Internal Revenue Code:Sec. 4223. Special rules relating to further manufacture

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle D - Miscellaneous Excise Taxes
       CHAPTER 32 - MANUFACTURERS EXCISE TAXES
        Subchapter G - Exemptions, Registration, Etc.
      

Statute

    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.
 

Sources

    (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.)
 

Miscellaneous

                              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.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 4218, 6416 of this title.