der monthly returns as provided in section 2 of the act. $ 300.8 Notice: Form 213. After registration the manufacturer will file notice in duplicate on Form 213. § 300.9 Each factory numbered. Upon receipt of notice the collector will assign to the manufacturer a factory number, which applies to the manufactory, and shall not thereafter be changed. In case there is more than one manufacturer, or a single manufacturer having more than one factory in the same district, a separate and consecutive number shall be given each manufactory. § 300.10 Manufacturer's' sign. The manufacturer shall thereupon place over the principal entrance to the building in which the business is carried on a sign with letters not less than 4 inches in length and of sufficient width, painted or gilded in colors so as to be easily discernible, giving the name and business and number of factory after the following form: JOHN DOE, Manufacturer of White Phosphorus Matches, Factory No. 1. § 300.11 Separate factories for taxable and nontaxable matches. If the manufacturer is also engaged in the production of matches not taxable under the act, the factory premises where the taxable and nontaxable matches are produced shall be entirely separate, or if in the same building, separated by solid walls or partitions, which shall extend from floor to ceiling. The manufacture of taxable and nontaxable matches on the same premises and with the same machinery is not permissible. § 300.12 Manufacturer's bond. (a) A bond executed in duplicate on Form 214, revised, must be rendered to the collector by the manufacturer before commencement of business, and the penal sum thereof under section 2656, I. R. C., must not be less than $1,000. The collector should require the bond to be in a penal sum of not less than any probable total liability which might become a charge against the bond, computed upon the amount of the stamp tax due on the entire production of matches at the full estimated daily capacity of the factory for a period of 30 days. (b) This bond is a continuing one until replaced by a new instrument. Where there is a discontinuance of operation for a period, a new bond will be required upon resumption of business. (c) Affidavits of sureties in duplicate on Form 33, where personal sureties are given, and on Form 400, where a fidelity company acts as sole surety on the bond, must in every case accompany the bond. (d) The instructions for preparation or execution of bonds and affidavits of surety on the backs of these forms should be carefully observed. § 300.13 Inventory to be made at commencement of business, on July 1 of each year, and at the time of closing. After registration, filing of notices and bonds as hereinbefore specified, every manufacturer of white phosphorus matches, before commencing business, shall file with the collector of the district in which his factory is located an inventory in duplicate on Form 215, revised, and thereafter on the first day of July during continuance of operations, and a similar inventory in duplicate must be filed upon discontinuance or suspension of the business for a limited period, which should be marked "closing inventory." § 300.14 Packing and stamping of white phosphorus matches. Section 2653, I. R. C., requires that all white phosphorus matches shall be packed in packages of 100, 200, 500, 1,000, and 1,500 matches each, and these shall then be packed in packages containing not less than 14,400 matches and the tax levied by said section is to be represented by adhesive stamps. To carry out the provision of section 2653, I. R. C., suitable strip stamps to be affixed to the packages by adhesive material have been prepared and are issued in denominations of 2, 4, 10, 20, and 30 cents. These stamps must be securely affixed by the manufacturer so as to seal the packages of 100, 200, 500, 1,000, and 1,500 matches and the initials of the manufacturer and the date when such stamp is affixed placed thereon either by stencil or perforation. The stenciling or perforating of stamps may be done before affixing to the packages where machines are employed for this purpose and where the stenciling or perforating of stamps after affixing would injure the packages. § 300.15 Procurement of stamps. These stamps are furnished to collectors upon requisition, who in turn will sell the same only upon requisition to duly qualified manufacturers. § 300.16 Packages of durable material. Packages for packing 100, 200, 500, 1,000, and 1,500 matches may be of any durable material which will permit the affixing and adhesion of the tax-paid stamps. § 300.17 Importation and exportation of white phosphorus matches. (a) Regulations under section 2654, I. R. C., which prohibits the importation of white phosphorus matches, and under section 2655, I. R. C., forbidding the exportation of such matches from the United States, have been issued by the Bureau of Customs and approved by the Secretary. (b) Administrative details and correspondence relating to enforcement of regulations governing importations and exportations are delegated to Bureau of Customs, Treasury Department. CROSS REFERENCE: For regulations relating to the certificate of inspection and importer's declaration for white phosphorus matches, see 19 CFR 12.34 and 12.35. § 300.18 Factory number required on each package. The factory number required under section 2653, I. R. C., as provided for under the regulations in this part must be printed or branded or lithographed on every package of white phosphorus matches removed by the manufacturer. § 300.19 Caution label. (a) In addition to the factory number required on the stamped packages of white phosphorus matches a caution label, as required by section 2653, I. R. C., must be affixed to the original package containing these stamped packages. (b) This label should be printed in black ink on white paper, or, if other colors are used, the printing should be in strongest contrast to the background, so as to be distinct and legible. § 300.20 Daily records: Form 662. Under authority conferred by section 2653, I. R. C., every manufacturer is required to keep a daily record on Form 662 showing the total of each material used each day and the total number of matches produced and the number of stamped packages and original packages in which packed; also the total number of stamped packages and original packages, together with the total number of matches, disposed of each day as indicated by said form. § 300.21 Monthly return: Form 660. Each manufacturer shall render in duplicate to the collector of internal revenue a monthly return on Form 660, which shall be a transcript of the daily record on Form 662 and must be verified under oath by the manufacturer or a duly qualified officer or agent. § 300.22 Bound copy of Form 660. Manufacturers will be permitted, however, to substitute a bound copy of the monthly return on Form 660 in lieu of daily record on Form 662, if so desired, provided the entries on the return Form 660 are made daily, as required for the manufacturers' record. § 300.23 Record of customers. The names of customers to whom matches are consigned and the quantities so sold will not be entered in the manufacturers' daily record and monthly returns, but the manufacturer shall, upon request of any internal-revenue officer, furnish a record of all sales for such period as may be desired. § 300.24 Collector's statement: Form 661. Collectors will render a monthly statement of account on Form 661 covering the production and withdrawal of white phosphorus matches manufactured in their respective districts after the manner prescribed by this form. § 300.25 Penalties. Failure on the part of any manufacturer of white phosphorus matches to comply with the requirements of the regulations in this part, or for violation thereof, will subject such manufacturer, where there is no specific penalty provided by this act for the violation, to the penalty denounced in section 2657, I. R. C., and to the provisions of section 2659, I. R. C. 301.35 Brands. 301.36 Stamps to be destroyed when pack age is emptied; penalty for failure. 301.37 Liability for purchase or receipt for sale of filled cheese not properly branded or stamped. 301.38 Liability, purchases or receipts from manufacturers who have not paid special tax; forfeiture. AUTHORITY: §§ 301.1 to 301.38 issued under 53 Stat. 467; 26 U. S. C. 3791. SOURCE: §§ 301.1 to 301.38 contained in Regulations 22, Aug. 16, 1926. Exceptions are noted following sections affected. CROSS REFERENCE: For cheese regulations under the Farm Products Inspection Act, see 7 CFR Part 55. SUBPART A-FILLED CHEESE § 301.1 Cheese defined. For the purpose of sections 2350-2362, 3210, and 3211, I. R. C., section 2350 (a), I. R. C., defines cheese as follows: "The word 'cheese' shall be understood to mean the food product known as cheese, and which is made from milk or cream and without the addition of butter, or any animal, vegetable, or other oils or fats foreign to such milk or cream, with or without additional coloring matter." § 301.2 Filled cheese defined. (a) For the purpose of sections 2350-2362, 3210, and 3211, I. R. C., section 2650 (b), I. R. C., defines filled cheese as follows: "Certain substances and compounds shall be known and designated as 'filled cheese,' namely: All substances made of milk or skimmed milk, with the admixture of butter, animal oils or fats, vegetable or any other oils, or compounds foreign to such milk, and made in imitation or semblance of cheese. Substances and compounds, consisting principally of cheese with added edible oils, which are not sold as cheese or as substitutes for cheese but are primarily useful for imparting a natural cheese flavor to other foods shall not be considered 'filled cheese' within the meaning of this chapter." (b) The mixture of cheese with coloring matter does not, under this law, render it liable to tax as filled cheese, such mixture being permitted under the definition given in § 301.1. If, however, the annotto or other coloring matter is mixed with a vegetable oil or an animal fat as a mordant, resulting in a compound resembling cheese, this compound would be liable to tax as filled cheese. (c) The manufacture of cheese from synthetic cream which is prepared by homogenizing a mixture of butter and skimmed milk or a mixture of butter, milk powder, and water results in a product which is clearly "filled cheese" as defined by statute, being a substance made of milk or skimmed milk with an admixture of butter in imitation or semblance of cheese. [Regs. 22, Aug. 16, 1926, as amended by T. D. 4813, 3 F. R. 1464] § 301.3 Packages. (a) All filled cheese shall be packed by the manufacturer thereof in wooden packages only, not before used for that purpose. The law does not fix the size of the manufacturers' packages. The contents of all packages must be completely covered. Crates with openings between slats may not be used as original packages. A package which has once been used for packing filled cheese may be taken apart and the material, from which all stamps, marks, and brands have been effectually removed, may be used in construction of new containers. All filled cheese sold by manufacturers of filled cheese shall be in original stamped packages. (b) A package of filled cheese, to meet all the requirements of the law and regulations must be branded (§ 301.4), have caution notice label affixed (§ 301.5), and have proper stamp or stamps affixed and canceled (§ 301.6). (c) Manufacturers and dealers may incase properly stamped and branded original packages of filled cheese in additional coverings or wrappers, provided such additional coverings or wrappers have duly impressed or stenciled thereon the brand as prescribed in § 301.4, and also the following additional inscription: "The original package herein contained has been duly tax paid and proper stamp is affixed." (d) Every person who packs in any package or packages any filled cheese in any manner contrary to law is subject to a fine for each and every offense of not less than $50 and not more than $500 or to be imprisoned not less than 30 days and not more than 1 year. § 301.4 Branding. (a) Each cheese shall be marked, stamped, and branded with the words "filled cheese" in blackfaced letters, not less than 2 inches in length, in a circle in the center of the top and bottom of the cheese; and in like letters, in four different places, equidistant from each other, on the side of the cheese, in line from the top to the bottom thereof. Like brands are required upon the wooden packages containing such cheese. Where the consistency of the filled cheese will not permit of the brand being applied directly thereto it will be sufficient if the package is duly branded as herein required. (b) The width of the letters in the above brands shall not be less than 1 inch over all, with quarter-inch stem. The law prescribes that the brands for the side of the cheese shall be put on in line from top to bottom. Where the cheese is not sufficiently thick to accommodate these words in a perpendicular or vertical line, they may be branded in a line running diagonally from top to bottom. (c) Each cheese, likewise the wooden package therefor, shall, in addition to the above brands required upon the top and bottom surfaces, be branded with words and figures indicating the factory number, number of the collection district, the State, and the weight of the cheese, in the order observed in the following example: FACTORY NO. 1, FIRST DIST. OF ILLINOIS (d) All letters and figures in the above brand must be in black-faced block type, not less than 1 inch in width over all, with quarter-inch stems in the words "filled cheese" and not less than 1 inch square in the remaining words. (e) If a manufacturer desires to place his name upon the filled cheese, or upon the wooden package therefor, he may do so, provided such brand in nowise overshadows, subordinates, or conceals the Government brand above prescribed by the law and the regulations in this part. (f) Every person who falsely brands any package of filled cheese is subject to a fine for each offense of not less than $50 and not more than $500 or to imprisonment of not less than 30 days and not more than 1 year. (a) § 301.5 Caution-notice label. Every manufacturer's package of filled cheese must, before removal from the bonded premises where made, have printed thereon or securely affixed on the side or end thereof by pasting, in such a way as to be exposed to public view and to be easily read, a label on which is printed the number of the manufactory and the district and State in which it is situated, and the words of the caution notice as provided by law. (b) The prescribed wording must be in plain, open, and legible letters in black ink, and shall occupy a space not less than 3 inches long and not less than 12 inches in width, and when in label form, it shall be printed on plain white paper and shall be substantially in the following form: Factory No. State of District, NOTICE: The manufacturer of the filled cheese herein contained has complied with all the requirements of the law. Every person is cautioned not to use either this package again or the stamp thereon again, nor to remove the contents of this package without destroying said stamp, under the penalty provided by law in such cases. (c) Every manufacturer of filled cheese who neglects to affix such label to any package containing filled cheese made by him, or sold or offered for sale by or for him, and every person who removes any such label so affixed from any such package, is subject to fine of $50 for each package in respect to which such offense is committed. § 301.6 Rate of tax; affixing and canceling stamps. (a) The tax upon filled cheese is 1 cent per pound. The tax accrues when the filled cheese is manufactured and is to be paid by the manufacturer thereof by the affixing of stamps to the packages before removal from the place where made. (b) Filled-cheese stamps have been prepared in denominations of 10, 20, 30, 40, 50, 60, 70, 80, 90, and 100 pounds, with 9 coupons, each representing 1 pound, attached to each stamp. Such stamps are obtainable upon application on Form 218 to the collector of the district in which the factory is located. On the withdrawal of a package of filled cheese the proper tax-paid stamp must be securely affixed to the side thereof and immediately canceled by stamping or perforating the factory number, district, State, and date thereon. Illustration: "Fac. No. 12, 1st Dist. Ill." over "April 15, 1925." (c) Every person who affixes a stamp on any package of filled cheese denoting a less amount of tax than that required by law is subject to a fine for each offense of not less than $50 and not more than $500 or to imprisonment of not less than 30 days and not more than 1 year. § 301.7 Commissioner's duty to assess omitted taxes. The law makes it the duty of the commissioner, upon satisfactory proof, to estimate the amount of tax omitted to be paid whenever a manufacturer of filled cheese sells, or removes for sale or consumption, any filled cheese liable to payment of tax by stamps, without the use of the proper stamps, and to make an assessment therefor and to certify the same to the collector of the district for collection. Such assessments must be made within four years from the date when the tax became due except in the case of fraud with intent to evade tax, of a failure to file a required return, or a willful attempt in any manner to defeat or evade tax, the tax may be assessed at any time. Assessments will be predicated upon prima facie evidence of the sale or removal for sale or consumption of filled cheese by manufacturers without the use of the proper stamps, obtained and reported by deputy collectors or other internal-revenue officers, or from other facts and circumstances reported by such officers. The tax so assessed shall be in addition to the penalties imposed by law for such sale or removal. § 301.8 Testing filled cheese for deleterious ingredients. The commissioner is authorized to have applied scientific tests, and to decide whether any substances used in the manufacture of filled cheese contain ingredients deleterious to health. But in case of doubt or contest his decision in this class of cases may be appealed from to a board consituted for the purpose, and composed of the Surgeon General of the Army, the Surgeon General of the Navy, and the Secretary of Agriculture, and the decision of this board is final in the premises. § 301.9 Forfeiture of filled cheese not stamped or marked or containing deleterious ingredients. All packages of filled cheese subject to tax under the act that shall be found without stamps or marks as herein provided, and all filled cheese intended for human consumption which contains ingredients adjudged as provided in § 301.8 to be deleterious to the public health, are subject to forfeiture to the United States. § 301.10 Imported filled cheese; liability to tax. All filled cheese imported from foreign countries must be tax paid at the rate of 8 cents per pound. Such tax is in addition to any import duty imposed thereon, and must be paid by affixing the required stamps prior to release of the product from customs custody. § 301.11 Purchase of stamps. Stamps for the tax payment of imported filled cheese will be sold to the owner or consignee of such merchandise by the collector of internal revenue of the district in which is located the office of the collector of customs where the customs entry is filed, upon requisition therefor duly executed by an authorized customs officer. § 301.12 Stamping and cancellation of stamps. Filled cheese imported from foreign countries is not required to have the internal-revenue stamps affixed to the packages thereof and canceled unless and until such product is to be released from customs custody for consumption or sale in the United States. Such stamps shall be affixed and canceled by the owner or consignee while the product is in the custody of the proper customs officer, and such product shall not pass out of the custody of said officer until the stamps have been affixed and canceled. The mode of affixing the stamps to packages of domestic manufacturers |