Allocation and Licensing of Virginia-Type Leaf Tobacco Imports
- Monetary Board of Central Bank allocates imported Virginia tobacco among legitimate cigarette manufacturers
- Allocation based on factory production and tax payments for preceding 12 months, and stock inventory
- Manufacturers must present certificates proving local purchase of Virginia-type leaf tobacco
- Licenses for imports issued within 15 days after allocation
- Import licenses granted only within available foreign exchange limits
- No licenses granted to factories with records of import control violations or tax evasion
Definitions of Tobacco Types
- Processed tobacco defined as leaf tobacco that is blended, cased, flavored, ready cut, or cut fillers ready for manufacturing
- Processed tobacco excludes tobacco leaf stripped of stem only
- Virginia-type leaf tobacco includes any leaf or scrap used in cigarette manufacture
Government Purchase of Local Tobacco
- All locally grown leaf tobacco to be purchased by ACCFA for resale to cigarette manufacturers at cost
- Central Bank, via Rehabilitation Finance Corporation, to provide loans to ACCFA for tobacco purchases and handling
- Manufacturers and dealers not prohibited from buying directly from farmers or cooperatives
- Minimum price schedule for local Virginia-type tobacco provided, differentiated by leaf type and curing method
- Shares of local tobacco allocated to manufacturers using formula similar to allocation of imported tobacco
- Direct purchases by manufacturers from farmers taken into account when computing allocations
Role of Philippine Tobacco Administration
- The President may mandate the Philippine Tobacco Administration to assist ACCFA in purchasing local Virginia-type leaf tobacco
- Philippine Tobacco Administration may be entrusted with additional duties for implementing tobacco purchase provisions
Penalties for Violations
- Importing Virginia-type leaf tobacco without license, or issuing licenses without presidential authorization, or obstructing ACCFA loans, constitutes violation
- Penalties include fines of P1,000 to P10,000 and imprisonment of 1 to 5 years
- Corporate officers responsible for violations are personally liable
- Foreign offenders subject to deportation after conviction
- Tobacco involved in violations is forfeited to the Government
Effectivity
- The Act takes effect immediately upon approval on August 25, 1954.