Criteria for Fixing Floor Prices
- Floor prices must be reasonable and flexible.
- Factors considered include:
- Prevailing world market situations.
- Costs of production.
- Reasonable profit margins for farmers, dealers, manufacturers, and exporters.
- Growing conditions affecting tobacco quality such as soil, weather, and pest infestations.
- Other relevant economic and industry factors.
- Floor prices may be amended as deemed necessary by the Board for the tobacco industry's welfare.
Authorized Buyers of Leaf Tobacco
- Only persons duly authorized by the relevant government agencies may purchase tobacco leaves directly from farmers.
Rulemaking and Implementation
- Concerned government agencies must issue rules and regulations to enforce the floor price policy.
- All implementing regulations require the approval of the Philippine Tobacco Board.
Penalties for Violations
- Violations of floor prices or related implementing rules may lead to:
- Cancellation or revocation of trading permits.
- Fines up to ₱2,000.
- Imprisonment for up to one year.
- Both fines and imprisonment at the court's discretion.
- If a corporation or association violates the law, responsible officials such as the president, directors, or managers are liable.
- Aliens found violating the law shall be deported upon serving their sentence without further proceedings.
- Government officials or employees who assist or connive in violations face:
- Penalties as principals.
- Permanent disqualification from holding public office.
Effectivity
- The Decree takes effect immediately upon promulgation on December 28, 1974.