
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: 26USC4223]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                 Subtitle D--Miscellaneous Excise Taxes
 
                 CHAPTER 32--MANUFACTURERS EXCISE TAXES
 
              Subchapter G--Exemptions, Registration, Etc.
 
Sec. 4223. Special rules relating to further manufacture


(a) Purchasing manufacturer to be treated as the manufacturer

    For purposes of this chapter, a manufacturer or producer to whom an 
article is sold or resold free of tax under section 4221(a)(1) for use 
by him in further manufacture shall be treated as the manufacturer or 
producer of such article.

(b) Computation of tax

    If the manufacturer or producer referred to in subsection (a) incurs 
liability for tax under this chapter on his sale or use of an article 
referred to in subsection (a) and the tax is based on the price for 
which the article is sold, the article shall be treated as having been 
sold by him--
        (1) at the price for which the article was sold by him (or, 
    where the tax is on his use of the article, at the price referred to 
    in section 4218(c)); or
        (2) if he so elects and establishes such price to the 
    satisfaction of the Secretary--
            (A) at the price for which the article was sold to him; or
            (B) at the price for which the article was sold by the 
        person who (without regard to subsection (a)) is the 
        manufacturer, producer, or importer of such article.

For purposes of this subsection, the price for which the article was 
sold shall be determined as provided in section 4216. For purposes of 
paragraph (2) no adjustment or readjustment shall be made in such price 
by reason of any discount, rebate, allowance, return or repossession of 
a container or covering, or otherwise. An election under paragraph (2) 
shall be made in the return reporting the tax applicable to the sale or 
use of the article, and may not be revoked.

(Added Pub. L. 85-859, title I, Sec. 119(a), Sept. 2, 1958, 72 Stat. 
1285; amended Pub. L. 86-418, Sec. 2(b), Apr. 8, 1960, 74 Stat. 38; Pub. 
L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; 
Pub. L. 98-369, div. A, title VII, Sec. 735(c)(10), July 18, 1984, 98 
Stat. 983.)


                            Prior Provisions

    A prior section 4223, act Aug. 16, 1954, ch. 736, 68A Stat. 495, 
related to exemption of articles manufactured or produced by Indians, 
prior to repeal by Pub. L. 85-859, Sec. 119(a). See section 4225 of this 
title.


                               Amendments

    1984--Subsec. (b)(1). Pub. L. 98-369 substituted ``4218(c)'' for 
``section 4218(e)''.
    1976--Subsec. (b) Pub. L. 94-455 struck out ``or his delegate'' 
after ``Secretary''.
    1960--Subsec. (b)(1). Pub. L. 86-418 substituted ``section 4218(e)'' 
for ``section 4218(d)''.


                    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 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.

                  Section Referred to in Other Sections

    This section is referred to in sections 4218, 6416 of this title.
