Question & AnswerQ&A (Republic Act No. 4155)
The national policy is to encourage the production of local Virginia tobacco of the qualities needed and in quantities marketable in both domestic and foreign markets, establish the industry on an efficient and economic basis, and create a climate conducive to local cigarette manufacture by blending imported and native Virginia leaf tobacco to improve quality.
The objectives include financing, marketing, disposal of Agricultural Credit Administration and Philippine Virginia Tobacco Administration stocks at best prices, and improving the quality of locally manufactured cigarettes through blending imported and native leaf tobacco.
It is a body created under the Philippine Virginia Tobacco Administration to establish training for researchers and graders, promulgate rules for training, certify qualified individuals, and oversee grading and research techniques reviews.
They must meet standards prescribed by the PVTA, receive certificates valid for three years, and after this period, must undergo a review to obtain additional certificates.
Yes, they may be removed upon recommendation of the General Manager and approval of the Philippine Virginia Tobacco Administration Board of Directors.
Importation is only allowed for blending purposes and authorized Filipino citizens or Filipino-controlled companies must purchase local Virginia tobacco and export it at a ratio of one kilogram imported to four kilograms exported.
Yes, an amount equivalent to one hundred percent of the landed cost is imposed as a tariff or tax, but no other tariffs or taxes beyond this.
It is funded by 50% of tariffs/taxes on imported leaf tobacco and 50% of specific taxes on locally manufactured Virginia cigarettes. It supports payment of debts, subsidy operations, procurement, research, and operational expenses of the PVTA.
They are to be sold at the best prices available, with proceeds used to pay obligations to farmers, FACOMAS, and the Central Bank of the Philippines, with balances paid over a period not exceeding ten years from the Tobacco Fund.
Violators face imprisonment from one to ten years and fines from five thousand to twenty thousand pesos. For corporations, penalties apply to responsible officials such as presidents, directors, or managers.
Republic Acts Numbered Six hundred ninety-eight, Eleven hundred ninety-four, and Twenty-two hundred sixty-five, and any other inconsistent legislative enactments are repealed or amended in conformity with this Act.
The Act took effect upon its approval on June 20, 1964.