Title VII, SEC. 7113. IMPOSITION OF EXCISE TAX ON MANUFACTURE OR IMPORTATION OF ROLL-YOUR-OWN TOBACCO. (a) In General. Section 5701 (relating to rate of tax) is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection: ``(g) Roll-Your-Own Tobacco. On roll-your-own tobacco, manufactured in or imported into the United States, there shall be imposed a tax of $12.50 per pound (and a proportionate tax at the like rate on all fractional parts of a pound).'' (b) Roll-Your-Own Tobacco. Section 5702 (relating to definitions) is amended by adding at the end thereof the following new subsection : ``(p) Roll-Your-Own Tobacco. The term `roll-your-own tobacco' means any tobacco which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes.'' (c) Technical Amendments. (1) Subsection (c) of section 5702 is amended by striking ``and pipe tobacco'' and inserting ``pipe tobacco, and roll-your-own tobacco''. (2) Subsection (d) of section 5702 is amended (A) in the material preceding paragraph (1), by striking ``or pipe tobacco'' and inserting ``pipe tobacco, or roll-your-own tobacco'', and (B) by striking paragraph (1) and inserting the following new paragraph: ``(1) a person who produces cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own tobacco solely for his own personal consumption or use, and''. (3) The chapter heading for chapter 52 is amended to read as follows: ``CHAPTER 52 TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES''. (4) The table of chapters for subtitle E is amended by striking the item relating to chapter 52 and inserting the following new item: ``Chapter 52. Tobacco products and cigarette papers and tubes.'' ``(d) Effective Date. ``(1) In general. The amendments made by this section shall apply to roll-your-own tobacco removed (as defined in section 5702(k) of the Internal Revenue Code of 1986, as amended by this Act) after September 30, 1994. ``(2) Transitional rule. Any person who ``(A) on the date of the enactment of this Act is engaged in business as a manufacturer of roll-your-own tobacco or as an importer of tobacco products or cigarette papers and tubes, and ``(B) before October 1, 1994, submits an application under subchapter B of chapter 52 of such Code to engage in such business, ``may, notwithstanding such subchapter B, continue to engage in such business pending final action on such application. Pending such final action, all provisions of such chapter 52 shall apply to such applicant in the same manner and to the same extent as if such applicant were a holder of a permit under such chapter 52 to engage in such business.