with, or with the sale thereof) a tax equivalent to the specified percent of the price for which so sold:

ARTICLES TAXABLE AT 10 PERCENT

Cameras.

Camera lenses.

Unexposed photographic film in rolls (including motion picture film).

ARTICLES TAXABLE AT 5 PERCENT—

Electric motion or still picture projectors of the household type.

SEC. 4172. DEFINITION OF CERTAIN VENDEES AS MANUFACTURERS.

Any person who acquires unexposed photographic film not subject to tax under this part and sells such unexposed film in form and dimensions subject to tax hereunder (or in connection with a sale cuts such film to form and dimensions subject to tax hereunder) shall for the purposes of section 4171 be considered the manufacturer of the film so sold by him.

SEC. 4173. EXEMPTIONS.

The tax imposed under this part shall not apply to

(1) CAMERAS.-X-ray cameras or cameras weighing more than four pounds exclusive of lens and accessories;

(2) LENSES. Still camera lenses having a focal length of more than one hundred and twenty millimeters, or motion picture camera lenses having a focal length of more than thirty millimeters;

(3) FILM.-X-ray film, unperforated microfilm, film more than one hundred and fifty feet in length, or film more than twentyfive feet in length and more than thirty millimeters in width.

PART III-FIREARMS

Sec. 4181. Imposition of tax.

Sec. 4182. Exemptions.

SEC. 4181. IMPOSITION OF TAX.

There is hereby imposed upon the sale by the manufacturer, producer, or importer of the following articles a tax equivalent to the specified percent of the price for which so sold:

ARTICLES TAXABLE AT 10 PERCENT

Pistols.

Revolvers.

ARTICLES TAXABLE AT 11 PERCENT

Firearms (other than pistols and revolvers).
Shells, and cartridges.

SEC. 4182. EXEMPTIONS.

(a) MACHINE GUNS AND SHORT BARRELLED FIREARMS.-The tax imposed by section 4181 shall not apply to any firearm on which the tax provided by section 5811 has been paid.

(b) SALES TO DEFENSE DEPARTMENT.-No firearms, pistols, revolvers, shells, and cartridges purchased with funds appropriated for the military department shall be subject to any tax imposed on the sale or transfer of such articles.

Subchapter E-Other Items

Part I. Business machines.

Part II. Pens and mechanical pencils and lighters.
Part III. Matches.

PART I-BUSINESS MACHINES

There is hereby imposed upon the sale by the manufacturer, producer, or importer of the following articles (including in each case parts or accessories of such articles sold on or in connection therewith, or with the sale thereof), a tax equivalent to 10 percent of the price for which so sold:

SEC. 4192. EXEMPTIONS.

No tax shall be imposed under section 4191 on the sale of cash registers of the type used in registering over-the-counter retail sales, or on the sale of stencil cutting machines of the type used in shipping departments in making cutout stencils for marking freight shipments. PART II-PENS AND MECHANICAL PENCILS AND LIGHTERS Sec. 4201. Imposition of tax.

SEC. 4201. IMPOSITION OF TAX.

(a) There is hereby imposed upon the sale by the manufacturer, producer, or importer of the following articles, a tax equal to 10 percent of the price for which so sold:

Mechanical pencils, fountain pens and ball point pens.

(b) There is hereby imposed upon the sale by the manufacturer, producer, or importer of mechanical lighters for cigarettes, cigars, and pipes a tax of 10 cents for each lighter but not more than 10 percent of the price for which so sold.

PART III-MATCHES

Sec. 4211. Imposition of tax.

SEC. 4211. IMPOSITION OF TAX.

There is hereby imposed upon the sale by the manufacturer, producer, or importer of matches, a tax of 2 cents per 1,000 matches but not more than 10 percent of the price for which so sold, except that in the case of fancy wooden matches and wooden matches having a stained, dyed, or colored stick or stem, packed in boxes or in bulk, the tax shall be 5%1⁄2 cents per 1,000 matches.

Subchapter F-Special Provisions Applicable to
Manufacturers Tax

Sec. 4216. Definition of price.

Sec. 4217. Leases.

Sec. 4218. Use by manufacturer or importer considered sale.
Sec. 4219. Application of tax in case of sales by other than manu-
facturer or importer.

SEC. 4216. DEFINITION OF PRICE.

(a) CONTAINERS, PACKING AND TRANSPORTATION CHARGES.-In determining, for the purposes of this chapter, the price for which an article is sold, there shall be included any charge for coverings and containers of whatever nature, and any charge incident to placing the article in condition packed ready for shipment, but there shall be excluded the amount of tax imposed by this chapter, whether or not stated as a separate charge. A transportation, delivery, insurance, installation, or other charge (not required by the foregoing sentence to be included) shall be excluded from the price only if the amount thereof is established to the satisfaction of the Secretary or his delegate in accordance with the regulations. (b) CONSTRUCTIVE SALE PRICE.

(1) IN GENERAL.-If an article is

(A) sold at retail,

(B) sold on consignment, or

(C) sold (otherwise than through an arm's length transaction) at less than the fair market price,

the tax under this chapter shall (if based on the price for which the article is sold) be computed on the price for which such articles are sold, in the ordinary course of trade, by manufacturers or producers thereof, as determined by the Secretary or his delegate. In the case of an article sold at retail, the computation under the preceding sentence shall be on whichever of the following prices is the lower: (i) the price for which such article is sold, or (ii) the highest price for which such articles are sold to wholesale distributors, in the ordinary course of trade, by manufacturers or producers thereof, as determined by the Secretary or his delegate. This paragraph shall not apply if paragraph (2) applies.

(2) SPECIAL RULE.-If an article is sold at retail, to a retailer, or to a special dealer (as defined in paragraph (3)), and if—

(A) the manufacturer, producer, or importer of such article regularly sells such articles at retail, to retailers, or to special dealers, as the case may be,

(B) the manufacturer, producer, or importer of such article regularly sells such articles to one or more wholesale distributors (other than special dealers) in arm's length transactions and he establishes that his prices in such cases are determined without regard to any tax benefit under this paragraph,

(C) the normal method of sales for such articles within the industry is not to sell such articles at retail or to retailers, or combinations thereof, and

(D) the transaction is an arm's length transaction,

the tax under this chapter shall (if based on the price for which the article is sold) be computed on whichever of the following prices is the lower: (i) the price for which such article is sold, or (ii) the highest price for which such articles are sold by such manufacturer, producer, or importer to wholesale distributors (other than special dealers).

(3) SPECIAL DEALER.-For purposes of paragraph (2), the term "special dealer" means a distributor of articles taxable under section 4121 who does not maintain a sales force to resell the article whose constructive price is established under paragraph (2) but relies on salesmen of the manufacturer, producer, or importer of the article. for resale of the article to retailers.

(c) PARTIAL PAYMENTS.-In the case of

(1) a lease (other than a lease to which section 4217 (b) applies), (2) a contract for the sale of an article wherein it is provided that the price shall be paid by installments and title to the article sold does not pass until a future date notwithstanding partial payment by installments,

(3) a conditional sale, or

(4) a chattel mortgage arrangement wherein it is provided that the sales price shall be paid in installments,

there shall be paid upon each payment with respect to the article that portion of the total tax which is proportionate to the portion of the total amount to be paid represented by such payment.

(e) SALES OF INSTALLMENT ACCOUNTS.-If installment accounts, with respect to payments on which tax is being computed as provided in subsection (c), are sold or otherwise disposed of, then subsection (c) shall not apply with respect to any subsequent payments on such accounts (other than subsequent payments on return accounts with respect to which credit or refund is allowable by reason of section 6416 (b) (5)), but instead

(1) there shall be paid an amount equal to the difference between (A) the tax previously paid on the payments on such installment accounts, and (B) the total tax; except that

(2) if any such sale is pursuant to the order of, or subject to the approval of, a court of competent jurisdiction in a bankruptcy or insolvency proceeding, the amount computed under paragraph (1) shall not exceed the amount computed by multiplying (A) the amount for which such accounts are sold, by (B) the rate of tax under this chapter which applied on the day on which the transaction giving rise to such installment accounts took place. The sum of the amounts payable under this subsection and subsection (c) in respect of the sale of any article shall not exceed the total tax. (f) EXCLUSION OF LOCAL ADVERTISING CHARGE FROM SALE PRICE.

(1) EXCLUSION.-In determining, for purposes of this chapter, the price for which an article is sold, there shall be excluded a