Section 302 of the National Internal Revenue Code, as amended Re: Tobacco Inspection Fees

December 26, 1972 REVENUE REGULATIONS NO. 01-73 SUBJECT : Section 302 of the National Internal Revenue Code, as amended by Presidential Decree No. 69, dated November 24, 1972, regarding tobacco inspection fees TO : All Internal Revenue Officers and Others Concerned SECTION 1. Scope . Pursuant to Presidential Decree No. 69 dated November 24, 1972 amending, among others, Section 302 of the National Internal Revenue Code, the following regulations governing tobacco inspection fees, the kinds of articles subject to inspection and payment thereto, who are required to pay and when shall inspection fees be paid are hereby promulgated. SECTION 2. Articles subject to inspection and payment of tobacco inspection fees . (a) Cigars, cigarettes, smoking tobacco, chewing tobacco, snuff tobacco; cdta (b) Leaf tobacco, scraps, stems, stripped tobacco, threshed tobacco, sweepings of tobacco, midribs, cuttings, fine-cut shorts, refuse, siftings and other manufactured products of tobacco, except stems, tobacco powder or dust and sweepings for actual burning or destruction; (c) Tobacco powder or dust and tobacco waste removed for agricultural, industrial or research purposes; and (d) Leaf tobacco, scrap and other partially manufactured tobacco on which the inspection fee has previously been paid at the point of origin or shipment but reopened for redrying, reclassification, regrading, or repacked in the same or another standard packing for domestic sale, factory use, export or for deposit are subject to re-inspection and payment of the corresponding re-inspection fees before removal. SECTION 3. Inspection fees imposed . The following articles are subject to inspection fees at the rates provided for under Presidential Decree No. 69: P.50 For each thousand cigars or fraction thereof; P.10 For each thousand cigarettes or fraction thereof; P.02 For each kilogram of leaf tobacco or fraction thereof; P.03 For each kilogram of fraction thereof of scraps, stems, stripped tobacco, threshed tobacco, sweepings of tobacco, siftings, snuff, smoking, chewing and other manufactured products of tobacco, tobacco powder or dust and other tobacco waste removed for agricultural, industrial or research purposes. SECTION 4. When shall application for inspection be filed . A properly accomplished application for inspection of the articles mentioned herein shall be filed by the persons or entities mentioned under Section 5 hereof or by their duly authorized representatives before the date of removal of the said article. SECTION 5. Who are required to pay . Manufacturers, producers, exporters, importers, redriers, wholesale leaf tobacco dealers or owners and/or possessors of cigars, cigarettes, leaf tobacco, scraps, stems, stripped tobacco, regraded tobacco, repacked tobacco, sweepings of tobacco, threshed tobacco, redried tobacco, reclassified tobacco, midribs, cuttings, fine-cut shorts, refuse, siftings, chewing, snuff and other manufactured products of tobacco are required to pay the inspection fees provided herein. SECTION 6. Time for payment . The tobacco inspection fees on cigars, cigarettes, snuff, smoking and chewing tobacco removed from the respective factories for domestic sale or consumption shall be paid by the manufacturer, producer or owner thereof within ten (10) days after the end of each month while the inspection fees on leaf tobacco, scraps, stems, stripped tobacco, threshed tobacco, redried tobacco, reclassified tobacco, regraded tobacco, repacked tobacco, sweepings of tobacco, midribs, cuttings, fine-cut shorts, refuse, siftings and other manufactured products of tobacco shall be paid immediately before removal from the establishment of the wholesaler, repacker, manufacturer, exporter or redrying plant. In the case of exports of articles herein mentioned the inspection fees shall be paid by the exporter before exportation while on imported leaf tobacco and products thereof, the inspection fees shall be paid by the importer before removal from custom's custody. If the inspection fee is not paid within the time specified above, a surcharge of twenty-five per centum shall be imposed the increment to form part of the inspection fee. SECTION 7. Application . The foregoing provisions shall apply to removal, transfer, or sale of the above-mentioned articles intended for domestic sale, factory use, deposit, export or for importation. SECTION 8. Repealing Clause . All rules and regulations, administrative orders and general circulars or portions thereof inconsistent herewith are hereby repealed or modified accordingly. SECTION 9. Date of effectivity . These regulations shall take effect on January 1, 1973. CESAR VIRATA Secretary of Finance Recommended by: MISAEL P. VERA Commissioner of Internal Revenue