Guidelines for Internal Revenue Officers Assigned to Supervise Virginia Tobacco Trading for the Year 1977

January 25, 1977 REVENUE MEMORANDUM CIRCULAR NO. 04-77 TO : All Internal Revenue Officers and others concerned SUBJECT : Guidelines for Internal Revenue Officers Assigned to Supervise Virginia Tobacco Trading for the Year 1977 I. Revenue Tobacco Inspector In-charge . There shall be one tobacco inspector in-charge in each province, whenever the same is practicable, who shall perform the following duties and responsibilities: (a) To hold office at the office of the Revenue District Officer in the province where he is assigned; (b) To receive all applications for inspection of tobacco within the province; (c) To assign the revenue tobacco inspector to conduct the actual inspection; (d) To conduct actual inspection himself when the exigencies of the revenue service so require; (e) To have direct supervision of all internal revenue officers assigned in the province; (f) To gather and collate a monthly data on the amount of tobacco inspection fee collected indicating therein the Official Receipt number and the total number of kilos of leaf tobacco inspected which shall be submitted to the Revenue Service Chief, Specific Tax, thru the Revenue Regional Director not later than the 7th day of the next succeeding month; (g) To issue miscellaneous guias to farmers delivering their tobacco produce to trading center located in another province; and (h) To perform such other duties as may be assigned to him from time to time by his superiors. II. Fieldmen . Two (2) revenue tobacco inspectors shall be assigned at the Revenue District Office who shall perform the following duties: (a) To conduct actual inspection of leaf tobacco assigned to him by the tobacco inspector in-charge; (b) To issue authority to accept payment; (c) To see to it that the corresponding inspection fees on Virginia tobacco to be shipped by the FACOMAS to a trading center shall be paid before removal at the rates provided for by Presidential Decree No. 69; and (d) To perform such other functions as the Tobacco Inspector in-charge may from time to time assign him. III. Tobacco Inspectors assigned in Trading Centers . During the tobacco trading season, revenue tobacco inspectors shall be assigned to supervise the operations of trading centers and shall perform the following duties: 1. He must be at his place of assignment at all times where business transaction is being undertaken. When a Revenue Tobacco Inspector is assigned to supervise the operations of two or more trading centers, he must submit a time schedule to his immediate superior indicating at what establishment he is to be found at a given time. 2. He shall enforce the provisions of Act 2613, as amended, and Presidential Decree No. 69, together with their respective implementing regulations, and directly responsible for the strict compliance and adherence to the following rules: (a) Buying of Virginia leaf shall be undertaken only at trading centers; (b) In addition to the Official Guia, a shipment of tobacco by farmers' cooperatives must be accompanied by an abstract of the tobacco delivery (based on trust receipt, voucher and invoice); (c) Only tobacco deliveries by registered farmers and accredited FACOMAS shall be permitted to be received by the trading center; (d) For every purchase of tobacco the trading center must issue a corresponding duly registered purchase invoice; (e) All deliveries of Virginia tobacco to a trading center should be duly debited in its official register book (BIR Form No. 31.46) on the date received. All the official guias issued by various FACOMAS covering the shipments of flue-cured Virginia tobacco to the trading center should be verified and if no discrepancy is found, the same should be lifted and submitted to the Chief, Specific Tax Branch by the To-Inspector assigned thereat; (g) Tobacco delivered by farmers from their province to a trading center located in another province must be covered by a miscellaneous guia to be issued by the tobacco inspector in-charge upon payment of the corresponding inspection fee. Such guia shall accompany the tobacco shipment and surrendered to the trading center consignee; (h) Tobacco delivered by FACOMAS to trading centers on which the inspection fee has been previously paid and subsequently transferred for redrying from the trading centers to the redrying plant shall no longer be subject to inspection and payment of inspection fees, provided that no rebaling thereof is done in the trading center. Provided, however, that after the tobacco has been redried the same shall be inspected and the corresponding inspection fee paid before removal from the re-drying plant. The quantity of such removal shall be entered in the official register book of the trading center concerned and covered by a corresponding guia; (i) Tobacco transferred from the trading center to the redrying plant must be in standard bales or cases; and (j) Wholesale leaf tobacco dealers including trading centers and cooperatives (whenever applicable) shall submit to the Revenue Tobacco Inspector In-charge thru the Revenue Collection Agent in their locality on or before the 8th day of the following month two copies of their monthly transcript sheets and attaching therewith the corresponding copies of their issued purchase invoices. 3. He shall inspect and verify every removal from the trading center, provided however that the corresponding application for inspection should first be filed with the tobacco inspector in-charge. 4. He shall have a logbook in which he shall keep a complete record of all flue-cured Virginia tobacco received and removed by the trading center with appropriate columns therein to indicate the date, name and address of the consignor, consignee, quantity received/removed, corresponding official guias issued, amount of inspection fee paid, number and date of receipt of payment. 5. He should ascertain that all removals of flue-cured Virginia leaf tobacco are covered by the corresponding official guias, the blanks of which must be fully filled up especially the quantity, kind, origin, date of removal, amount of inspection fee paid, Official Receipt number, date and place of issue. The Revenue Tobacco Inspector shall carefully check the official guias to prevent any illegal re-routing of tobacco from the point of shipment to another place; 6. Each removal of tobacco from a trading center must be accompanied by an official guia duly stamped at the back thereof containing the desired information and signed by the Revenue Tobacco Inspector assigned thereat, which is illustrated hereunder: ( THIS GUIA IS ONLY VALID ON THE DATE OF REMOVAL ) "Application/Verification No. _____ Inspected _______ bales of flue-cured or _____________ leaf tobacco or a total of _____ kilos on __________, 19___ at _____________,_____________. Inspection fee in the amount of P________ was paid under O. R. No. _______ at ___________ on __________. This official guia covers ________ bales of leaf tobacco or a total of ________ kilos. Date of Removal: _____________ Signature of Tobacco Inspector IV. General Provisions . The following shall be strictly enforced and adhered to by Internal Revenue Officers during the tobacco trading season: 1. Inspection . For each shipment (truckload) of tobacco to be removed, an application for inspection shall be filed in quadruplicate, the original to be retained by the Tobacco Inspector In-charge, the duplicate to the taxpayer, the triplicate to be attached to the official guia accompanying the shipment and the quadruplicate to be kept by the Tobacco Inspector conducting the inspection; 2. Official Guia. The Official Guia shall be signed by the Tobacco Inspector assigned to conduct the inspection on the date of removal of the tobacco shipment. In the event that the tobacco shipment applied for inspection or verification is not removed on the date appearing at the back of the guia as certified by the Revenue Tobacco Inspector, the same shall be revalidated when the tobacco will be actually shipped or removed otherwise the said guia will be considered null and void. No tobacco inspector assigned to conduct inspection shall sign blank official guia or guias. 3. Violation . Any case of violation found by an Internal Revenue Officer shall be promptly and thoroughly investigated and a report thereon shall be submitted within five (5) days to the Regional Director, Revenue Region No. 1, Baguio City, Attention: Chief, Specific Tax Branch, for appropriate evaluation. Tobacco Inspector violating the provisions of this Revenue Memorandum Circular shall be dealt with accordingly. 4. Monthly Report . All Internal Revenue Officers shall submit a monthly report of activities and inspections indicating therein the amount of inspection fees collected, the number of kilos and kind of leaf tobacco inspected to the Revenue Tobacco Inspector In-charge or where there is no In-charge, to the Chief, Specific Tax Branch within the first week of the next succeeding month for transmittal to higher authorities, copy furnished the Chief, Tobacco Inspection Division. 5. Repealing Clause . This Revenue Memorandum Circular supersedes all guidelines concerning supervision of Virginia tobacco trading previously issued. Strict compliance herewith is enjoined. aisa dc EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3