CHAPTER 37-SUGAR, COCONUT AND PALM OIL

SUBCHAPTER A. Sugar.

SUBCHAPTER B. Coconut and palm oil.

Subchapter A- Sugar

Sec. 4501. Imposition of tax.

Sec. 4502. Definitions.

Sec. 4503. Exemptions for sugar manufactured for home consump

tion.

Sec. 4504. Import tax imposed as tariff duty.

SEC. 4501. IMPOSITION OF TAX.

(a) GENERAL.-There is hereby imposed upon manufactured sugar manufactured in the United States, a tax, to be paid by the manufacturer at the following rates:

(1) on all manufactured sugar testing by the polariscope 92 sugar degrees, 0.465 cent per pound, and, for each additional sugar degree shown by the polariscopic test, 0.00875 cent per pound additional, and fractions of a degree in proportion;

(2) on all manufactured sugar testing by the polariscope less than 92 sugar degrees, 0.5144 cent per pound of the total sugars therein. The manufacturer shall pay the tax with respect to manufactured sugar (1) which has been sold, or used in the production of other articles, by the manufacturer during the preceding month (if the tax has not already been paid) and (2) which has not been so sold or used within 12 months ending during the preceding calendar month, after it was manufactured (if the tax has not already been paid). For the purpose of determining whether sugar has been sold or used within 12 months after it was manufactured, sugar shall be considered to have been sold or used in the order in which it was manufactured.

(b) IMPORT TAX.-In addition to any other tax or duty imposed by law, there is hereby imposed, under such regulations as the Secretary or his delegate shall prescribe, a tax upon articles imported or brought into the United States as follows:

(1) on all manufactured sugar testing by the polariscope 92 sugar degrees, 0.465 cent per pound, and, for each additional sugar degree shown by the polariscopic test, 0.00875 cent per pound additional, and fractions of a degree in proportion;

(2) on all manufactured sugar testing by the polariscope less than 92 sugar degrees, 0.5144 cent per pound of the total sugars therein: (3) on all articles composed in chief value of manufactured sugar, 0.5144 cent per pound of the total sugars therein.

(c) TERMINATION OF TAX.-No tax shall be imposed under this subchapter on the manufacture, use, or importation of sugar or articles composed in chief value of sugar after September 30, 1961. Notwithstanding the provisions of subsection (a) or (b), no tax shall be imposed under this subchapter with respect to unsold sugar held by a manufacturer on September 30, 1961, or with respect to sugar or articles composed in chief value of sugar held in customs custody or control on such date.

SEC. 4502. DEFINITIONS.

For the purposes of this subchapter.—

(1) MANUFACTURER.-Any person who acquires any sugar which is to be manufactured into manufactured sugar but who, without further refining or otherwise improving it in quality, sells such sugar as manufactured sugar or uses such sugar as manufactured sugar in the production of other articles for sale shall be considered, for the purposes of section 4501 (a), the manufacturer of manufactured sugar and, as such, liable for the tax under section 4501 (a) with respect thereto.

(2) PERSON.-The term "person" means an individual, partnership, corporation, or association.

(3) MANUFACTURED SUGAR.-The term "manufactured sugar" means any sugar derived from sugar beets or sugarcane, which is not to be, and which shall not be, further refined or otherwise improved in quality; except sugar in liquid form which contains nonsugar solids (excluding any foreign substance that may have been added or developed in the product) equal to more than 6 per centum of the total soluble solids and except also sirup of cane juice produced from sugarcane grown in continental United States. The grades or types of sugar within the meaning of this definition shall include, but shall not be limited to, granulated sugar, lump sugar, cube sugar, powdered sugar, sugar in the form of blocks, cones, or molded shapes, confectioners' sugar, washed sugar, centrifugal sugar, clarified sugar, turbinado sugar, plantation white sugar, muscovado sugar, refiners' soft sugar, invert sugar mush, raw sugar, sirups, molasses, and sugar mixtures.

(4) TOTAL SUGARS.-The term "total sugars" means the total amount of the sucrose and of the reducing or invert sugars.

(5) UNITED STATES.-The term "United States" shall be deemed to include the States, the District of Columbia, and Puerto Rico. SEC. 4503. EXEMPTIONS FOR SUGAR MANUFACTURED for Home CONSUMPTION.

No tax shall be required to be paid under sec. 4501 (a) upon the manufacture of manufactured sugar by or for the producer of the sugar beets or sugarcane from which such manufactured sugar was derived, for consumption by the producer's own family, employees, or household.

SEC. 4504. IMPORT TAX IMPOSED AS TARIFF DUTY.

The tax imposed by section 4501 (b) shall be levied, assessed, collected, and paid in the same manner as a duty imposed by the Tariff Act of 1930 (46 Stat. 590; 19 U. S. C., chapter 4) and shall be treated for the purposes of all provisions of law relating to the customs revenue as a duty imposed by such act, except that for the purposes of sections 336 and 350 of such act (the so-called flexible tariff and trade agreements provisions; 46 Stat. 701; 48 Stat. 943; 19 U. S. C. 1336, 1351) such tax shall not be considered a duty or import restriction, and except that no preference with respect to such tax shall be accorded any articles imported or brought into the United States, and except that such tax may be subject to refunds as a tax under the provisions of section 6418 (a).

Subchapter B-Coconut and Palm Oil

Sec. 4511. Imposition of tax.

Sec. 4512. Definition of first domestic processing.

Sec. 4513. Exemptions.

Sec. 4514. Cross reference to general administrative provisions.

SEC. 4511. IMPOSITION OF TAX.

(a) GENERAL.-There is hereby 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.

(b) ADDITIONAL RATE ON COCONUT OIL.-There is hereby imposed (in addition to the tax imposed by the preceding subsection) 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.

(c) TERMINATION OF ADDITIONAL RATE.-The tax imposed by subsection (b) shall not apply to any domestic processing after July 3,

1974.

SEC. 4512. DEFINITION OF FIRST DOMESTIC PROCESSING.

For the purposes of this subchapter, the term "first domestic processing" means the first use in the United States, in the manufacture or production of an article intended for sale, of the article with respect to which the tax is imposed, but does not include the use of palm oil in the manufacture of iron or steel products, or tin plate or terne plate, or any subsequent use of palm oil residue resulting from the manufacture of iron or steel products, or tin plate or terne plate. SEC. 4513. EXEMPTIONS.

(a) ACIDS AND SALTS PREVIOUSLY TAXED.-The tax under section 4511 shall not apply

(1) with respect to any fatty acid or salt resulting from a previous first domestic processing taxed under such section or upon which an import tax has been paid under subchapter E of chapter 38, 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 first domestic processing or upon which an import tax has been paid under subchapter E of chapter 38.

(b) FROM ADDITIONAL TAX ON COCONUT OIL.-The additional tax imposed by section 4511 (b) shall not apply when it is established, in accordance with regulations prescribed by the Secretary or his

delegate, that the coconut oil (whether or not contained in a combination or mixture)

(1) is wholly the production of the Philippine Islands, any possession of the United States, or the Territory of the Pacific Islands (hereinafter in this paragraph referred to as the "Trust Territory"),

or

(2) was produced wholly from materials the growth or production of the Philippine Islands, any possessions of the United States, or the Trust Territory:

Provided, however, That such additional tax shall apply in respect of coconut oil (whether or not contained in a combination or mixture) so derived from the Trust Territory, to such extent, and at such time after the date of the applicable proclamation, as the President, after taking into account the responsibilities of the United States with respect to the economy of the Trust Territory, shall hereafter determine and proclaim to be justified to prevent substantial injury or the threat thereof to the competitive trade of any country of the free world.

(c) PROCESSED FOR EXPORTATION. Upon the giving of bond satisfactory to the Secretary or his delegate for the 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 exportation any article wholly or in chief value of an article with respect to which a tax is imposed by section 4511.

SEC. 4514. CROSS REFERENCE TO GENERAL ADMINISTRATIVE PROVISIONS.

See subtitle F for administrative provisions of general application to the taxes imposed under this chapter.