Amendments to Revenue Regulations No. V-39, otherwise known as the Tobacco Products Regulations.

June 1, 1990 REVENUE REGULATIONS NO. 05-90 SUBJECT : Amendments to Revenue Regulations No. V-39, Otherwise Known as the Tobacco Products Regulations TO : All Internal Revenue Officers and Others Concerned Pursuant to the provisions of Section 245, in relation to Sections 4(j) and 156, all of the National Internal Revenue Code as amended, these Regulations are hereby promulgated to amend Section 5 of Revenue Regulations No. V-39 of the Department of Finance, as amended, prescribing the manner of paying the excise tax ( ad valorem or specific) on cigarettes, cigars and other products of tobacco and shall read as follows. "Sec. 5. Payment of Excise Tax on Cigars, Cigarettes and Other Products of Tobacco . cd "(a) On Cigars and Cigarettes. The payment of ad valorem tax imposed under Section 142 of the National Internal Revenue Code, as amended, upon cigars and cigarettes manufactured or produced in the Philippines for sale or consumption therein shall be made by the purchase, affixture, and cancellation of internal revenue strip stamps of the proper ad valorem tax rate to each and every original container of cigars and cigarettes immediately before removal from the place of manufacture or production. "(b) On other products of tobacco. The payment of specific tax imposed under Section 141 of the National Internal Revenue Code, as amended, upon other products of tobacco such as chewing tobacco and pipe or smoking tobacco manufactured or produced in the Philippines for sale or consumption therein shall be made by the purchase, affixture, and cancellation of internal revenue strip stamps of the proper value and denomination to each and every original container of chewing or smoking tobacco or other manufactured tobacco immediately before removal from the place of manufacture or production. "The actual time of payment of the taxes prescribed in paragraphs (a) and (b) hereof shall be the time when the strip stamps are affixed and cancelled. "The excise tax on imported cigars, cigarettes, and other products of tobacco shall be paid by the importer or owner thereof in the same manner as prescribed under paragraph (a) before the release of such articles from the Customhouse. No imported cigarettes shall be released by the Bureau of Customs unless the corresponding revenue strip stamps have been duly cancelled and affixed to each and every pack thereof. "(c) Classes of Strip Stamps and their Respective Color Schemes. Internal revenue strip stamps for cigars and cigarettes of the following classifications shall be sold by the Commissioner of Internal Revenue to manufacturers or importers in lots of not less than one hundred stamps: "1. For affixture to boxes or packs of cigars containing 10, 20, 25, 50, 100, 200, 250 or 500 cigars to a box or pack of the five percent (5%) ad valorem tax rate; "2. For affixture to packages (cajetillas) of cigarettes packed in thirty (30) cigarettes to a pack of the fifteen percent (15%) ad valorem tax rate, color red; "3. For affixture to packages (cajetillas) of cigarettes packed in twenty cigarettes to a pack of twenty percent (20%) ad valorem tax rate, color pink; "4. For affixture to packages (cajetillas) of cigarettes packed in twenty (20) cigarettes to a pack of the forty-five percent (45%) ad valorem tax rate, color blue; "5. For affixture to packages (cajetillas) of cigarettes packed in twenty (20) cigarettes to a pack of the fifty-five percent (55%) ad valorem tax rate, color yellow; acd "6. For affixture to packages (cajetillas) of imported cigarettes packed in twenty (20) cigarettes to a pack of the fifty-five percent (55%) ad valorem tax rate, color brown; "7. For affixture to packages of smoking or pipe tobacco containing 50, 100, 125, 450 and 500 grams to a package; "8. For affixture to packages of chewing tobacco containing 50, 100, 250, 500 and 750 grams to a package. "(d) Mode of Affixing Internal Revenue Strip Stamps. Internal revenue strip stamps shall be affixed to each pack or box containing cigars, cigarettes, smoking tobacco, and chewing tobacco in serial order, beginning with the lowest serial number on hand in the following manner: "(1) On Cigars. Internal revenue strip stamps for cigars packed in boxes or in paper packages or other containers shall be firmly attached to the outside of the box or package on the right hand side, and not less than two (2) centimeters from the end, or to the middle of the box or package running lengthwise, completely overlapping both ends in such a manner as effectually to seal the box or package and prevent removal of cigars without breaking the internal revenue strip stamps. "(2) On Cigarettes. Each pack (cajetilla) or box containing cigarettes of any class shall be closed at both ends. The internal revenue strip stamps for these cigarettes shall be firmly affixed to the middle of the upper end of the box or package running crosswise and overlapping both sides of it, before the packages or boxes are wrapped in cases or bundles for removal from the factory. "The strip stamps for cigarettes packed in round tin containers shall be so firmly affixed across the upper end of the container with part of the stamps lying on the cover and part of the body of the container as effectually to seal the container to prevent the removal of the cigarettes without breaking the strip stamps. "(3) On Smoking and Chewing Tobacco. Internal revenue strip stamps for smoking or chewing tobacco shall be firmly attached to the middle of the package running lengthwise, completely overlapping both ends in such manner as effectually to seal the package and render it impossible to remove the contents thereof without breaking the strip stamp. "If the cigars, cigarettes, smoking and chewing tobacco therein-mentioned are imported or of foreign manufacture, every pack or box of such tobacco products shall bear the words "For Export to the Philippines" and shall be affixed with Philippine internal revenue strip stamps either in the country where they are manufactured upon express authority from the Philippine Government or at the Philippine Customhouse, as the case may be. cd i "(e) Manner of Cancellation of Strip Stamps for Cigars, Cigarettes, Smoking and Chewing Tobacco. Internal revenue strip stamps of all kinds or denomination for affixture to packs or boxes of cigarettes and other tobacco products shall be cancelled by means of a rubber stamp or any cancelling machine or device approved by the Commissioner of Internal Revenue which shall leave a legible impression in ink showing the schedule, paragraph and assessment of the manufacturer or importer as well as the date of cancellation. "(f) Requisition for Strip Stamps. All internal revenue strip stamps for use in the payment of excise taxes by any manufacturer or importer shall be purchased thru a Stamp Requisition Form to be issued by the Commissioner of Internal Revenue upon request thereof. "(g) Filing of Manufacturer's Sworn Statements. The requirement of filing Manufacturer's Sworn Statements as prescribed under Revenue Regulations No. 7-86 shall remain in force." These Regulations shall take effect six (6) months after their approval, except in the case of strip stamps for cigars and other manufactured tobacco product which shall take effect immediately upon approval hereof. (SGD.) JESUS P. ESTANISLAO Secretary of Finance Recommending Approval: (SGD.) JOSE U. ONG Commissioner of Internal Revenue