each offense, be fined not more than $10,000 or an amount equal to 3 times the fair market value of the tobacco product machine involved (whichever is greater), or imprisoned not more than five years, or both. (B) Recordkeeping Whoever knowingly violates paragraph (4) shall, for each offense, be fined not more than $10,000. . (b) Tobacco production machine Section 5702 is amended by adding at the end the following new subsection: (q) Tobacco production machine The term tobacco production machine means any machine (or component integral to the operation of such a machine) used to manufacture or package tobacco products or processed tobacco or to apply unique identification markings or other tax-payment indicia to packages of tobacco products or processed tobacco. Such term includes any machine used to produce tobacco products for compensation, lease, or hire, or otherwise used in a commercial setting. . (c) Conforming amendment Subsection (c) of section 5762 (as so redesignated) is amended by striking subsection (a) and inserting subsections (a) and (b) . (d) Effective date The amendment made by this section shall apply to transfers more than 6 months after the date of the enactment of this Act. 203. Improved marking and labeling (a) In general Subsection (b) of section 5723 is amended to read as follows: (b) Marks, labels, and notices (1) In general Subject to paragraphs (2), (3), and (4), every package of tobacco products, processed tobacco, or cigarette papers or tubes shall, before removal, bear the marks, labels, and notices that the Secretary by regulation prescribes. (2) Marking requirements for domestic market (A) In general Each person who is a manufacturer or importer of tobacco products or processed tobacco shall (in accordance with regulations prescribed by the Secretary) ensure that, before any product intended for sale or distribution within the United States is removed, a unique identification marking is affixed to or forms part of each package of tobacco product or processed tobacco manufactured