①With regard to tobacco consumption tax that was imposed, or should have been imposed, before May 1, 1986 (referred to as the "designated day" in this Article), except for that provided for in the following paragraph and paragraph (3), the provisions then in force continue to govern.

②With regard to manufactured tobacco (meaning manufactured tobacco prescribed in Article 3 of the Tobacco Consumption Tax Act (Act No. 72 of 1984); the same applies hereinafter in this Article) shipped out of a manufacturing site of manufactured tobacco before the designated day that relates to a notification or approval under Article 12, paragraph (3) of that Act (including as applied mutatis mutandis pursuant to Article 14, paragraph (3) of that Act; the same applies hereinafter in this paragraph) (limited to that for which the day listed in the relevant item of Article 12, paragraph (3) of that Act pertaining to that notification or approval arrives on or after the designated day), if the documents prescribed in Article 12, paragraph (3) of that Act were not submitted by the day listed in that item, the tax rate of the quantity-based portion (meaning the quantity-based portion prescribed in Article 2, paragraph (1), item (iv) of that Act; the same applies hereinafter in this Article) or the tax base of the value-based portion (meaning the value-based portion prescribed in Article 2, paragraph (1), item (iii) of that Act; the same applies hereinafter in this Article) pertaining to that manufactured tobacco is as provided in the following items:

⑤The person prescribed in the preceding paragraph must, pursuant to the provisions of Cabinet Order, submit a return stating the following particulars, for each storage place (for a retail seller prescribed in Article 9, paragraph (6) of the Tobacco Business Act (Act No. 68 of 1984), the business office prescribed in Article 22, paragraph (1) of that Act; the same applies hereinafter in this paragraph) of the manufactured tobacco in that person's possession that falls under the provisions of that paragraph, to the district director with jurisdiction over the place where that storage place is located, within one month counting from the designated day:

⑥If a person prescribed in paragraph (4) has submitted the return under the provisions of the preceding paragraph to the prefectural governor or mayor of the municipality prescribed in the provisions referred to below, together with a return pertaining to prefectural tobacco consumption tax prescribed in Article 5, paragraph (3) of the Supplementary Provisions of the Act Partially Amending the Local Tax Act and the Act on Grants and Payments to Municipalities Where State-Owned Assets, etc. Are Located (Act No. 14 of 1986) or a return pertaining to municipal tobacco consumption tax prescribed in Article 9, paragraph (3) of the Supplementary Provisions of that Act, the prefectural governor or mayor of the municipality that received it may accept the return under the provisions of the preceding paragraph. In this case, that return is deemed to have been submitted to the district director prescribed in that paragraph.

⑦A person who has submitted a return under the provisions of paragraph (5) must pay to the State, by October 31, 1986, the tobacco consumption tax equivalent to the total amount of tobacco consumption tax set forth in item (ii) of that paragraph that is stated in that return.

⑧The provisions of the preceding paragraph apply mutatis mutandis to a person who is to submit a return under the provisions of paragraph (5) as prescribed in that paragraph and who, with regard to the tobacco consumption tax pertaining to that return, has filed a return filed after the due date or an amended return prescribed in the Act on General Rules for National Taxes (Act No. 66 of 1962) before the due date for payment referred to in the preceding paragraph for the return under the provisions of that paragraph, or has received a reassessment or determination prescribed in that Act, and for whom the time limit for payment under the provisions of Article 35, paragraph (2), item (ii) of that Act arrives before the due date for payment referred to in the preceding paragraph.

⑨If, of manufactured tobacco on which tobacco consumption tax has been or is to be imposed pursuant to the provisions of paragraph (4), manufactured tobacco that a specified seller prescribed in Article 11, paragraph (2) of the Tobacco Consumption Tax Act has itself withdrawn from a bonded area and possesses for sale is exported, and that specified seller has, pursuant to the provisions of Cabinet Order, obtained confirmation from the director-general of the customs house at which the export declaration for that manufactured tobacco was made that tobacco consumption tax has been or is to be imposed on that manufactured tobacco pursuant to the provisions of paragraph (4), an amount equivalent to that amount of tobacco consumption tax is refunded to that specified seller, in accordance with the provisions of Article 15 of that Act, together with the refund pertaining to the amount equivalent to the amount of tobacco consumption tax that has been or is to be paid, or has been or is to be collected, on that manufactured tobacco.

⑩In the cases set forth in the following items, if the manufacturer of manufactured tobacco prescribed in each of those items (meaning a manufacturer of manufactured tobacco prescribed in Article 6, paragraph (4) of the Tobacco Consumption Tax Act; the same applies hereinafter in this paragraph) has, pursuant to the provisions of Cabinet Order, obtained confirmation from the district director with jurisdiction over the place where the manufacturing site of manufactured tobacco pertaining to the return or bringing in of that manufactured tobacco is located that tobacco consumption tax under the provisions of paragraph (4) has been or is to be imposed on that manufactured tobacco, an amount equivalent to that amount of tobacco consumption tax is, in accordance with the provisions of Article 16 of that Act, deducted from the amount of tobacco consumption tax pertaining to that person or refunded to that person, together with the deduction or refund pertaining to the amount equivalent to the amount of tobacco consumption tax that the manufacturer of manufactured tobacco has paid or is to pay on that manufactured tobacco (in the case falling under item (ii), the amount of tobacco consumption tax that has been or is to be paid upon shipment from the other manufacturing site of manufactured tobacco prescribed in that item, or that has been or is to be paid, or has been or is to be collected, upon withdrawal from a bonded area):

⑪The provisions of Article 26 of the Tobacco Consumption Tax Act (excluding item (ii)) apply mutatis mutandis to a person who must submit a return under the provisions of paragraph (5).

⑫A person who has failed to submit a return under the provisions of paragraph (5) is punished by a fine of 200,000 yen or less.

⑬If the representative of a corporation, or an agent, employee or other worker of a corporation or individual, has committed the violation referred to in the preceding paragraph with regard to the business or property of that corporation or individual, not only is the offender punished, but the corporation or individual is also subject to the fine referred to in that paragraph.

⑭With regard to the application of penal provisions to acts committed before the designated day and to acts committed on or after the designated day in relation to tobacco consumption tax that remains governed by the provisions then in force pursuant to the provisions of paragraph (1), the provisions then in force continue to govern.