Amendments to Sections 5 (b), 16, and 21 of Regulations No. 55

December 28, 1931 DOF REGULATIONS NO. 071-31 1 SUBJECT : Amendments to Sections 5 (b), 16, and 21 of Regulations No. 55 TO : All Internal-Revenue Officers and Others Concerned SECTION 1. Section 5 (b) of Regulations No. 55 of this Department is hereby amended to read as follows: SEC. 5 (b). Tax-receipts to be issued to persons handling or dealing in prohibited drugs. The S-2 tax-receipt should be issued only to physicians, dentists, veterinarians, and other professionals lawfully entitled to distribute, dispense, give away, or administer any prohibited drugs to patients upon whom they are in attendance in the course of their professional practice. However, such of those professionals who, in pursuance of their own prescriptions, prepare medicines containing prohibited drugs for sale or distribution should secure the S-3 tax-receipt as retail dealers in prohibited drugs. If they compound medicines containing prohibited drugs not in pursuance of prescriptions, they should secure the S-5 tax-receipt as compounders besides the S-2 tax-receipt. The S-3 tax-receipt should be issued only to persons who sell or dispose of prohibited drugs from the original packages or containers. A retail dealer is not allowed to compound or mix up any of the prohibited drugs that he has purchased from a manufacturer, producer, or compounder, or from a wholesale dealer. For making medicinal preparations containing any quantity of prohibited drugs in pursuance of prescriptions, pharmacists should secure the S-3 tax-receipt as retail dealers in prohibited drugs. Holders of S-3 tax-receipts, when engaged in the business of compounding medicines containing prohibited drugs for the purpose of keeping them in stock for sale or disposition should secure the S-5 tax-receipt as compounders of prohibited drugs: Provided, however, That such holders of S-3 tax-receipts who are engaged in the business of manufacture, sale, distribution, giving away, dispensing, or possession of preparations and remedies, which do not contain more than two grains ( 0.1296 gram ) of opium, or more than one-fourth of a grain ( 0.0162 gram ) of morphine, or more than one-eighth of a grain ( 0.0081 gram ) of heroin, or more than one grain ( 0.0648 gram ) of codeine, or any salt or derivative of any of them in one fluid ounce (29.57 cubic centimeters) or, if a solid or semi-solid preparation, in one avoirdupois ounce (28.3495 grams) , need not secure the S-5 tax-receipt. When a pharmacist in charge of prohibited drugs in a drug store transfers such drugs to his successor, he shall not be considered, with respect to such transfer, as wholesale dealer in prohibited drugs. The S-4 tax-receipt should be issued only to wholesale dealers who sell or offer for sale any prohibited drugs in the original packages or containers. A wholesale dealer, as such, is not allowed to import, manufacture, produce, compound, or mix up in any manner any prohibited drugs. His business consists in buying and selling prohibited drugs in the original packages or containers. He cannot open the original packages or containers and dispose of a portion only of any of their contents without providing himself with an S-3 tax-receipt. aHcACT The S-5 tax-receipt should be issued only to importers, manufacturers, producers, or compounders of prohibited drugs. Two kinds of S-5 tax-receipts may be issued, one for importers and the other for manufacturers, producers, or compounders. An importer, as such, cannot manufacture, produce, or compound any prohibited drugs or medicines containing them without securing another S-5 tax-receipt as manufacturer, producer, or compounder; and neither can a manufacturer, producer, or compounder, as such, import prohibited drugs or medicines containing them without securing another S-5 tax-receipt as importer. An importer, under an importer's tax-receipt only, cannot purchase prohibited drugs from local firms for sale or distribution at wholesale without first securing an S-4 tax-receipt as wholesale dealer in prohibited drugs. Importers, manufacturers, producers, or compounders of prohibited drugs will not be required to secure privilege tax-receipts as wholesale dealers for the disposal of the drugs imported, manufactured, produced, or compounded by them. But those desiring to dispose of said drugs at retail should secure retail dealer's privilege tax-receipts. A pharmacist holding an S-3 tax-receipt as a retail dealer in prohibited drugs and who fills prescriptions of registered physicians, in the preparation of which he uses prohibited drugs from the original packages or containers, is not required to secure an S-5 tax-receipt as compounder. SECTION 2. Section 16 of said Regulations No. 55 is also hereby amended to read as follows: SEC. 16. Incomplete filling of order or failure to fill the same. Should the person on whom an order for prohibited drugs is made, supply less than the quantity ordered, he shall note in red ink on both copies of the order form received by him the exact kind and quantity supplied, and initial such notation. At the same time, he shall inform the Collector of Internal Revenue in writing of the quantity of each kind of drugs furnished, the number of the permit and the name and the Schedule S tax-receipt number of the purchaser. If an opium order for prohibited drugs duly approved by the Collector of Internal Revenue can not be filled in by the dealer by reason of the fact that such drugs are out of stock, or otherwise, such order should be immediately returned to the Collector of Internal Revenue to be accompanied by a written statement to the effect that the drugs therein requisitioned or ordered could not be furnished by the person or persons on whom the order had been made. The opium order so returned shall be dealt with according as the Collector of Internal Revenue may direct. SECTION 3. Section 21 of the same Regulations No. 55 is also hereby amended so as to read, as follows: SEC. 21. Manner of keeping records. For each kind and each size of prohibited drugs or preparations, the dealer must keep a separate record consisting of debit and credit accounts. The drugs or preparations on hand, if any, and those subsequently received shall constitute the debit entries in the record. The drugs or preparations sold or disposed of shall constitute the credit. A separate line shall be used for each entry which must be made legibly in ink and in chronological order. At the end of each month a balance shall be struck showing in red ink the stock on hand of each particular kind of prohibited drugs or preparations, the size of the containers thereof, and the total narcotic contents of all the packages covered in the entry, which shall be carried forward to the account for the succeeding month. Records shall be preserved by the persons required to keep them for two years after the date of the last entry for inspection by the drug inspectors of the Bureau of Internal Revenue. IECcAT (a) Debit entries. Each entry of prohibited drugs or preparations received shall be made on the date of receipt of the drugs or preparations and shall show: 1. Date of receipt of the drugs or preparations. 2. Number of permit from the Collector of Internal Revenue. 3. Name of the person from whom the drugs or preparations were received. 4. Quantity of drugs or preparations received. (b) Credit entries. Each entry of prohibited drugs or preparations disposed of shall be made within twenty-four hours after disposal of the drugs or preparations and it shall show: 1. Date and hour of disposal. 2. Authority for disposal, whether by permit or by prescription. 3. Number of the permit issued by the Collector of Internal Revenue or the date of prescription and the name and the number of the Schedule S tax-receipt of the person issuing the prescription. 4. Name and address of the person to whom disposed of. 5. Quantity of drugs or preparations disposed of. 6. Daily balance. AcTHCE (c) Filing of semi-annual reports. All wholesale dealers in and importers of prohibited drugs and preparations containing such drugs in quantities greater than those specified in section 5 (d) of these regulations are hereby required to submit to the Collector of Internal Revenue a semi-annual report of the drugs or preparations handled by them for the period of six months ending June 30 and December 31 on or before the 15th day of the month following the end of each period substantially in the form and manner indicated below: Semi-annual report of prohibited drugs or preparations for the period of six months ending June 30, 193__ and December 31, 193__ Name of wholesale dealer _________________________________ Schedule "S," Paragraph _____ Assessment No. ____________ Business address ________________________________________ Debit Credit Balance Name of drug or preparation Number of packages Size of packages (capacity or weight Drug Content Total Narcotic contents Quantity sold during the period Balance on hand at the end period Solid: In grams, pills, or tablets Liquid: In cubic centimeters ___________________ _________________________ (Date) (Signature of wholesale dealer) (d) Report of prohibited drugs or preparations imported. All importers of prohibited drugs or preparations are also hereby required to submit a report to the Collector of Internal Revenue immediately upon receipt by them from the customhouse of the prohibited drugs or preparations which they have imported, and the report shall show the following data: 1. Date of receipt. 2. Quantity and kind of prohibited drugs or preparations received. 3. Name of the person from whom imported. 4. Country from which imported. 5. Number of opium permit authorizing the importation. SECTION 4. These regulations shall become effective upon promulgation in the Official Gazette. Manila, December 28, 1931. MIGUEL UNSON Secretary of Finance Footnotes 1. Promulgated January 19, 1932, XXX Off. Gaz., 8, page 265.