Page:United States Statutes at Large Volume 68A.djvu/576

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536

INTERNAL REVENUE CODE OF 1954

Subchapter B—Coconut and Palm Oil Sec. Sec. Sec. Sec.

4511. 4512. 4513. 4514.

Imposition of tax. Definition of first domestic processing. Exemptions. Cross reference to general administrative provisions.

SEC. 4511. IMPOSITION OF TAX.

(a) GENERAL.—There is hereby imposed upon the first domestic processing of coconut oil, palm oil, palm-kernel oil, fatty acids derived from any of the foregoing oUs, salts of any of the foregoing (whether or not such oils, fatty acids, or salts have been refined, sulphonated, sulphated, hydrogenated, or otherwise processed), or any combination or mixture containing a substantial quantity of any one or more of such oUs, fatty acids, or salts, a tax of 3 cents per pound, to be paid by the processor. (b) ADDITIONAL KATE ON COCONUT OIL.—There is hereby imposed (in addition to the tax imposed by the preceding subsection) a tax of 2 cents per pound, to be paid by the processor, upon the first domestic processing of coconut oU or of any combination or mixture containing a substantial quantity of coconut oil with respect to which oil there has been no previous first domestic processing. (c) TERMINATION OF ADDITIONAL R A T E. — The tax imposed by subsection (b) shall not apply to any domestic processing after July 3, 1974. SEC. 4512. DEFINITION OF FIRST DOMESTIC PROCESSING..

For the purposes of this subchapter, the term "first domestic processing" means the first use in the United States, in the manufacture or production of an article intended for sale, of the article with respect to which the tax is imposed, but does not include the use of palm oil in the manufacture of iron or steel products, or tin plate or terne plate, or any subsequent use of palm oil residue resulting from the manufacture of iron or steel products, or tin plate or terne plate. SEC. 4513. EXEMPTIONS. (a) ACIDS AND SALTS PREVIOUSLY T A X E D. — The tax under section 4511 shall not apply— (1) with respect to any fatty acid or salt resulting from a previous first domestic processing taxed under such section or upon which an import tax has been paid under subchapter E of chapter 38, or (2) with respect to any combination or mixture by reason of its containing an oil, fatty acid, or salt with respect to which there has been a previous first domestic processing or upon which an import tax has been paid under subchapter E of chapter 38. (b) FROM ADDITIONAL T A X ON COCONUT O I L. — The additional tax imposed by section 4511(b) shall not apply when it is established, in accordance with regulations prescribed by the Secretary or his delegate, that the coconut oil (whether or not contained in a combination or mixture)— §4511