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Experimental Use Tobacco Exemption

IRC §5723(e)

Tobacco products used for experimental purposes are exempt from standard packaging and marking requirements, facilitating R&D activities without standard removal compliance costs.

Eligibility

Applies to manufacturers using tobacco products for bona fide experimental purposes as prescribed by regulations.

Frequently Asked Questions

Who is eligible for the Experimental Use Tobacco Exemption?

Applies to manufacturers using tobacco products for bona fide experimental purposes as prescribed by regulations.

How does the Experimental Use Tobacco Exemption work?

Tobacco products used for experimental purposes are exempt from standard packaging and marking requirements, facilitating R&D activities without standard removal compliance costs.

What law authorizes the Experimental Use Tobacco Exemption?

The Experimental Use Tobacco 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.)

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