Law Summary
Definitions and Tax Impositions
- Narcotic drugs include opium, marihuana, opium poppies, coca leaves, and habit-forming synthetic drugs.
- Taxes imposed include fixed annual taxes by category and internal revenue tax per 30 grams of certain substances, represented by special stamps affixed to packaging.
- Transfers of marihuana or opium poppies require written order forms and payment of special transfer taxes based on registration status.
- The absence of tax-paid stamps on narcotic drugs is prima facie evidence of a violation.
Exemptions and Special Registrations
- Government officials, employees in official duty, and registered medical practitioners are exempt from registration and tax requirements.
- Persons using narcotic drugs for legitimate medical, research, or instructional purposes under strict record-keeping and registration are subject to lower taxes and regulations.
Licensing and Regulatory Authority
- Licenses to deal in narcotic drugs are issued only to persons of good moral character, lawful compliance, and relevant experience.
- The Collector of Internal Revenue, with the Secretary of Finance's approval, shall issue regulations and oversee implementation.
Controlled Sales and Order Forms
- Sales, barter, or distribution of narcotic drugs require written order forms issued and monitored by the Collector of Internal Revenue.
- Dealers must keep such orders and duplicates for five years and allow inspection.
- Medical dispensing by licensed practitioners is subject to record-keeping and exempt from order form requirements.
- Exportation is regulated according to foreign countries' import rules.
Reporting and Inspection
- Registered persons must submit quarterly or as-required returns detailing drug quantities obtained and sources, verified by affidavit.
- Officials of government revenue, law enforcement, and local enforcement agencies have inspection authority.
- Unauthorized disclosure of information obtained under this Act is punishable by fines or imprisonment.
Prohibitions on Transport and Possession
- Unregistered persons cannot legally transport narcotic drugs across provinces or cities.
- Possession or control of narcotic drugs by unregistered persons is unlawful, with certain exemptions such as employees or persons holding prescriptions.
- The burden of proof for exemptions lies with the possessor.
Penalties for Violations
- Violations of registration, tax payment, and other requirements are punishable by fines up to 5,000 pesos and/or imprisonment up to five years.
- Repeat offenses incur increased penalties, with up to 20 years imprisonment for third offenses onwards.
- Procedures for proving prior convictions before sentencing are prescribed, including trial on the issue if disputed.
Narcotic Drugs Section and Administrative Provisions
- A dedicated Narcotic Drugs Section may be created within the Bureau of Internal Revenue to enforce the law.
- All applicable provisions of internal revenue laws apply to the taxes and enforcement of this Act.
Exemptions for Certain Preparations and Items
- Preparations containing limited amounts of opium, morphine, heroin, codeine, or external use liniments (excluding cocaine-containing ones) are exempted.
- Decocainized coca leaves and preparations without cocaine are not covered by this Act.
- Manufacturers and vendors of exempt preparations must keep sales records and register accordingly.
National Policy and General Provisions
- Cultivation of marihuana and opium poppy is prohibited as a matter of national policy.
- This Act complements but does not repeal or alter provisions of other relevant laws including the Food and Drugs Act and the National Internal Revenue Code.
- Revenues collected under this law accrue to the National Government General Fund.
- The Act took effect upon approval on June 20, 1953.