Internal Revenue Code:Sec. 4218. Use by manufacturer or importer considered sale

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle D - Miscellaneous Excise Taxes
       CHAPTER 32 - MANUFACTURERS EXCISE TAXES
        Subchapter F - Special Provisions Applicable to Manufacturers Tax
      

Statute

    Sec. 4218. Use by manufacturer or importer considered sale
 
    (a) General rule
      If any person manufactures, produces, or imports an article
    (other than a tire taxable under section 4071) and uses it
    (otherwise than as material in the manufacture or production of, or
    as a component part of, another article taxable under this chapter
    to be manufactured or produced by him), then he shall be liable for
    tax under this chapter in the same manner as if such article were
    sold by him.  This subsection shall not apply in the case of
    gasoline used by any person, for nonfuel purposes, as a material in
    the manufacture or production of another article to be manufactured
    or produced by him.  For the purpose of applying the first sentence
    of this subsection to coal taxable under section 4121, the words
    ''(otherwise than as material in the manufacture or production of,
    or as a component part of, another article taxable under this
    chapter to be manufactured or produced by him)'' shall be
    disregarded.
    (b) Tires
      If any person manufactures, produces, or imports a tire taxable
    under section 4071, and sells it on or in connection with the sale
    of any article, or uses it, then he shall be liable for tax under
    this chapter in the same manner as if such article were sold by
    him.
    (c) Computation of tax
      Except as provided in section 4223(b), in any case in which a
    person is made liable for tax by the preceding provisions of this
    section, the tax (if based on the price for which the article is
    sold) shall be computed on the price at which such or similar
    articles are sold, in the ordinary course of trade, by
    manufacturers, producers, or importers, thereof, as determined by
    the Secretary.
 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 494; Aug. 11, 1955, ch. 805,
    Sec. 1(a), (b), 69 Stat. 689; Pub. L. 85-859, title I, Sec. 118,
    Sept. 2, 1958, 72 Stat. 1281; Pub. L. 86-418, Sec. 2(a), Apr. 8,
    1960, 74 Stat. 38; Pub. L. 87-61, title II, Sec. 205(b), June 29,
    1961, 75 Stat. 126; Pub. L. 89-44, title II, Sec. 208(c), June 21,
    1965, 79 Stat. 141; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A),
    Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-227, Sec. 2(b)(1), Feb. 10,
    1978, 92 Stat. 11; Pub. L. 98-369, div.  A, title VII, Sec.
    735(c)(7), July 18, 1984, 98 Stat. 983.)
 

Miscellaneous

                                 AMENDMENTS
      1984 - Subsec. (a). Pub. L. 98-369, Sec. 735(c)(7)(D),
    substituted ''(other than a tire taxable under section 4071)'' for
    ''(other than an article specified in subsection (b), (c), or
    (d))''.
      Subsec. (b). Pub. L. 98-369, Sec. 735(c)(7)(A), (B), struck out
    ''and tubes'' after ''Tires'' in heading, and in text substituted
    ''If'' for ''Except as provided in subsection (d), if'', and struck
    out ''or inner tube'' before ''taxable under section 4071''.
      Subsec. (c). Pub. L. 98-369, Sec. 735(c)(7)(C), redesignated
    subsec. (e) as (c). Former subsec. (c), which related to automotive
    parts and accessories, was struck out.
      Subsec. (d). Pub. L. 98-369, Sec. 735(c)(7)(C), struck out
    subsec. (d) which related to bicycle tires and tubes.
      Subsec. (e). Pub. L. 98-369, Sec. 735(c)(7)(C), redesignated
    subsec. (e) as (c).
      1978 - Subsec. (a). Pub. L. 95-227 inserted provisions relating
    to applying first sentence of this subsection to coal taxable under
    section 4121 of this title.
      1976 - Subsec. (e). Pub. L. 94-455 struck out ''or his delegate''
    after ''Secretary''.
      1965 - Subsec. (b). Pub. L. 89-44, Sec. 208(c)(1), (2), struck
    out references to automobile receiving sets from heading, and ''or
    an automobile radio or television receiving set taxable under
    section 4141,'' before ''and sells it''.
      Subsec. (c). Pub. L. 89-44, Sec. 208(c)(3), (4), struck out
    reference to radio components and camera lenses from heading, and
    ''a radio or television component taxable under section 4141, or a
    camera lens taxable under section 4171,'' before ''and uses it''.
      1961 - Subsec. (a). Pub. L. 87-61 inserted sentence making
    subsection inapplicable in the case of gasoline used by any person,
    for nonfuel purposes, as a material in the manufacture or
    production of another article to be manufactured or produced by
    him.
      1960 - Subsec. (a). Pub. L. 86-418, Sec. 2(a)(1), substituted
    ''subsection (b), (c), or (d)'' for ''subsection (b) or (c)''.
      Subsec. (b). Pub. L. 86-418, Sec. 2(a)(2), substituted ''Except
    as provided in subsection (d), if any'' for ''If any.''
      Subsecs. (d), (e). Pub. L. 86-418, Sec. 2(a)(3), added subsec.
    (d) and redesignated former subsec. (d) as (e).
      1958 - Pub. L. 85-859 amended section generally, striking out
    provisions which related to refrigerator components and to sales
    free of tax by virtue of section 4220 or 4224 of this title, and
    substituting provisions making manufacturers, producers and
    importers of parts or accessories taxable under section 4061(b),
    radio or television components taxable under section 4141, or
    camera lenses taxable under section 4171 liable for the tax if they
    use the parts or accessories otherwise than as material in the
    manufacture or production of, or as component parts of, any other
    article to be manufactured or produced by them, for provisions
    which made section inapplicable with respect to such parts if they
    were used by them as material in the manufacture or production of,
    or as a component part of, any article.
      1955 - Subsec. (a)(1). Act Aug. 11, 1955, Sec. 1(a), inserted as
    tax exempt articles under this chapter, automobile parts or
    accessories, refrigerator, radio, or television components, or
    camera lenses taxable under section 4061(b), 4111, or 4171,
    respectively, of this title.
      Subsec. (b). Act Aug. 11, 1955, Sec. 1(b), excepted from
    application of section automobile parts or accessories,
    refrigerator, radio, or television components, and camera lenses,
    taxable under sections 4061(b), 4111, 4141, and 4171, respectively,
    of this title, when for use by the purchaser in the manufacture or
    production of, or as a component part of, any article.
                      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 1978 AMENDMENT
      Amendment by Pub. L. 95-227 applicable with respect to sales
    after Mar. 31, 1978, see section 2(d) of Pub. L. 95-227, set out as
    an Effective Date note under section 4121 of this title.
                      EFFECTIVE DATE OF 1965 AMENDMENT
      Amendment by Pub. L. 89-44 applicable with respect to articles
    sold on or after June 22, 1965, except insofar as such amendments
    related to the taxes imposed by sections 4061(b), 4091, and 4131
    and, as to such taxes, applicable with respect to articles sold on
    or after January 1, 1966, see section 701(a) of Pub. L. 89-44, set
    out as a note under section 4161 of this title.
                      EFFECTIVE DATE OF 1961 AMENDMENT
      Amendment by Pub. L. 87-61 applicable only in the case of
    gasoline used on or after October 1, 1961, see section 208 of Pub.
    L. 87-61, set out as a note under section 4041 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.
                      EFFECTIVE DATE OF 1958 AMENDMENT
      Amendment by Pub. L. 85-859 effective on first day of first
    calendar quarter which begins more than 60 days after Sept. 2,
    1958, see section 1 (c) of Pub. L. 85-859.
                      EFFECTIVE DATE OF 1955 AMENDMENT
      Amendment by act Aug. 11, 1955, effective on first day of first
    month which begins more than ten days after Aug. 11, 1955, see
    section 3 of act Aug. 11, 1955, set out as a note under section
    6416 of this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 4223 of this title.