General Provisions

The following general provisions are restricted in application to this Article, and are in addition to the general provisions of Article 1 and the rules and regulations promulgated under authority of law by the Tax Commissioner.

(a)Time of attachment. The tax levied hereunder shall attach at the time the product enters the economy of Guam which shall be either:

(1)Upon the completion of the process when manufactured or produced in Guam; or

(2)At the time the article is discharged from its carrier when brought into Guam; or

(3)At the time of purchase for resale, if the tobacco tax has not hereto attached.

(b)Definitions. For the purpose of this Section the following definitions of words and phrases shall govern its interpretation:

(1)“Tobacco products” shall mean and include the product or manufacture of any of the genus of plants commonly prepared for smoking or chewing or use as snuff.

(2)“Cigarette” shall mean and include any preparation of finely cut tobacco rolled and enclosed so that it is held together for smoking.

(3)“Cigar” shall mean and include any shaped roll of tobacco leaves prepared for smoking.

(c)Bonding. Any taxpayer holding an Annual Wholesaler License pursuant to Title 11 GCA § 6201 and against whom taxes are levied under this Article with respect to tobacco products may, by complying with the rules and regulations promulgated by the Tax Commissioner, and by placing such tobacco products in a warehouse under bond, delay the payment of said taxes until the due date of the monthly tax return for the month in which the tobacco products are withdrawn from the warehouse and no interest shall commence to run thereon until such due date.

(1)Relief from tax upon export. When the taxes levied under this Article have not been paid with respect to any tobacco products because said tobacco products were placed in a warehouse under bond, the taxpayer may export such tobacco products from Guam without payment of the taxes levied under this Article and, subject to the conditions set forth in §§ 26604(a), 26604(b) and 26605(d), be relieved of liability therefor upon submission of a claim for relief to the Tax CH. 26 BUSINESS PRIVILEGE TAX LAW Commissioner not later than the twentieth

(20th)day of the month following the month in which the tobacco products are withdrawn from the warehouse.