Amendments to Section 2, 7(f) and 36(b)(1) and (2) of Revenue Regulations No. 17-67, as amended

November 26, 1976 REVENUE REGULATIONS NO. 01-76 SUBJECT : Amendments to Section 2, 7(f) and 36(b)(1) and (2) of Revenue Regulations No. 1 7-67, as amended, otherwise known as the Revenue Tobacco Inspection o n Regulations TO : All Internal Revenue Officers and Others Concerned SECTION 1. Scope . Pursuant to the provisions of Section 338, in relation to Section 4 both of the National Internal Revenue Code, Sections 2, 7(f), and 36(b)(1) and (2) of Revenue Regulations No. 17-67, as amended, governing handling and movements of leaf and partially manufactured tobacco are hereby amended to read as follows: "Section 2. For administrative purposes the following designation, schedules, paragraphs and assessment numbers shall be used for designating the various classes of persons handling leaf tobacco and products of tobacco: (C-1) L-3TC Wholesale leaf tobacco dealers. Issued only in favor of persons or entities and at places designated and authorized by the Philippine Virginia Tobacco Administration." "Section 7(f) Repacking . Repacked leaf or partially manufactured tobacco shall be inspected and the corresponding inspection fees paid by the repacker or owner thereof before removal. This requirement shall not apply when the repacking becomes necessary because the packing materials thereof were destroyed through force majeure ." "Before any repacking contemplated herein is made a written advice to repack indicating therein the quantity and type shall be filed with the Chief, Tobacco Inspection Division, Bureau of Internal Revenue, copy furnished, the Chief, Specific Tax Branch if in the province. The Chief, Tobacco Inspection Division may send a tobacco inspector to supervise the repacking if he deems it necessary." "Section 36(b) Movements of leaf and partially manufactured tobacco. A. The following movement of leaf and partially manufactured tobacco shall be subject to inspection and payment of the corresponding inspection fee before removal: (1) Initial transfer of originally packed or repacked leaf or partially manufactured tobacco. (2) Loose leaf tobacco, permitted in meritorious cases, to be transferred from one province to another within the same geographical region. (3) Leaf and partially manufactured tobacco for export. B. The following movements of leaf or partially manufactured tobacco shall require prior written permit from the Tobacco Inspection Division if in Metro Manila including the province of Bulacan, or Revenue Tobacco Inspector in charge if in the province, and in the absence of the latter, any duly authorized internal revenue officer. (1) Leaf or partially manufactured tobacco to be transferred for deposit in a warehouse of different ownership. (2) By-products of leaf tobacco such as stems, siftings and/or other partially manufactured tobacco to be transferred to authorized transferees. (3) Leaf or partially manufactured tobacco transferred to an L-3, L-3R7, and L-6 or L-7 1/2; Provided, however, that no permit shall be required if the transfer or removal is made within 30 days from the date of the initial inspection. (4) Partially manufactured tobacco transferred to and from an L-6 or L-7 permittees for purposes of reprocessing. (5) Tobacco waste such as stems, sweepings or dust unfit for human consumption removed from L-3, L-3F, L-3R, L-3TC or L-6 for agricultural, industrial or research purposes or for actual destruction by burning or dumping. (6) The use of provisional packages when returning threshed or stripped or reprocessed tobacco from one L-6 to the owner L-6 permittee." cd SECTION 2. Repealing Clause . All rules, administrative orders, circulars or provisions of any revenue regulations inconsistent herewith are hereby repealed or modified accordingly. SECTION 3. Date of Effectivity . These regulations shall take effect immediately. PEDRO M. ALMANZOR Acting Secretary of Finance Recommended by: EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 ANNEX A 1st Indorsement January 8, 1976 Respectfully returned to the Commissioner of Internal Revenue, Manila, duly signed, the within Revenue Regulation dated November 26, 1975 on the subject: "Amendments to Section 2, 7(f), and 36(b) (1) and (2) of Revenue Regulations No. 17-67, as amended, otherwise known as the Revenue Tobacco Inspection Regulations" as recommended by that Bureau. PEDRO M. ALMANZOR Acting Secretary ANNEX B January 2, 1976 The Honorable The Secretary of Finance Manila Sir: We are herewith proposing an amendment to the existing regulations requiring multiple inspection and payment of the corresponding inspection fee on tobacco which we consider as unreasonable for regulatory purposes. Under this proposal, there will be only one initial inspection and another if the tobacco has been repacked. Other salient features of the proposed amendments are the following: 1. Administrative Purpose For administrative purposes, tobacco trading centers are given their own schedule and paragraph numbers to distinguish them from other tobacco dealers. 2. Repacking Repacked leaf or partially manufactured tobacco is subject to inspection and payment of the corresponding inspection fee before removal for whatever purpose. 3. Movements of leaf and partially manufactured tobacco For simplicity, movements of tobacco requiring inspection is proposed to be separated from the movements of tobacco requiring written permits. 4. Performance Bond This provision is proposed to be deleted inasmuch as there is no legal basis for the imposition of the same. 5. Tobacco dust and waste Inspection and payment of inspection fees on tobacco dust and waste unfit for human consumption for agricultural, industrial and/or research purposes was eliminated inasmuch as the same has very little or no commercial value. Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3