he shall suspend the quota or other authorization of that country until such time as he has received assurances, satisfactory to him, that the discrimination will not be continued. Any quantity so suspended shall be allocated in the same manner as deficits are allocated under the provisions of section 204 of this Act. (7 U.S.C. 1158 (b).)

41

(c) In any case in which a nation or a political subdivision thereof has, on or after January 1, 1961, (1) nationalized, expropriated, or otherwise seized the ownership or control of the property or business enterprise owned or controlled by United States citizens or any corporation, partnership, or association not less than 50 per centum beneficially owned by United States citizens, or (2) imposed upon or enforced against such property or business enterprise so owned or controlled, discriminatory taxes or other exactions, or restrictive maintenance or operational conditions (including limiting or reducing participation in production, export, or sale of sugar to the United States under quota allocation pursuant to this Act) not imposed or enforced with respect to the property or business enterprise of a like nature owned or operated by its own nationals or the nationals of any government other than the Government of the United States, or (3) imposed upon or enforced against such property or business enterprise so owned or controlled, discriminatory taxes or other exactions, or restrictive maintenance or operational conditions (including limiting or reducing participation in production, export, or sale of sugar to the United States under quota allocation pursuant to this Act), or has taken other actions, which have the effect of nationalizing, expropriating or otherwise seizing ownership or control of such property or business enterprise, or (4) violated the provisions of any bilateral or multilateral international agreement to which the United States is a party, designed to protect such property or business enterprise so owned or controlled, and has failed within six months following the taking of action in any of the above categories to take appropriate and adequate steps to remedy such situation and to discharge its obligations under international law toward such citizen or entity, including the prompt payment to the owner or owners of such property or business enterprise so nationalized, expropriated or otherwise seized or to provide relief from such taxes, exactions, conditions, or breaches of such international agreements, as the case may be, or to arrange, with the agreement of the parties concerned, for submitting the question in dispute to arbitration or conciliation in accordance with procedures under which final and binding decision or settlement will be reached and full payment or arrangements with the owners for such payment made within twelve months following such submission, the President may withhold or suspend all or any part of the quota under this Act of such nation, and either in addition or as an alternative, the President may, under such terms and conditions as he may prescribe, cause to be levied and collected at the port of entry an impost on any or all sugar sought to be imported into the United States from such nation in an amount not to exceed $20 per ton, such moneys to be covered into the Treasury of the United States into a special trust fund, and he shall use such fund to make payment of claims arising

"Amended by Pub. L. 92-138, 85 Stat. 389, approved October 14, 1971.

on or after January 1, 1961, as a result of such nationalization, expropriation, or other type seizure or action set forth herein, except that if such nation participates in the quota for the West Indies, the President may suspend a portion of the quota for the West Indies which is not in excess of the quantity imported from that nation during the preceding year, until he is satisfied that appropriate steps are being taken, and either in addition or as an alternative he may cause to be levied and collected an impost in an amount not to exceed $20 per ton on any or all sugar sought to be imported into the United States from such nation for the payment of claims as provided herein. Any quantity so withheld or suspended shall be allocated under section 202(d)(1) (B) of this Act. With respect to any action taken during 1961 in any of the categories set forth in this subsection, the provisions of this subsection relating to levying and collecting an impost shall apply only if the President so determines. (7 U.S.C. 1158 (c).)

SURVEYS AND INVESTIGATIONS

SEC. 409. Whenever the Secretary determines that such action is necessary to effectuate the purposes of this Act, he is authorized, if first requested by persons constituting or representing a substantial proportion of the persons affected in any one of the five domestic sugar-producing areas, to make for such area surveys and investigations to the extent he deems necessary, including the holding of public hearings, and to make recommendations with respect to (a) the terms and conditions of contracts between the producers and processors of sugar beets and sugarcane in such areas and (b) the terms and conditions of contracts between laborers and producers of sugar beets and sugarcane in such area. In carrying out the provisions of this section, information shall not be made public with respect to the individual operations of any processor, producer, or laborer. (7 U.S.C. 1159.)

SEC. 410. The Secretary is authorized to conduct surveys, investigations and research relating to the conditions and factors affecting the methods of accomplishing most effectively the purposes of this Act and for the benefit of agriculture generally in any area. Notwithstanding any provision of existing law, the Secretary is authorized to make public such information as he deems necessary to carry out the provisions of this Act. (7 U.S.C. 1160.)

INTERNATIONAL SUGAR AGREEMENT

SEC. 411. The Secretary is authorized to issue such regulations as may be necessary to carry out article 7 of the International Sugar Agreement for the Regulation of the Production and Marketing of Sugar (ratified by and with the advice and consent of the United States Senate on April 29, 1954), restricting importations of sugar into the United States from foreign countries not participating in such agreement, or to carry out the corresponding provisions of any such future agreements ratified by and with the advice and consent of the United States Senate. (7 U.S.C. 1161.)

TERMINATION

SEC. 412.42 The powers vested in the Secretary under this Act shall terminate on December 31, 1974, or on March 31 of the year of termination of the tax imposed by section 4501 (a) of the Internal Revenue Code of 1954, whichever is the earlier date, except that the Secretary shall have power to make payments under title III—

(1) under programs applicable to the crop year 1974 and previous crop years, if the powers vested in the Secretary otherwise terminate on December 31, 1974, or

(2) under programs applicable to the crop years preceding the calendar year in which the tax imposed under section 4501 (a) of the Internal Revenue Code of 1954 terminates, if the powers vested in the Secretary otherwise terminate before December 31, 1974. (7 U.S.C. 1162.)

EFFECTIVE DATE 43

The provisions of this Act shall become effective on January 1, 1972, except that the amendments made by sections 3, 4, 5, and 7(2) of this Act shall become effective on the date of enactment of this Act for purposes of actions relating to 1972 and subsequent years.

SEC. 413.44 *

EXCISE TAXES WITH RESPECT TO SUGAR 45

INTERNAL REVENUE CODE OF 1954

CHAPTER 37

Subchapter A-Sugar

SEC. 4501. IMPOSITION OF TAX.

(a) 46 GENERAL.-There is hereby imposed upon manufactured sugar manufactured in the United States, a tax, to be paid by the manufacturer at the rate of 0.53 cent per pound of the total sugars therein. The manufacturer shall pay the tax with respect to manufactured sugar (1) which has been sold, or used in the production of other articles, by the manufacturer during the preceding month (if

42 Amended by Pub. L. 92-138, 85 Stat. 390, approved October 14, 1971.

43 The amendments made by Sections 3, 4, 5, and 7(2) referred to above are in Section 201, 202 (a) through (f), 204 (a) and (c), and 206(d) herein.

Repealed by Pub. L. 87-535, 76 Stat. 166, approved July 13, 1962.

45 Only those provisions of the Internal Revenue Code of 1954 which became effective January 1, 1955, and subsequent amendments which deal directly with sugar are included. See title 26 of the United States Code for general definitions, time and place for filing returns and paying taxes, interest, abatement, credits, refunds, etc.

Section 501 (a) of Pub. L. 87-456, 76 Stat. 79, approved May 24, 1962, amended the first sentence. The amendment was to become effective with respect to articles entered, or withdrawn from warehouse, for consumption on or after the 10th day following the date of proclamation of the President provided for in section 102 of such Act. Presidential Proclamation No. 3548 was issued on August 21, 1963, 28 F.R. 9279.

the tax has not already been paid) and (2) which has not been so sold or used within 12 months ending during the preceding calendar month, after it was manufactured (if the tax has not already been paid). For the purpose of determining whether sugar has been sold or used within 12 months after it was manufactured, sugar shall be considered to have been sold or used in the order in which it was manufactured. (26 U.S.C. 5401 (a).)

(b) 47 TERMINATION OF TAX.-No tax shall be imposed under this subchapter on the manufacture or use of sugar or articles composed in chief value of sugar after June 30, 1975, or June 30 of the first year commencing after the effective date of any law limiting payments under Title III of the Sugar Act of 1948, as amended, whichever is the earlier date. Notwithstanding the provisions of subsection (a), no tax shall be imposed under this subchapter with respect to unsold sugar held by manufacturer on June 30, 1975, or June 30 of the first year commencing after the effective date of any law limiting payments under Title III of the Sugar Act of 1948, as amended, whichever is the earlier date, or with respect to sugar or articles composed in chief value of sugar held in customs custody or control on such date. (26 U.S.C. 4501(b).)

SEC. 4502. DEFINITIONS.

For the purposes of this subchapter

(1) MANUFACTURER.-Any person who acquires any sugar which is to be manufactured into manufactured sugar but who, without further refining or otherwise improving it in quality, sells such sugar as manufactured sugar or uses such sugar as manufactured sugar in the production of other articles for sale shall be considered, for the purposes of section 4501 (a), the manufacturer of manufactured sugar and, as such, liable for the tax under section 4501 (a) with respect thereto.

(2) PERSON. The term "person" means an individual, partnership, corporation, or association.

(3) MANUFACTURED SUGAR.-The term "manufactured sugar" means any sugar derived from sugar beets or sugarcane, which is not to be, and which shall not be, further refined or otherwise improved in quality; except sugar in liquid form which contains nonsugar solids (excluding any foreign substance that may have been added or developed in the product) equal to more than 6 per centum of the total soluble solids and except also sirup of cane juice produced from sugarcane grown in continental United States. The grades or types of sugar within the meaning of this definition shall include, but shall not be limited to, granulated sugar, lump sugar, cube sugar, powdered sugar, sugar in the form of blocks, cones, or molded shapes, confectioners' sugar, washed

47 Amended by Pub. L. 92-138, 85 Stat. 390, approved October 14, 1971.

sugar, centrifugal sugar, clarified sugar, turbinado sugar, plantation white sugar, refiners' soft sugar, invert sugar mush, raw sugar, sirups, molasses, and sugar mixtures.

(4) TOTAL SUGARS.-The term "total sugars" means the total amount of the sucrose and of the reducing or invert sugars.

(5) UNITED STATES.-The term "United States" shall be deemed to include the States, the District of Columbia, and Puerto Rico. (26 U.S.C. 4502.)

SEC. 4503. EXEMPTIONS FOR SUGAR MANUFACTURED FOR HOME CONSUMPTION

No tax shall be required to be paid under sec. 4501 (a) upon the manufacture of manufactured sugar by or for the producer of the sugar beets or sugarcane from which such manufactured sugar was derived, for consumption by the producer's own family, employees, or household. (26 U.S.C. 4503.)

CHAPTER 65—ABATEMENTS, CREDITS, AND REFUNDS SEC. 6418. SUGAR

(a) 48 USE OF LIVESTOCK FEED OR FOR DISTILLATION OR PRODUCTION OF ALCOHOL.-Upon the use of any manufactured sugar, or article manufactured therefrom, as livestock feed, or in the production of livestock feed, or for the distillation of alcohol or for the production of alcohol (other than alcohol produced for human food consumption), there shall be paid by the Secretary or his delegate to the person so using such manufactured sugar, or article manufactured therefrom, the amount of any tax paid under section 4501 with respect thereto. (26 U.S.C. 6418 (a).)

(b) EXPORTATION.-Upon the exportation from the United States. to a foreign country, or the shipment from the United States to any possession of the United States except Puerto Rico, of any manufactured sugar, or any article manufactured wholly or partly from manufactured sugar with respect to which tax under the provisions of section 4501 (a) has been paid, the amount of such tax shall be paid by the Secretary or his delegate to the consignor named in the bill of lading under which the article was exported or shipped to a possession, or to the shipper, or to the manufacturer of the manufactured sugar or of the articles exported, if the consignor waives any claim thereto in favor of such shipper or manufacturer. (26 U.S.C. 6418 (b).)

48 Amended by Pub. L. 89-331, 79 Stat. 1278, approved November 8, 1965, and such amendment is effective on November 8, 1965.