§ 7652. Shipments to the United States
(a)
Puerto Rico
(1)
Rate of tax
Except as provided in section
5314, articles of merchandise of Puerto Rican manufacture coming into the United States and withdrawn for consumption or sale shall be subject to a tax equal to the internal revenue tax imposed in the United States upon the like articles of merchandise of domestic manufacture.
(2)
Payment of tax
The Secretary shall by regulations prescribe the mode and time for payment and collection of the tax described in paragraph (1), including any discretionary method described in section
6302
(b) and (c). Such regulations shall authorize the payment of such tax before shipment from Puerto Rico, and the provisions of section
7651
(2)(B) shall be applicable to the payment and collection of such tax in Puerto Rico.
(3)
Deposit of internal revenue collections
All taxes collected under the internal revenue laws of the United States on articles produced in Puerto Rico and transported to the United States (less the estimated amount necessary for payment of refunds and drawbacks), or consumed in the island, shall be covered into the treasury of Puerto Rico.
(b)
Virgin Islands
(1)
Taxes imposed in the United States
Except as provided in section
5314, there shall be imposed in the United States, upon articles coming into the United States from the Virgin Islands, a tax equal to the internal revenue tax imposed in the United States upon like articles of domestic manufacture.
(2)
Exemption from tax imposed in the Virgin Islands
Such articles shipped from such islands to the United States shall be exempt from the payment of any tax imposed by the internal revenue laws of such islands.
(3)
Disposition of internal revenue collections
The Secretary shall determine the amount of all taxes imposed by, and collected under the internal revenue laws of the United States on articles produced in the Virgin Islands and transported to the United States. The amount so determined less 1 percent and less the estimated amount of refunds or credits shall be subject to disposition as follows:
(A)
The payment of an estimated amount shall be made to the government of the Virgin Islands before the commencement of each fiscal year as set forth in section 4(c)(2) of the Act entitled “An Act to authorize appropriations for certain insular areas of the United States, and for other purposes”, approved August 18, 1978 (48 U.S.C. 1645), as in effect on the date of the enactment of the Trade and Development Act of 2000. The payment so made shall constitute a separate fund in the treasury of the Virgin Islands and may be expended as the legislature may determine.
(B)
Any amounts remaining shall be deposited in the Treasury of the United States as miscellaneous receipts.
If at the end of any fiscal year the total of the Federal contribution made under subparagraph (A) with respect to the four calendar quarters immediately preceding the beginning of that fiscal year has not been obligated or expended for an approved purpose, the balance shall continue available for expenditure during any succeeding fiscal year, but only for emergency relief purposes and essential public projects. The aggregate amount of moneys available for expenditure for emergency relief purposes and essential public projects only shall not exceed the sum of $5,000,000 at the end of any fiscal year. Any unobligated or unexpended balance of the Federal contribution remaining at the end of a fiscal year which would cause the moneys available for emergency relief purposes and essential public projects only to exceed the sum of $5,000,000 shall thereupon be transferred and paid over to the Treasury of the United States as miscellaneous receipts.
(c)
Articles containing distilled spirits
For purposes of subsections (a)(3) and (b)(3), any article containing distilled spirits shall in no event be treated as produced in Puerto Rico or the Virgin Islands unless at least 92 percent of the alcoholic content in such article is attributable to rum.
(d)
Articles other than articles containing distilled spirits
For purposes of subsections (a)(3) and (b)(3)—
(1)
Value added requirement for Puerto Rico
Any article, other than an article containing distilled spirits, shall in no event be treated as produced in Puerto Rico unless the sum of—
equals or exceeds 50 percent of the value of such article as of the time it is brought into the United States.
(2)
Prohibition of Federal excise tax subsidies
(A)
In general
No amount shall be transferred under subsection (a)(3) or (b)(3) in respect of taxes imposed on any article, other than an article containing distilled spirits, if the Secretary determines that a Federal excise tax subsidy was provided by Puerto Rico or the Virgin Islands (as the case may be) with respect to such article.
(e)
Shipments of rum to the United States
(2)
Secretary prescribes formula
The Secretary shall, from time to time, prescribe by regulation a formula for the division of such tax collections between Puerto Rico and the Virgin Islands and the timing and methods for transferring such tax collections.
(f)
Limitation on cover over of tax on distilled spirits
For purposes of this section, with respect to taxes imposed under section
5001 or this section on distilled spirits, the amount covered into the treasuries of Puerto Rico and the Virgin Islands shall not exceed the lesser of the rate of—
(g)
Drawback for medicinal alcohol, etc.
In the case of medicines, medicinal preparations, food products, flavors, flavoring extracts, or perfume containing distilled spirits, which are unfit for beverage purposes and which are brought into the United States from Puerto Rico or the Virgin Islands—
(1)
subpart B of part II of subchapter A of chapter 51 shall be applied as if—
(A)
the use and tax determination described in section
5111 had occurred in the United States by a United States person at the time the article is brought into the United States, and
(h)
Manner of cover over of tax must be derived from this title
No amount shall be covered into the treasury of Puerto Rico or the Virgin Islands with respect to taxes for which cover over is provided under this section unless made in the manner specified in this section without regard to—