Objectives of the Act
- Provide financing and marketing support
- Dispose stocks of Agricultural Credit Administration (ACA) and Philippine Virginia Tobacco Administration (PVTA) at best prices
- Improve locally manufactured cigarettes by blending imported and native Virginia leaf tobacco
- Impose import-export ratio of 1 kilo imported to 4 kilos exported Virginia tobacco via PVTA
Virginia Tobacco Research and Grading Institute
- Created under the PVTA to train researchers and graders
- Training includes prescribed duration and standards
- Certification valid for 3 years; renewal requires proficiency and good moral standing
- Removal of official graders/researchers upon valid recommendations
- Employment not subject to civil service eligibility; salaries fixed by PVTA Board
Regulated Importation of Foreign Leaf Tobacco
- Prohibited except when authorized by PVTA Board for blending purposes
- Importers must purchase local Virginia leaf tobacco from PVTA and export local tobacco in 4:1 export-import ratio
- Importation subject to PVTA rules and regulation
- Only tariff imposed: 100% of landed cost on high-grade foreign leaf tobacco
Financing through Tobacco Fund
- Tobacco Fund created replacing Central Bank support
- Fund composed of 50% tariff on imported leaf tobacco and 50% specific taxes on local Virginia cigarettes
- Fund use: payment of PVTA and ACA debts to FACOMAS and Central Bank; subsidy continuation; operational expenses; Research and Grading Institute
- Immediate turn-over of fund collections to PVTA by Revenue and Customs Commissioners
Sale and Utilization of Virginia Tobacco Stocks
- ACA and PVTA stocks sold at best obtainable prices
- Proceeds to settle obligations to farmers, FACOMAS, and Central Bank
- Balance payable to Central Bank over max 10 years from Tobacco Fund
- Surplus added to Tobacco Fund
Continuation of the Philippine Virginia Tobacco Administration
- PVTA continued with amendments under this Act and previous related Republic Acts
Penal Provisions
- Violators punished with imprisonment from 1 to 10 years and fines from ₱5,000 to ₱20,000
- Corporate offenders' penalties imposed on responsible officials such as president, directors, or manager
Repealing and Amending Clauses
- All inconsistent enactments, rules, and regulations repealed
- Previous Republic Acts No. 698, 1194, 2265 amended to conform with this Act
Effectivity
- The Act takes effect upon approval, June 20, 1964.