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Internal Revenue Code, § 4223. Special Rules Relating To Further Manufacture

I.R.C. § 4223(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.
I.R.C. § 4223(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—
I.R.C. § 4223(b)(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
I.R.C. § 4223(b)(2)
if he so elects and establishes such price to the satisfaction of the Secretary—
I.R.C. § 4223(b)(2)(A)
at the price for which the article was sold to him; or
I.R.C. § 4223(b)(2)(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.
(Added Pub. L. 85-859, title I, 119(a), Sept. 2, 1958, 72 Stat. 1285, and amended Pub. L. 86-418, 2(b), Apr. 8, 1960, 74 Stat. 38; Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98-369, div. A, title VII, 735(c)(10), July 18, 1984, 98 Stat. 983.)
BACKGROUND NOTES
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.
PRIOR PROVISIONS
A prior section 4223, act Aug. 16, 1954, ch. 736, 68A Stat. 495, which related to exemption of articles manufactured or produced by Indians, was repealed by Pub. L. 85-859, title I, 119(a), Sept. 2, 1958, 72 Stat. 1282. See section 4225 of this title.
[4224. Repealed. Pub. L. 89-44, title I, 101(b)(5), June 21, 1965, 79 Stat. 136]
Section, Pub. L. 85-859, title I, 119(a), Sept. 2, 1958, 72 Stat. 1286, exempted, with specified exemptions, articles taxable under section 4001 from the imposition of the manufacturers excise tax.
A prior section 4224, act Aug. 16, 1954, ch. 736, 68A Stat. 495, which exempted articles for the exclusive use of any State, Territory, or political subdivision of either, or the District of Columbia, was repealed by Pub. L. 85-859, title I, 119(a), Sept. 2, 1958, 72 Stat. 1282.
Effective Date of Repeal
Repeal applicable with respect to articles sold on or after June 22, 1965, see section 701(a) of Pub. L. 89-44, set out as an Effective Date of 1965 Amendment note under section 4161 of this title.