§1314. Penalties

(a) Persons liable

The marketing of (1) any kind of tobacco in excess of the marketing quota for the farm on which the tobacco is produced, or (2) any kind of tobacco that is not eligible for price support under the Agricultural Act of 1949 [7 U.S.C. 1421 et seq.] because a producer on the farm has not agreed to make contributions or pay assessments to the No Net Cost Tobacco Fund or the No Net Cost Tobacco Account as required by sections 106A(d)(1) and 106(B)(d)(1) ¹ of that Act [7 U.S.C. 1445–1(d)(1) and 1445–2(d)(1)], if marketing quotas for that kind of tobacco are in effect, shall be subject to a penalty of 75 per centum of the average market price (calculated to the nearest whole cent) for such kind of tobacco for the immediately preceding marketing year. Such penalty shall be paid by the person who acquired such tobacco from the producer but an amount equivalent to the penalty may be deducted by the buyer from the price paid to the producer in case such tobacco is marketed by sale; or, if the tobacco is marketed by the producer through a warehouseman or other agent, such penalty shall be paid by such warehouseman or agent who may deduct an amount equivalent to the penalty from the price paid to the producer: Provided, That in case any tobacco is marketed directly to any person outside the United States the penalty shall be paid and remitted by the producer. If any producer falsely identifies or fails to account for the disposition of any tobacco, an amount of tobacco equal to the normal yield of the number of acres harvested in excess of the farm-acreage allotment shall be deemed to have been marketed in excess of the marketing quota for the farm, and the penalty in respect thereof shall be paid and remitted by the producer. Tobacco carried over by the producer thereof from one marketing year to another may be marketed without payment of the penalty imposed by this section if the total amount of tobacco available for marketing from the farm in the marketing year from which the tobacco is carried over did not exceed the farm marketing quota established for the farm for such marketing year (or which would have been established if marketing quotas had been in effect for such marketing year), or if the tobacco so carried over does not exceed the normal production of that number of acres by which the harvested acreage of tobacco in the calendar year in which the marketing year begins is less than the farm-acreage allotment. Tobacco produced in a calendar year in which marketing quotas are in effect for the marketing year beginning therein shall be subject to such quotas even though it is marketed prior to the date on which such marketing year begins.

(b) Collection and deposit

The Secretary shall require collection of the penalty upon a proportion of each lot of tobacco marketed from the farm equal to the proportion which the tobacco available for marketing from the farm in excess of the farm marketing quota is of the total amount of tobacco available for marketing from the farm if satisfactory proof is not furnished as to the disposition to be made of such excess tobacco prior to the marketing of any tobacco from the farm. All funds collected pursuant to this section shall be deposited in a special deposit account with the Treasurer of the United States until the end of the marketing year next succeeding that in which the funds are collected, and upon certification by the Secretary there shall be paid out of such special deposit account to persons designated by the Secretary the amount by which the penalty collected exceeds the amount of penalty due upon tobacco marketed in excess of the farm marketing quota for any farm. Such special account shall be administered by the Secretary, and the basis for, the amount of, and the person entitled to receive a payment from such account, when determined in accordance with regulations prescribed by the Secretary, shall be final and conclusive.

(c) Lien in favor of United States

Until the amount of the penalty provided by this section is paid, a lien on the tobacco with respect to which such penalty is incurred, and on any subsequent tobacco subject to marketing quotas in which the person liable for payment of the penalty has an interest, shall be in effect in favor of the United States for the amount of the penalty.

(Feb. 16, 1938. ch. 30, title III, §314, 52 Stat. 48; Aug. 7, 1939, ch. 565, 53 Stat. 1262 ; June 13, 1940, ch. 360, §5, 54 Stat. 393 ; Feb. 19, 1946, ch. 31, §2, 60 Stat. 21 ; June 22, 1954, ch. 339, 68 Stat. 270 ; Mar. 31, 1955, ch. 21, §5, 69 Stat. 24 ; Pub. L. 97–218, title I, §103, title II, §206(a), July 20, 1982, 96 Stat. 201 , 206.)

References in Text

The Agricultural Act of 1949, referred to in subsec. (a), is act Oct. 31, 1949, ch. 792, 63 Stat. 1051 , as amended, which is classified principally to chapter 35A (§1421 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1421 of this title and Tables.

Amendments

1982-Subsec. (a). Pub. L. 97–218, §103, inserted "(1)" before "any kind of tobacco", and inserted cl. (2), regarding marketing of any kind of tobacco that is not eligible for price support under the Agricultural Act of 1949 because a producer on a farm has not agreed to make the required contributions or pay assessments to the No Net Cost Tobacco Fund or the No Net Cost Tobacco Account, if marketing quotas for that kind of tobacco are in effect.

Subsec. (c). Pub. L. 97–218, §206(a), added subsec. (c).

1955-Subsec. (a). Act Mar. 31, 1955, substituted "75 per centum" for "50 per centum" in first sentence.

1954-Subsec. (a). Act June 22, 1954, substituted "50 per centum" for "40 per centum" in first sentence.

1946-Subsec. (a). Act Feb. 19, 1946, struck out "10 cents per pound in the case of flue-cured, Maryland, or Burley tobacco and 5 cents per pound in the case of all other kinds of tobacco." and inserted in lieu thereof "40 per centum of the average market price (calculated to the nearest whole cent) for such kind of tobacco for the immediately preceding marketing year" in first sentence.

1940-Act June 13, 1940, designated existing provisions as subsec. (a), inserted last three sentences to subsec. (a), and added subsec. (b).

1939-Subsec. (a). Act Aug. 7, 1939, struck out first sentence and inserted in lieu thereof "The marketing of any tobacco in excess of the marketing quota for the farm on which the tobacco is produced shall be subject to a penalty of 10 cents per pound in the case of flue-cured, Maryland, or Burley tobacco and 5 cents per pound in the case of all other kinds of tobacco".

Effective Date of 1982 Amendment

Section 103 of Pub. L. 97–218 provided that the amendment made by that section is effective for 1983 and subsequent crops of tobacco.

Amendment by section 206(a) of Pub. L. 97–218 effective July 20, 1982, but not to apply to any lease of a Flue-cured tobacco acreage allotment or marketing quota entered into under the Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) before that date, see section 207 of Pub. L. 97–218, set out as a note under section 1314b of this title.

Effective Date of 1955 Amendment

Act Mar. 31, 1955, provided that the amendment made by that act is effective July 1, 1955, with respect to flue-cured tobacco, and Oct. 1, 1955, with respect to other kinds of tobacco.

Effective Date of 1954 Amendment

Act June 22, 1954, provided that the amendment made by that act is effective Oct. 1, 1954, except that in the case of flue-cured tobacco such amendment is effective July 1, 1955.

Effective Date of 1946 Amendment

The second par. of section 2 of act Feb. 19, 1946, provided: "The amendment made by this section [amending this section] shall become effective July 1, 1946, except that in the case of flue-cured tobacco such amendment shall become effective May 1, 1947."

Revision of Third Sentence and Application of Fourth Sentence of Subsec. (a) During Acreage-Poundage Quota Periods

Section 317(g)(2), (3) of act Feb. 16, 1938, as added by Pub. L. 89–12, §1, Apr. 16, 1965, 79 Stat. 71 , and classified to section 1314c(g)(2), (3) of this title, provided that:

"(2) When marketing quotas established under this section [section 1314c of this title] are in effect the provisions with respect to penalties contained in the third sentence of subsection 314(a) [subsec. (a) of this section] shall be revised to read: 'If any producer falsely identifies or fails to account for the disposition of any tobacco, the Secretary, in lieu of assessing and collecting penalties based on actual marketings of excess tobacco, may elect to assess a penalty computed by multiplying the full penalty rate by an amount of tobacco equal to 25 per centum of the farm marketing quota plus the farm yield of the number of acres harvested in excess of the farm acreage allotment and the penalty in respect thereof shall be paid and remitted by the producer'.

"(3) For the first year a marketing quota program established under the provisions of this section [section 1314c of this title] is in effect, the words 'normal production' where they appear in the fourth sentence of subsection (a) of such section [subsec. (a) of this section] shall be read 'farm yield' and the said fourth sentence shall otherwise be applicable. For the second and succeeding years for which a program established under the provisions of this section [section 1314c of this title] is in effect, the provisions of subsection (a)(8) [section 1314c(a)(8) of this title] shall apply when penalties, if any, on carryover tobacco are computed, and the provisions contained in the fourth sentence of subsection 314(a) [subsec. (a) of this section] shall not be applicable."

Revision of Third Sentence and Application of Fourth Sentence of Subsec. (a) During Burley Tobacco Poundage Quota Periods

Section 319(i)(2), (3) of act Feb. 16, 1938, as added by Pub. L. 92–10, §1, Apr. 14, 1971, 85 Stat. 23 , and classified to section 1314e(i)(2), (3) of this title, provided that:

"(2) The provisions with respect to penalties contained in the third sentence of section 1314(a) of this title shall be revised to read: 'If any producer falsely identifies or fails to account for the disposition of any tobacco, the Secretary, in lieu of assessing and collecting penalties based on actual marketings of excess tobacco, may elect to assess a penalty computed by multiplying the full penalty rate by an amount of tobacco equal to 25 per centum of the farm marketing quota (after adjustments) and the penalty in respect thereof shall be paid and remitted by the producer'.

"(3) The provisions contained in the fourth sentence of section 1314(a) of this title shall not be applicable. For the first year a marketing quota program established under the provisions of this section [section 1314e of this title] is in effect, the farm marketing quota determined under the provisions of subsection (e) of this section shall receive a temporary upward adjustment equal to the amount of carryover penalty-free burley tobacco for the farm. For subsequent years, the provisions of subsection (c) of this section shall apply."

Section Referred to in Other Sections

This section is referred to in sections 1314c, 1314e, 1445 of this title.

¹ So in original. A reference to section 106B(d)(1) was probably intended.