Contents
(c)
(1)
(A)Each domestic manufacturer of cigarettes may enter into agreements to purchase inventory stocks of Flue-cured and Burley tobacco, in accordance with this section.
(B)To be eligible for the reductions in price specified in this section, such manufacturer shall enter into such agreements as soon as practicable, but not later than 90 days after April 7, 1986, except that, with respect to the 1983 crop of Burley tobacco, if the Corporation offers to sell the stocks of such tobacco pursuant to subsection (b)(3)(A), such agreements shall be entered into as soon as practicable, but not later than 90 days after the end of the 2-year period referred to in subsection (a)(3)(B).
(C)
(i)Such agreements shall provide that, over a period of time, each participating domestic manufacturer of cigarettes shall purchase a percentage of the stocks of Flue-cured and Burley tobacco held—
(I)by the producer-owned cooperative marketing associations at the close of the 1984 marketing year; or
(II)in the case of the 1983 crop of Burley tobacco, by the Commodity Credit Corporation at the time the Corporation offers such tobacco for sale to domestic manufacturers of cigarettes under this section.
(ii)The period of time referred to in clause (i) may not exceed—
(I)in the case of Flue-cured tobacco, 8 years from April 7, 1986;
(II)in the case of Burley tobacco from the 1982 and 1984 crops, 5 years from April 7, 1986; and
(III)in the case of the 1983 crop of Burley tobacco, 5 years from the end of the 2-year period referred to in subsection (a)(3)(B).
(2)
(A)
(i)The percentage to be purchased by each participating manufacturer shall be at least equal to the respective percentage of the participating manufacturer of the total quantity of net cigarettes manufactured for use as determined by the Secretary of Agriculture under this paragraph on the basis of the monthly reports (“Manufacturer of Tobacco Products—Monthly Reports”) submitted by manufacturers of tobacco products to the Tax and Trade Bureau of the Department of the Treasury.
(ii)The Secretary of Agriculture shall request from the Secretary of the Treasury copies of such monthly reports necessary to make the determinations required under this section.
(iii)Notwithstanding any other provision of law, the Secretary of the Treasury may release and disclose such information to the Secretary of Agriculture.
(B)“Net cigarettes manufactured for use” shall be computed by subtracting—
(i)the cumulative figures entered for large and small cigarettes in item 16f of ATF Form 3068 (“Reduction to tobacco”); from
(ii)the cumulative figures entered for large and small cigarettes in item 7 of such form (“Manufactured”).
(C)
(i)The percentage to be purchased by each participating manufacturer shall be determined—
(I)on April 7, 1986; and
(II)annually thereafter over the course of the respective buy-out periods specified in this subsection.
(ii)Such percentage shall be determined by dividing—
(I)the average net cigarettes manufactured by a manufacturer for use for the 12-month period immediately preceding the appropriate determination date (April 7, 1986, and annually thereafter over the course of the respective buy-out periods specified in this subsection); by
(II)the aggregate average net cigarettes manufactured by all domestic cigarette manufacturers for use for such 12-month period.
(D)
(i)The quantity of tobacco to be purchased by each participating manufacturer shall be determined annually.
(ii)Such quantity shall be based on—
(I)the percentage of net cigarettes of a manufacturer manufactured for use, as determined under subparagraph (C); multiplied by
(II)the appropriate annual quantity to be withdrawn from the inventories of the associations or the Commodity Credit Corporation.
(iii)The appropriate annual quantity to be withdrawn from inventories shall be—
(I)12½ percent of the inventories of Flue-cured tobacco from the 1976 through 1984 crops on hand on April 7, 1986;
(II)20 percent of the inventories of Burley tobacco from the 1982 and 1984 crops on hand on April 7, 1986; and
(III)20 percent of the inventories of Burley tobacco from the 1983 crop held by the Commodity Credit Corporation on the date that is 2 years after the call of the loans on such tobacco by the Corporation.
(E)Any purchases by a manufacturer from the inventories of the associations or from the Commodity Credit Corporation for a crop covered by this section in any year of the buy-out period that exceed the quantity of the purchases of the manufacturer required under the agreement, as determined under this section, shall be applied against future purchases required of such manufacturer.
(3)In carrying out this section, manufacturers may confer with one another and, separately or collectively, with associations, the Secretary of Agriculture, and the Commodity Credit Corporation, as may be necessary or appropriate to carry out this section and the purposes of this subtitle.1
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