Amendments to Section 4 of Revenue Regulations No. V-50, as Amended by Revenue Regulations No. V-59, by Requiring the Display of Virginia Leaf Tobacco Samples of Different Standard Grades in the Warehouses of All Wholesale (L-3) Leaf Tobacco Dealers, and Amendments to Section 8 of Revenue Regulations No. V-50, as Amended by Revenue Regulations No. V-52

April 29, 1959 REVENUE REGULATIONS NO. V-67 SUBJECT : Amendments to Section 4 of Revenue Regulations No. V-50, as Amended by Revenue Regulations No. V-59, by Requiring the Display of Virginia Leaf Tobacco Samples of Different Standard Grades in the Warehouses of All Wholesale (L-3) Leaf Tobacco Dealers, and Amendments to Section 8 of Revenue Regulations No. V-50, as Amended by Revenue Regulations No. V-52 TO : All Internal Revenue Officers and Others Concerned Pursuant to the provisions of Section 388, in relation to Section 4(b) of Commonwealth Act No. 466, otherwise known as the National Internal Revenue Code, the following regulations, amendments to Section 4 of Revenue Regulations No. V-59 and Section 8 of Revenue Regulations No. V-52, are hereby promulgated and shall be known as Revenue Regulations No. V-67. SECTION 1. Section 4 of Revenue Regulations No. V-50, as amended by Revenue Regulations No. V-59, is hereby further amended to read as follows: Section 4. Limitation on the business of holders of L-3F, L-3R, L-4 and L-3 permits. Holders of L-3F permits (FACOMAS) may purchase, or receive flue-cured or sun-dried tobacco from bona fide tobacco planters only, which flue-cured or sun-dried tobacco may be sold or transferred only in favor of holders of L-3F permits; holders of L-3R permits may purchase or receive only flue-cured or sun-dried tobacco from holders of L-3, L-3R or L-4 permits, which flue-cured or sun-dried tobacco may be sold or transferred to cigarette manufacturers or any L-3 dealers; holders of L-3 permits may purchase or receive green leaf tobacco of their own production, which green leaf tobacco may be sold or transferred only to holders of L-3R permits after curing; holders of L-3 permits may purchase flue-cured or sun-dried Virginia type tobacco from tobacco planters, from holders of L-3F and L-3R permits, which flue-cured or sun-dried tobacco may be sold or disposed of to other registered wholesale leaf tobacco dealers, registered tobacco factories, or registered retail leaf tobacco dealers for domestic sale. All warehouses and or buying stations of the FACOMAS and other wholesale leaf tobacco dealers engaged in buying locally-grown Virginia leaf tobacco should display conspicuously in their establishments the different grade of Virginia leaf tobacco to serve as standards in purchasing leaf tobacco from planters. These samples shall be subject to the approval by the Bureau of Internal Revenue Tobacco Inspector assigned in the locality, and shall be kept in air-tight containers visible to the public and should be changed every fifteen (15) days. All leaf tobacco brought to a warehouse of a buyer by a tobacco planter shall be compared to the standards displayed in the warehouse. After such comparison, the grades of the leaf tobacco brought by the planter shall be determined by the buyer and seller. In case of disagreement between them the matter shall be submitted to the tobacco inspector assigned in the district for decision. At the end of the buying season, the old samples should be turned over to the Bureau of Internal Revenue Tobacco Inspector assigned in the locality for safe-keeping. For purposes of this section, wholesale leaf tobacco dealers (L-3, L-3F and L-3R) should submit together with the monthly transcript sheets as required in Revenue Regulations No. 17 of the Department of Finance, a certified statement showing the following: names and addresses of seller; date of each transaction or sale; and the quantity in kilos of leaf tobacco purchased. This statement shall be accomplished in triplicate, the original to be attached to the monthly transcript sheet, one copy to be forwarded to the Deputy Provincial Treasurer, and one copy to be retained by the wholesale leaf tobacco dealer concerned. AaHDSI SECTION 2. Section 8 of Revenue Regulations No. V-50 as amended by Revenue Regulations No. V-52, is hereby further amended to read as follows: Section 8. Holders of L-3 permits. All L-3 holders whose permits were granted before and after the effectivity of these regulations shall be allowed to handle flue-cured and sun-dried Virginia type tobacco in the manner provided for in Section 1 hereof and Revenue Regulations No. 17 of the Department of Finance. Heretofore, all holders of L-3 permits granted after the effectivity of Revenue Regulations No. V-52 and prior to the publication in the Official Gazette of these regulations whose scope of business before were limited to the purchase and handling of native and Virginia leaf tobacco in redried form and packed in hogsheads only may reapply for a permit to purchase or receive flue-cured and sun-dried Virginia leaf tobacco. However, as regards farmer's cooperative marketing association (FACOMAS) already organized and persons or entities already with redrying plants or flue-curing barns, they shall reapply for the new permit required by these regulations the moment these regulations take effect. Nothing in these regulations shall be construed to prohibit manufacturers (L-7) of Virginia type cigarettes to buy Virginia type leaf tobacco from the farmers, L-4 holders, cooperatives, or any private dealers. SECTION 3. Date of Effectivity. These regulations shall take effect upon promulgation in the Official Gazette. (SGD.) JAIME HERNANDEZ Secretary of Finance RECOMMENDED BY: (SGD.) JOSE ARAAS Commissioner of Internal Revenue Published in the Official Gazette on May 11, 1959, Vol. 55, No. 19.