Amendment on Tobacco Importation Limits

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PRESIDENTIAL DECREE NO. 655: Amendment on Tobacco Importation Limits

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Title Source: Supreme Court: Amendment on Tobacco Importation Limits

Law: Presidential Decree No. 655

Decision Date: Feb 4, 1975

Presidential Decree No. 655 amends Republic Act No. 4155 to allow authorized Filipino cigarette manufacturers to import foreign leaf tobacco for blending purposes, with limitations and regulations, in order to enhance the quality of locally made cigarettes and increase government revenue.

Law Summary

Authority of the Philippine Virginia Tobacco Administration (PVTA)

PVTA assesses the necessity to improve the quality of locally made cigarettes.
PVTA holds discretion to authorize importation of foreign leaf tobacco only for blending purposes.
Authorization is limited to bona-fide cigarette manufacturers owned or controlled by Filipino citizens.

Conditions and Limitations on Importation

Importation is strictly for blending purposes to enhance cigarette quality.
Subject to rules, regulations, limitations, and requirements laid down by the PVTA.
Annual importation cap set at six million kilograms of foreign leaf tobacco.
Exception to the cap allowed only if industrial needs demand otherwise.

Revenue and Industry Impact Considerations

Aims to support local cigarette manufacturers and maintain price stability of local Virginia tobacco.
Provides a mechanism to generate government revenue through regulated importation.

Legal Authority and Effectivity

Amendment made under Presidential Decree No. 655, reflecting executive legislative power.
Incorporated as part of existing law governing tobacco importation (Republic Act No. 4155).
Took immediate effect upon issuance to respond to urgent industry and economic needs.

END