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PUBLIC LAW 90-240-JAN. 2, 1968
[81 STAT.
Public Law 90-240 January 2, 1968
AN ACT
[H. R. 1141]
To continue the duty-free status of certain gifts by members of the Armed Forces serving in combat zones, and for other purposes.
Armed Forces. Gifts by members in combat zones. Duty-free entry. 80 Stat. 71.
Effective date.
Carriers of bonded merchandise. 76 Stat. 1130.
Cigars. Federal excise tax, computation. 72 Stat. 1414; 79 Stat. 150. 26 USC 5701.
Insurance companies. Taxable income. 68A Stat. 264; 76 Stat. 998.
Deductions. 68A Stat. 265.
Be it enacted by the Sencute and House of Representatives of the United States of America in Congress assembled, That (a) item 915.25 (relating to bona fide gifts, not exceeding $50 in retail value, from members of the Armed Forces serving in combat zones) of the Tariff Schedules of the United States (19 U.S.C. 1202} is amended by striking out "On or before 12/31/67" and inserting in lieu thereof "On or before 12/31/69". (b) The headnotes for part 1, subpart B of the Appendix to such Schedules are amended by adding at the end thereof the following headnote: "2. Articles exempted under item 915.25 from the payment of duty shall be exempt also from the payment of any internal revenue tax imposed upon or by reason of importation." SEC. 2. The amendments made by the first section of this Act shall apply with respect to articles entered, or withdrawn from warehouse, for consumption on or after January 1, 1968. SEC. 3. Section 551 of the Tariff Act of 1930, as amended (19 U.S.C. 1551), is amended by adding at the end thereof the following new sentence: "A private carrier, upon application, may, in the discretion of the Secretary, be designated under the preceding sentence as a carrier of bonded merchandise, subject to such regulations and, in the case of each applicant, to such special terms and conditions as the Secretary may prescribe to safeguard the revenues of the United States with respect to the transportation of bonded merchandise by such applicant." SEC. 4. (a) Section 5701(a) of the Internal Revenue Code of 1954 (relating to rate of tax on cigars) is amended by adding after the penultimate sentence the following new sentence: "For purposes of the preceding sentence, the amount of State or local tax excluded from the retail price shall be the actual tax imposed; except thatj if the combined taxes result in a numerical figure ending in a fraction of a cent, the amount so excluded shall be rounded to the next highest full cent unless such rounding would result in a tax lower than the tax which would be imposed in the absence of State or local tax." (b) The amendment made by subsection (a) shall apply to the removal of cigars on or after the first day of the first calendar quarter which begins more than 30 days after the date of the enactment of this Act. SEC. 5. (a) Section 832(b)(1) of the Internal Revenue Code of 1954 (relating to insurance company gross income) is amended by striking out and" at the end of subparagraph (C), by striking out the period at the end of subparagraph (D) and inserting in lieu thereof ", and", and by adding at the end thereof the following new subparagraph: " (E) in the case of a company which whites mortgage guaranty insurance, the amount required by subsection (e) (5] to be subtracted from the mortgage guaranty account." (b) Section 832(c) of such Code (relating to insurance company deductions) is amended by striking out "and" at the end of parag.ph (11), by striking out the period at the end of paragraph (12) and inserting in lieu thereof "; and", and by adding at the end the following new paragraph: "(13) in the case of a company which writes mortgage guaranty insurance, the deduction allowed by subsection (e)."
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