Loopholes > Federal > Bonded Premises Transfer Exemption
TIMING MEDIUM SAVINGS BUSINESS

Bonded Premises Transfer Exemption

IRC §5723(e)

Tobacco products and processed tobacco transferred to bonded premises of another manufacturer or export warehouse are exempt from immediate packaging and marking requirements, allowing for tax-deferred movement of inventory.

Eligibility

Requires transfer to the bonded premises of another manufacturer or export warehouse proprietor or release in bond from customs custody.

Frequently Asked Questions

Who is eligible for the Bonded Premises Transfer Exemption?

Requires transfer to the bonded premises of another manufacturer or export warehouse proprietor or release in bond from customs custody.

How does the Bonded Premises Transfer Exemption work?

Tobacco products and processed tobacco transferred to bonded premises of another manufacturer or export warehouse are exempt from immediate packaging and marking requirements, allowing for tax-deferred movement of inventory.

What law authorizes the Bonded Premises Transfer Exemption?

The Bonded Premises Transfer Exemption is authorized under IRC §5723(e) of the Internal Revenue Code (Title 26, United States Code).

Statutory Text — IRC §5723

Source: Internal Revenue Code, Title 26, United States Code

§ 5723. Packages, marks, labels, and notices(a) PackagesAll tobacco products, processed tobacco, and cigarette papers and tubes shall, before removal, be put up in such packages as the Secretary shall by regulation prescribe. (b) Marks, labels, and noticesEvery package of tobacco products, processed tobacco, or cigarette papers or tubes shall, before removal, bear the marks, labels, and notices if any, that the Secretary by regulation prescribes. (c) Lottery featuresNo certificate, coupon, or other device purporting to be or to represent a ticket, chance, share, or an interest in, or dependent on, the event of a lottery shall be contained in, attached to, or stamped, marked, written, or printed on any package of tobacco products, processed tobacco, or cigarette papers or tubes. (d) Indecent or immoral material prohibitedNo indecent or immoral picture, print, or representation shall be contained in, attached to, or stamped, marked, written, or printed on any package of tobacco products, processed tobacco, or cigarette papers or tubes. (e) ExceptionsTobacco products furnished by manufacturers of such products for use or consumption by their employees, or for experimental purposes, and tobacco products, processed tobacco, and cigarette papers and tubes transferred to the bonded premises of another manufacturer or export warehouse proprietor or released in bond from customs custody for deliver to a manufacturer of tobacco products, processed tobacco, or cigarette papers and tubes, may be exempted from subsection (a) and (b) in accordance with such regulations as the Secretary shall prescribe. (Aug. 16, 1954, ch. 736, 68A Stat. 713; Pub. L. 85–859, title II, § 202, Sept. 2, 1958, 72 Stat. 1422; Pub. L. 94–455, title XIX, §§ 1905(a)(28), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1821, 1834; Pub. L. 111–3, title VII, § 702(a)(2)(C), Feb. 4, 2009, 123 Stat. 108.)

Showing first 3,000 characters of full section text.