CH. 78—DISCOVERY OF LIABILITY; ENFORCEMENT OF TITLE
907
Organic Act of the Virgin Islands shall be effective as if such section had been enacted subsequent to the enactment of this title. SEC. 7652. SHIPMENTS TO THE UNITED STATES. (a) P U E R TO R I C O. —
(1) R A T E OF TAX.—Except as provided in section 5318, articles of merchandise of Puerto Rican manufacture coming into the United States and withdrawn for consumption or sale shall be subject to a tax equal to the internal revenue tax imposed in the United States upon the like articles of merchandise of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 or his delegate 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) D E P O S I T 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, or consumed in the island, shall be covered into the treasury of Puerto Rico. (b) VIRGIN ISLANDS.— (1) T A X E S IMPOSED IN THE UNITED STATES.—Except as provided
in section 5318, 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.—Be-
ginning with the fiscal year ending June 30, 1954, and annually thereafter, the Secretary or his delegate shall determine the amount of all taxes imposed by, and collected during the fiscal year 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) There shall be transferred and paid over to the government of the Virgin Islands from the amounts so determined a sum equal to the total amount of the revenue collected by the government of the Virgin Islands during the fiscal year, as certified by the Government Comptroller of the Virgin Islands. The moneys so transferred and paid over shall constitute a separate fund in the treasury of the Virgin Islands and may be expended as the legislature may determine: Provided, That the approval of the President or his designated representative shall be obtained before such moneys may be obligated or expended. (B) There shall also be transferred and paid over to the government of the Virgin Islands during each of the fiscal years ending § 7652(b)(3)(B)
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