QuestionsQuestions (Republic Act No. 1194)
The main purpose of Republic Act No. 1194 is to amend Republic Act No. 698 to limit the importation of foreign leaf tobacco, particularly Virginia-type leaf tobacco, to protect and promote local tobacco production in the Philippines.
For 1954, the importation of foreign leaf tobacco is limited to forty percent of the total importation in 1950. For 1955, it is limited to twenty-five percent of the total importation in 1950.
Importation is authorized if, after the local harvest and reporting by towns, the indigenous production is insufficient to maintain local tobacco product manufacture at the level of the preceding fiscal year as certified by the Bureau of Internal Revenue. The President may then authorize importation to meet the shortfall.
The law does not limit the importation of wrapper leaf tobacco for cigars or chewing tobacco and prohibits the importation of processed tobacco except Turkish tobacco.
The Monetary Board of the Central Bank distributes imported Virginia-type leaf tobacco among legitimate manufacturers based on their production reflected by tax payments on Virginia-leaf cigarettes in the previous 12 months and inventory levels.
Processed tobacco is defined as leaf tobacco that is blended, cased, flavored, ready cut, or cut fillers ready for manufacturing purposes, excluding leaf tobacco with only the stem removed.
The ACCFA is tasked with purchasing all locally grown and produced Virginia-type tobacco for resale to manufacturers at cost, supported by loans from the Central Bank through the Rehabilitation Finance Corporation.
The minimum prices per kilo are as follows: Bright yellow leaf - P3.60; Bull yellow leaf - P3.00; Spotted yellow leaf - P2.50; Greenish and brownish leaf - P2.00; Dark or other kinds - P1.50.
They face fines from one thousand to ten thousand pesos, imprisonment from one to five years, forfeiture of the involved leaf tobacco, and if an alien, deportation after final conviction.
Yes, the law does not prohibit manufacturers or dealers from buying Virginia-type tobacco directly from farmers, cooperatives, or private dealers.
The President may require the Philippine Tobacco Administration to assist the ACCFA in purchasing locally produced Virginia-type leaf tobacco and entrust it with other necessary duties to carry out this purpose.
Manufacturers with records of violations of Import Control Laws, Republic Act No. 698, or tax evasion are disqualified from receiving import licenses.
The Act takes effect upon its approval.