Amendments to Sections 7(f) and 36(b) (1) and (2) of Revenue Regulations No. 17-67

September 27, 1972 REVENUE REGULATIONS NO. 09-72 SUBJECT : Amendments to Sections 7(f) and 36(b) (1) and (2) of Revenue Regulations No. 17-67, otherwise known as The Revenue Tobacco Inspection Regulations TO : All Internal Revenue Officers and Others Concerned Pursuant to the provisions of Section 338, in relation to Section 4, both of the National Internal Revenue Code, the following regulations amending Sections 7(f) and 36(b) (1) and (2) of Revenue Regulations No. 17-67, relative to the enforcement of the provisions of Act 2613, as amended, governing handling and movements of leaf and partially manufactured tobacco in the Philippines, are hereby promulgated and shall be known as Revenue Regulations No. 9-72. SECTION 1. Section 7(f) of Revenue Regulations No. 17-67 is hereby amended to read as follows: Sec. 7 Packing and Wrapping. (f) Rebaling . Tobacco purchases from whole-sale leaf tobacco dealers (L-3, L-3F, L-3R or L-6) and re-opened for reclassification, regrading, redrying or repacking for domestic sale, factory use or consumption shall be inspected and the corresponding inspection fees thereon shall be paid by the owner, repacker or redrier immediately or within five (5) days after such inspection but before removal of the said tobacco. Leaf tobacco and/or partially manufactured tobacco in the establishment of an L-6 permittee found unfit for export but repacked for local disposal shall, before removal from the establishment, be inspected and the corresponding inspection fee paid. Leaf tobacco transferred for stripping or threshing found to be unfit for export if repacked and returned to the consignor or owner thereof, shall be subject to inspection and the corresponding inspection fee shall also be paid; said transfer shall be accompanied by a guia and certified to as unfit for export by duly authorized representative of the Commissioner of Internal Revenue. SECTION 2. Section 36(b) (1) and (2) of Revenue Regulations No. 17-67 are hereby amended to read as follows: (b) Movements of leaf and partially manufactured tobacco. (1) An L-3, L-3R or L-6 permittee may sell or transfer packed leaf or partially manufactured tobacco to an L-3, L-3R, L-6, L-7 or B-14(a) holders, subject to the following requirements and conditions: a. All sales or transfers of leaf and/or partially manufactured tobacco herein contemplated irrespective of who owns the tobacco so sold or transferred shall be subject to prior inspection and payment of the corresponding tobacco inspection fee before removal of the tobacco and such transfer shall be subject to supervision; b. All leaf and/or partially manufactured tobacco from redrying plants shall be subject to inspection by duly authorized representatives of the Tobacco Inspection Service or other internal revenue officers specifically authorized to do so by the Commissioner of Internal Revenue and the corresponding inspection fee shall be paid before removal; c. All bales, cases or hogsheads of leaf and/or partially manufactured tobacco should be marked as follows: SD Sundried FCV Flue-cured Virginia RDV Redried Virginia BUR Burley Redried BU Burley N Native d. In all cases of removals or transfers of leaf and/or partially manufactured tobacco from the provinces intended for L-3, L-6, L-3R owned, operated, managed or controlled by cigar or cigarette manufacturers within the Greater Manila area, a written permit for such transfer should first be secured from the Tobacco Inspector-in-charge of the province if in the province or from the Chief, Tobacco Inspection Service if in Manila and suburbs. e. Whenever an exporter of leaf or partially manufactured tobacco desires to repack said tobacco in hogsheads into other standard bales or cases of the desired weight for export to suit the foreign buyers, a written permit therefore should first be secured from the Commissioner of Internal Revenue or the Chief, Tobacco Inspection Service. f. All wholesale leaf tobacco dealers (L-3, L-3R and L-6 permittees) engaged in the purchase and sale of leaf and partially manufactured tobacco indicated in paragraph "c" above, are required to file with the Bureau of Internal Revenue within one (1) month from the date of the promulgation of these Regulations, a Performance Bond of not less than THREE THOUSAND (P3,000.00) PESOS which amount may, however, be increased depending upon the volume of business being engaged in by said wholesale leaf tobacco dealers. Failure on the part of any wholesale leaf tobacco dealer to post the required bond within the time herein provided shall be sufficient cause for the revocation of the permit issued to engage in such business. (2) Each and every transfer or removal of tobacco for export, domestic sale, factory use, consumption or for deposit herein contemplated shall be reinspected and the corresponding reinspection fee paid before removal. Such removal or transfer shall be supervised by a representative of the Tobacco Inspection Service or other duly authorized representatives of the Commissioner of Internal Revenue. cdt SECTION 3. Repealing Clause . All rules, administrative orders, circulars or provisions of any revenue regulations inconsistent herewith are hereby repealed or modified accordingly. aisa dc SECTION 4. Date of Effectivity . These regulations shall take effect upon promulgation in the Official Gazette. CESAR A. VIRATA Secretary of Finance Recommended by: MISAEL P. VERA Commissioner of Internal Revenue