Prescribing a Procedure for a More Effective Control of the Production, Disposition or Use of Cigarette Paper in Bobbins by Manufacturers or Suppliers Thereof and by Local Cigarette Manufacturers

July 15, 1986 REVENUE MEMORANDUM ORDER NO. 21-86 SUBJECT : Prescribing a Procedure for a More Effective Control of the Production, Disposition or Use of Cigarette Paper in Bobbins by Manufacturers or Suppliers Thereof and by Local Cigarette Manufacturers TO : All Internal Revenue Officers and Others Concerned Pursuant to the provisions of Revenue Regulations No. V-39, as amended, particularly Section 62 thereof and Revenue Regulations No. V-7, as amended, all of the Department (now Ministry) of Finance and in order to provide for a more effective control of the production, disposition or use of cigarette paper in bobbins, the following procedures are hereby issued for the observance of all concerned. aisa dc 1. All stocks of cigarette paper in bobbins in every factory shall be stored and kept only in the factory's designated Bobbin Room and no withdrawal or removal from said bobbin room shall be allowed except to use or feed the bobbins so removed to the cigarette making machines or to sell, transfer or dispose them, in the latter case a permit therefor should first be secured from the Commissioner of Internal Revenue, before effecting the actual transfer or removal thereof; 2. All Revenue Enforcement Officer(s) detailed at the cigarette factories should see to it that all cigarette paper in bobbins coming from the bobbin room of the factory concerned should first be numbered consecutively before the release or issuance of same to the factory's machine department for cigarette production. In no case shall unnumbered cigarette paper in bobbins be fed to the cigarette making machines for cigarette production, otherwise the same shall be considered as coming from illegal source and shall be subject to confiscation. Prenumbered cigarette paper bobbins fed to a cigarette making machine shall be recorded or posted accordingly on the machine sheet designated to a particular cigarette making machine. The revenue enforcement officer concerned shall likewise, maintain a Bobbin Control Book as heretofore required, wherein he shall record all cigarette paper withdrawn from the bobbin room indicating their descriptions and their consecutive numbers as well as the corresponding brand of cigarettes for which they shall be used. 3. No Authority to Release Imported Goods (ATRIG) addressed to the Commissioner of Customs for the Release of cigarette paper in bobbins coming from a foreign country, should be issued unless said importation is covered by a corresponding Permit to Import duly issued by this Office. 4. Revenue Enforcement Officers detailed at a cigarette paper manufacturing plant or factory shall keep a record of the daily production, receipt, sale or removals of cigarette paper in bobbins and to have said records attested as true and correct by the President, General Manager or any duly authorized representative of the said factory. The daily records shall be reported to the Commissioner of Internal Revenue, thru the Chief, Tobacco Tax Division. Factory's Bobbin Room shall at all reasonable times be available for on-the-spot verification/inspection by duly authorized internal revenue officers who shall determine the correctness of actual stocks therein as against those appearing per records or books. cd i All existing Orders, Circulars, Memoranda or Issuances inconsistent herewith are deemed revoked and/or repealed. This Order takes effect immediately. (SGD.) BIENVENIDO A. TAN, JR. Commissioner