
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC4218]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                 Subtitle D--Miscellaneous Excise Taxes
 
                 CHAPTER 32--MANUFACTURERS EXCISE TAXES
 
    Subchapter F--Special Provisions Applicable to Manufacturers Tax
 
Sec. 4218. Use by manufacturer or importer considered sale


(a) General rule

    If any person manufactures, produces, or imports an article (other 
than a tire taxable under section 4071) and uses it (otherwise than as 
material in the manufacture or production of, or as a component part of, 
another article taxable under this chapter to be manufactured or 
produced by him), then he shall be liable for tax under this chapter in 
the same manner as if such article were sold by him. This subsection 
shall not apply in the case of gasoline used by any person, for nonfuel 
purposes, as a material in the manufacture or production of another 
article to be manufactured or produced by him. For the purpose of 
applying the first sentence of this subsection to coal taxable under 
section 4121, the words ``(otherwise than as material in the manufacture 
or production of, or as a component part of, another article taxable 
under this chapter to be manufactured or produced by him)'' shall be 
disregarded.

(b) Tires

    If any person manufactures, produces, or imports a tire taxable 
under section 4071, and sells it on or in connection with the sale of 
any article, or uses it, then he shall be liable for tax under this 
chapter in the same manner as if such article were sold by him.

(c) Computation of tax

    Except as provided in section 4223(b), in any case in which a person 
is made liable for tax by the preceding provisions of this section, the 
tax (if based on the price for which the article is sold) shall be 
computed on the price at which such or similar articles are sold, in the 
ordinary course of trade, by manufacturers, producers, or importers, 
thereof, as determined by the Secretary.

(Aug. 16, 1954, ch. 736, 68A Stat. 494; Aug. 11, 1955, ch. 805, 
Sec. 1(a), (b), 69 Stat. 689; Pub. L. 85-859, title I, Sec. 118, Sept. 
2, 1958, 72 Stat. 1281; Pub. L. 86-418, Sec. 2(a), Apr. 8, 1960, 74 
Stat. 38; Pub. L. 87-61, title II, Sec. 205(b), June 29, 1961, 75 Stat. 
126; Pub. L. 89-44, title II, Sec. 208(c), June 21, 1965, 79 Stat. 141; 
Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 
1834; Pub. L. 95-227, Sec. 2(b)(1), Feb. 10, 1978, 92 Stat. 11; Pub. L. 
98-369, div. A, title VII, Sec. 735(c)(7), July 18, 1984, 98 Stat. 983.)


                               Amendments

    1984--Subsec. (a). Pub. L. 98-369, Sec. 735(c)(7)(D), substituted 
``(other than a tire taxable under section 4071)'' for ``(other than an 
article specified in subsection (b), (c), or (d))''.
    Subsec. (b). Pub. L. 98-369, Sec. 735(c)(7)(A), (B), struck out 
``and tubes'' after ``Tires'' in heading, and in text substituted ``If'' 
for ``Except as provided in subsection (d), if'', and struck out ``or 
inner tube'' before ``taxable under section 4071''.
    Subsec. (c). Pub. L. 98-369, Sec. 735(c)(7)(C), redesignated subsec. 
(e) as (c). Former subsec. (c), which related to automotive parts and 
accessories, was struck out.
    Subsec. (d). Pub. L. 98-369, Sec. 735(c)(7)(C), struck out subsec. 
(d) which related to bicycle tires and tubes.
    Subsec. (e). Pub. L. 98-369, Sec. 735(c)(7)(C), redesignated subsec. 
(e) as (c).
    1978--Subsec. (a). Pub. L. 95-227 inserted provisions relating to 
applying first sentence of this subsection to coal taxable under section 
4121 of this title.
    1976--Subsec. (e). Pub. L. 94-455 struck out ``or his delegate'' 
after ``Secretary''.
    1965--Subsec. (b). Pub. L. 89-44, Sec. 208(c)(1), (2), struck out 
references to automobile receiving sets from heading, and ``or an 
automobile radio or television receiving set taxable under section 
4141,'' before ``and sells it''.
    Subsec. (c). Pub. L. 89-44, Sec. 208(c)(3), (4), struck out 
reference to radio components and camera lenses from heading, and ``a 
radio or television component taxable under section 4141, or a camera 
lens taxable under section 4171,'' before ``and uses it''.
    1961--Subsec. (a). Pub. L. 87-61 inserted sentence making subsection 
inapplicable in the case of gasoline used by any person, for nonfuel 
purposes, as a material in the manufacture or production of another 
article to be manufactured or produced by him.
    1960--Subsec. (a). Pub. L. 86-418, Sec. 2(a)(1), substituted 
``subsection (b), (c), or (d)'' for ``subsection (b) or (c)''.
    Subsec. (b). Pub. L. 86-418, Sec. 2(a)(2), substituted ``Except as 
provided in subsection (d), if any'' for ``If any.''
    Subsecs. (d), (e). Pub. L. 86-418, Sec. 2(a)(3), added subsec. (d) 
and redesignated former subsec. (d) as (e).
    1958--Pub. L. 85-859 amended section generally, striking out 
provisions which related to refrigerator components and to sales free of 
tax by virtue of section 4220 or 4224 of this title, and substituting 
provisions making manufacturers, producers and importers of parts or 
accessories taxable under section 4061(b), radio or television 
components taxable under section 4141, or camera lenses taxable under 
section 4171 liable for the tax if they use the parts or accessories 
otherwise than as material in the manufacture or production of, or as 
component parts of, any other article to be manufactured or produced by 
them, for provisions which made section inapplicable with respect to 
such parts if they were used by them as material in the manufacture or 
production of, or as a component part of, any article.
    1955--Subsec. (a)(1). Act Aug. 11, 1955, Sec. 1(a), inserted as tax 
exempt articles under this chapter, automobile parts or accessories, 
refrigerator, radio, or television components, or camera lenses taxable 
under section 4061(b), 4111, or 4171, respectively, of this title.
    Subsec. (b). Act Aug. 11, 1955, Sec. 1(b), excepted from application 
of section automobile parts or accessories, refrigerator, radio, or 
television components, and camera lenses, taxable under sections 
4061(b), 4111, 4141, and 4171, respectively, of this title, when for use 
by the purchaser in the manufacture or production of, or as a component 
part of, any article.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-369 effective, except as otherwise provided, 
as if included in the provisions of the Highway Revenue Act of 1982, 
title V of Pub. L. 97-424, to which such amendment relates, see section 
736 of Pub. L. 98-369, set out as a note under section 4051 of this 
title.


                    Effective Date of 1978 Amendment

    Amendment by Pub. L. 95-227 applicable with respect to sales after 
Mar. 31, 1978, see section 2(d) of Pub. L. 95-227, set out as an 
Effective Date note under section 4121 of this title.


                    Effective Date of 1965 Amendment

    Amendment by Pub. L. 89-44 applicable with respect to articles sold 
on or after June 22, 1965, except insofar as such amendments related to 
the taxes imposed by sections 4061(b), 4091, and 4131 and, as to such 
taxes, applicable with respect to articles sold on or after January 1, 
1966, see section 701(a) of Pub. L. 89-44, set out as a note under 
section 4161 of this title.


                    Effective Date of 1961 Amendment

    Amendment by Pub. L. 87-61 applicable only in the case of gasoline 
used on or after October 1, 1961, see section 208 of Pub. L. 87-61, set 
out as a note under section 4041 of this title.


                    Effective Date of 1960 Amendment

    Amendment by Pub. L. 86-418 applicable only with respect to bicycle 
tires and tubes sold by the manufacturer, producer, or importer thereof 
on or after the first day of the first month which begins more than 10 
days after April 8, 1960, see section 4 of Pub. L. 86-418, set out as a 
note under section 4221 of this title.


                    Effective Date of 1958 Amendment

    Amendment by Pub. L. 85-859 effective on first day of first calendar 
quarter which begins more than 60 days after Sept. 2, 1958, see section 
1 (c) of Pub. L. 85-859.


                    Effective Date of 1955 Amendment

    Amendment by act Aug. 11, 1955, effective on first day of first 
month which begins more than ten days after Aug. 11, 1955, see section 3 
of act Aug. 11, 1955, set out as a note under section 6416 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in section 4223 of this title.
