AMENDING TOBACCO LAWS CONCERNING THE VIRGINIA TOBACCO INDUSTRY AND FOR OTHER PURPOSES

WHEREAS, the exportation of the old PVTA tobacco
stocks, as a prerequisite to the importation of foreign leaf tobacco for
blending purposes will cause irreparable damage to the favorable
acceptance now enjoyed by current Philippine Virginia tobacco crop in
the foreign market;

WHEREAS, the exportation of current and future
Philippine Virginia tobacco of good quality should be encouraged, so as
to strengthen the economy of the nation by bringing in more dollars;

WHEREAS, the Philippine Virginia Tobacco
Administration should liquidate its indebtedness to the Central Bank of
the Philippines within the shortest possible time;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of
the Philippines, by virtue of the powers in me vested by the
Constitution as Commander-in-Chief of the Armed Forces of the
Philippines and pursuant to Proclamation No. 1081, dated September 21,
1972, and General Order No. 1, dated September 22, 1972, as amended, do
hereby order and decree that:

1. No person will import leaf tobacco except as herein provided.
   When the Philippine Virginia Tobacco Administration Board believes that
   it is necessary to improve the quality of locally made cigarettes and
   there are no sufficient stocks of foreign leaf tobacco for blending
   purposes available within the country, the Philippine Virginia Tobacco
   Administration may authorize any bona fide cigarette manufacturer(s),
   owned or controlled by Filipino citizens, to import foreign leaf tobacco
   for blending purposes at the ratio of not more than one (1) kilogram of
   imported foreign leaf tobacco to every four (4) kilograms of local
   Virginia leaf tobacco purchased, subject to limitations, requirements,
   rules and regulations promulgated by the Philippine Virginia Tobacco
   Administration. In no case shall the importation exceed five (5) million
   kilograms in any year unless the exigencies of the industry require
   otherwise. No other tariff or taxes shall be imposed on foreign leaf
   tobacco so imported except an amount equivalent to one hundred per
   centum (100%) of its landed cost.
2. All stocks of locally produced Virginia leaf tobacco of the
   Philippine Virginia Tobacco Administration shall be sold at the best
   prices available. The proceeds shall be used to pay the Philippine
   Virginia Tobacco Administration’s obligations to the farmers, the
   FaCoMas, and the Central Bank of the Philippines. After June 1974, the
   Philippine Virginia Tobacco Administration shall be given an extension
   of five (5) years within which to pay the balance of its indebtedness to
   the Central Bank of the Philippines. Any surplus shall accrue to the
   Tobacco Fund established under Republic Act Numbered Forty One Hundred
   Fifty-Five.
3. The trading operations at trading centers supervised by the
   Philippine Virginia Tobacco Administration shall continue up to December
   31, 1973. Thereafter, private enterprise shall undertake exclusively
   the trading of locally produced Virginia leaf tobacco. No person shall
   purchase locally grown and produced flue cured Virginia leaf tobacco at
   prices less than those fixed in the following schedule:

   GRADE	PRICES
   A	3.60
   B	3.00
   C	2.50
   D	2.00
   E	1.50

   The description of each grade shall be determined by the Philippine
   Virginia Tobacco Administration.

4. All provisions of Republic Acts Numbered Six Hundred Ninety
   Eight, Eleven Hundred Ninety Four, Twenty Two Hundred Sixty Five and
   Forty One Hundred Fifty Five and all enactments, legislative acts and
   rules and regulations inconsistent and incompatible with this Decree are
   hereby repealed or modified accordingly.
5. The Philippine Virginia Tobacco Administration shall promulgate
   such rules and regulations for the proper implementation and
   enforcement of this Decree.

Done in the City of Manila, this 20th day of November, in the year of
Our Lord, nineteen hundred and seventy-two.

			(Sgd.) FERDINAND E. MARCOS President Republic of the Philippines
	By the President:
	(Sgd.) ALEJANDRO MELCHOR
		Executive Secretary