,i #aacth ,,congress #ast ,session ,h4 ,r4 #biij ,,in ,,the ,,house ,,of ,,representatives ,august #b1 #bjac ,mr4 ,doggett 7for himself1 ,mr4 ,king of ,new ,york1 ,mr4 ,blumenauer1 ,mr4 ,connolly1 ,mr4 ,de,fazio1 ,ms4 ,de,gette1 ,mr4 ,ellison1 ,mr4 ,gene ,green of ,texas1 ,mr4 ,gutirrez1 ,mr4 ,langevin1 ,mr4 ,loebsack1 ,mr4 ,mc,dermott1 ,mr4 ,moran1 ,ms4 ,norton1 ,mr4 ,pierluisi1 ,mr4 ,rangel1 ,ms4 ,schakowsky1 ,ms4 ,slaughter1 ,ms4 ,tsongas1 ,mr4 ,van ,hollen1 ,mr4 ,waxman1 ,ms4 ,de,lauro1 ,mr4 ,lynch1 ,mr4 ,matheson1 ,mr4 ,nadler1 ,mr4 ,mc,govern1 ,mr4 ,farr1 ,ms4 ,lee of ,california1 ,ms4 ,roybal-,allard1 ,mr4 ,tierney1 ,mr4 ,welch1 ,mr4 ,levin1 ,mr4 ,andrews1 ,mr4 ,lewis1 ,ms4 ,bass1 ,mr4 ,garamendi1 ,mrs4 ,capps1 ,mr4 ,honda1 ,ms4 ,clarke1 ,mrs4 ,davis of ,california1 and ,ms4 ,kaptur7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to reduce tobacco smuggling1 and for other purposes4 #a4 ,short title and table of contents 7a7 ,short title ,this ,act may be cited as the ,smuggled ,tobacco ,prevention ,act of #bjac or the ,,stop ,act4 7b7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title and table of contents4 ,,title ,i--,amendments to ,internal ,revenue ,code of #aihf ,sec4 #aja4 ,amendment of #aihf code4 ,sec4 #ajb4 ,machines used to manufacture or package tobacco products or processed tobacco4 ,sec4 #ajc4 ,improved marking and labeling4 ,sec4 #ajd4 ,wholesalers and manufacturers1 importers1 and sellers of tobacco production machines required to have permit4 ,sec4 #aje4 ,conditions of permit4 ,sec4 #ajf4 ,records to be maintained4 ,sec4 #ajg4 ,reports4 ,sec4 #ajh4 ,fraudulent offenses4 ,sec4 #aji4 ,penalties4 ,sec4 #aaj4 ,coordination with other government officials4 ,sec4 #aaa4 ,definitions4 ,sec4 #aab4 ,conforming amendments4 ,sec4 #aac4 ,effective date4 ,,title ,,ii--,import ,fraud ,sec4 #bja4 ,maximum penalty for importation of tobacco products and cigarette papers and tubes by fraudulent means4 ,,title ,,iii--,exclusions regarding ,indian ,tribes and ,tribal matters ,sec4 #cja4 ,exclusions regarding ,indian ,tribes and ,tribal matters4 ,i ,amendments to ,internal ,revenue ,code of #aihf #aja4 ,amendment of #aihf code ,except as otherwise expressly provided1 whenever in this title an amendment or repeal is expressed in terms of an amendment to1 or repeal of1 a section or other provision1 the reference shall be considered to be made to a section or other provision of the ,internal ,revenue ,code of #aihf4 #ajb4 ,machines used to manufacture or package tobacco products or processed tobacco 7a7 ,in general ,section #egfb is amended-- 7#a7 by redesignating subsection 7b7 as subsection 7c71 and 7#b7 by inserting after subsection 7a7 the following new subsection3 7b7 ,machines used ,to manufacture or package tobacco products or processed tobacco 7#a7 ,transfer of manufacturing machines to licensed persons ,any tobacco production machine may be sold1 leased1 imported1 exported1 delivered1 or otherwise made available only to persons-- 7,a7 lawfully engaged in-- 7i7 the sale1 lease1 importation1 exportation1 or delivery of such machines1 7ii7 the manufacture or packaging of tobacco products or processed tobacco1 or 7iii7 the application of unique identification markings onto tobacco product or processed tobacco packages pursuant to section #egbc1 and 7,b7 that have all ,federal1 ,state1 local1 and ,indian tribal government permits1 registrations1 and licenses required to engage in such activities4 7#b7 ,transfer of machines to persons engaged in illegal manufacture of contraband ,no tobacco production machine shall knowingly be manufactured for or be 7directly or indirectly7 sold1 leased1 imported1 exported1 delivered1 or otherwise made available to any person engaged in the illegal manufacture1 distribution1 or sale of counterfeit or contraband tobacco products or processed tobacco1 unique identification markings1 or other tax-payment indicia4 7#c7 ,registration of machines 7,a7 ,in general ,every person having possession or custody of1 or having control over1 the installation of any tobacco production machine shall register such machine with the ,secretary immediately on its being installed1 by subscribing and filing with the ,secretary a statement1 in writing1 setting forth the particular place where such machine is installed1 the kind of machine and its capacity1 the owner thereof1 the owner's place of residence1 and the purpose for which the machine has been or is intended to be used4 7,b7 ,exception ,under regulations prescribed by the ,secretary1 this paragraph shall not apply to any tobacco production machine not used or intended to be used-- 7i7 for the manufacture or production of cigarette or cigars1 or to manufacture any other tobacco product or processed tobacco1 7ii7 to package any tobacco product or processed tobacco1 or 7iii7 to apply unique identification markings to any package4 7#d7 ,records 7,a7 ,in general ,any person selling1 leasing1 importing1 exporting1 delivering1 or otherwise making available a tobacco production machine shall maintain and keep records1 as the ,secretary prescribes by regulation1 relating to any transfers of the machine1 including the name1 address1 other contact information1 and any permit1 registration1 or license number of the person receiving delivery of the machine1 or to whom the machine is otherwise transferred1 as the case may be4 7,b7 #e-,year holding period for records ,any record required to be maintained and kept under subparagraph 7,a7 shall be kept for the #e-year period beginning on the first date such record is required to be so maintained and kept4 7,c7 ,availability of records ,such records shall be available for inspection by any internal revenue officer during business hours4 7,d7 ,safe harbor ,an ordinary commercial record or invoice shall satisfy the requirements of this paragraph if such record or invoice contains all of the information required under subparagraph 7,a74 7#e7 ,violations 7,a7 ,in general ,whoever knowingly violates paragraph 7#a71 7#b71 or 7#c7 shall1 for each offense1 be fined not more than #aj1jjj or an amount equal to #c times the fair market value of the tobacco product machine involved 7whichever is greater71 or imprisoned not more than five years1 or both4 7,b7 ,recordkeeping ,whoever knowingly violates paragraph 7#d7 shall1 for each offense1 be fined not more than #aj1jjj4 4 7b7 ,tobacco production machine ,section #egjb is amended by adding at the end the following new subsection3 7q7 ,tobacco production machine ,the term tobacco production machine means any machine 7or component integral to the operation of such a machine7 used to manufacture or package tobacco products or processed tobacco or to apply unique identification markings or other tax-payment indicia to packages of tobacco products or processed tobacco4 ,such term includes any machine used to produce tobacco products for compensation1 lease1 or hire1 or otherwise used in a commercial setting4 4 7c7 ,conforming amendment ,subsection 7c7 of section #egfb 7as so redesignated7 is amended by striking subsection 7a7 and inserting subsections 7a7 and 7b74 7d7 ,effective date ,the amendment made by this section shall apply to transfers more than #f months after the date of the enactment of this ,act4 #ajc4 ,improved marking and labeling 7a7 ,in general ,subsection 7b7 of section #egbc is amended to read as follows3 7b7 ,marks1 labels1 and notices 7#a7 ,in general ,subject to paragraphs 7#b71 7#c71 and 7#d71 every package of tobacco products1 processed tobacco1 or cigarette papers or tubes shall1 before removal1 bear the marks1 labels1 and notices that the ,secretary by regulation prescribes4 7#b7 ,marking requirements for domestic market 7,a7 ,in general ,each person who is a manufacturer or importer of tobacco products or processed tobacco shall 7in accordance with regulations prescribed by the ,secretary7 ensure that1 before any product intended for sale or distribution within the ,united ,states is removed1 a unique identification marking is affixed to or forms part of each package of tobacco product or processed tobacco manufactured or imported by such person for sale or distribution4 7,b7 ,markings on individual packages ,any markings required to be placed on a tobacco product or processed tobacco package by this subsection shall be placed on the innermost sealed container visible from the outside of the individual package4 ,for any tobacco product or processed tobacco package that contains multiple smaller packages of tobacco products or processed tobacco1 any markings required to be so placed on tobacco product or processed tobacco packages shall be placed on all the individual tobacco product or processed tobacco packages4 7,c7 ,markings on aggregate packing modes ,to facilitate efficient tracking and tracing of tobacco products or processed tobacco through the distribution system1 all manufacturers or importers of tobacco products or processed tobacco shall1 in addition to such unique identification marking1 also1 in accordance with regulations prescribed by the ,secretary1 ensure that unique identification markings are affixed to or form part of aggregate packing modes 7such as cartons1 cases1 and master cases for cigarettes74 ,the ,secretary shall determine the size1 location1 and methods for such markings4 ,the ,secretary shall establish regulations requiring that all persons within the distribution chain1 up to but not including the ultimate retailer1 utilize the unique identification markings on aggregate packing modes to facilitate the tracking and tracing of tobacco products or processed tobacco through the distribution system4 7#c7 ,marking requirements for exports ,a unique identification marking shall be affixed to or form part of each package of tobacco product or processed tobacco that is exported1 or sold for export1 that distinguishes it from those products or processed tobacco intended for sale or distribution within the ,united ,states4 ,the ,secretary shall by regulation prescribe the size1 location1 and other characteristics of such marking1 and it may contain a serial number that is assigned to the country of export1 except that no such serial number shall be required on tobacco products or processed tobacco sold at retail to consumers by duty free stores for consumption beyond the jurisdiction of the internal revenue laws of the ,united ,states4 ,such tobacco products or processed tobacco shall instead bear markings indicating the tobacco product or processed tobacco is only for duty-free sale to consumers1 as prescribed through regulation by the ,secretary1 before the product or processed tobacco is removed4 7#d7 ,authorization of federal unique identification marking ,not later than #c years after the date of the enactment of the ,smuggled ,tobacco ,prevention ,act of #bjac1 the ,secretary shall by regulation require the use of a unique identification marking on all products subject to tax under this chapter4 4 7b7 ,unique identification marking ,section #egbc is amended by adding at the end the following new subsection3 7f7 ,unique identification marking 7#a7 ,in general ,no tobacco product or processed tobacco may be sold1 offered for sale1 distributed1 mailed1 or otherwise delivered for final sale to any consumer in the ,united ,states unless the unique identification marking that meets the requirements of this section 7and any regulations prescribed thereunder7 is affixed to or forms part of the package in which it is contained4 7#b7 ,system specifications 7,a7 ,the ,secretary shall design such system to coordinate and avoid interference with ,state1 local1 and ,indian tribal tax stamps and markings1 facilitate collection of the tax imposed by this chapter1 impede contraband tobacco trafficking1 minimize counterfeit marking1 allow for more effective tracking and tracing of tobacco products and processed tobacco1 facilitate the enforcement of related ,federal laws1 and utilize such available technology as may promote the purposes of this chapter4 7,b7 ,the ,secretary shall prescribe the method and manner in which such unique identification markings are to be distributed1 purchased1 and applied to or made part of tobacco product and processed tobacco packages1 and may provide for the cancellation of such markings4 7,c7 ,the unique identification marking must provide 7through the marking or record associated with the marking7 such information as the ,secretary by regulation prescribes1 including3 7i7 ,a unique serial number or tracking code for each tobacco product or processed tobacco package or aggregate package4 7ii7 ,the name and address of the person purchasing the marking 7and1 if different1 of the person ensuring the marking is affixed to or made part of the package74 7iii7 ,the name and address of the first unrelated person purchasing or otherwise receiving the tobacco product or processed tobacco from the person who ensures the marking is affixed to or made part of the package and the date of such purchase or receipt4 7,d7 ,the information described in subparagraph 7,c7 may be required to1 to the extent practicable-- 7i7 be cryptographically encrypted1 and 7ii7 7,i7 be readable by a portable scanning device 7or similar device7 to be utilized by regulatory and law enforcement officials at the time and place of inspection1 or 7,,ii7 be otherwise accessible remotely at such time and place4 7#c7 ,unrelated person ,for purposes of this subsection1 the term unrelated person means a person other than a related person within the meaning of section #bfg7;b7 or #gjg7;b77#a74 4 7c7 ,definitions ,section #egbc1 as amended by subsection 7b71 is amended by adding at the end the following new subsections3 7g7 ,package defined ,for purposes of this section1 the term package means a pack1 box1 carton1 or container of any kind or1 if no other container1 any wrapping 7including cellophane71 in which a tobacco product or processed tobacco is sold1 offered for sale1 distributed1 or otherwise delivered for final sale to any consumer4 7h7 ,unique identification marking defined ,for purposes of this section1 the term unique identification marking means a device in such design and denomination as the ,secretary authorizes by regulation that is affixed to or made part of a package of a tobacco product or processed tobacco4 ,such markings shall contain overt security features for public authentication and covert security features embedding a unique1 secure1 encrypted identifier onto the marking1 enabling law enforcement authentication1 production control1 and tracking and tracing of the product or processed tobacco bearing the marking4 4 7d7 ,regulations ,the ,secretary of the ,treasury shall consult with the ,secretary of ,health and ,human ,services as may be appropriate to carry out the purposes of subsection 7f71 and paragraphs 7#b71 7#c71 and 7#d7 of subsection 7b71 of section #egbc of the ,internal ,revenue ,code of #aihf 7as added by this section74 #ajd4 ,wholesalers and manufacturers1 importers1 and sellers of tobacco production machines required to have permit 7a7 ,wholesalers ,section #egab is amended by inserting 1 as a wholesaler1 after or processed tobacco4 7b7 ,manufacturers1 importers1 and sellers of tobacco production machines ,section #egab is amended by striking or as an export warehouse proprietor and inserting 1 as an export warehouse proprietor1 or as a manufacturer1 seller1 or importer of tobacco production machines4 #aje4 ,conditions of permit 7a7 ,issuance ,subsection 7a7 of section #egac is amended to read as follows3 7a7 ,issuance 7#a7 ,in general ,a person shall not engage in business as a manufacturer or importer of tobacco products or processed tobacco1 as a wholesaler1 as an export warehouse proprietor1 or as a manufacturer1 seller1 lessor1 or importer of tobacco production machines without a permit to engage in such business4 ,such permit1 conditioned upon compliance with this chapter and regulations issued thereunder1 shall be issued in such form and in such manner as the ,secretary shall by regulation prescribe1 to every person properly qualified under sections #egaa and #egab4 ,any entity granted such a permit is not eligible to provide any services the ,secretary may elect to procure to facilitate the purposes of section #egbc4 ,permit holders shall automatically count output and register1 record1 and transmit the quantities measured1 in the form1 conditions1 and time limits established by the ,secretary4 ,a new permit may be required at such other time as the ,secretary shall by regulation prescribe4 7#b7 ,conditions ,the ,secretary shall not issue a permit under this section unless-- 7,a7 the applicant is in compliance with the requirements of-- 7i7 this chapter1 7ii7 chapter #aad of title #ah1 ,united ,states ,code1 7iii7 the ,act of ,october #ai1 #aidi 7#ae ,u4,s4,c4 #cge et seq42 commonly referred to as the ,jenkins ,act71 7iv7 the ,fair and ,equitable ,tobacco ,reform ,act of #bjjd1 and any amendments made thereby1 7v7 the ,family ,smoking ,prevention and ,tobacco ,control ,act1 and any amendments made thereby1 7vi7 the ,prevent ,all ,cigarette ,trafficking ,act of #bjji1 and any amendments made thereby1 and 7vii7 any related regulations thereunder1 as in effect on the date of the issuance of the permit1 7,b7 the applicant certifies that the applicant is in compliance with all other ,federal1 ,state1 local1 and ,indian tribal laws relating to the taxation1 manufacture1 importation1 exportation1 distribution1 marketing1 sale1 or transportation of tobacco products1 processed tobacco1 or tobacco production machines1 as in effect on the date of the issuance of the permit1 and 7,c7 the applicant identifies in the application any violation of a law described in subparagraph 7,a7 or 7,b7 by the applicant resulting in a penalty under any such law during the #e-year period ending on the date of the application4 4 7b7 ,suspension or revocation ,subparagraph 7,a7 of section #egac7;b77#a7 is amended by inserting or any other law described in subparagraph 7,a7 or 7,b7 of subsection 7a77#b7 after this chapter4 #ajf4 ,records to be maintained 7a7 ,in general ,section #egda is amended-- 7#a7 by inserting 7a7 ,in general4-- before ,every manufacturer1 7#b7 by inserting every wholesaler1 after every importer11 7#c7 by striking such records and inserting records concerning the chain of custody of the tobacco products and processed tobacco 7including the foreign country of final destination for packages marked for export7 and the serial numbers1 marks1 labels1 and notices required under section #egbc1 and such other records1 and 7#d7 by adding at the end the following new subsections3 7b7 ,retailers ,retailers shall maintain records of receipt1 and any non-retail sale or delivery1 of tobacco products and processed tobacco4 ,such records shall be available to the ,secretary for inspection and audit4 ,an ordinary commercial record or invoice shall satisfy the requirements of this subsection if such record shows the date of receipt1 from whom tobacco products or processed tobacco were received1 and the quantity of tobacco products or processed tobacco received 7or1 in the case of non-retail sale or delivery1 the date of sale or delivery1 to whom the tobacco products or processed tobacco were sold or delivered1 and the quantity of the tobacco products or processed tobacco sold or delivered74 ,to the extent the ,secretary determines that the records maintained by retail entities licensed pursuant to section #eee7;b7 of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #aeee7;b77 satisfy the recordkeeping requirements of this section1 no additional records shall be required for such entities under this section4 ,the preceding provisions of this subsection shall not be construed to limit or preclude other recordkeeping requirements imposed on any retailer4 7c7 ,records concerning marks and chain of custody ,records concerning the chain of custody and the marks1 labels1 and notices required under section #egbc shall be available for inspection by any internal revenue officer during business hours4 4 7b7 ,consultation with ,health and ,human ,services ,the ,secretary of the ,treasury shall consult with the ,secretary of ,health and ,human ,services as may be appropriate to carry out the purposes of section #egda of the ,internal ,revenue ,code of #aihf4 #ajg4 ,reports ,section #egbb is amended-- 7#a7 by inserting 7a7 ,in general4-- before ,every manufacturer1 and 7#b7 by adding at the end the following new subsection3 7b7 ,reports by export warehouse proprietors ,prior to exportation of tobacco products or processed tobacco from the ,united ,states1 the export warehouse proprietor shall submit a report 7in such manner and form as the ,secretary may by regulation prescribe7 to enable the ,secretary to identify the shipment and assure that it reaches its intended destination4 4 #ajh4 ,fraudulent offenses 7a7 ,in general ,subsection 7a7 of section #egfb is amended-- 7#a7 by striking paragraph 7#a7 and redesignating paragraphs 7#b7 through 7#f7 as paragraphs 7#a7 through 7#e71 respectively1 and 7#b7 by striking not more than #aj1jjj and inserting not more than #aj1jjj or an amount equal to #c times the amount of the tax imposed under this chapter on the tobacco product involved 7whichever is greater74 7b7 ,offenses relating to distribution of tobacco products1 etc 7#a7 ,in general ,section #egfb 7as amended by section #ajb of this ,act7 is amended-- 7,a7 by redesignating subsection 7c7 as subsection 7d71 and 7,b7 by inserting after subsection 7b7 the following new subsection3 7c7 ,offenses relating to distribution of tobacco products1 etc ,it shall be unlawful-- 7#a7 for any person to engage in business as a manufacturer or importer of tobacco products1 processed tobacco1 or cigarette papers and tubes1 as a wholesaler1 or an export warehouse proprietor1 or as a manufacturer1 seller1 or importer of tobacco production machines without filing the bond and obtaining the permit where required by this chapter or regulations thereunder1 7#b7 for a manufacturer or importer of tobacco products1 or wholesaler to knowingly ship1 transport1 deliver1 or receive any tobacco products from or to any person other than a person who has obtained the permit required by this chapter1 a retailer1 or a person handling such products solely for purposes of shipment or delivery2 except that an importer who has obtained the permit required by this chapter may receive1 from a foreign manufacturer or a foreign distributor1 foreign tobacco products that have not previously entered the ,united ,states1 7#c7 for a manufacturer or importer of processed tobacco or a wholesaler to knowingly ship1 transport1 deliver1 or receive any tobacco products or processed tobacco from or to any person other than a person who has obtained the permit required by this chapter1 7#d7 for a manufacturer or importer of processed tobacco to knowingly ship1 transport1 sell1 or deliver processed tobacco to any person other than a manufacturer of processed tobacco1 a manufacturer of tobacco products1 or an export warehouse proprietor1 7#e7 for any person 7other than the original manufacturer of such tobacco products or processed tobacco or an export warehouse proprietor authorized to receive any tobacco products or processed tobacco that have previously been exported and returned to the ,united ,states7 to knowingly receive any tobacco products or processed tobacco that have previously been exported and returned to the ,united ,states1 7#f7 for any export warehouse proprietor to knowingly ship1 transport1 sell1 or deliver for sale any tobacco products or processed tobacco to any person other than the original manufacturer of such tobacco products or processed tobacco1 another export warehouse proprietor1 a duty free store1 or a foreign purchaser1 7#g7 for any person 7other than a manufacturer1 wholesaler1 or an export warehouse proprietor permitted under this chapter7 to knowingly ship1 transport1 receive1 or possess1 for purposes of resale1 any tobacco product or processed tobacco not in packages marked pursuant to regulations issued under section #egbc1 other than for direct return to a manufacturer for repacking or for re-exportation or to an export warehouse proprietor for re-exportation1 7#h7 for any manufacturer1 importer1 export warehouse proprietor1 or wholesaler permitted under this chapter to make any false entry in1 to fail to make an entry in1 or to knowingly fail to maintain properly any record or report required by this chapter or the regulations promulgated thereunder with the intent to defraud the ,united ,states1 7#i7 for any person1 with the intent to defraud the ,united ,states1 to alter1 mutilate1 destroy1 obliterate1 or remove any mark or label required under this chapter upon a tobacco product or processed tobacco held for sale1 or to create1 possess1 or apply on any tobacco product or processed tobacco or its packaging any counterfeit versions of any such marks or labels1 and 7#aj7 for any person to sell at retail more than #c1jjj cigarettes in any single transaction 7or series of related transactions71 or1 in the case of other tobacco products1 an equivalent quantity as determined by regulation4 ,any person violating any of the provisions of this subsection shall1 upon conviction1 be fined as provided in section #cega of title #ah1 ,united ,states ,code1 or imprisoned for not more than #e years1 or both4 4 7#b7 ,conforming amendment ,section #egfb7;d7 7as so redesignated7 is amended by striking and 7b7 inserting 1 7b71 and 7c74 7c7 ,other offenses ,subsection 7d7 of section #egfb 7as so redesignated7 is amended by striking not more than #a1jjj and inserting not more than #b1ejj or an amount equal to the tax imposed under this chapter on the tobacco product or processed tobacco involved 7whichever is greater74 #aji4 ,penalties 7a7 ,in general 7#a7 ,subsection 7a7 of section #egfa is amended-- 7,a7 by striking willfully and inserting knowingly1 and 7,b7 by striking #a1jjj and inserting #aj1jjj4 7#b7 ,subsection 7b7 of section #egfa is amended by striking #e percent and inserting #aj percent4 7b7 ,penalty amounts adjusted for inflation ,section #egfa is amended by redesignating subsection 7f7 as subsection 7g7 and inserting after subsection 7e7 the following new subsection3 7f7 ,inflation adjustment 7#a7 ,in general ,in the case of a calendar year beginning after #bjac1 the penalty dollar amounts provided under this chapter shall each be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year1 determined by substituting calendar year #bjab for calendar year #aiib in subparagraph 7,b7 thereof4 7#b7 ,rounding ,if any amount as adjusted under paragraph 7#a7 is not a multiple of #aj1 such amount shall be rounded to the next highest multiple of #aj4 4 #aaj4 ,coordination with other government officials 7a7 ,in general ,subchapter ,f of chapter #eb is amended by adding at the end the following new section3 #egee4 ,coordination with other government officials ,the ,secretary shall make reasonable efforts to coordinate with other ,federal agencies and with officials of foreign1 ,state1 local1 ,indian tribal1 and other governments to promote the purposes of this chapter1 to prevent and reduce tobacco tax evasion and contraband trafficking in tobacco products and processed tobacco1 to enforce settlement agreements between tobacco companies and ,state or other governments and related laws1 or for other law enforcement or administration purposes4 4 7b7 ,information sharing 7#a7 ,in general ,paragraph 7#a7 of section #fajc7o7 is amended by adding at the end the following new subparagraph3 7,c7 ,information sharing for tobacco product law administration and enforcement purposes 7i7 ,federal1 ,state1 local1 and tribal governments ,returns and return information with respect to taxes imposed by chapter #eb may be open to inspection by or disclosure to officers and employees of any ,federal agency1 the ,state ,tax ,administrators1 or any other agency of any ,state1 local1 or ,indian tribal government responsible for the administration and enforcement of laws and regulations relating to tobacco products and processed tobacco1 or their legal representative1 solely for use in such administration and enforcement1 unless the ,secretary determines that such disclosure would seriously impair ,federal tax administration4 7ii7 ,foreign governments and organizations ,the ,secretary shall1 upon written request1 disclose returns and return information with respect to taxes imposed by chapter #eb to officers and employees of any agency of any foreign government1 ,,olaf 7,european ,anti-,fraud ,office71 ,,europol1 ,,interpol1 or the ,world ,customs ,organization responsible for the administration and enforcement of laws and regulations relating to tobacco products and processed tobacco1 or their legal representative1 solely for use in such administration and enforcement1 if the ,secretary obtains written assurances from such government or organization that the information will be held in confidence and used only for such use4 ,no return or return information shall be disclosed under this clause if the ,secretary determines that such disclosure would seriously impair ,federal tax administration4 7iii7 ,public information ,the identity and business address of those persons that have a valid permit1 pursuant to chapter #eb1 to engage in business as a manufacturer1 wholesaler1 or importer of tobacco products or processed tobacco1 as an export warehouse proprietor1 or as a manufacturer1 seller1 or importer of tobacco production machines 7as defined in section #egjb7q77 shall be made publicly available at such time and in such manner as the ,secretary may prescribe4 4 7#b7 ,conforming amendments 7,a7 ,subsection 7a7 of section #fajc is amended-- 7i7 by striking or any local in paragraph 7#b7 and inserting any local1 7ii7 by inserting 1 or any agency described in subsection 7o77#a77;,c77i7 after subsection 7l77#g77;,d7 in paragraph 7#b71 7iii7 by striking or subsection 7n7 in paragraph 7#c7 and inserting subsection 7n71 or subsection 7o77#a77;,c77i74 7,b7 ,paragraph 7#d7 of section #fajc7p7 is amended-- 7i7 by striking 7o77#a77;,a7 both places it appears and inserting 7o77#a77;,a7 or 7,c77i71 and 7ii7 by striking 7#ae71 or 7#af71 and inserting 7#ae71 or 7#af71 or 7o77#a77;,c77i714 7,c7 ,paragraph 7#b7 of section #gbac7;a7 is amended-- 7i7 by striking 7#ba7 or and inserting 7#ba711 and 7ii7 by striking or 7#g7 and inserting or 7#g71 or 7o77#a77;,c77i74 7c7 ,clerical amendment ,the table of sections for subchapter ,f of chapter #eb is amended by adding at the end the following new item3 ,sec4 #egee4 ,coordination with other government officials4 4 #aaa4 ,definitions 7a7 ,export warehouse proprietor ,subsection 7i7 of section #egjb is amended by inserting before the period the following3 or any person engaged in the business of exporting tobacco products from the ,united ,states for purposes of sale or distribution4 ,any duty free store that sells1 offers for sale1 or otherwise distributes to any person in any single transaction 7or series of related transactions7 more than #c1jjj cigarettes1 or an equivalent quantity of other tobacco products as the ,secretary shall by regulation prescribe1 shall be deemed an export warehouse proprietor under this chapter4 7b7 ,retailer2 wholesaler ,section #egjb1 as amended by this ,act1 is amended by adding at the end the following new subsections3 7r7 ,retailer ,the term retailer means any person who sells1 or offers for sale1 any tobacco product at retail4 ,the term retailer includes any duty free store that sells1 offers for sale1 or otherwise distributes at retail in any single transaction 7or series of related transactions7 not more than #c1jjj cigarettes1 or not more than an equivalent quantity of other tobacco products as the ,secretary shall by regulation prescribe4 7s7 ,wholesaler ,the term wholesaler means any person engaged in the business of purchasing tobacco products for resale at wholesale1 or any person acting as an agent or broker for any person engaged in the business of purchasing tobacco products for resale at wholesale4 4 #aab4 ,conforming amendments 7a7 ,paragraph 7#b77;,c7 of section #bcda of title #ah1 ,united ,states ,code is amended by inserting in regard to ,state1 local1 or ,indian tribal government taxes1 before a person4 7b7 ,sections #bcad and #bcae of title #ah1 ,united ,states ,code1 are each amended-- 7#a7 by striking ,state in the heading thereof2 and 7#b7 by striking tax stamps each place it appears and inserting tax stamps or markings4 7c7 ,the headings for subchapters ,b1 ,c1 and ,e of chapter #eb are each amended by inserting 1 processed tobacco1 after products4 7d7 ,the items relating to subchapters ,b1 ,c1 and ,e in the table of subchapters for chapter #eb are each amended by inserting 1 processed tobacco1 after products4 7e7 ,the heading for chapter #eb is amended by inserting 1 processed tobacco1 after products4 7f7 ,the item relating to chapter #eb in the table of chapters for subtitle ,e is amended by inserting 1 processed tobacco1 after products4 #aac4 ,effective date ,except as otherwise provided in this title1 the amendments made by this title shall take effect #a year after the date of the enactment of this ,act4 ,,ii ,import ,fraud #bja4 ,maximum penalty for importation of tobacco products and cigarette papers and tubes by fraudulent means 7a7 ,maximum penalty ,section #eib7;c77#a7 of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #aeib7;c77#a77 is amended-- 7#a7 by striking ,a fraudulent violation of subsection 7a7 and inserting the following3 7,a7 ,in general ,except as provided in subparagraph 7,b71 a fraudulent violation of subsection 7a7 2 and 7#b7 by adding at the end the following3 7,b7 ,tobacco products and cigarette papers and tubes ,in the case of importation of tobacco products and cigarette papers and tubes subject to tax under chapter #eb of the ,internal ,revenue ,code of #aihf1 a fraudulent violation of subsection 7a7 is punishable by a civil penalty in an amount not to exceed the sum of-- 7i7 the domestic value of the merchandise1 and 7ii7 four times the amount of ,federal excise tax that could be imposed on the merchandise1 if applicable4 4 7b7 ,effective date ,the amendments made by subsection 7a7 shall take effect on the date which is #ij days after the date of the enactment of this ,act1 and shall apply with respect to violations of section #eib of the ,tariff ,act of #aicj 7as so amended7 that occur on or after that date4 ,,iii ,exclusions regarding ,indian ,tribes and ,tribal matters #cja4 ,exclusions regarding ,indian ,tribes and ,tribal matters 7a7 ,in general ,nothing in this ,act or the amendments made by this ,act shall be construed to amend1 modify1 or otherwise affect-- 7#a7 any agreements1 compacts1 or other intergovernmental arrangements between any ,state or local government and any government of an ,indian tribe relating to the collection of taxes on tobacco products sold in ,indian country2 7#b7 any ,state laws that authorize or otherwise pertain to any such intergovernmental arrangements or create special rules or procedures for the collection of ,state1 local1 or tribal taxes on tobacco products sold in ,indian country2 7#c7 any limitations under ,federal or ,state law1 including ,federal common law and treaties1 on ,state1 local1 and tribal tax and regulatory authority with respect to the sale1 use1 or distribution of tobacco products or processed tobacco by or to ,indian tribes1 tribal members1 tribal enterprises1 or in ,indian country2 7#d7 any ,federal law1 including ,federal common law and treaties1 regarding ,state jurisdiction1 or lack thereof1 over any ,indian tribe1 tribal member1 tribal enterprise1 ,indian reservations1 or other land held by the ,united ,states in trust for one or more ,indian tribes2 or 7#e7 any ,state or local government authority to bring enforcement actions against persons located in ,indian country4 7b7 ,coordination of law enforcement ,nothing in this ,act or the amendments made by this ,act 7other than the amendments relating to section #fajc of the ,internal ,revenue ,code of #aihf7 shall be construed to inhibit or otherwise affect any coordinated law enforcement effort by #a or more ,states or other jurisdictions1 including ,indian tribes1 through interstate compact or otherwise1 that-- 7#a7 provides for the administration of tobacco product laws or laws pertaining to interstate sales or other sales of tobacco products or processed tobacco2 7#b7 provides for the seizure of tobacco products1 processed tobacco1 or other property related to a violation of such laws2 or 7#c7 establishes cooperative programs for the administration of such laws4 7c7 ,treatment of ,state and local governments ,nothing in this ,act or the amendments made by this ,act shall be construed to authorize1 deputize1 or commission ,states or local governments as instrumentalities of the ,united ,states4 7d7 ,enforcement within ,indian ,country ,nothing in this ,act or the amendments made by this ,act shall prohibit1 limit1 or restrict enforcement by the ,attorney ,general of the ,united ,states of this ,act or an amendment made by this ,act within ,indian country4 7e7 ,ambiguity ,any ambiguity between the language of this section or its application and any other provision of this ,act shall be resolved in favor of this section4 7f7 ,definitions ,in this section-- 7#a7 the term ,indian country has the meaning given that term in section #aaea of title #ah1 ,united ,states ,code2 7#b7 the term tribal enterprise means any business enterprise1 regardless of whether incorporated or unincorporated under ,federal or tribal law1 of an ,indian tribe or group of ,indian tribes2 7#c7 the term ,indian reservation has the meaning given that term in section #afh7;j77#f7 of the ,internal ,revenue ,code of #aihf2 7#d7 the term ,indian tribe has the meaning given that term in section #d7;e7 of the ,indian ,self-,determination and ,education ,assistance ,act 7#be ,u4,s4,c4 #dej;b7e772 and 7#e7 the terms tobacco products and processed tobacco have the meanings given such terms by section #egjb of the ,internal ,revenue ,code of #aihf4