31668

(a) Cigarettes sold or transferred to foreign flag ships and of United States registration and those sold to foreign warships and to ships of a foreign country on courtesy visits to Puerto Rico, shall be exempt from the tax imposed in this part. This exemption shall only be allowed when the cigarettes are delivered in accordance with the rules and procedures established by the Secretary and the violation thereof shall entail the obligation of the introducer or the distributor, as the case may be, to pay the corresponding excise taxes. The introducers or distributors who wish to avail themselves of this exemption shall post a bond to answer for the payment of said excise taxes.(b) Cigarettes which, having been withdrawn from the factories or ports, are removed from the market because they are unsuitable for consumption, shall likewise be exempt from the payment of excise taxes, provided they are destroyed under the supervision of the Secretary. In such case, the Secretary shall refund or credit the tax to the person who paid it. History —Jan. 31, 2011, No. 1, § 3030.18, retroactive to Jan. 1, 2011.