Amendments to Sections 6, 9 and 10 of Revenue Regulations No. V-11

August 31, 1951 REVENUE REGULATIONS NO. V-17 SUBJECT : Amendments to Sections 6, 9 and 10 of Revenue Regulations No. V-11 TO : All Internal Revenue Officers and Others Concerned Pursuant to the provisions of Section 338, in relation to Section 4 of Commonwealth Act No. 466, otherwise known as the National Internal Revenue Code, the following regulations amending Sections 6, 9 and 10 of Revenue, Regulations No. V-11, are hereby promulgated and shall be known as Revenue Regulations No. V-17. SECTION 1. Section 6 of Revenue Regulations No. V-11 of the Department of Finance is hereby amended to read as follows: Sec. 6. Designation of agent abroad . The New York branch of the Philippine National Bank is hereby designated the Agent of the Collector of Internal Revenue for the distribution of stamps for affixture to packages or other containers of cigarettes intended for export to the Philippines. Each manufacturer in the United States issued stamps by the aforementioned Agent of the Collector of Internal Revenue shall file a good and sufficient bond with said Agent for the full value of the stamps. This bond shall remain in force until the Collector shall notify the Agent that the tax equivalent for all stamps issued the manufacturer has been paid or the stamps otherwise accounted for. HTcADC SECTION 2. Section 6 of Revenue Regulations No. V-11 is further amended by adding a new section as follows: Sec. 6a. Delivery of stamps to manufacturer . Importers of cigarettes of foreign manufacture shall present to the Collector of Internal Revenue their import licenses together with a request for delivery to their manufacturer in the United States of the required number of stamps. Upon approval of this request, the Collector of Internal Revenue shall transmit to the Agent in New York authority to deliver to the specified manufacturer a sufficient supply of stamps to meet the requirements of the licensed importation. One copy of this authorization shall be furnished the importation. One copy of this authorization shall be furnished the importer for his information. Notwithstanding the provisions of the foregoing paragraph, the Agent is authorized to enter into arrangements with manufacturers, of cigarettes in the United States who are represented by established importers in the Philippines for the maintenance of permanent inventories of internal revenue stamps. A list of the manufacturers authorized to maintain inventories of stamps in excess of licenses issued for importation of cigarettes into the Philippines will be furnished the Agent by the Collector of Internal Revenue. Such manufacturers will file with the Agent a good and sufficient bond to cover the face value of the stamps supplied the manufacturers in accordance with their first requisitions and additional supplies of stamps will be delivered the manufacturers against requisitions within the limits of their bond. The manufacturers shall maintain a perpetual inventory of stamps and shall submit to the Agent at the close of business on the last day of each month a detailed statement showing the number of stamps received, used, mutilated, and the stock remaining on hand at the end of the month. A copy of this statement will be sent by the manufacturers to the Collector of Internal Revenue of the Philippines. Stamps mutilated or destroyed in the process of affixture shall be replaced or credited to the manufacturer by the aforementioned Agent by the manufacturer setting forth the quantity, denomination and class of the stamps mutilated or destroyed, together with the identifiable remnants of the mutilated stamps. One copy of the statement shall be forwarded by the manufacturer to the Collector of Internal Revenue of the Philippines, Manila. Requests for credit for internal revenue stamps returned in good condition by the manufacturer to the Agent shall be made in writing to the said Agent within two years of the date of delivery of the stamps to the manufacturer. SECTION 3. Section 9 of Revenue Regulations No. V-11 is hereby amended so as to read as follows: Sec. 9. Certification by manufacturer of affixture of stamps . Every consular and/or commercial invoice accompanying a shipment of cigarettes for export to the Philippines on which payment of the specific tax due has been attested in the manner prescribed in Section 5 of these regulations shall contain the following certificate signed by the manufacturer or his representative: CAIHTE "I hereby certify that in accordance with the provisions of Revenue Regulations No. V-11 of the Bureau of Internal Revenue, Republic of the Philippines, Philippine internal revenue stamps attesting payment of the specific tax due have been affixed to the containers of cigarettes covered by this document in the manner prescribed by Section 5 of the said regulations." In addition to the foregoing, the manufacturer shall submit to the New York branch of the Philippine National Bank and to the Collector of Internal Revenue of the Philippines, Manila, in connection with each commercial or consular invoice issued for cigarettes exported to the Philippines a statement showing the name and address of the consignee, the number and denominations of stamps received, the number affixed to packages contained in the shipment, the number mutilated or destroyed in the process of affixture (and so reported to Agent) and the number on hand. If the shipment is made by a manufacturer maintaining a perpetual inventory under the conditions set forth in Section 6a, the statement will contain only the name and address of the consignee and the number of stamps affixed to the shipment. SECTION 4. Section 10 of Revenue Regulations No. V-11 is hereby amended so as to read as follows: Sec. 10. Payment of tax . The specific tax on imported cigarettes shall be paid to customs officers before the release of the shipment from the custom house, or if the shipment has been stored in a bonded warehouse, when the cigarettes are withdrawn from bond. Notwithstanding the foregoing, the importer shall be liable for the full value of the stamps affixed to the shipment according to the certified commercial or consular invoice of the shipper referred to in Section 9 of these regulations, less any amounts established as short landed in accordance with established customs regulations and procedure. aScITE SECTION 5. These regulations shall take effect on November 1, 1951. Secretary of Finance RECOMMENDED BY: S. DAVID Collector of Internal Revenue