View all text of Subchapter I [§ 518 - § 518f]
§ 518d. Use of assessments as source of funds for payments
(a) Definitions
In this section:
(1) Base period
(2) Gross domestic volume
The term “gross domestic volume” means the volume of tobacco products—
(A) removed (as defined by section 5702 of title 26); and
(B) not exempt from tax under chapter 52 of title 26 at the time of their removal under that chapter or the Harmonized Tariff Schedule of the United States.
(3) Market share
(b) Quarterly assessments
(1) Imposition of assessment
(2) Amounts
Beginning with the calendar quarter ending on December 31 of each of fiscal years 2005 through 2014, the assessment payments over each four-calendar quarter period shall be sufficient to cover—
(A) the contract payments made under sections 518a and 518b of this title during that period; and
(B) other expenditures from the Tobacco Trust Fund made during the base quarter periods corresponding to the four calendar quarters of that period.
(3) Deposit
(c) Assessments for classes of tobacco products
(1) Initial allocation
The percentage of the total amount required by subsection (b) to be assessed against, and paid by, the manufacturers and importers of each class of tobacco product in fiscal year 2005 shall be as follows:
(A) For cigarette manufacturers and importers, 96.331 percent.
(B) For cigar manufacturers and importers, 2.783 percent.
(C) For snuff manufacturers and importers, 0.539 percent.
(D) For roll-your-own tobacco manufacturers and importers, 0.171 percent.
(E) For chewing tobacco manufacturers and importers, 0.111 percent.
(F) For pipe tobacco manufacturers and importers, 0.066 percent.
(2) Subsequent allocations
(3) Effect of insufficient amounts
(d) Notification and timing of assessments
(1) Notification of assessments
(2) Content
The notice shall include the following information with respect to the quarterly period used by the Secretary in calculating the amount:
(A) The total combined assessment for all manufacturers and importers of tobacco products.
(B) The total assessment with respect to the class of tobacco products manufactured or imported by the manufacturer or importer.
(C) Any adjustments to the percentage allocations among the classes of tobacco products made pursuant to paragraph (2) or (3) of subsection (c).
(D) The volume of gross sales of the applicable class of tobacco product treated as made by the manufacturer or importer for purposes of calculating the manufacturer’s or importer’s market share under subsection (f).
(E) The total volume of gross sales of the applicable class of tobacco product that the Secretary treated as made by all manufacturers and importers for purposes of calculating the manufacturer’s or importer’s market share under subsection (f).
(F) The manufacturer’s or importer’s market share of the applicable class of tobacco product, as determined by the Secretary under subsection (f).
(G) The market share, as determined by the Secretary under subsection (f), of each other manufacturer and importer, for each applicable class of tobacco product.
(3) Timing of assessment payments
(A) Collection date
(B) Base period quarter
(e) Allocation of assessment within each class of tobacco product
(1) Pro rata basis
(2) Limitation
(f) Allocation of total assessments by market share
The amount of the assessment for each class of tobacco product specified in subsection (c)(1) to be paid by each manufacturer or importer of that class of tobacco product shall be determined for each quarterly payment period by multiplying—
(1) the market share of the manufacturer or importer, as calculated with respect to that payment period, of the class of tobacco product; by
(2) the total amount of the assessment for that quarterly payment period under subsection (c), for the class of tobacco product.
(g) Determination of volume of domestic sales
(1) In general
(2) Gross domestic volume
(3) Measurement
For purposes of the calculations under this subsection and the certifications under subsection (h) by the Secretary, the volumes of domestic sales shall be measured by—
(A) in the case of cigarettes and cigars, the number of cigarettes and cigars; and
(B) in the case of the other classes of tobacco products specified in subsection (c)(1), in terms of number of pounds, or fraction thereof, of those products.
(h) Measurement of volume of domestic sales
(1) Submission of information
(2) Returns and forms
The returns and forms described by this paragraph are those returns and forms that relate to—
(A) the removal of tobacco products into domestic commerce (as defined by section 5702 of title 26); and
(B) the payment of the taxes imposed under charter 2
2 So in original. Probably should be “chapter”.
52 of title 26, including AFT Form 5000.24 and United States Customs Form 7501 under currently applicable regulations.(3) Effect of failure to provide required information
(i) Challenge to assessment
(1) Appeal to Secretary
(2) Information
(3) Revision
(4) Time for review
Not later than 30 days after receiving notice from a manufacturer or importer under paragraph (1), the Secretary shall—
(A) decide whether the information provided to the Secretary under paragraph (2), and any other information that the Secretary determines is appropriate, is sufficient to establish that the original assessment was incorrect; and
(B) make any revisions necessary to ensure that each manufacturer and importer pays only its correct pro rata share of total gross domestic volume from all sources.
(5) Immediate payment of undisputed amounts
(j) Judicial review
(1) In general
(2) Time limits
(3) Excessive assessments
(k) Termination date
(Pub. L. 108–357, title VI, § 625, Oct. 22, 2004, 118 Stat. 1529.)