Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 655)
The primary purpose of Presidential Decree No. 655 is to amend certain provisions of Republic Act No. 4155 to regulate the importation of foreign leaf tobacco for blending purposes, aiming to support local cigarette manufacturers and generate government revenue without disturbing local Virginia leaf tobacco prices.
Only bona-fide cigarette manufacturers that are owned or controlled by Filipino citizens, and authorized by the Philippine Virginia Tobacco Administration, may import foreign leaf tobacco for blending purposes.
Foreign leaf tobacco may be imported only when the Philippine Virginia Tobacco Administration believes it is necessary to improve the quality of locally made cigarettes and there is insufficient stock of foreign leaf tobacco for blending available locally.
Yes, the total importation shall not exceed six million kilograms in any year unless the exigencies of the industry require otherwise.
The Philippine Virginia Tobacco Administration is responsible for authorizing and regulating the importation of foreign leaf tobacco.
Yes, only bona-fide cigarette manufacturers owned or controlled by Filipino citizens can import foreign leaf tobacco, and only with authorization from the Philippine Virginia Tobacco Administration.
It determines the necessity for foreign leaf tobacco imports, authorizes manufacturers to import, and sets limitations, requirements, rules and regulations governing the importation.
Yes, it amends Section 4 of Republic Act No. 4155 as previously amended by Presidential Decree Nos. 62, 446, and 504.
The Decree took effect immediately upon its signing on February 4, 1975.
Yes, if the exigencies of the industry require it, the 6 million kilogram limit may be exceeded.