Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 627)
The primary purpose of Presidential Decree No. 627 is to authorize the Philippine Tobacco Board to fix floor prices for Philippine-grown tobacco to protect the interests of tobacco farmers considering rising production costs and inflation.
The Philippine Tobacco Board is empowered to fix reasonable and flexible floor prices for all types of Philippine-grown tobacco, except flue-cured Virginia tobacco.
Floor prices shall be based on prevailing world market situations; production costs; reasonable margin of profit for farmers, dealers, manufacturers, and exporters; growing conditions affecting quality such as soil, weather, and pest infestations; and other relevant factors and conditions.
No, the floor prices may be amended by the Philippine Tobacco Board as it deems necessary and warranted for the good of the tobacco industry.
Only persons duly authorized by the government agencies concerned are allowed to buy leaf tobacco directly from the farmers.
Violators may have their permit to trade canceled or revoked, and be subject to a fine of not more than ₱2,000 or imprisonment of not more than one year, or both, at the discretion of the court.
The president, director or directors, manager, managing partner, or other officials responsible for the violation in the corporation may be held liable.
Any alien who violates the decree or its implementing rules shall, upon completion of the sentence, be deported without further proceedings by the Deportation Board.
They shall, in addition to any penalties as principals, be perpetually disqualified from holding any public office.
It took effect immediately upon its signing on December 28, 1974.