Matches Regulations

March 2, 1957 REVENUE REGULATIONS NO. V-53 SUBJECT : Matches Regulations TO : All Internal Revenue Officers and Others Concerned SECTION 1. Scope. Pursuant to the authority granted in section 338, in relation to section 4 (b), (c) and (j), of the National Internal Revenue Code, as amended, the following regulations relative to the manufacture or importation of, and the collection and payment of the specific tax on locally manufactured and/or imported matches are hereby promulgated to supersede all precedents, rulings, regulations, general circulars, and administrative orders heretofore published on the same subject and shall be known as Revenue Regulations No. V-53 or "The Matches Regulations". ECTAHc SECTION 2. Definition of Terms. As used in these regulations, the following terms shall be interpreted to mean as follows: (a) "Box" A receptacle that completely encloses its contents. (b) "Box of Matches" A box containing match sticks. (c) "Booklet" or "Book matches" Match sticks, usually numbering 20, 30 or 40 covered by flaps of wood, cardboard or other convenient materials. (d) "Gross" twelve dozens. (e) "A gross of boxes" one hundred forty-four (144) boxes of matches. (f) "Match" anything that readily ignites when rubbed on a rough or chemically prepared surface. (g) "Manufacturer or importer of matches" includes those whose business is to make, manufacture, or import matches contained in boxes, books or booklets for sale. aTHCSE SECTION 3. Administrative Schedule and Paragraph Used in the Collection of Specific Tax on Matches. The administrative schedule and paragraph for manufacturers or importers of matches is A-6. SECTION 4. Specific Tax on Matches. On each gross of boxes containing not more than eighty sticks to a box, fifty centavos (P0.50); and on each gross of boxes containing over eighty sticks to a box, a proportionate additional tax. (Sec. 138, National Internal Revenue Code) The specific tax on books or booklets of matches will be computed on the basis of the "gross of boxes", illustrated as follows: Multiply the number of books or booklets by the number of sticks contained in each book or booklet. Divide the product by 80. Then divide the dividend by 144. The resulting dividend constitutes the number of "gross of boxes". Multiply this resulting dividend by P0.50 to arrive at the tax. SECTION 5. Manner of Payment of Specific Tax. The specific tax in imported matches shall be paid to the Commissioner of Customs prior to the release thereof from customs custody. The specific tax on matches of domestic manufacture shall be paid to the Collector of Internal Revenue thru the Chief, Miscellaneous Specific Taxes Section, Specific Tax Division of the Bureau if in Manila, or to the City or Deputy Provincial Treasurer, if in the province, immediately before removal thereof from the place of production. The corresponding official receipt shall be issued therefor. SECTION 6. Requirements Preparatory to Engaging in Business. No person shall engage in business as a manufacturer in matches unless the premises upon which the business is to be conducted shall have been approved by the Collector of Internal Revenue. (Sec. 151, National Internal Revenue Code) Before any person may lawfully engage in business as manufacturer of matches, he must file a written application with the Collector of Internal Revenue, if in Manila, or to the Regional Director, thru the Provincial Revenue Officer, if in the provinces, for a permit to engage in such business, to which application shall be attached a blue-print of his proposed factory. If his application is approved, the corresponding permit shall be issued to him but before the delivery thereof to him, he must file a surety bond in an amount equal, as nearly as can be estimated, to twenty per centum of the taxes payable by him during the average year. Such bond shall be conditioned upon the faithful compliance, during the time such business is followed, with the law and regulations relating to such business and for the satisfaction of all fines and penalties imposed by the National Internal Revenue Code. No such bond shall, however, be required in an amount exceeding fifty thousand pesos nor be received in a sum less than one thousand pesos. (Sec. 156, National Internal Revenue Code) All papers required by these regulations to be filed must be accomplished in triplicate. All applications filed in accordance with these regulations shall be submitted to the Collector of Internal Revenue for approval. In the case of applications filed with the offices of the provincial Revenue officers, it shall be the duty of the latter to conduct the necessary investigation after which he shall forward the application, thru the Regional Director, to the Collector of Internal Revenue, with a statement of his findings and recommendations. TEacSA SECTION 7. Location of Factory. The factory must be so located as to be easily accessible to all internal revenue officers at all times.] SECTION 8. Manufactory Building. The factory building must be built of strong materials, preferably concrete; must meet safety standards and must have well-ventilated and sanitary compartments. It must have storage compartments for raw materials and finished products; drying and labeling compartments; and a separate compartment for products intended for immediate removal. The factory building shall have only one main entrance. The Collector of Internal Revenue may, however, in meritorious cases, authorize the use of more than one entrance. Each authorized entrance shall be provided with two (2) padlocks. The keys to one padlock shall be in the custody of the internal revenue officer assigned thereat and the keys to the other, in the custody of the manufacturer or his representative. The manufactory compound shall be fenced either with wood, stave or barbed wires in such manner as to render it inaccessible to unauthorized persons. An approved manufactory building shall not be used for any other purpose than the manufacture of matches. SECTION 9. Official Register Book or Transcript Sheet. The manufacturer or importer of matches shall keep an official register book or transcript sheet (B.I.R. Form No. 21.02) which shall be open at all times to inspection by internal revenue officers. Installation of the official register book shall be made by an internal revenue officer who shall enter on the fly-leaf thereof the date of the installation and notations to the effect that all the provisions of the internal revenue laws and regulations governing the business operations have been fully explained to the manufacturer or importer. Report of the installation of the official register book shall be made and transmitted to the Collector of Internal Revenue, thru the Provincial Revenue Officer and the Regional Director, if in the province. (a) Entries in the official register book . There shall be entered on the "Debit" side of the official register book the kind and quantity of matches imported or produced daily and a statement of the number of sticks contained in each book, booklet or box of matches. The entry shall show the date of importation or production. Every removal of imported or locally manufactured matches shall be entered in the "Credit" side of the official register book showing the date, brand and quantity in gross of boxes or books or booklets of matches removed; the names and addresses of the consignees; invoice number; and the amount of specific tax paid and the official receipt number. (b) Monthly transcript sheet to be rendered. Within eight (8) days after the end of each month, the manufacturer or importer shall present to the city treasurer or deputy provincial treasurer of the city or municipality wherein his factory is situated a true and exact transcript of all entries on both the "Credit" and "Debit" sides of his official register books during the month last passed and shall strike a balance in the official register book and on the transcript sheets showing the balance of stock on hand, if any, and said balance of stock shall be carried over as the first entry for the next succeeding month on the "Debit" side of the register book. SECTION 10. Packing and Marking of Manufactured Matches. The boxes, packages, cartons, cases, books, booklets, and similar containers of matches shall bear the mark or brand of the manufacturer. On these labels, there shall be indicated the administrative schedule, assessment number, and the number of sticks contained in the book or booklet or box of matches. If books, booklets or boxes of matches are removed from the manufactory packed in cartons, cases and any similar containers, there shall be indicated on the packaging materials the number of books, booklets or boxes of matches contained therein and the date of removal. DAEcIS SECTION 11. Matches for Export. Matches removed by the manufacturer for exportation and are actually exported without returning to the Philippines are not subject to specific tax. SECTION 12. Marking of Containers of Matches for Export. All containers of matches removed from the place of manufacture for export shall be marked "For Export". SECTION 13. Proof of Exportation; Exporter's Bond. Exporters shall submit proof of exportation satisfactory to the Collector of Internal Revenue, and when the same is deemed necessary, they shall be required to give a bond prior to the removal of the goods for shipment, conditioned under the exportation of the same in good faith. The proof of exportation shall be submitted within thirty (30) days from the date of exportation. SECTION 14. Exportation of Matches Subject to Specific Tax. Matches of domestic manufacture and sold in the Philippines by the manufacturer for exportation by the buyer are subject to specific tax. The specific tax shall be paid immediately before removal from the place of production. SECTION 15. Information to be Given by the Manufacturers or Importers of Any Apparatus or Mechanical Contrivance Specifically for the Manufacture of Matches. Manufacturers and importers of any apparatus or mechanical contrivance specifically for the manufacture of matches, shall, before any such apparatus or mechanical contrivance is removed from the place of manufacture or from the customhouse, give written information to the Collector of Internal Revenue as to the nature and capacity of the same, the time when it is to be removed, and the place for which it is destined, as well as the name of the person by whom it is to be used; and such apparatus or mechanical contrivance shall not be set up nor dismantled or transferred without a permit in writing from the Collector of Internal Revenue. (Sec. 160, National Internal Revenue Code) SECTION 16. Signs to be Displayed. A billboard not less than six (6) centimeters high, showing the name of the manufacturer and the words "Registered Manufacturer of Matches" shall be displayed conspicuously on the outside of the place of manufacture. SECTION 17. Roll of Administrative Schedule, Paragraph and Assessment Number. The Chief, Miscellaneous Specific Taxes Section, Specific Tax Division of the Bureau of Internal Revenue shall keep a chronological assessment roll of the manufacturers and importers of matches, for internal revenue tax purposes. SECTION 18. Penalty for Violation of the Provisions of These Regulations. Any person who shall violate any provision of these regulations for which violation the National Internal Revenue Code or any other law does not provide any specific penalty shall be penalized under section 352 of the aforesaid Code, by a fine of not more than P300.00 or by imprisonment for not more than six months, or both. SECTION 19. Date of Effectivity. These regulations shall take effect upon publication in the Official Gazette. CTaSEI (SGD.) JAIME HERNANDEZ Secretary of Finance RECOMMENDED BY: (SGD.) JOSE ARAAS Collector of Internal Revenue