Title VII, SEC. 7112. MODIFICATIONS OF CERTAIN TOBACCO TAX PROVISIONS. (a) Exemption for Exported Tobacco Products and Cigarette Papers and Tubes To Apply Only to Articles Marked for Export. (1) Subsection (b) of section 5704 is amended by adding at the end thereof the following new sentence: ``Tobacco products and cigarette papers and tubes may not be transferred or removed under this subsection unless such products or papers and tubes bear such marks, labels, or notices as the Secretary shall by regulations prescribe.'' (2) Section 5761 is amended by redesignating subsections (c) and (d) as subsections (d) and (e), respectively, and by inserting after subsection (b) the following new subsection: ``(c) Sale of Tobacco Products and Cigarette Papers and Tubes for Export. Except as provided in subsections (b) and (d) of section 5704 ``(1) every person who sells, relands, or receives within the jurisdiction of the United States any tobacco products or cigarette papers or tubes which have been labeled or shipped for exportation under this chapter, ``(2) every person who sells or receives such relanded tobacco products or cigarette papers or tubes, and ``(3) every person who aids or abets in such selling, relanding, or receiving, ``shall, in addition to the tax and any other penalty provided in this title, be liable for a penalty equal to the greater of $1,000 or 5 times the amount of the tax imposed by this chapter. All tobacco products and cigarette papers and tubes relanded within the jurisdiction of the United States, and all vessels, vehicles, and aircraft used in such relanding or in removing such products, papers, and tubes from the place where relanded, shall be forfeited to the United States.'' (3) Subsection (a) of section 5761 is amended by striking ``subsection (b)'' and inserting ``subsection (b) or (c)''. (4) Subsection (d) of section 5761, as redesignated by paragraph (2), is amended by striking ``The penalty imposed by subsection (b)'' and inserting ``The penalties imposed by subsections (b) and (c)''. (5)(A) Subpart F of chapter 52 is amended by adding at the end thereof the following new section: ``SEC. 5754. RESTRICTION ON IMPORTATION OF PREVIOUSLY EXPORTED TOBACCO PRODUCTS. ``(a) In General. Tobacco products and cigarette papers and tubes previously exported from the United States may be imported or brought into the United States only as provided in section 5704(d). ``(b) Cross Reference. I41 ``For penalty for the sale of cigarettes in the United States which are labeled for export, see section 5761(d).'' (B) The table of sections for subpart F of chapter 52 is amended by adding at the end thereof the following new item: ``Sec. 5754. Restriction on importation of previously exported tobacco products.'' (b) Importers Required To Be Qualified. (1) Sections 5712, 5713(a), 5721, 5722, 5762(a)(1), and 5763(b) and (c) are each amended by inserting ``or importer'' after ``manufacturer''. (2) The heading of subsection (b) of section 5763 is amended by inserting ``Qualified Importers,'' after ``Manufacturers,''. (3) The heading for subchapter B of chapter 52 is amended by inserting ``and Importers'' after ``Manufacturers''. (4) The item relating to subchapter B in the table of subchapters for chapter 52 is amended by inserting ``and importers'' after ``manufacturers''. (c) Repeal of Tax-Exempt Sales to Employees of Cigarette Manufacturers. (1) Subsection (a) of section 5704 is amended (A) by striking ``Employee Use or'' in the heading, and (B) by striking ``for use or consumption by employees or'' in the text. (2) Subsection (e) of section 5723 is amended by striking ``for use or consumption by their employees, or for experimental purposes'' and inserting ``for experimental purposes''. (d) Repeal of Tax-Exempt Sales to United States. Subsection (b) of section 5704 is amended by striking ``and manufacturers may similarly remove such articles for use of the United States;''. (e) Books of 25 or Fewer Cigarette Papers Subject to Tax. Subsection (c) of section 5701 is amended by striking ``On each book or set of cigarette papers containing more than 25 papers,'' and inserting ``On cigarette papers,''. (f) Storage of Tobacco Products. Subsection (k) of section 5702 is amended by inserting ``under section 5704'' after ``internal revenue bond''. (g) Authority To Prescribe Minimum Manufacturing Activity Requirements. Section 5712 is amended by striking ``or'' at the end of paragraph (1), by redesignating paragraph (2) as paragraph (3), and by inserting after paragraph (1) the following new paragraph: ``(2) the activity proposed to be carried out at such premises does not meet such minimum capacity or activity requirements as the Secretary may prescribe, or''. (h) Limitation on Cover Over of Tax on Tobacco Products. Section 7652 is amended by adding at the end thereof the following new subsection: ``(h) Limitation on Cover Over of Tax on Tobacco Products. For purposes of this section, with respect to taxes imposed under section 5701 or this section on any tobacco product or cigarette paper or tube, the amount covered into the treasuries of Puerto Rico and the Virgin Islands shall not exceed the rate of tax under section 5701 in effect on the article on the day before the date of the enactment of the Health Security Act.'' (i) Effective Date. The amendments made by this section shall apply to articles removed (as defined in section 5702(k) of the Internal Revenue Code of 1986, as amended by this Act) after September 30, 1994.