Small Tobacco Factories Regulations

July 1, 1951 REVENUE REGULATIONS NO. V-14 SUBJECT : Small Tobacco Factories Regulations CHAPTER I SECTION 1. Scope. The following regulations shall govern the licensing and supervision over the operation of small tobacco factories and the payment of specific taxes due on tobacco products produced therein. For purposes of these regulations, the term "small tobacco factories" shall include any factory where cigars and/or cigarettes are manufactured, whose total estimated specific tax payable in a year shall not exceed five thousand pesos (P5,000.00), it shall operate during the succeeding year under the provisions of Regulations No. 27 of the Department of Finance. No factory licensed to operate under Regulations No. 27 shall be allowed to operate under these regulations. Such factories shall, therefore, continue to be governed by the provisions of Regulations No. 27, irrespective of the amount of specific tax paid by them in a year. cCTaSH In connection with the operation of small tobacco factories, matters not covered by these regulations shall be governed by the provisions of Regulations No. 27. Small tobacco factories may be licensed to operate under the provisions of these regulations only if established in the provinces of Rizal, Bulacan, Nueva Ecija and Ilocos Sur and such other provinces as may be designated by the Collector of Internal Revenue. CHAPTER II Conditions Precedent to Engaging in the Manufacture of Tobacco Products SECTION 2. Prior Approval of the Collector of Internal Revenue Necessary. No manufacturer of tobacco products will be permitted to engage in business until his plant and bond have been approved by the Collector of Internal Revenue. Accordingly, no payment of the privilege tax will be accepted until the approval of the Collector of Internal Revenue is first had. SECTION 3. Application for Permission, Names of Authorized Managers to be Furnished. Any person who intends to engage in the business of a tobacco manufacturer shall make application in writing to the Collector of Internal Revenue for permission to engage in such business, briefly describing the location and attaching to his application a plan of the building or buildings and equipment proposed to be used for factory purposes, or its branches showing in detail each room and its intended use. The application will be referred to an internal revenue officer for thorough investigation, report and recommendation. aCTcDS Manufacturers authorizing one or more persons to act as manager or managers of their business shall file with the deputy provincial treasurer of the municipality in which the factory is situated a power of attorney in duplicate in favor of the person or persons authorized to sign, in their names, requisition for internal revenue stamps, the entries in the official register and auxiliary register books, the entries in the transcript sheets, and other papers pertaining to internal revenue matters. The original of this instrument shall be forwarded to the Collector of Internal Revenue. SECTION 4. The Factory Building. The factory building or buildings shall be constructed in such a manner as to effectively prevent the removal of the manufactured products without the prepayment of the specific tax. The applicant, before constructing the building or renting one, should first consult the Collector of Internal Revenue or his authorized representative so as to ascertain whether the specifications of the building meet with the approval of the Collector of Internal Revenue. Before a license is issued, the factory owner should first apply for the final inspection of his factory premises and the approval thereof by the Collector of Internal Revenue. SECTION 5. Branch Factory. The building or buildings of the branch factory shall likewise be subject to the inspection and approval of the Collector of Internal Revenue. The specific tax on all cigars and cigarettes produced in the branch factory should first be paid before the said products are removed therefrom. No branch factory shall be established outside the district where the main or principal factory is located, and that no branch factory or factories will be permitted to be established that are not owned or operated exclusively by the owner or owners of the main or principal factory. By branch factory shall be understood a factory which is noncontiguous and subordinate to another located in the same district and belonging to the same owner. All raw materials removed from a principal to a branch factory must be removed in substantial containers under official invoice corresponding to the register book in which it is a debit, or in well wrapped bundles of convenient size accompanied by an official L-7 invoice showing the net weight of each bundle, the number of bundles, and the total net weight, provided that raw materials may be removed or transferred from the main factory to the branch factory in bales or in closed cases at the discretion of the Collector of Internal Revenue. Said raw materials shall be assorted, dried, cleaned, sterilized, or otherwise prepared in the main factory before its removal to the branch factory and that the amount to be supplied to the branch factory shall not be more than what will be required for three days work in said branch factory. SECTION 6. No small tobacco factory shall be allowed to operate at nighttime except upon special permit in writing by the Collector of Internal Revenue. A written application for this purpose, stating the reasons and the period for which permission is requested, should be submitted and its approval secured. SECTION 7. A sign in letters not less than 6 centimeters high shall be placed and kept in a conspicuous position on the outside of every building used as a tobacco factory or warehouse, showing the name of the factory (commercial name), its schedule, paragraph, and assessment numbers, and the class or classes of business, as for example: Name of factory, A-5-98, Cigarette Factory SECTION 8. The owner of the factory shall provide himself with such equipment as the Collector of Internal Revenue may require for the purposes of weighing the raw materials used in the manufacture of cigars or cigarettes and for the cancellation of internal revenue stamps for affixture to the packages or containers of the manufactured products. CcSTHI CHAPTER III Sanitary Requirements SECTION 9. General Sanitary Provisions. The owner of the factory shall comply with the sanitary requirements of the health authorities of the municipality where the factory is located. The said owner shall, among other things, keep the floors swept and scrubbed, rubbish removed, and walls and ceiling cleaned. The factory premises should be kept healthful for the laborers as required by the health authorities. The laborers should be prohibited from spitting on the floor, or urinating or disposing of personal wastes inside the factory buildings. Washing facilities should be provided inside the factory, but toilet rooms should be maintained outside the factory buildings, unless allowed in writing by the Collector of Internal Revenue. Every laborer, workman, operator, or other employees of the tobacco factory, who is engaged in the handling, cleaning, preparing, making or packing of cigars or cigarettes, shall, upon arrival at the factory and before beginning work and after each visit to a closet or urinal and before resuming work, wash his or her hands thoroughly with soap and water and dry them with a clean towel. The Collector of Internal Revenue may, from time to time, impose upon the owner of the factory such additional sanitary requirements as are recommended by the health authorities or as he may deem proper. There shall be provided in every room of a tobacco factory at least one cuspidor for each ten persons. No person shall expectorate or deposit any mucus or phlegm on the floors or walls in or about the factory. The cuspidors herein required shall be of an impervious material with smooth polished surfaces, so as to be easily cleaned, and shall be emptied, cleaned with water and partially filled with disinfecting fluid every day, or oftener when so required by the health authorities. The revenue officers shall cooperate with the health authorities in this regard. An employee of the factory shall be detailed for this work by the owner of the factory or its manager, to see that the provisions of this section and the preceding one are carried out. SECTION 10. Insanitary Acts. No person engaged in the handling, preparation, processing, making, or packing of tobacco products or supervising such employment, shall perform, cause, permit, or suffer to be permitted any insanitary act during such employment, nor shall any such person touch or contaminate any tobacco products with filthy hands or permit the same to be brought into contact with the tongue or lips, or use saliva, impure water, or other unwholesome substances as a moistening agent; nor shall any such person trample, walk, or stand upon such tobacco or tobacco products or permit or suffer the same to be done. Care should also be taken, especially by women employed in the factory, that no loose hair should be allowed to fall and get mixed with the tobacco under process of manufacture. To this end, no women workers will be allowed to have their hair remain loose while within the factory premises. Containers of paste used in the manufacture and packing of cigars and cigarettes shall be washed every morning, and the paste for each day shall be cooked every morning. The use of paste left over from previous day is prohibited. SECTION 11. Authority of Health Authorities. The owner of factory shall comply with such requirements as may be imposed by the health authorities for the protection of the health of the laborers inside the factory or of the consumers of the tobacco products manufactured therein or of the public in general. The revenue officers shall cooperate with the health authorities in enforcing sanitary requirements. SECTION 12. These regulations shall take effect upon publication in the Official Gazette. (SGD.) PIO PEDROSA Secretary of Finance RECOMMENDED BY: (SGD.) S. DAVID Collector of Internal Revenue