Amendment to Revenue Regulations No. 17, as amended

January 7, 1965 REVENUE REGULATIONS NO. 01-65 SUBJECT : Amendment to Revenue Regulations No. 17, as amended TO : All Internal Revenue Officers and Others Concerned Pursuant to the provisions of Section 338, in relation to Section 4 of the National Internal Revenue Code, the following regulations, amending section 4 of Revenue Regulations No. 17, as amended, relating to L-6 permittees engaged in the threshing, scrapping, stripping and exporting the same, are hereby promulgated and shall be known as Revenue Regulations No. 1-65. SECTION 1. Section 4 of Revenue Regulations No. 17, otherwise known as the Internal Revenue Leaf Tobacco Regulations, as amended, is hereby further amended by adding or inserting among the schedules and paragraphs therein provided a new administrative schedule known as "L-6 WHOLESALE TOBACCO DEALERS ENGAGED IN THRESHING, SCRAPPING, STRIPPING, SELLING, AND EXPORTING" the same. LLjur SECTION 2. The tobacco dealers affected by this additional schedule under this regulations are only the wholesale dealers of leaf tobacco who will thresh, strip, or scrap whole leaf tobacco for themselves and/or other L-6 permittees for export or holders of an L-7 permit who manufacture articles subject to specific tax. SECTION 3. Requirement of an L-6 Permittee . An L-6 permittee shall provide himself with an adequate partition, completely separated from his or its L-3 or L-7. Such partition shall be duly approved by the Commissioner of Internal Revenue upon recommendation of the Revenue Operations Head (Specific Tax Department), or the Regional Director concerned or his duly authorized representative. SECTION 4. Manner of Disposing Stocks of an L-6 Permittee . (1) Transfer, dispose of or remove the whole leaf tobacco classified by him to any wholesale leaf tobacco dealer (L-3) or to any manufacturer of tobacco products subject to specific tax under a written permit from the Commissioner of Internal Revenue or his duly authorized representative; (2) Transfer, dispose of or remove strips, scraps or stems of leaf tobacco manufactured by him which is unfit for export to other manufacturer of tobacco products subject to specific tax under a written permit from the Commissioner of Internal Revenue or his duly authorized representative; (3) Transfer, dispose of or remove the strips, scraps or stems or midribs of leaf tobacco to another L-6 permittee, if the latter will export or sell the same to a manufacturer of article subject to specific tax under a written permit from the Commissioner of Internal Revenue or his duly authorized representative; (4) Transfer leaf tobacco, stripped tobacco, scrap tobacco, threshed tobacco and/or stems from one warehouse to another owned and operated by the same person by preparing the corresponding official guias to accompany the transfer; and (5) Dispose of stems, either for destruction or for agricultural purposes, upon written permit from the Commissioner of Internal Revenue or his duly authorized representative. However, in cases of force majeure or extreme necessity, transfers can be made without securing first the corresponding permit from the Commissioner of Internal Revenue, but such transfer shall, in all cases, be reported to him in writing or to the Regional Director concerned, as soon as possible. For the purpose of this Regulations, the Commissioner of Internal Revenue will designate from time to time a duly authorized representative in a particular area. SECTION 5. Exemption from Securing L-6 Permit and Keeping of Books of Accounts or Records . A holder of an L-7 permit who also export need not secure an L-6 permit and keep separate books of accounts or records for his exports, provided that his transactions are entered and described under the Item "FOR EXPORT" in his L-7 books (BIR Form No. 31.02). Pending the issuance of the new printed books of accounts or records for L-6 permittees, they may be allowed to keep and use the L-7 Official Register Book. SECTION 6. Inspection of Manufactured Products of Tobacco . Pursuant to the provisions of Section 6 of Act No. 2613, in relation to Section 302 of the National Internal Revenue Code, as amended, all manufactured or partially manufactured products of leaf tobacco removed from the place of its manufacture (L-6 permittee) shall be subject to inspection before removal and the corresponding inspection fee shall be paid. SECTION 7. Applicable Regulations . The provisions of Regulations No. 17, 47, 50 and Revenue Regulations No. V-39, all as amended, otherwise known as the Internal Revenue Leaf Tobacco Regulations, the Revised Regulations for inspection of leaf tobacco and manufactures thereof, as amended, the Regulations on wholesale Dealer of Virginia Leaf Tobacco and the Tobacco Products Regulations, respectively, are hereby extended and made applicable to this regulations, insofar as they are consistent herewith. SECTION 8. The provisions of existing regulations and all circulars or rulings issued which are inconsistent herewith are hereby repealed. SECTION 9. Date of Effectivity . These regulations shall take effect upon promulgation in the Official Gazette. cdll RUFINO G. HECHANOVA Secretary of Finance Recommended by: BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue ATTACHMENT February 17, 1965 The Director Bureau of Printing Manila S i r : I have the honor to forward herewith a copy of Revenue Regulations No. 1-65, the subject of which is an "Amendment to Revenue Regulations No. 17, as amended", dated January 7, 1965, with the request that it be published in the Official Gazette on its first available issue. cdtech Very truly yours, MISAEL P. VERA Deputy Commissioner of Internal Revenue