for re-exportation,</text>
</paragraph><paragraph id="HF026D4214BD04CB8A1F40E2921DA0AAF"><enum>(8)</enum><text>for any
manufacturer, importer, export warehouse proprietor, or wholesaler permitted
under this chapter to make any false entry in, to fail to make an entry in, or
to knowingly fail to maintain properly any record or report required by this
chapter or the regulations promulgated thereunder with the intent to defraud
the United States,</text>
</paragraph><paragraph id="HC17D93DFE0FA4459A049E193BD5BCB42"><enum>(9)</enum><text>for any person,
with the intent to defraud the United States, to alter, mutilate, destroy,
obliterate, or remove any mark or label required under this chapter upon a
tobacco product or processed tobacco held for sale, or to create, possess, or
apply on any tobacco product or processed tobacco or its packaging any
counterfeit versions of any such marks or labels, and</text>
</paragraph><paragraph id="H0C1DB61A964F49FD89EE35A1D7DAEC32"><enum>(10)</enum><text>for any person to
sell at retail more than 3,000 cigarettes in any single transaction (or series
of related transactions), or, in the case of other tobacco products, an
equivalent quantity as determined by regulation.</text>
</paragraph><continuation-text continuation-text-level="subsection">Any
person violating any of the provisions of this subsection shall, upon
conviction, be fined as provided in <external-xref legal-doc="usc" parsable-cite="usc/18/3571">section 3571</external-xref> of title 18, United States
Code, or imprisoned for not more than 5 years, or
both.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HA0D42094DE0642F8A7C38FD048A32C7D"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 5762(d) (as so redesignated) is amended by
striking <quote>and (b)</quote> inserting <quote>, (b), and (c)</quote>.</text>
</paragraph></subsection><subsection id="H24D9399806CE4AF78DF53C314E5C5D6C"><enum>(c)</enum><header>Other
offenses</header><text>Subsection (d) of section 5762 (as so redesignated) is
amended by striking <quote>not more than $1,000</quote> and inserting
<quote>not more than $2,500 or an amount equal to the tax imposed under this
chapter on the tobacco product or processed tobacco involved (whichever is
greater)</quote>.</text>
</subsection></section><section id="HDD5D224854154037B61160169905727D"><enum>109.</enum><header>Penalties</header>
<subsection id="HEF1E2B637645401BA0AAFDE81FCF649C"><enum>(a)</enum><header>In
general</header>
<paragraph id="H6546D015766B4B1EBBB182D18E1B150C"><enum>(1)</enum><text display-inline="yes-display-inline">Subsection (a) of section 5761 is
amended—</text>
<subparagraph id="H441AE6C8F1BB4B4283100590AE7072E3"><enum>(A)</enum><text>by striking
<quote>willfully</quote> and inserting <quote>knowingly</quote>, and</text>
</subparagraph><subparagraph id="HE3AF864FA80C495D91B654D45EABD9E6"><enum>(B)</enum><text>by striking
<quote>$1,000</quote> and inserting <quote>$10,000</quote>.</text>
</subparagraph></paragraph><paragraph id="H365949D021E84F249340F7F7B4653AE8"><enum>(2)</enum><text>Subsection (b) of
section 5761 is amended by striking <quote>5 percent</quote> and inserting
<quote>10 percent</quote>.</text>
</paragraph></subsection><subsection id="H64858B573D9D4AAE8D98FAADBA784DFD"><enum>(b)</enum><header>Penalty amounts
adjusted for inflation</header><text>Section 5761 is amended by redesignating
subsection (f) as subsection (g) and inserting after subsection (e) the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HE46DDE0AF3CC4DC09101B67CF611611C" style="OLC">
<subsection id="H6CE9483183A54F3D9107D750CF71304A"><enum>(f)</enum><header>Inflation
adjustment</header>
<paragraph id="H324856CCB76C461DA906DDE745A00CEB"><enum>(1)</enum><header>In
general</header><text>In the case of a calendar year beginning after 2013, the
penalty dollar amounts provided under this chapter shall each be increased by
an amount equal to—</text>
<subparagraph id="H42F953B3835F46C48984C2F13D748AF5"><enum>(A)</enum><text>such dollar
amount, multiplied by</text>
</subparagraph><subparagraph id="HE219EEC281414359B5CAA707F5376979"><enum>(B)</enum><text>the cost-of-living
adjustment determined under section 1(f)(3) for the calendar year, determined
by substituting <quote>calendar year 2012</quote> for <quote>calendar year
1992</quote> in subparagraph (B) thereof.</text>
</subparagraph></paragraph><paragraph id="HB7E158794F26467C8B2BA0060648177B"><enum>(2)</enum><header>Rounding</header><text>If
any amount as adjusted under paragraph (1) is not a multiple of $10, such
amount shall be rounded to the next highest multiple of
$10.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H8CBC975CF6AD44538F01012237081E91"><enum>110.</enum><header>Coordination
with other government officials</header>
<subsection id="H4CB9DFBFA5664F459A98E8EE9419E2D9"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subchapter F of
chapter 52 is amended by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HAEC5B9EE9D2949E9AF0F948D05CAC05B" style="OLC">
<section id="H4B9BA7A0118C4F0C97B1E1737918FA37"><enum>5755.</enum><header>Coordination
with other government officials</header><text display-inline="no-display-inline">The Secretary shall make reasonable efforts
to coordinate with other Federal agencies and with officials of foreign, State,
local, Indian tribal, and other governments to promote the purposes of this
chapter, to prevent and reduce tobacco tax evasion and contraband trafficking
in tobacco products and processed tobacco, to enforce settlement agreements
between tobacco companies and State or other governments and related laws, or
for other law enforcement or administration
purposes.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HA9FA3F3732D5439F92DB2347C85921CB"><enum>(b)</enum><header>Information
sharing</header>
<paragraph id="H2347BACAA17940E88FAFB667023C8CBD"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 6103(o) is amended by adding at
the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H16BA46F30AC24AA1952414F8047EC4E3" style="OLC">
<subparagraph id="H0A93186B7888403696F81769B75A08CC"><enum>(C)</enum><header>Information
sharing for tobacco product law administration and enforcement
purposes</header>
<clause id="HB522C00B2C9748B2A5398AB908A37C28"><enum>(i)</enum><header>Federal, State,
local, and tribal governments</header><text>Returns and return information with
respect to taxes imposed by chapter 52 may be open to inspection by or
disclosure to officers and employees of any Federal agency, the State Tax
Administrators, or any other agency of any State, local, or Indian tribal
government responsible for the administration and enforcement of laws and
regulations relating to tobacco products and processed tobacco, or their legal
representative, solely for use in such administration and enforcement, unless
the Secretary determines that such disclosure would seriously impair Federal
tax administration.</text>
</clause><clause id="H95451F8B552B4406861C92AFB1BDFF65"><enum>(ii)</enum><header>Foreign
governments and organizations</header><text>The Secretary shall, upon written
request, disclose returns and return information with respect to taxes imposed
by chapter 52 to officers and employees of any agency of any foreign
government, OLAF (European Anti-Fraud Office), EUROPOL, INTERPOL, or the World
Customs Organization responsible for the administration and enforcement of laws
and regulations relating to tobacco products and processed tobacco, or their
legal representative, solely for use in such administration and enforcement, if
the Secretary obtains written assurances from such government or organization
that the information will be held in confidence and used only for such use. No
return or return information shall be disclosed under this clause if the
Secretary determines that such disclosure would seriously impair Federal tax
administration.</text>
</clause><clause id="HC0247458A21D463EB5D8BDB6D2F8FF14"><enum>(iii)</enum><header>Public
information</header><text>The identity and business address of those persons
that have a valid permit, pursuant to chapter 52, to engage in business as a
manufacturer, wholesaler, or importer of tobacco products or processed tobacco,
as an export warehouse proprietor, or as a manufacturer, seller, or importer of
tobacco production machines (as defined in section 5702(q)) shall be made
publicly available at such time and in such manner as the Secretary may
prescribe.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HB74D50FE67E14DAB9389931D067D2C69"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="H0AB8DCD0C3284137ACB07A9A6681AA32"><enum>(A)</enum><text>Subsection (a) of
section 6103 is amended—</text>
<clause id="HF0C5B85095F042E684E9BE43691DC5BF"><enum>(i)</enum><text>by
striking <quote>or any local</quote> in paragraph (2) and inserting <quote>any
local</quote>,</text>
</clause><clause id="H5D7ED26C1E674EEFB81B2115308A5230"><enum>(ii)</enum><text>by
inserting <quote>, or any agency described in subsection (o)(1)(C)(i)</quote>
after <quote>subsection (l)(7)(D)</quote> in paragraph (2),</text>
</clause><clause id="H943B7B1D5C43415996F6561FADB0FF27"><enum>(iii)</enum><text>by
striking <quote>or subsection (n)</quote> in paragraph (3) and inserting
<quote>subsection (n), or subsection (o)(1)(C)(i)</quote>.</text>
</clause></subparagraph><subparagraph id="H3CFBBCE5463C414B9C75B0ABB2E2D7AB"><enum>(B)</enum><text>Paragraph (4) of
section 6103(p) is amended—</text>
<clause id="H5898AA3FCB9846A7B6780E158930BFC1"><enum>(i)</enum><text>by
striking <quote>(o)(1)(A)</quote> both places it appears and inserting
<quote>(o)(1)(A) or (C)(i)</quote>, and</text>
</clause><clause id="H3CA263FC50E34734AF9372B246802647"><enum>(ii)</enum><text>by
striking <quote>(15), or (16),</quote> and inserting <quote>(15), or (16), or
(o)(1)(C)(i),</quote>.</text>
</clause></subparagraph><subparagraph id="H1E0239BCECE84B7F97BE697725BE6D54"><enum>(C)</enum><text>Paragraph (2) of
section 7213(a) is amended—</text>
<clause id="HF04C648306DC4E66BE9D1D4B49E07BA5"><enum>(i)</enum><text>by
striking <quote>(21) or</quote> and inserting <quote>(21),</quote>, and</text>
</clause><clause id="H1D67C1576A9B48F8B22253235DE6414B"><enum>(ii)</enum><text>by
striking <quote>or (7)</quote> and inserting <quote>or (7), or
(o)(1)(C)(i)</quote>.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H6CE68F32442F43E8A10249F41FCB608D"><enum>(c)</enum><header>Clerical
amendment</header><text>The table of sections for subchapter F of chapter 52 is
amended by adding at the end the following new item:</text>
<quoted-block id="H695D78596F934E00A17E40B250F2042D" style="OLC">
<toc>
<toc-entry idref="H4B9BA7A0118C4F0C97B1E1737918FA37" level="section">Sec. 5755. Coordination with other government
officials.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H5B04044A960F4886B297425F54B9C326"><enum>111.</enum><header>Definitions</header>
<subsection id="HD6395CA331EA408F8B7A3B12560D48BF"><enum>(a)</enum><header>Export warehouse
proprietor</header><text>Subsection (i) of section 5702 is amended by inserting
before the period the following: <quote>or any person engaged in the business
of exporting tobacco products from the United States for purposes of sale or
distribution. Any duty free store that sells, offers for sale, or otherwise
distributes to any person in any single transaction (or series of related
transactions) more than 3,000 cigarettes, or an equivalent quantity of other
tobacco products as the Secretary shall by regulation prescribe, shall be
deemed an export warehouse proprietor under this chapter</quote>.</text>
</subsection><subsection id="HA150957C5EAF487BAD23E93C081667BC"><enum>(b)</enum><header>Retailer;
wholesaler</header><text>Section 5702, as amended by this Act, is amended by
adding at the end the following new subsections:</text>
<quoted-block id="H17A1AF1B2F8A40CA974EE717DC3DBE34">
<subsection id="H896F412959C7424AAE0455D3937A3631"><enum>(r)</enum><header>Retailer</header><text display-inline="yes-display-inline">The term <term>retailer</term> means any
person who sells, or offers for sale, any tobacco product at retail. The term
<term>retailer</term> includes any duty free store that sells, offers for sale,
or otherwise distributes at retail in any single transaction (or series of
related transactions) not more than 3,000 cigarettes, or not more than an
equivalent quantity of other tobacco products as the Secretary shall by
regulation prescribe.</text>
</subsection><subsection id="H577F12BE5846468695BB166CE11DD0CC"><enum>(s)</enum><header>Wholesaler</header><text>The
term <term>wholesaler</term> means any person engaged in the business of
purchasing tobacco products for resale at wholesale, or any person acting as an
agent or broker for any person engaged in the business of purchasing tobacco
products for resale at
wholesale.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H5B6FEAB1B6F14368A31A1EE59DE97F3B"><enum>112.</enum><header>Conforming
amendments</header>
<subsection id="H0985A45A5D7B4A49A13EE32FFDB40E2E"><enum>(a)</enum><text display-inline="yes-display-inline">Paragraph (2)(C) of section 2341 of title
18, United States Code is amended by inserting <quote>in regard to State,
local, or Indian tribal government taxes,</quote> before <quote>a
person</quote>.</text>
</subsection><subsection id="HE10974C2A4E342928FB17DA823CB35B5"><enum>(b)</enum><text>Sections 2314 and
2315 of title 18, United States Code, are each amended—</text>
<paragraph id="HFFF1171EB072492C9A6001C518B00494"><enum>(1)</enum><text>by striking
<quote><header-in-text level="section" style="OLC">State</header-in-text></quote> in the heading thereof; and</text>
</paragraph><paragraph id="H4DCF8261288F45F790E107B880FF4C6A"><enum>(2)</enum><text>by striking
<quote>tax stamps</quote> each place it appears and inserting <quote>tax stamps
or markings</quote>.</text>
</paragraph></subsection><subsection id="H4C962028A5A6436390E9E65198148153"><enum>(c)</enum><text>The headings for
subchapters B, C, and E of chapter 52 are each amended by inserting
<quote><header-in-text level="subchapter" style="OLC">, processed
tobacco,</header-in-text></quote> after <quote><header-in-text level="subchapter" style="OLC">products</header-in-text></quote>.</text>
</subsection><subsection id="HFBD2971641474D6187C38EC92C5197C9"><enum>(d)</enum><text>The items relating
to subchapters B, C, and E in the table of subchapters for chapter 52 are each
amended by inserting <quote>, processed tobacco,</quote> after
<quote>products</quote>.</text>
</subsection><subsection id="H4065317A36D24182BD3B1FF1D5EB1333"><enum>(e)</enum><text>The heading for
chapter 52 is amended by inserting <quote><header-in-text level="chapter" style="OLC">, processed tobacco,</header-in-text></quote> after
<quote><header-in-text level="chapter" style="OLC">products</header-in-text></quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H32E957B01F1D4D399847F6E44EC1EA13"><enum>(f)</enum><text>The item relating
to chapter 52 in the table of chapters for subtitle E is amended by inserting
<quote>, processed tobacco,</quote> after <quote>products</quote>.</text>
</subsection></section><section id="H59D0F949BF1D47D281F3491B408F0AF3"><enum>113.</enum><header>Effective
date</header><text display-inline="no-display-inline">Except as otherwise
provided in this title, the amendments made by this title shall take effect 1
year after the date of the enactment of this Act.</text>
</section><enum>II</enum><header>Import
Fraud</header>
<section commented="no" id="H5CAD969B7F424DC781EEE452FB1800BD" section-type="subsequent-section"><enum>201.</enum><header>Maximum penalty for
importation of tobacco products and cigarette papers and tubes by fraudulent
means</header>
<subsection commented="no" id="H4B70C90B22404BB985BF7CB45F58ED55"><enum>(a)</enum><header>Maximum
penalty</header><text>Section 592(c)(1) of the Tariff Act of 1930 (19 U.S.C.
1592(c)(1)) is amended—</text>
<paragraph id="HDCD22E208FD14683A382901CAF71A333"><enum>(1)</enum><text>by striking
<quote>A fraudulent violation of subsection (a)</quote> and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H5731CBC360F34721A2363968E2D03676" style="OLC">
<subparagraph id="HE8BF6D91E7AA4AF1A89059B423BDCDDE"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
subparagraph (B), a fraudulent violation of subsection
(a)</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HFF4251622B224CED89C6CE523361854E"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H8035070417974948BE5BF114E56D2B40" style="OLC">
<subparagraph id="HB45C610C818C4829938E1A2852BCB567"><enum>(B)</enum><header>Tobacco products
and cigarette papers and tubes</header><text display-inline="yes-display-inline">In the case of importation of tobacco
products and cigarette papers and tubes subject to tax under chapter 52 of the
Internal Revenue Code of 1986, a fraudulent violation of subsection (a) is
punishable by a civil penalty in an amount not to exceed the sum of—</text>
<clause id="HAB541777A6EC4D9FA67324D185F4C226"><enum>(i)</enum><text>the domestic value
of the merchandise, and</text>
</clause><clause id="HBECFA49B645D44648109C97256A378AC"><enum>(ii)</enum><text>four times the
amount of Federal excise tax that could be imposed on the merchandise, if
applicable.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="HFCEB2ED8FA2A48C886FE95B0504E3368"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
subsection (a) shall take effect on the date which is 90 days after the date of
the enactment of this Act, and shall apply with respect to violations of
section 592 of the Tariff Act of 1930 (as so amended) that occur on or after
that date.</text>
</subsection></section><enum>III</enum><header>Exclusions
regarding Indian Tribes and Tribal matters</header>
<section commented="no" display-inline="no-display-inline" id="HADA03429C79440F48597751B0B58A5F4" section-type="subsequent-section"><enum>301.</enum><header display-inline="yes-display-inline">Exclusions regarding Indian Tribes and
Tribal matters</header>
<subsection commented="no" display-inline="no-display-inline" id="H8078B8D558094057996FBCCD7173EB33"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Nothing in this Act or the amendments made
by this Act shall be construed to amend, modify, or otherwise affect—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF32F91E578064626A126646471C9D5F8"><enum>(1)</enum><text display-inline="yes-display-inline">any agreements, compacts, or other
intergovernmental arrangements between any State or local government and any
government of an Indian tribe relating to the collection of taxes on tobacco
products sold in Indian country;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H07474D03B3704EF684AD0782BC9CD681"><enum>(2)</enum><text display-inline="yes-display-inline">any State laws that authorize or otherwise
pertain to any such intergovernmental arrangements or create special rules or
procedures for the collection of State, local, or tribal taxes on tobacco
products sold in Indian country;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA68AB2D491A347C59A4A4652C6DCCA93"><enum>(3)</enum><text display-inline="yes-display-inline">any limitations under Federal or State law,
including Federal common law and treaties, on State, local, and tribal tax and
regulatory authority with respect to the sale, use, or distribution of tobacco
products or processed tobacco by or to Indian tribes, tribal members, tribal
enterprises, or in Indian country;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H75805B0E924D4687989504CB96A369B3"><enum>(4)</enum><text display-inline="yes-display-inline">any Federal law, including Federal common
law and treaties, regarding State jurisdiction, or lack thereof, over any
Indian tribe, tribal member, tribal enterprise, Indian reservations, or other
land held by the United States in trust for one or more Indian tribes;
or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCE90B6A067A443F7BE5D11586244350D"><enum>(5)</enum><text display-inline="yes-display-inline">any State or local government authority to
bring enforcement actions against persons located in Indian country.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB44133D13EB444AC939BDA0588676DB0"><enum>(b)</enum><header display-inline="yes-display-inline">Coordination of law
enforcement</header><text display-inline="yes-display-inline">Nothing in this
Act or the amendments made by this Act (other than the amendments relating to
<external-xref legal-doc="usc" parsable-cite="usc/26/6103">section 6103</external-xref> of the Internal Revenue Code of 1986) shall be construed to
inhibit or otherwise affect any coordinated law enforcement effort by 1 or more
States or other jurisdictions, including Indian tribes, through interstate
compact or otherwise, that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H8F8BBB331C2B4E87BC39DA31B3207B7E"><enum>(1)</enum><text display-inline="yes-display-inline">provides for the administration of tobacco
product laws or laws pertaining to interstate sales or other sales of tobacco
products or processed tobacco;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFF858F29C7C049069535F644FFAAB4FD"><enum>(2)</enum><text display-inline="yes-display-inline">provides for the seizure of tobacco
products, processed tobacco, or other property related to a violation of such
laws; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H89397B729741418A9B1211313026E06E"><enum>(3)</enum><text display-inline="yes-display-inline">establishes cooperative programs for the
administration of such laws.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB5AFBFC3F50743A489EF6BCAD883471A"><enum>(c)</enum><header display-inline="yes-display-inline">Treatment of State and local
governments</header><text display-inline="yes-display-inline">Nothing in this
Act or the amendments made by this Act shall be construed to authorize,
deputize, or commission States or local governments as instrumentalities of the
United States.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H1EF2BD3F31F44881B58E58A5F504B013"><enum>(d)</enum><header display-inline="yes-display-inline">Enforcement within Indian
Country</header><text display-inline="yes-display-inline">Nothing in this Act
or the amendments made by this Act shall prohibit, limit, or restrict
enforcement by the Attorney General of the United States of this Act or an
amendment made by this Act within Indian country.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H0BEB827BF1504473A9C85D2985A8FDAF"><enum>(e)</enum><header display-inline="yes-display-inline">Ambiguity</header><text display-inline="yes-display-inline">Any ambiguity between the language of this
section or its application and any other provision of this Act shall be
resolved in favor of this section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HBBB9D06D744B47A79BD18AF5B4BFF7AB"><enum>(f)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">In this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HC6084ECDD0184217A817D66F944436B2"><enum>(1)</enum><text display-inline="yes-display-inline">the term <term>Indian country</term> has
the meaning given that term in <external-xref legal-doc="usc" parsable-cite="usc/18/1151">section 1151</external-xref> of title 18, United States
Code;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6CF5745A86A34CE2B4F69972BDEB8095"><enum>(2)</enum><text display-inline="yes-display-inline">the term <term>tribal enterprise</term>
means any business enterprise, regardless of whether incorporated or
unincorporated under Federal or tribal law, of an Indian tribe or group of
Indian tribes;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB79D063E4AD04458A19820018612BBC3"><enum>(3)</enum><text>the term
<term>Indian reservation</term> has the meaning given that term in section
168(j)(6) of the Internal Revenue Code of 1986;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF1C9A73911564B64ADEC78A1E26EBE7D"><enum>(4)</enum><text>the term
<term>Indian tribe</term> has the meaning given that term in section 4(e) of
the <act-name parsable-cite="ISDA">Indian Self-Determination and Education
Assistance Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/25/450b">25 U.S.C. 450b(e)</external-xref>); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7010A008CD9B4BA5A074363510D94081"><enum>(5)</enum><text>the terms
<term>tobacco products</term> and <term>processed tobacco</term> have the
meanings given such terms by section 5702 of the Internal Revenue Code of
1986.</text>
</paragraph></subsection></section>