
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 106-554 Section 1(a)(7)]
[Document affected by Public Law 106-554 Section 1(a)(7)[315(b)]]
[CITE: 26USC5702]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
      Subtitle E--Alcohol, Tobacco, and Certain Other Excise Taxes
 
       CHAPTER 52--TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES
 
Subchapter A--Definitions; Rate and Payment of Tax; Exemption From Tax; 
                     and Refund and Drawback of Tax
 
Sec. 5702. Definitions

    When used in this chapter--

(a) Cigar

    ``Cigar'' means any roll of tobacco wrapped in leaf tobacco or in 
any substance containing tobacco (other than any roll of tobacco which 
is a cigarette within the meaning of subsection (b)(2)).

(b) Cigarette

    ``Cigarette'' means--
        (1) any roll of tobacco wrapped in paper or in any substance not 
    containing tobacco, and
        (2) any roll of tobacco wrapped in any substance containing 
    tobacco which, because of its appearance, the type of tobacco used 
    in the filler, or its packaging and labeling, is likely to be 
    offered to, or purchased by, consumers as a cigarette described in 
    paragraph (1).

(c) Tobacco products

    ``Tobacco products'' means cigars, cigarettes, smokeless tobacco, 
pipe tobacco, and roll-your-own tobacco.

(d) Manufacturer of tobacco products

    ``Manufacturer of tobacco products'' means any person who 
manufactures cigars, cigarettes, smokeless tobacco, pipe tobacco, or 
roll-your-own tobacco, except that such term shall not include--
        (1) a person who produces cigars, cigarettes, smokeless tobacco, 
    pipe tobacco, or roll-your-own tobacco solely for the person's own 
    personal consumption or use, and
        (2) a proprietor of a customs bonded manufacturing warehouse 
    with respect to the operation of such warehouse.

(e) Cigarette paper

    ``Cigarette paper'' means paper, or any other material except 
tobacco, prepared for use as a cigarette wrapper.

(f) Cigarette tube

    ``Cigarette tube'' means cigarette paper made into a hollow cylinder 
for use in making cigarettes.

(g) Manufacturer of cigarette papers and tubes

    ``Manufacturer of cigarette papers and tubes'' means any person who 
manufactures cigarette paper, or makes up cigarette paper into tubes, 
except for his own personal use or consumption.

(h) Export warehouse

    ``Export warehouse'' means a bonded internal revenue warehouse for 
the storage of tobacco products and cigarette papers and tubes, upon 
which the internal revenue tax has not been paid, for subsequent 
shipment to a foreign country, Puerto Rico, the Virgin Islands, or a 
possession of the United States, or for consumption beyond the 
jurisdiction of the internal revenue laws of the United States.

(i) Export warehouse proprietor

    ``Export warehouse proprietor'' means any person who operates an 
export warehouse.

(j) Removal or remove

    ``Removal'' or ``remove'' means the removal of tobacco products or 
cigarette papers or tubes from the factory or from internal revenue bond 
under section 5704, as the Secretary shall by regulation prescribe, or 
release from customs custody, and shall also include the smuggling or 
other unlawful importation of such articles into the United States.

(k) Importer

    ``Importer'' means any person in the United States to whom 
nontaxpaid tobacco products or cigarette papers or tubes manufactured in 
a foreign country, Puerto Rico, the Virgin Islands, or a possession of 
the United States are shipped or consigned; any person who removes 
cigars or cigarettes for sale or consumption in the United States from a 
customs bonded manufacturing warehouse; and any person who smuggles or 
otherwise unlawfully brings tobacco products or cigarette papers or 
tubes into the United States.

(l) Determination of price on cigars

    In determining price for purposes of section 5701(a)(2)--
        (1) there shall be included any charge incident to placing the 
    article in condition ready for use,
        (2) there shall be excluded--
            (A) the amount of the tax imposed by this chapter or section 
        7652, and
            (B) if stated as a separate charge, the amount of any retail 
        sales tax imposed by any State or political subdivision thereof 
        or the District of Columbia, whether the liability for such tax 
        is imposed on the vendor or vendee, and

        (3) rules similar to the rules of section 4216(b) shall apply.

(m) Definitions relating to smokeless tobacco

                        (1) Smokeless tobacco

        The term ``smokeless tobacco'' means any snuff or chewing 
    tobacco.

                              (2) Snuff

        The term ``snuff'' means any finely cut, ground, or powdered 
    tobacco that is not intended to be smoked.

                         (3) Chewing tobacco

        The term ``chewing tobacco'' means any leaf tobacco that is not 
    intended to be smoked.

(n) Pipe tobacco

    The term ``pipe tobacco'' means any tobacco which, because of its 
appearance, type, packaging, or labeling, is suitable for use and likely 
to be offered to, or purchased by, consumers as tobacco to be smoked in 
a pipe.

(o) Roll-your-own tobacco

    The term ``roll-your-own tobacco'' means any tobacco which, because 
of its appearance, type, packaging, or labeling, is suitable for use and 
likely to be offered to, or purchased by, consumers as tobacco for 
making cigarettes.

(Aug. 16, 1954, ch. 736, 68A Stat. 706; Pub. L. 85-859, title II, 
Sec. 202, Sept. 2, 1958, 72 Stat. 1415; Pub. L. 89-44, title V, 
Sec. 502(b)(3), title VIII, Sec. 808(a), June 21, 1965, 79 Stat. 151, 
164; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), title XXI, 
Sec. 2128(b), Oct. 4, 1976, 90 Stat. 1834, 1921; Pub. L. 99-272, title 
XIII, Sec. 13202(b)(2)-(4), Apr. 7, 1986, 100 Stat. 312; Pub. L. 100-
647, title V, Sec. 5061(b)-(c)(2), Nov. 10, 1988, 102 Stat. 3679; Pub. 
L. 101-508, title XI, Sec. 11202(g), Nov. 5, 1990, 104 Stat. 1388-419; 
Pub. L. 105-33, title IX, Sec. 9302(g)(2)-(3)(B), (h)(4), Aug. 5, 1997, 
111 Stat. 672, 674; Pub. L. 106-554, Sec. 1(a)(7) [title III, 
Sec. 315(a)(2)], Dec. 21, 2000, 114 Stat. 2763, 2763A-644.)


                               Amendments

    2000--Subsec. (f). Pub. L. 106-554, Sec. 1(a)(7) [title III, 
Sec. 315(a)(2)(B)], redesignated subsec. (g) as (f) and struck out 
former subsec. (f), which defined ``cigarette papers''.
    Subsec. (g). Pub. L. 106-554, Sec. 1(a)(7) [title III, 
Sec. 315(a)(2)(B)], redesignated subsec. (h) as (g). Former subsec. (g) 
redesignated (f).
    Subsec. (h). Pub. L. 106-554, Sec. 1(a)(7) [title III, 
Sec. 315(a)(2)(B)], redesignated subsec. (i) as (h). Former subsec. (h) 
redesignated (g).
    Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec. 315(a)(2)(A)], 
amended heading and text of subsec. (h) generally. Prior to amendment, 
text read as follows: `` `Manufacturer of cigarette papers and tubes' 
means any person who makes up cigarette paper into books or sets 
containing more than 25 papers each, or into tubes, except for his own 
personal use or consumption.''
    Subsecs. (i) to (p). Pub. L. 106-554, Sec. 1(a)(7) [title III, 
Sec. 315(a)(2)(B)], redesignated subsecs. (i) to (p) as (h) to (o), 
respectively.
    1997--Subsec. (c). Pub. L. 105-33, Sec. 9302(g)(3)(A), substituted 
``pipe tobacco, and roll-your-own tobacco'' for ``and pipe tobacco''.
    Subsec. (d). Pub. L. 105-33, Sec. 9302(g)(3)(B)(i), substituted 
``pipe tobacco, or roll-your-own tobacco'' for ``or pipe tobacco'' in 
introductory provisions.
    Subsec. (d)(1). Pub. L. 105-33, Sec. 9302(g)(3)(B)(ii), added par. 
(1) and struck out former par. (1) which read as follows: ``a person who 
produces cigars, cigarettes, smokeless tobacco, or pipe tobacco solely 
for his own personal consumption or use; or''.
    Subsec. (k). Pub. L. 105-33, Sec. 9302(h)(4), inserted ``under 
section 5704'' after ``internal revenue bond''.
    Subsec. (p). Pub. L. 105-33, Sec. 9302(g)(2), added subsec. (p).
    1990--Subsec. (m). Pub. L. 101-508 substituted heading for one which 
read: ``Wholesale price'' and amended text generally. Prior to 
amendment, text read as follows: `` `Wholesale price' means the 
manufacturer's, or importer's, suggested delivered price at which the 
cigars are to be sold to retailers, inclusive of the tax imposed by this 
chapter or section 7652, but exclusive of any State or local taxes 
imposed on cigars as a commodity, and before any trade, cash, or other 
discounts, or any promotion, advertising, display, or similar 
allowances. Where the manufacturer's or importer's suggested delivered 
price to retailers is not adequately supported by bona fide arm's length 
sales, or where the manufacturer or importer has no suggested delivered 
price to retailers, the wholesale price shall be the price for which 
cigars of comparable retail price are sold to retailers in the ordinary 
course of trade as determined by the Secretary.''
    1988--Subsec. (c). Pub. L. 100-647, Sec. 5061(c)(1), inserted 
reference to pipe tobacco.
    Subsec. (d). Pub. L. 100-647, Sec. 5061(c)(2), inserted reference to 
pipe tobacco in introductory provisions and in par. (1).
    Subsec. (o). Pub. L. 100-647, Sec. 5061(b), added subsec. (o).
    1986--Subsec. (c). Pub. L. 99-272, Sec. 13202(b)(2), inserted 
reference to smokeless tobacco.
    Subsec. (d). Pub. L. 99-272, Sec. 13202(b)(3), inserted references 
to smokeless tobacco.
    Subsec. (n). Pub. L. 99-272, Sec. 13202(b)(4), added subsec. (n).
    1976--Subsec. (k). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out 
``or his delegate'' after ``Secretary''.
    Subsec. (m). Pub. L. 94-455, Sec. 2128(b), added subsec. (m).
    1965--Subsec. (a). Pub. L. 89-44, Secs. 502(b)(3)(A), 808(a), 
redesignated subsec. (b) as (a), repealed former subsec. (a) which 
related to manufactured tobacco and, in subsec. (a) as so redesignated, 
allowed the use of any substance containing tobacco (other than any roll 
of tobacco which is a cigarette within the meaning of subsec. (b)(2) as 
a wrapper in addition to the leaf tobacco previously allowed.
    Subsec. (b). Pub. L. 89-44, Secs. 502(b)(3)(A), 808(a), redesignated 
subsec. (c) as (b) and permitted the use, as a wrapper for cigarettes in 
addition to paper and substances other than tobacco as previously 
allowed, any substance containing tobacco, which, because of the 
finished product's appearance, tobacco type, labeling, and packaging, is 
likely to be offered to or purchased by consumers as cigarettes. Former 
subsec. (b) redesignated (a).
    Subsec. (c). Pub. L. 89-44, Sec. 502(b)(3)(A), (B), redesignated 
subsec. (d) as (c) and struck out reference to manufactured tobacco. 
Former subsec. (c) redesignated (b).
    Subsec. (d). Pub. L. 89-44, Sec. 502(b)(3)(A), (C), redesignated 
subsec. (e) as (d), and simplified the definition of manufacturer of 
tobacco products to include only persons who manufacture cigars or 
cigarettes and reduced the area of excluded activities so as to exclude 
only persons producing cigars and cigarettes solely for their own 
personal use and proprietors of customs bonded manufacturing warehouses 
with respect to the operation of such warehouses. Former subsec. (d) 
redesignated (c).
    Subsecs. (e) to (k). Pub. L. 89-44, Sec. 502(b)(3)(A) redesignated 
subsecs. (f) to (k) and (n) as (e) to (j) and (k), respectively. Former 
subsec. (e) redesignated (d).
    Subsec. (l). Pub. L. 89-44, Sec. 502(b)(3)(A), redesignated subsec. 
(o) as (l) and repealed former subsec. (l) which related to tobacco 
materials.
    Subsec. (m). Pub. L. 89-44, Sec. 502(b)(3)(A), repealed subsec. (m) 
which related to tobacco dealers.
    Subsecs. (n), (o). Pub. L. 89-44, Sec. 502(b)(3)(A), redesignated 
subsec. (n) and (o) as (k) and (l), respectively.
    1958--Subsec. (a). Pub. L. 85-859 inserted the term ``for removal, 
or merely removed''.
    Subsecs. (b) to (d). Pub. L. 85-859 redesignated subsecs. (c), (d), 
and (f) as (b), (c), and (d), respectively. Former subsecs. (b), (c), 
and (d) redesignated (e), (b), and (c), respectively.
    Subsec. (e). Pub. L. 85-859 consolidated the definitions 
``manufacturer of tobacco'' and ``manufacturer of cigars and 
cigarettes'', inserted the phrase ``for removal, or merely removes'', 
excluded from the definition a proprietor of a customs bonded 
manufacturing warehouse with respect to the operation of the warehouse, 
and required bona fide associations of farmers or growers to maintain 
records of leaf tobacco.
    Subsec. (f). Pub. L. 85-859 redesignated subsec. (g) as (f) and 
former subsec. (f) as (d).
    Subsec. (g). Pub. L. 85-859 added subsec. (g) and redesignated 
former subsec. (g) as (f).
    Subsec. (i). Pub. L. 85-859 substituted ``into books or sets 
containing more than 25 papers each, or into tubes'' for ``into 
packages, books, sets, or tubes''.
    Subsec. (j). Pub. L. 85-859 substituted provisions defining ``export 
warehouse'' for provisions which defined ``article'' as manufactured 
tobacco, cigars, cigarettes, and cigarette papers and tubes.
    Subsec. (k). Pub. L. 85-859 added subsec. (k) and redesignated 
former subsec. (k) as (l).
    Subsec. (l). Pub. L. 85-859 redesignated former subsec. (k) as (l) 
and substituted ``other than manufactured tobacco, cigars, and 
cigarettes'' for ``in process, leaf tobacco, and tobacco scraps, 
cuttings, clippings, siftings, dust, stems, and waste''. Former subsec. 
(l) redesignated (m).
    Subsec. (m). Pub. L. 85-859 redesignated former subsec. (l) as (m) 
and included within the definition persons who receive tobacco 
materials, other than stems and waste, for use in the production of 
fertilizer, insecticide, or nicotine, required associations of farmers 
or growers of tobacco to maintain records of all leaf tobacco acquired 
or received and sold or otherwise disposed of, and excluded from the 
definition persons who buy leaf tobacco without taking physical 
possession of the tobacco and qualified manufacturers of tobacco 
products. Former subsec. (m) redesignated (n).
    Subsec. (n). Pub. L. 85-859 redesignated former subsec. (m) as (n) 
and substituted ``tobacco products or cigarette papers or tubes'' for 
``articles''. Former subsec. (n) redesignated (o).
    Subsec. (o). Pub. L. 85-859 redesignated former subsec. (n) as (o) 
and substituted ``tobacco products or cigarette papers or tubes'' for 
``articles'' in two places, and inserted provisions to include within 
the definition persons who remove cigars or cigarettes for sale or 
consumption in the United States from a customs bonded manufacturing 
warehouse.


                    Effective Date of 2000 Amendment

    Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec. 315(b)], Dec. 21, 
2000, 114 Stat. 2763, 2763A-644, provided that: ``The amendments made by 
this section [amending this section, section 5761 of this title, and 
provisions set out as a note under section 5701 of this title] shall 
take effect as if included in section 9302 of the Balanced Budget Act of 
1997 [Pub. L. 105-33].''


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-33 applicable to articles removed, as 
defined in subsec. (k) of this section, after Dec. 31, 1999, with 
transition rule, see section 9302(i) of Pub. L. 105-33, set out as a 
note under section 5701 of this title.


                    Effective Date of 1990 Amendment

    Amendment by Pub. L. 101-508 applicable with respect to articles 
removed after Dec. 31, 1990, see section 11202(h) of Pub. L. 101-508, 
set out as a note under section 5701 of this title.


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-647 applicable to pipe tobacco removed, 
within the meaning of subsec. (k) of this section, after Dec. 31, 1988, 
with transition rule, see section 5061(d) of Pub. L. 100-647, set out as 
a note under section 5701 of this title.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-272 applicable to smokeless tobacco removed 
after June 30, 1986, see section 13202(c) of Pub. L. 99-272, set out as 
a note under section 5701 of this title.


                    Effective Date of 1976 Amendment

    Amendment by section 2128(b) of Pub. L. 94-455 effective on first 
month which begins more than 90 days after Oct. 4, 1976, see section 
2128(e) of Pub. L. 94-455, set out as a note under section 5701 of this 
title.


                    Effective Date of 1965 Amendment

    Amendment by section 502(b)(3) of Pub. L. 89-44 applicable on and 
after Jan. 1, 1966, see section 701(d) of Pub. L. 89-44, set out as a 
note under section 5701 of this title.
    Section 808(d)(1) of Pub. L. 89-44 provided that: ``The amendments 
made by subsections (a) and (b)(3) [amending this section and section 
7652 of this title] shall take effect on July 1, 1965.''


                    Effective Date of 1958 Amendment

    Amendment by Pub. L. 85-859 effective Sept. 3, 1958, see section 
210(a)(1) of Pub. L. 85-859, set out as an Effective Date note under 
section 5001 of this title.

                  Section Referred to in Other Sections

    This section is referred to in title 42 section 1396b.
