QuestionsQuestions (PROCLAMATION NO. 216)
The NTA promulgates the rules pursuant to its authority under Executive Order No. 245, as stated in the text.
The NTA Board promulgates trading rules, grade descriptions/classifications, and floor prices; the NTA Administrator implements the rules, issues licenses/permits, and imposes administrative sanctions/fines.
Any person of legal age with contractual capacity, and any corporation/partnership/company/cooperative/juridical entity duly licensed to do business in the Philippines may apply, subject to requirements and payment of fees.
It is computed based on the average volume of tobacco purchases/acceptances for the last three trading seasons, using the table provided (by kilo ranges).
Applications are filed with the NTA Branch Office where the trading center is located, on or before a date determined by NTA; late filing incurs a penalty of 50% of the processing and license fees.
Key requirements include: information sheet (MDRD Form 2), designation from principal buyer (MDRD Form 3), endorsement/recommendation (MDRD Form 4), clearance for renewal (MDRD Form 5), corporate documents for new applicants (AOI/by-laws), audited financial statements/ITR or financial guarantee, trading center vicinity/location and floor plan, Mayor’s Permit, and NTA OR showing full payment of fees.
The license is valid for one tobacco trading season; its duration can be changed by the NTA Administrator.
Trading at the trading center is from 8:00 a.m. to 5:00 p.m., Monday to Friday (excluding official holidays). Buying outside these days may be allowed only with prior written approval by the Branch Manager and 7 days in advance, and overtime NTA personnel pay is for the account of the BF/TC operator.
It must obtain the NTA-approved license, secure prescribed BIR-registered and NTA-inspected forms (PIV, Purchase Books, Bale Tags, Delivery Receipts, COP), submit personnel names and signatures, set up signage, display NTA-certified tobacco grade samples (glass-encased and updated every 15 days or earlier if deteriorated), install and calibrate weighing scales sealed/calibrated by NTA, exhibit the original license, provide a receiving ramp/area, hire sufficient personnel, provide NTA bulletin space, and attend an orientation seminar.
Net weight is determined by deducting baling material weight: 1 kilo if gross weight is not more than 30 kg; 2 kilos if gross weight is over 30 kg but not more than 50 kg; and 3 kilos if more than 50 kg.
Grading is done in the presence of the farmer-producer using NTA-approved samples. If there is apparent downgrading, an NTA official/employee or roving team directs regrading; if regrading fails, the NTA official/employee/roving team determines the binding grade.
No. Native/dark leaf tobacco must be bought at prices not lower than the prescribed floor price per grade determined and approved by the NTA Board.
The TC operator issues bale tags during buying. The farmer name, weight, and grade are written on all three segments: Segment 1 (TC’s copy attached to bale/roll), Segment 2 (NTA copy attached to PIV copy for MDRD), and Segment 3 (farmer’s claim stub).
The Purchase Invoice Voucher is an accountable BIR-registered form covering each purchase from a farmer-producer. It must be accomplished in three copies within 24 hours after grading, weighing, and payment.
Payment is in cash; negotiable instruments may be used if amount exceeds PHP 10,000 and encashment facilities exist in the province and are acceptable to the farmer. Payment is immediately after grading and weighing, or within 48 hours if prompt payment is prevented by fortuitous event/circumstances beyond control.
Payment in another place is allowed only if payment cannot be effected at the trading center due to peace and order deterioration or other causes beyond control of both parties. Payment must not be made in bars/discos, drinking establishments, gambling or similar places.
First violation: warning and fine of PHP 10,000. Second: suspension/temporary closure up to 5 days or until compliance plus PHP 20,000 fine. Third: revocation/cancellation plus PHP 30,000 penalty, and disqualification from issuance of licenses/permits for the immediately following trading season.