Amendments to Revenue Regulations No. V-39 of the Department of Finance

August 22, 1960 REVENUE REGULATIONS NO. V-72 SUBJECT : Amendments to Revenue Regulations No. V-39 of the Department of Finance TO : All Internal Revenue Officers and Others Concerned Pursuant to the provisions of Section 338, in relation to Section 4, both of the National Internal Revenue Code, the following regulations amending Sections 5, 6 and 31 of Revenue Regulations No. V-39 of the Department of Finance are hereby promulgated and shall be known as Revenue Regulations No. V-72. SECTION 1. Section 5 of Revenue Regulations No. V-39 is hereby amended by inserting the following paragraph between the first and second paragraphs thereof, and by changing the rates of specific tax under subsections (a) (4), (a) (5), (a) (6), (a) (7), (a) (8), (a) (9), (a) (10), and (a) (11) of said Section 5, and to read as follows: SEC. 5. Payment of specific tax. A special permit shall be required for the removal of tobacco products intended for sample or advertisement. Before the removal of tobacco products intended for sample or advertisement, the manufacturer thereof shall first secure the written authority of the Commissioner of Internal Revenue. There must be printed in bold letters on the original containers of such cigarettes the words "For Sample" or "For Advertisement", and the removal thereof must be supported by invoices containing a notation of the words "For Sample" or "For Advertisement". Sample cigarettes shall be packed in original containers of 3's or 5's, and the internal revenue strip stamps denoting payment of the specific tax due on said cigarettes shall be affixed to the secondary container in such a manner as to prevent the removal of the said cigarettes without totally destroying the said stamps. The manufacture and removal of sample cigarettes shall be entered in the official register book in the same manner as regularly manufactured cigarettes. (a) Denominations and classes of stamps. (f) For affixture to packages (cajetillas) of cigarettes manufactured out of Virginia type tobacco and/or flue-cured tobacco, not wrapped in tin foil or cellophane nor packed in cartons or in tin cans, 71 millimeters or less in length weighing 1-1/4 kilograms per thousand, containing 5, 10 or 20 cigarettes to the package or box of the P8.00 per thousand class; HTDCAS (5) For affixture to packages (cajetillas) of cigarettes manufactured out of Virginia type tobacco and/or flue-cured tobacco, not wrapped in tin foil or cellophane nor packed in cartons or tin cans over 71 millimeters in length or over 1-1/4 kilograms per thousand in weight, containing 5, 10 or 20 cigarettes to the package or box of the P16.00 per thousand class; (6) For affixture to packages (cajetillas) or boxes of cigarettes manufactured out of Virginia type tobacco and/or flue-cured tobacco wrapped in tin foil or cellophane or packed in cartons covered with paraffin or wax paper or in tin can, 71 millimeters or less in length weighing 1-1/4 kilograms or less per thousand, containing 5, 10, 20 or 50 cigarettes to the package or box of the P12.00 per thousand class; (7) For affixture to packages (cajetillas) or boxes of cigarettes manufactured out of Virginia type tobacco and/or flue-cured tobacco, wrapped in tin foil or cellophane or packed in cartons covered with paraffin or wax paper or in tin cans, over 71 millimeters in length or over 1-1/4 kilograms per thousand in weight containing 10 or 20 cigarettes to the package or box of the P24.00 per thousand class; (8) For affixture to packages (cajetillas) or boxes of cigarettes manufactured out of Virginia type tobacco and/or flue-cured tobacco, not wrapped in tin foil or cellophane nor packed in cartons or tin cans, 71 millimeters or less in length weighing 1-1/4 kilograms per thousand, mechanically wrapped or packed, containing 5, 10 or 20 cigarettes to the package or box of the P17.60 per thousand class; (9) For affixture to packages (cajetillas) or boxes of cigarettes manufactured out of Virginia type tobacco and/or flue-cured tobacco, not wrapped in tin foil or cellophane nor packed in cartons, covered with paraffin or wax paper or in tin cans, over 71 millimeters in length or over 1-1/4 kilograms per thousand in weight, mechanically wrapped or packed, containing 5, 10 or 20 cigarettes to the package or box of the P35.20 per thousand class; (10) For affixture to packages (cajetillas) or boxes of cigarettes manufactured out of Virginia type tobacco and/or flue-cured tobacco, wrapped in tin foil or cellophane or packed in cartons covered with paraffin or wax paper or in tin cans, 71 millimeters or less in length weighing 1-1/4 kilograms per thousand, mechanically wrapped or packed, containing 10 or 20 cigarettes to the package or box of the P26.40 per thousand class; (11) For affixture to packages (cajetillas) or boxes of cigarettes manufactured out of Virginia type tobacco and/or flue-cured tobacco wrapped in tin foil or cellophane or packed in cartons covered with paraffin or wax paper or in tin cans over 71 millimeters in length or over 1-1/4 kilograms per thousand in weight, mechanically wrapped or packed, containing 10, 20 or 50 cigarettes to the package or box of the P52.80 per thousand class; SECTION 2. Section 6 (b) of Revenue Regulations No. V-39 is hereby amended to read as follows: SEC. 6 (b). Cigarettes. Cigarettes manufactured out of Virginia type tobacco and/or flue-cured tobacco shall be packed in packages (cajetillas) or boxes containing 5, 10 or 20 cigarettes of the P8.00 per thousand class, P16.00 per thousand class, P12.00 per thousand class, P24.00 per thousand class, P17.60 per thousand class, P36.20 per thousand class, P26.40 per thousand class, and P52.80 per thousand class, provided that cigarettes of the P12.00 per thousand class may be packed in tins of 50 cigarettes while cigarettes made of leaf tobacco other than Virginia type tobacco and/or flue-cured tobacco, shall be packed in cajetillas or boxes containing 30 cigarettes of the P2.50, P3.75, P5.00, P5.50, P8.25, and P11.00 per thousand, respectively. Cigarettes of the P3.75 per thousand class having a length of more than 81 millimeters and a weight of more than 1-3/4 kilos per thousand class may be packed in cajetillas containing 20's, or cigarettes of the P3.75 per thousand class and up may be packed in boxes containing 100 cigarettes. SECTION 3. Section 31 of Revenue Regulations No. V-39 is hereby amended by inserting the following three (3) paragraphs between the third and the fourth paragraphs thereof, and to read as follows: LLjur SEC. 31. Return of damaged tobacco products or used containers in factory. A manufacturer who receives returned products of tobacco of his own manufacture must deposit the same in a storage room separate from the place of manufacture and must, within ten (10) days from receipt thereof, notify the Commissioner of Internal Revenue in writing, stating the kind of tobacco products, quantity, rate of specific tax, place of storage, and the reason or reasons for the return. Upon receipt of such notification, the Commissioner of Internal Revenue shall cause an investigation to be conducted and if the tobacco products are found unsalable because they are deleterious to health, he shall cause the destruction of the internal revenue strip stamps affixed thereto. A report on the destruction of the internal revenue strip stamps shall be submitted to the Commissioner of Internal Revenue, duly attested by the authorized representative of the firm and the internal revenue officer who supervised the destruction. No returned products of tobacco shall be kept by the manufacturer in the place of storage for more than six (6) months from the time of receipt thereof, except when authorized, in meritorious cases, by the Commissioner of Internal Revenue. After such period, the manufacturer shall submit a report to the Commissioner of Internal Revenue as to the final disposition of the said returned tobacco products. SECTION 4. Date of Effectivity. These regulations shall take effect upon publication in the Official Gazette. (SGD.) DOMINADOR R. AYTONA Secretary RECOMMENDED BY: (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue