of the proper district. The tax so assessed shall be in addition to the penalties imposed by this chapter for an unauthorized sale or removal.

(d) IMPORTED MIXED FLOUR.

For tax on imported mixed flour, see section 2384.

(e) EXEMPTION, REPACKED FLOUR.

For exemption of repacked flour from tax, see section 2382 (b) (1).

(f) SPECIAL TAX.

For special tax on manufacturers and packers, see section 3215.

SEC. 2382. REQUIREMENTS ON MANUFACTURERS OR PACKERS. (a) PACKAGES.

(1) WEIGHT.-Barrels or other packages in which mixed flour may be packed shall contain not to exceed one hundred and ninetysix pounds.

(2) REUSE.-All sales and consignments of mixed flour shall be in packages not before used for that purpose.

(3) MARKS AND BRANDS.-Every person, firm, or corporation making, packing, or repacking mixed flour shall plainly mark or brand each package containing the same with the words "mixed flour" in plain black letters not less than two inches in length, together with the true weight of such package, the names of the ingredients composing the same, the name of the maker or packer, and the place where made or packed.

(4) CONTENTS CARD.-In addition to the requirements under paragraph (3), the maker or packer shall place in each package a card not smaller than two inches in width by three inches in length, upon which shall be printed the words "mixed flour," together with the names of the ingredients composing the same, and the name of the maker or packer, and the place where made or packed.

(5) LABEL. In addition to the branding and marking of mixed flour as provided in this chapter, there shall be affixed to the packages containing the same a label in the following words: "NOTICE.The (manufacturer or packer, as the case may be) of the mixed flour herein contained has complied with all the requirements of law. Every person is cautioned not to use this package or label again or to remove the contents without destroying the revenue stamp thereon, under the penalty prescribed by law in such cases." (b) REPACKING.—

(1) EXEMPTION FROM TAX.-When mixed flour, on the manufacture and sale of which the tax imposed by this chapter has been paid, is sold and then repacked without the addition of any other material, such repacked flour shall not be liable to any additional

tax.

(2) MARKS, BRANDS, AND CONTENTS CARDS.-The packages containing the repacked flour referred to in paragraph (1) of this subsection shall be branded and marked as required by paragraph (3) of subsection (a), and shall contain the card provided for in paragraph (4) of subsection (a).

(3) NOTICE. In addition to the requirements under paragraphs (1) and (2), the person, firm, or corporation repacking mixed flour shall place on the packages containing the same a label in the following words: "NOTICE.-The contents of this package have been taken from a regular statutory package, upon which the tax has been duly paid."

SEC. 2383. STAMPS ON EMPTIED PACKAGES.

Whenever any package containing mixed flour is emptied it shall be the duty of the person in whose possession it is to destroy the stamp thereon.

SEC. 2384. IMPORTATION.

All mixed flours, imported from foreign countries, shall, in addition to any import duties imposed thereon, pay an internal revenue tax equal in amount to the tax imposed under subsection (a) of section 2381, such tax to be represented by coupon stamps, and the packages containing such imported mixed flour shall be marked, branded, labeled, and stamped as in the case of mixed flour made or packed in the United States.

SEC. 2385. EXPORTATION.

Mixed flour may be removed from the place of manufacture or from the place where packed for export to a foreign country without payment of tax or affixing stamps or label thereto, under such regulation and the filing of such bond and other security as the Commissioner, with the approval of the Secretary, may prescribe. Every person, firm, or corporation who shall export mixed flour shall plainly mark on each package containing the same the words "mixed flour," and the names of the ingredients composing the same, the name of the maker or packer, and the place where made or packed, in accordance with the provisions of this chapter.

SEC. 2386. PENALTIES.

(a) OMISSION OF MARKS, BRANDS, OR CONTENTS CARDS.-Any person, firm, or corporation making, packing, or repacking mixed flour, failing to comply with the provisions of paragraphs (3) and (4) of subsection (a) of section 2382, shall be deemed guilty of a misdemeanor, and upon conviction shall be punished by a fine of not less than $250 and not more than $500, or be imprisoned not less than sixty days nor more than one year.

(b) OMISSION OR REMOVAL OF LABELS.-Every person, firm, or corporation failing or neglecting to affix the label required by paragraph (5) of subsection (a) of section 2382 to any package containing mixed flour made or packed by him or them, or who removes from any such package any label so affixed, shall, upon conviction thereof, be fined not less than $50 for each label so removed.

(c) SALE OR PACKING IN VIOLATION OF LAW; FALSIFICATION OR UNLAWFUL REMOVAL OF BRANDS.-Every person, firm, or corporation. knowingly selling or offering for sale any mixed flour in other than marked and branded packages, as required by the provisions of this chapter, or who packs in any package or packages any mixed flour in any manner contrary to the provisions of this chapter, or who falsely marks or brands any package or packages containing mixed flour, or unlawfully removes such marks or brands, shall, for each such offense, be punished by a fine of not less than $250 and not more than $500, or by imprisonment not less than thirty days nor more than one year.

(d) FAILURE TO PAY TAX; EXCESSIVE WEIGHT; IMPROPER MARKING OR BRANDING ON REPACKING.-Any person violating the provisions of section 2381 (b) and (c) (1) or section 2382 (a) (1) and (b), shall, upon conviction thereof, be punished by a fine of not less than $250 and not more than $500, or by imprisonment not to exceed one year. (e) PURCHASING WHEN TAX NOT PAID.-Any person, firm, or corporation knowingly purchasing or receiving for sale or for repacking and resale any mixed flour from any maker, packer, or importer, who has not paid the tax provided in this chapter, or section 3215 (a), shall, for each offense, be fined not less than $50, and forfeit to the United States all the articles so purchased or received, or the full value thereof.

(f) PURCHASING IMPORTED FLOUR WITHOUT BRANDS, LABELS, OR STAMPS.-Any person, firm, or corporation purchasing or receiving for sale or repacking any mixed flour imported from foreign countries, which has not been branded, labeled, or stamped, as required

by this chapter, or which is contained in packages which have not been marked, branded, labeled, or stamped, as required by this chapter shall, upon conviction, be fined not less than $50 nor more than $500.

(g) FAILURE TO DESTROY STAMPS OR MARKS ON EMPTY PACKAGES.— Any person disposing of an empty package which contained mixed flour without first having destroyed the stamp or mark or marks thereon, shall, upon conviction, be punished by a fine not exceeding the sum of $25.

(h) SECOND OFFENSE.-Any person, firm, or corporation found guilty of a second or any subsequent violation of any of the provisions of this chapter or of section 3215, shall, in addition to the penalties imposed by this chapter, be imprisoned not less than thirty days nor more than ninety days.

SEC. 2387. RECOVERY OF PENALTIES AND FORFEITURES.

All fines, penalties, and forfeitures imposed by section 2386 or 3215 may be recovered in any court of competent jurisdiction.

SEC. 2388. TOBACCO STAMP LAWS APPLICABLE.

(a) The provisions of law governing the engraving, issue, sale, accountability, effacement, and destruction of stamps relating to tobacco and snuff shall, so far as applicable, be made to apply to stamps provided in section 2381 (c) (1).

(b) All administrative, special, or stamp provisions of law, including the laws in relation to assessment of taxes, not specifically repealed, shall be applicable to this chapter and to section 3215.

SEC. 2389. REGULATIONS.

For authority of the Commissioner, with the approval of the Secretary, to make all needful rules and regulations for carrying into effect the provisions of this chapter and of section 3215, see section 3791 (a) (1).

SEC. 2390. CONTRACTS FOR STAMPS.

The Commissioner, with the approval of the Secretary, is authorized to procure any of the stamps provided in this chapter by contract whenever such stamps can not be speedily prepared by the Bureau of Engraving and Printing, and said contracts shall be awarded under such terms, restrictions, and regulations as may be prescribed by the Commissioner, with the approval of the Secretary.

TABLE OF CONTENTS

CHAPTER 21-COCONUT AND OTHER VEGETABLE OILS

Sec. 2470. Tax.

Sec. 2471. Returns.

Sec. 2472. Payment of tax.

Sec. 2473. Sales to States or political subdivisions.

Sec. 2474. Exportation.

Sec. 2475. Addition to the tax in case of nonpayment.

Sec. 2476. Collections covered into the Philippine Treasury.

Sec. 2477. First domestic processing defined.

Sec. 2478. Contracts prior to January 26, 1934.

Sec. 2479. Other laws applicable.

Sec. 2480. Covering of collections in the Treasury.

Sec. 2481. Effective date of chapter.

Sec. 2482. Publicity of returns.

CHAPTER 21-COCONUT AND OTHER VEGETABLE OILS

SEC. 2470. TAX.

(a) RATE.

(1) IN GENERAL.-There shall be imposed upon the first domestic processing of coconut oil, palm oil, palm-kernel oil, fatty acids derived from any of the foregoing oils, salts of any of the foregoing (whether or not such oils, fatty acids, or salts have been refined, sulphonated, sulphated, hydrogenated, or otherwise processed), or any combination or mixture containing a substantial quantity of any one or more of such oils, fatty acids, or salts, a tax of 3 cents. per pound to be paid by the processor.

(2) ADDITIONAL RATE ON COCONUT OIL.-There shall be imposed (in addition to the tax imposed by the preceding paragraph) a tax of 2 cents per pound, to be paid by the processor, upon the first domestic processing of coconut oil or of any combination or mixture containing a substantial quantity of coconut oil with respect to which oil there has been no previous first domestic processing, except that the tax imposed by this sentence shall not apply when it is established, in accordance with regulations prescribed by the Commissioner with the approval of the Secretary, that such coconut oil (whether or not contained in such a combination or mixture), (A) is wholly the production of the Philippine Islands or any other possession of the United States, or (B) was produced wholly from materials the growth or production of the Philippine Islands or any other possession of the United States, or (C) was brought into the United States on or before June 9, 1934, or produced from materials brought into the United States on or before June 9, 1934, or (D) was purchased under a bona fide contract entered into prior to April 26, 1934, or produced from materials purchased under a bona fide contract entered into prior to April 26, 1934. (b) EXEMPTION.-The tax under subsection (a) shall not apply (1) with respect to any fatty acid or salt resulting from a previous first domestic processing taxed under this section or upon which an import tax has been paid under chapter 22, or (2) with respect to any combination or mixture by reason of its containing an oil, fatty acid, or salt with respect to which there has been a previous

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first domestic processing or upon which an import tax has been paid under chapter 22.

(c) IMPORTATIONS PRIOR TO AUGUST 21, 1936.-Notwithstanding the provisions of subsections (a) and (b) of this section, the first domestic processing of sunflower oil or sesame oil (or any combination or mixture containing a substantial quantity of sunflower oil or sesame oil), if such oil or such combination or mixture or such oil contained therein was imported prior to August 21, 1936, shall be taxed in accordance with the provisions of section 6022 of the Revenue Act of 1934, 48 Stat. 763, in force on June 22, 1936.

SEC. 2471. RETURNS.

Each processor required to pay the tax imposed by section 2470 shall make monthly returns under oath in duplicate and pay the tax to the collector for the district in which is located his principal place of business, or if he has no principal place of business in the United States, then to the collector at Baltimore, Maryland. Such returns shall contain such information and be made at such times and in such manner as the Commissioner, with the approval of the Secretary, may by regulations prescribe.

SEC. 2472. PAYMENT OF TAX.

The tax shall, without assessment by the Commissioner or notice from the collector, be due and payable by the processor to the collector for the district in which is located his principal place of business, or if he has no principal place of business in the United States, then to the collector at Baltimore, Maryland, at the time so fixed for filing the return.

SEC. 2473. SALES TO STATES OR POLITICAL SUBDIVISIONS.

Subject to such rules and regulations as the Commissioner, with the approval of the Secretary, may prescribe, any person who has sold to a State, or a political subdivision thereof, for use in the exercise of an essential governmental function any article containing any such oil, combination, or mixture, upon the processing of which a tax has been paid under section 2470 shall be entitled to a credit or refund of the tax paid with respect to the quantity of such oil, combination, or mixture contained in such article.

SEC. 2474. EXPORTATION.

Upon the exportation to any foreign country or to a possession of the United States of any article wholly or in chief value of an article with respect to the processing of which a tax has been paid under this chapter, the exporter thereof shall be entitled to a refund of the amount of such tax. Upon the giving of bond satisfactory to the Secretary for faithful observance of the provisions of this chapter requiring the payment of taxes, any person shall be entitled, without payment of the tax, to process for such exportation any article with respect to which a tax is imposed by section 2470.

SEC. 2475. ADDITION TO THE TAX IN CASE OF NONPAYMENT.

If the tax is not paid when due, there shall be added as part of the tax interest at the rate of 6 per centum per annum from the time the tax became due until paid.

SEC. 2476. COLLECTIONS COVERED INTO THE PHILIPPINE TREASURY. All taxes collected under this chapter with respect to coconut oil wholly of Philippine production or produced from materials wholly of Philippine growth or production, shall be held as a separate fund and paid to the Treasury of the Philippine Islands, but if at any time the Philippine Government provides by any law for any subsidy to be paid to the producers of copra, coconut oil, or allied products, no further payments to the Philippine Treasury shall be made under this section.

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