Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 62)
The main purpose of Presidential Decree No. 62 is to amend tobacco laws concerning the Virginia tobacco industry to ensure the economic viability and well-being of Virginia tobacco farmers, promote the exportation of good quality Virginia tobacco, and regulate the importation of foreign leaf tobacco for blending purposes.
Only bona fide cigarette manufacturers owned or controlled by Filipino citizens may be authorized by the Philippine Virginia Tobacco Administration Board to import foreign leaf tobacco for blending purposes, subject to certain limitations and conditions.
The importation of foreign leaf tobacco for blending purposes is limited to not more than one kilogram of imported foreign leaf tobacco for every four kilograms of local Virginia leaf tobacco purchased.
The importation of foreign leaf tobacco shall not exceed five million kilograms in any year unless the industry has specific exigencies that require otherwise.
An amount equivalent to 100% of the landed cost of the imported foreign leaf tobacco shall be imposed as tax; no other tariffs or taxes shall be imposed.
The proceeds shall be used to pay the Philippine Virginia Tobacco Administration's obligations to the farmers, FaCoMas, and the Central Bank of the Philippines.
After June 1974, the Administration was granted an extension of five years within which to pay the balance of its indebtedness to the Central Bank of the Philippines.
Private enterprise shall exclusively undertake the trading of locally produced Virginia leaf tobacco starting from January 1, 1974, as trading operations supervised by the Philippine Virginia Tobacco Administration shall continue only up to December 31, 1973.
The minimum prices per kilogram are: Grade A - ₱3.60, Grade B - ₱3.00, Grade C - ₱2.50, Grade D - ₱2.00, and Grade E - ₱1.50.
The Philippine Virginia Tobacco Administration is responsible for determining the description of each grade of tobacco.
Republic Acts Numbered 698, 1194, 2265, and 4155, including all enactments, legislative acts, and rules inconsistent or incompatible with this Decree, are repealed or modified accordingly.
The Philippine Virginia Tobacco Administration is tasked with promulgating rules and regulations for the proper implementation and enforcement of this Decree.