Regulations on Wholesale Dealers of Virginia Leaf Tobacco

September 12, 1956 REVENUE REGULATIONS NO. V-50 SUBJECT : Regulations on Wholesale Dealers of Virginia Leaf Tobacco TO : All Internal Revenue Officers and Others Concerned Pursuant to the provisions of Section 338, in relation to Section 4, of the National Internal Revenue Code, the following regulations are hereby promulgated for the information and guidance of all concerned, and shall be known as Revenue Regulations No. V-50 or the Regulations on Wholesale Dealers of Virginia Leaf Tobacco. SECTION 1. Definitions. "Wholesale Dealer of Virginia Leaf Tobacco" includes one who procures and receives only locally produced or grown Virginia leaf tobacco and who warehouses, sells or offers for sale, delivers, barters or exchanges for himself or on commission not less than one standard bale, cask or hogshead of such leaf tobacco at any one time; "Bona fide Virginia leaf tobacco planter" includes a person whose stock of Virginia leaf tobacco is produced by him in a land of which he is the owner or lessee. For purposes of these regulations, the fact that a person is a bona fide Virginia leaf tobacco planter should be certified to by means of a certificate to be issued by the Deputy Provincial Treasurer of the locality where the leaf tobacco is produced or grown. The certificate is valid as long as the holder thereof continues to be a bona fide Virginia leaf tobacco planter, but only until the end of the year, unless renewed for another year, which renewal should be made during the month of December before the succeeding year. The certificate should be serially numbered and the number should appear before the name of the municipality where issued, such as "1-Bacnotan; 2-Bacnotan, etc." Likewise, the certificate should be accomplished in quadruplicate, the original of which should be issued to the planter one copy each should be forwarded to the Provincial Revenue Officer of the province concerned and the Collector of Internal Revenue and the remaining copy to be kept by the Deputy Provincial Treasurer for his file. SECTION 2. Administrative Designations. For administrative purposes, wholesale dealers of Virginia leaf tobacco shall be designated as Schedule L, Paragraph 3F, 3R or 4 as the case may be. DTcASE SECTION 3. To whom L-3F, L-3R or L-4 permits may be issued. L-3F permits may be issued only in favor of farmers' cooperative marketing associations (FACOMAS) duly organized in accordance with law; L-3R permits may be issued only in favor of person or entities having fully equipped redrying plants; while L-4 permits may be issued only in favor of persons or entities having flue-curing barns, after they have provided themselves with the necessary forms and have complied with all the requirements prescribed by Regulations No. 17 of the Department of Finance on applications for L-3 permits insofar as they are applicable to Virginia leaf tobacco. SECTION 4. Limitations on the Business of Holders of L-3F, L-3R and L-4 Permits. Holders of L-3F permits (FACOMAS) may purchase or receive flue-cured or sun-dried tobacco from bona fide tobacco planters only or from holders of L-4 permits, such tobacco to be sold or transferred only in favor of holders of L-3R permits; holders of L-3R permits may purchase or receive only flue-cured or sun-dried tobacco from holders of L-3F or L-4 permits such tobacco may be sold or transferred to cigarette manufacturers or any L-3 dealer; holders of L-4 permits may purchase or receive green leaf tobacco from bona fide tobacco planters only or may handle green leaf tobacco of their own production, such tobacco to be sold or transferred only to holders of L-3R and L-3F permits after curing. For purposes of this section, the purchasers or transferees of Virginia leaf tobacco from the bona fide tobacco planters thereof should demand from the latter the production of the certificate mentioned in Section 1 of these regulations and should note down its serial number and name of municipality and province where issued. Such certificate should be kept by the planter, subject at all time to inspection upon demand of internal revenue officers. SECTION 5. Applicability of Regulations No. 17 as Amended of the Department of Finance. As far as consistent with, and in the absence of any applicable provisions of these regulations, the provisions of Regulations No. 17, as amended, of the Department of Finance, otherwise known as the Internal Revenue Leaf Tobacco Regulation are hereby extended and made applicable to holders of L-3F, L-3R and L-4 permits, insofar as they concern holders of L-3 permits, the transportation or movement of leaf tobacco and the manner of supervision of internal revenue officers. SECTION 6. Tagging of Bales. Before removal of bales of Virginia leaf tobacco from any establishment or from a flue-curing barn for shipment to a redrying plant, the packer shall attach to the bales by means of wire and sealed with lead seal, a tag of not less than six inches long and three inches wide, and made of light card-board. The cost of the tag, seal and wire shall be borne by the packer and on one face of the tag there shall be printed in duplicate the following: TOBACCO INSPECTION TAG (VIRGINIA LEAF TOBACCO) Official Designation, L-___________________________ (Assessment Number) Bale Serial Number ______________________________ Packer's Grade __________________________________ Manager's Full Name _____________________________ Authorized Weight _______________________________ Official Guia Number _____________________________ The tag shall be perforated in the middle to facilitate its division into halves. On the other face of the tag, there shall be printed in duplicate the following: HDIaST TOBACCO INSPECTOR'S FINDING Official Grade _______________________________________ Inspector's Initial _____________________________________ Date of Inspection ____________________________________ SECTION 7. Marking of Hogsheads. After packing the redried Virginia leaf tobacco in hogsheads, the container shall be marked as follows: 1. P.I. Virginia Tobacco 2. Year of Harvest 3. The Official Grade in Full 4. The Schedule, Paragraph and Assessment Number of the Redrying Plant 5. Serial Number of Hogshead 6. The Gross Weight of the Packed Hogshead 7. The Weight of the Container 8. The Net Weight of the Tobacco It shall be the duty of the tobacco inspector and the person directly in charge of the redrying plant to see to it that the true grade of the tobacco as result of the inspection performed by the tobacco inspector is made on the hogshead. SECTION 8. Limitation on Holders of L-3 Permits. All holders of L-3 permits may, upon the taking effect of these regulations, handle Virginia type tobacco after the same has been redried and packed in hogsheads. However, as regards farmers' cooperative marketing association (FACOMAS) already duly organized, as well as those persons and entities already having redrying plants or flue-curing barns, at the taking effect of these regulations, they should re-apply for new permits required by these regulations. SECTION 9. Taking Effect of These Regulations. These regulations shall take effect upon promulgation in the Official Gazette. (SGD.) JAIME HERNANDEZ Secretary of Finance RECOMMENDED BY: (SGD.) SILVERIO BLAQUERA Collector of Internal Revenue Published in the Official Gazette, January 31, 1957, Vol. 53, No. 2, page 326.