provision of the Internal Revenue Code of 1986. 202. Machines used to manufacture or package tobacco products or processed tobacco (a) In general Section 5762 is amended— (1) by redesignating subsection (b) as subsection (c), and (2) by inserting after subsection (a) the following new subsection: (b) Machines used To manufacture or package tobacco products or processed tobacco (1) Transfer of manufacturing machines to licensed persons Any tobacco production machine may be sold, leased, imported, exported, delivered, or otherwise made available only to persons— (A) lawfully engaged in— (i) the sale, lease, importation, exportation, or delivery of such machines, (ii) the manufacture or packaging of tobacco products or processed tobacco, or (iii) the application of unique identification markings onto tobacco product or processed tobacco packages pursuant to section 5723, and (B) that have all Federal, State, local, and Indian tribal government permits, registrations, and licenses required to engage in such activities. (2) Transfer of machines to persons engaged in illegal manufacture of contraband No tobacco production machine shall knowingly be manufactured for or be (directly or indirectly) sold, leased, imported, exported, delivered, or otherwise made available to any person engaged in the illegal manufacture, distribution, or sale of counterfeit or contraband tobacco products or processed tobacco, unique identification markings, or other tax-payment indicia. (3) Registration of machines (A) In general Every person having possession or custody of, or having control over, the installation of any tobacco production machine shall register such machine with the Secretary immediately on its being installed, by subscribing and filing with the Secretary a statement, in writing, setting forth the particular place where such machine is installed, the kind of machine and its capacity, the owner thereof, the owner’s place of residence, and the purpose for which the machine has been or is intended to be used. (B) Exception