
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 48USC734]

 
              TITLE 48--TERRITORIES AND INSULAR POSSESSIONS
 
                         CHAPTER 4--PUERTO RICO
 
                    SUBCHAPTER I--GENERAL PROVISIONS
 
Sec. 734. United States laws extended to Puerto Rico; internal 
        revenue receipts covered into treasury
        
    The statutory laws of the United States not locally inapplicable, 
except as hereinbefore or hereinafter otherwise provided, shall have the 
same force and effect in Puerto Rico as in the United States, except the 
internal revenue laws other than those contained in the Philippine Trade 
Act of 1946 [22 U.S.C. 1251 et seq.] or the Philippine Trade Agreement 
Revision Act of 1955 [22 U.S.C. 1371 et seq.]: Provided, however, That 
after May 1, 1946, all taxes collected under the internal revenue laws 
of the United States on articles produced in Puerto Rico and transported 
to the United States, or consumed in the island shall be covered into 
the treasury of Puerto Rico.

(Mar. 2, 1917, ch. 145, Sec. 9, 39 Stat. 954; May 17, 1932, ch. 190, 47 
Stat. 158; Apr. 30, 1946, ch. 244, title V, Sec. 513, 60 Stat. 158; Aug. 
1, 1955, ch. 438, title III, Sec. 308, 69 Stat. 427.)

                       References in Text

    The Philippine Trade Act of 1946, referred to in text, is act Apr. 
30, 1946, ch. 244, 60 Stat. 141, as amended, which is classified 
principally to subchapters I to IV (Sec. 1251 et seq.) of chapter 15 of 
Title 22, Foreign Relations and Intercourse. For complete classification 
of this Act to the Code, see Short Title note set out under section 1354 
of Title 22 and Tables.
    The Philippine Trade Agreement Revision Act of 1955, referred to in 
text, is act Aug. 1, 1955, ch. 438, 69 Stat. 413, which is classified 
generally to subchapter IV-A (Sec. 1371 et seq.) of chapter 15 of Title 
22. For complete classification of this Act to the Code, see Short Title 
note set out under section 1373 of Title 22 and Tables.
    The internal revenue laws of the United States, referred to in text, 
are classified generally to Title 26, Internal Revenue Code.


                            Prior Provisions

    Provisions similar to those in this section were contained in act 
Apr. 12, 1900, ch. 191, Sec. 14, 31 Stat. 80, except that the words 
``which, in view of the provisions of section three, shall not have 
force and effect in Porto Rico'' were contained in lieu of the proviso. 
As to section 3 of act Apr. 12, 1900, see section 738 of this title and 
notes thereunder.


                               Amendments

    1955--Act Aug. 1, 1955, inserted ``or the Philippine Trade Agreement 
Revision Act of 1955''.
    1946--Act Apr. 30, 1946, inserted ``other than those contained in 
the Philippine Trade Act of 1946''.

                         Change of Name

    ``Puerto Rico'' substituted in text for ``Porto Rico'' pursuant to 
act May 17, 1932, which is classified to section 731a of this title.


                    Effective Date of 1955 Amendment

    Amendment by act Aug. 1, 1955, effective Jan. 1, 1956, see section 
301(b) of act Aug. 1, 1955, set out as an Effective Date note under 
section 1373 of Title 22, Foreign Relations and Intercourse.


                    Effective Date of 1946 Amendment

    Amendment by act Apr. 30, 1946, effective on day after date of its 
enactment, Apr. 30, 1946, see section 512 of act Apr. 30, 1946, set out 
as an Effective Date note under section 1354 of Title 22, Foreign 
Relations and Intercourse.

  Ex. Ord. No. 9909. Exempting District Court of the United States for 
 Puerto Rico and the Department of Justice From Making Reports Required 
                             by This Section

    Ex. Ord. No. 9909, eff. Dec. 9, 1947, 12 F.R. 8291, provided:
    By virtue of the authority vested in me by section 49b(2) of the 
Organic Act of Puerto Rico, as amended by section 6 of the Act of August 
5, 1947, Public Law 362, 80th Congress [section 793b of this title], it 
is hereby ordered that the District Court of the United States for 
Puerto Rico and the Department of Justice shall be exempt from making 
the reports to the Coordinator of Federal Agencies in Puerto Rico which 
are provided for in such section.
                                                         Harry S Truman.

Ex. Ord. No. 10005. Establishment of President's Advisory Commission on 
                 Relation of Federal Laws to Puerto Rico

    Ex. Ord. No. 10005, eff. Oct. 5, 1948, 13 F.R. 5854, provided:
    WHEREAS section 9 of the Organic Act of Puerto Rico, 39 Stat. 954 
[this section], provides that ``the statutory laws of the United States 
not locally inapplicable, except as hereinbefore or hereinafter 
otherwise provided, shall have the same force and effect in Puerto Rico 
as in the United States''; and
    WHEREAS section 49b(3) of the said Act, which was added by section 6 
of the act of August 5, 1947, 61 Stat. 772 [section 793b of this title], 
provides that ``the President of the United States may, from time to 
time, after hearing, promulgate Executive orders expressly excepting 
Puerto Rico from the application of any Federal law, not expressly 
declared by Congress to be applicable to Puerto Rico, which is 
contemplated by section 9 of this act [this section] is inapplicable by 
reason of local conditions'':
    NOW, THEREFORE, by virtue of the authority vested in me by the said 
Organic Act of Puerto Rico, and as President of the United States, it is 
ordered as follows:
    1. There is hereby created a commission to be known as the 
President's Advisory Commission on the Relation of Federal Laws to 
Puerto Rico, which shall be composed of nine members to be designated by 
the President and to serve without compensation.
    2. The Commission shall from time to time make recommendations to 
the President concerning the exercise of his power under section 49b(3) 
of the Organic Act of Puerto Rico [section 793b of this title] to exempt 
Puerto Rico from the application of Federal laws. To that end, the 
Commission is authorized to examine into, and to hold hearings on, the 
inapplicability of Federal laws to Puerto Rico by reason of local 
conditions.
    3. All executive departments and agencies of the Federal Government 
are authorized and directed to cooperate with the Commission in its work 
and to furnish the Commission such information as the Commission may 
require in the performance of its duties.
    4. The Commission shall continue to exist until the President 
terminates its existence by Executive order.
                                                         Harry S Truman.

           Administrative Treatment of Puerto Rico as a State

    Memorandum of President of the United States, Nov. 30, 1992, 57 F.R. 
57093, provided:
    Memorandum for the Heads of Executive Departments and Agencies
    Puerto Rico is a self-governing territory of the United States whose 
residents have been United States citizens since 1917 and have fought 
valorously in five wars in the defense of our Nation and the liberty of 
others.
    On July 25, 1952, as a consequence of steps taken by both the United 
States Government and the people of Puerto Rico voting in a referendum, 
a new constitution was promulgated establishing the Commonwealth of 
Puerto Rico. The Commonwealth structure provides for self-government in 
respect of internal affairs and administration, subject to relevant 
portions of the Constitution and the laws of the United States. As long 
as Puerto Rico is a territory, however, the will of its people regarding 
their political status should be ascertained periodically by means of a 
general right of referendum or specific referenda sponsored either by 
the United States Government or the Legislature of Puerto Rico.
    Because Puerto Rico's degree of constitutional self-government, 
population, and size set it apart from other areas also subject to 
Federal jurisdiction under Article IV, section 3, clause 2 of the 
Constitution, I hereby direct all Federal departments, agencies, and 
officials, to the extent consistent with the Constitution and the laws 
of the United States, henceforward to treat Puerto Rico administratively 
as if it were a State, except insofar as doing so with respect to an 
existing Federal program or activity would increase or decrease Federal 
receipts or expenditures, or would seriously disrupt the operation of 
such program or activity. With respect to a Federal program or activity 
for which no fiscal baseline has been established, this memorandum shall 
not be construed to require that such program or activity be conducted 
in a way that increases or decreases Federal receipts or expenditures 
relative to the level that would obtain if Puerto Rico were treated 
other than as a State.
    If any matters arise involving the fundamentals of Puerto Rico's 
status, they shall be referred to the Office of the President.
    This guidance shall remain in effect until Federal legislation is 
enacted altering the current status of Puerto Rico in accordance with 
the freely expressed wishes of the people of Puerto Rico.
    The memorandum for the heads of executive departments and agencies 
on this subject, issued July 25, 1961 [26 F.R. 6695], is hereby 
rescinded.
    This memorandum shall be published in the Federal Register.
                                                            George Bush.


                            Cross References

    Articles, goods, wares, or merchandise going into Puerto Rico from 
United States, exempt from payment of any tax imposed by internal 
revenue laws of United States, see section 7653 of Title 26, Internal 
Revenue Code.
    Deposit of internal revenue collections, see section 7652 of Title 
26.
    Income tax on residents of Puerto Rico, see section 933 of Title 26.
    Internal revenue tax on articles of merchandise of Puerto Rican 
manufacture coming into the United States and withdrawn for consumption 
or sale, see section 7652 of Title 26.
    Interstate Commerce Act as amended and the Safety Appliance Acts as 
amended as inapplicable to Puerto Rico, see section 751 of this title.
    References to possessions in Internal Revenue Code as referring to 
Commonwealth of Puerto Rico, see section 7701 of Title 26, Internal 
Revenue Code.
    Taxes collected, as trust funds, see section 1321 of Title 31, Money 
and Finance.

                  Section Referred to in Other Sections

    This section is referred to in title 22 sections 1356, 1373.
