RULES AND REGULATIONS GOVERNING TRADING OF LOCALLY GROWN VIRGINIA LEAF TOBACCO
April 1991 Filed: May 3, 1991
Pursuant to the authority vested in the National Tobacco Administration
(NTA) under Executive Order No. 245 and other laws not inconsistent
thereto and in consonance with its regulatory functions, the following
trading rules and regulations for Virginia tobacco are hereby
promulgated for the information and guidance of all concerned.
REGULATION I
General Provisions
RULE 1. Definition of Terms — As used in those Rules and Regulations:
a. Executive Order refers to Executive Order No. 245.
b. NTA refers to the National Tobacco Administration, a government agency created and existing under Executive Order No. 245.
c. Board refers to the Board of Directors of the NTA.
d. Administrator refers to the Managing Head or Officer-in-Charge of the NTA.
e. NTA Officials refers to the Administrator,
Deputy Administrator, Chairman or any member of the Board, Manager of
the Market Development and Regulation Department, Legal Department, Farm
Development Department, Branch Managers of Provincial Branch Offices or
Head of any special trading enforcement team of the NTA.f. NTA Tobacco Inspector or Grader
refers to any other NTA employee duly appointed or assigned by the
Administrator to assist in the grading or classification of Virginia
tobacco and implementation and enforcement of these Rules and
Regulations.g. BIR refers to the Bureau of Internal Revenue.
h. Person refers to any natural person,
corporation, company, partnership, association, cooperative, consortium
of dealers, or any other juridical entity.i. Tobacco refers to locally grown Virginia type tobacco excluding those that are redried, threshed or blended.
j. Farmer is a person whose stock of leaf
tobacco is the product of the land tilled by him or is given to him as
renumeration for assisting in the growing of tobacco or in the
flue-curing of tobacco leaves.k. Buyer is a person, corporation, company,
partnership, consortium of tobacco dealers, or entity duly authorized by
the NTA under license to buy tobacco from farmers and other authorized
dealers.l. Trading Center is a building or warehouse,
including its accessories, used exclusively for buying, selling, baling
or handling, and storing of tobacco from farmers or authorized sellers.m. Purchase Commitment is a written
undertaking in favor of the NTA to buy or cause to be procured a
definite quantity of tobacco from farmers and other authorized sellers
during a particular trading season, and to pay liquidated damages to the
NTA, the amount of which shall not be less than ten percent of the
estimated average value of the unpurchased quantity, in the event of
unreasonable refusal and failure to procure the quantity undertaken to
be purchased.n. Authorized Seller refers to any person, other than a farmer whose stock of leaf tobacco is acquired through other lawful means.
o. T/C Agent refers to any person or group
of persons whose stock of leaf tobacco is acquired/purchased from
farmers/other authorized sellers who is duly registered as such for a
particular trading season. He may be affiliated with one or more T/Cs
to whom such leaf tobacco shall be delivered. In no case may such T/C
Agent/Middleman deliver directly to Principal Buyers/Wholesale Tobacco
Dealers/Redrying Plants.p. Leaf Tobacco refers to whole leaf locally grown Virginia type tobacco, excluding those that are redried, threshed, stripped, or blended.
q. Trading includes the buying, selling,
delivery to redrying plants for processing, deposit or storage, barter
or exchange of leaf tobacco.r. Wholesale Tobacco Dealer is a person other than the licensed buyer, manufacturer, exporter, and redrier with permit to Purchase issued by NTA.
s. End-Buyer refers to manufacturers, exporters, and redriers with permit to Purchase/Redry issued by NTA.
t. License to Buy is a written authority
issued by NTA as a license for buyers to purchase tobacco at trading
centers from registered farmers or authorized sellers or T/C
Agents/Middlemen.u. Permit to Purchase is a written authority issued by NTA to Wholesale Tobacco Dealers and/or End-Buyers to purchase tobacco from trading centers.
v. Permit to Redry is a written authority issued by NTA to redriers of tobacco only engaged in redrying or processing of tobacco of end-Buyers.
w. Production Commitment is a written
undertaking of a registered farmer to produce/procure a certain quantity
of leaf tobacco for a particular trading season.x. Production Quota is a written
authority issued by NTA to a registered farmer to produce/procure and
deliver to T/Cs during a particular trading season a certain quantity of
leaf tobacco.y. Purchase/Sales/Transfer Book is a book
showing all transactions such as buying, selling, transferring of a
particular buyer T/C indicating among other things the name of
farmer/seller or T/C Agent/Middleman, certain quantity of tobacco
bought/delivered with specified value and quantity sold, transferred
with serial number of source document, Principal Buyer/WTD/RP that
purchased the same and duly recorded in a chronological manner for the
duration of the trading season. These Books shall be submitted to the
MDRD, Central Office, NTA after the end of every trading season. Keep
and recorded as official document of the Office (NTA).
REGULATION II
Registration of Farmers
RULE 1. Who May Apply for Registration — In general, any
tobacco farmer who intends to sell his tobacco stocks to a Buyer shall
apply for the registration or inclusion of his name in the NTA roster of
tobacco farmers and the issuance of a production quota.
RULE 2. Form and Content of Application/Production Quota
— Application for registration shall be accomplished and filed in at
least three copies on the form prescribed for the purpose, duly
subscribed and sworn to before a person authorized to administer oaths
or attested to by a Barangay Captain or President of farmers association
and stating particularly, among others, with sufficient correctness and
clarity, the following:
a. Full name and address of the applicant;
b. Applicant’s citizenship, age, sex and civil status;
c. The location and size in hectares of the area being
cultivated by him for Virginia tobacco; or in case of farm helpers and
flue-curers, the names and addresses of the farmers for whom they have
rendered services;d. Estimated quantity of tobacco produced or received as share, as the case may be, by the applicant;
e. The full name, age and other personal circumstances of one
person whom the applicant is designating as his representative, who
shall be either his spouse or any of his relatives within the fourth
civil degree;f. The applicant shall attach to his application his two
(2) black and white photographs (ID size), taken within the last six
months and also two (2) pictures of his representative[s]; andg. The applicant shall sign the production commitment portion
of the application, stating among others the quantity in kilos of his
estimated production for the ensuing trading season.
RULE 3. Where to File Application — An application for
registration in the prescribed form, together with the accompanying
pictures, shall be filed with the NTA Provincial/Field Offices or any
NTA Tobacco Inspector or Technician in the province where the applicant
resides. No application fee shall be collected from any applicant for
registration.
RULE 4. Verification and Evaluation — Upon
receipt of the application, the Manager, NTA Provincial/Field Office
shall cause the verification of the correctness of the information
contained therein. He shall inform the applicant, after verification
and processing of the application, as to the deficiencies if any.
RULE 5. Issuance of Production Quota
— Upon satisfactory showing that the applicant is a bona fide farmer or
authorized seller, after signing the commitment portion of the
application, the NTA Administrator, through the Provincial/Field Office,
shall issue to him the Production Quota for the trading season.
RULE 6. Term of Production Quota — The Production Quota is valid for one trading season only, but renewable every year thereafter.
RULE 7. Prohibition —
Registered farmer/sellers are prohibited to sell their leaf tobacco
product to unregistered trading centers and unregistered middlemen or TC
Agents. Any farmer/seller who sells his leaf tobacco to unregistered
buyers/middlemen is not protected by these tobacco laws, trading rules,
and regulations. Complaints from said farmer/s who violate this
prohibition shall not be entertained by NTA.
RULE 8. Assignability/Transferrability of Production Quota
— A production quota may be transferred, sold, or assigned in any
manner provided by law, to any registered farmer/seller who fails to
meet its Production Quota or falls short of his production commitment or
production quota, and any person, firm or entity whose stock of leaf
tobacco was acquired through other lawful means may apply for a Special
Production Quota or may sell/assign his tobacco stocks to a quota
holder.
RULE 9. Form and Content of Special Production Quota
— Application for Special Production Quota with the necessary
supporting documents shall be filed in at least three copies and sworn
to before any official authorized by law to administer oaths and stating
particularly among others, the following:
a. Full name, address and personal circumstances of the applicant;
b. A brief statement of the circumstances or nature of the transaction under which he acquired the tobacco stocks;
c. The name and address of the person, firm or entity from whom he acquired the tobacco stocks;
d. The quantity and grade/s of tobacco;
e. The place or location where the tobacco is stored and the
applicant shall attach to his application copies of supporting
documents.
RULE 10. When and Where to Apply — The application
for Special Production Quota together with the supporting documents,
shall be filed with the NTA Provincial/Field office where the tobacco is
stored.
RULE 11. Verification and Evaluation —
Upon presentation of convincing proof that such tobacco was acquired by
the applicant through accidental and isolated legitimate transaction,
and there is no reason to believe that the applicant is a person engaged
in the business of dealing in tobacco without a license, a Special
Production Quota may be issued for such quantity of tobacco as specified
in the application.
RULE 12. Duration of the Special Production Quota —
The Special Production Quota shall only be valid for a single
transaction and it shall be surrendered to and cancelled by the Buyer of
the tobacco described in the Quota. It shall be attached to the
original copy of his purchase invoice voucher (PIV).
REGULATION III
License to Buy Tobacco
RULE 1. Who May Apply for License to Buy Tobacco — Any
person of legal age and having the legal capacity to enter into
contract, a corporation, company, particularly cooperative, consortium
or association of tobacco dealers, or any other juridical entity,
foreign or domestic, which has complied with requirements of the law as a
juridical entity, may apply for a license to Buy Virginia tobacco from
Registered farmers, other authorized sellers, and T/C Agents/Middlemen,
Provided, That the applicant:
a. has the financial capacity to buy a definite minimum
quantity of tobacco which shall not be less than 250,000 kgs. during a
particular trading season;b. is willing to execute a Purchase Commitment in a form prescribed by NTA.
c. can post the required surety bond in favor of the NTA, if necessary; and
d. is willing and able to establish, operate and maintain a
trading center/s in such place/s to be designated by the NTA where he
shall buy tobacco in accordance with the prescribed rules and
procedures.
However, an association, organization or consortium of tobacco
dealers may be allowed for special reasons to execute and sign the
required Purchase Commitment for the purpose of the issuance of license
to buy unto and in favor of its members, or agents or representatives as
may be designated by such member, for whom the association,
organization or consortium of tobacco dealers is acting and whose
identities must be disclosed and who, upon being found to be qualified
and eligible to engage in tobacco trading, shall be issued the
corresponding licenses in their own respective individual names and
account. Such association, organization or consortium may execute and
sign the Purchase Commitment alone or jointly and severally with its
members, but nothing herein provided shall be construed as a waiver by
the NTA of its power to regulate, control and supervise the trading of
Virginia tobacco, as provided for by law.
RULE 2. Surety Bond —
The bond shall be issued by a reputable bonding company in favor of and
acceptable to the NTA to guarantee faithful compliance by the Buyer of
his obligations as Licensed Buyer, such as but not limited to the
payment of liquidated damages in the event that the Licensee refuses or
fails to buy the quantity undertaken by him to procure and payment of
regulation fees. However, a Surety Bond shall not be required if the
T/C is financially guaranteed by a Principal Buyer.
RULE 3. Amount of Bond — If necessary, an applicant shall file a surety bond in favor of the NTA in accordance with the following schedule:
a. P50,000.00 — if the total purchase commitment is 250,000 kgs. but less than 500,000 kgs.
b. P100,000.00 — if the total purchase commitment is 500,000 kgs. but less than 1,000,000 kgs.
c. P200,000.00 — if the total purchase commitment is 1,000,000 kgs. but less than 1,500,000 kgs.
d. P300,000.00 — if the total purchase commitment is 1,500,000 kgs. but less than 2,000,000 kgs.
e. P400,000.00 — if the total purchase commitment is 2,000,000 kgs. or more.
RULE 4. Reduction or Waiver of Amount of Bond — The bond
herein required may be reduced in amount or waived entirely by NTA upon
showing by the buyer or by any other interested party of valid and
special reasons, such as but not limited to the financial stability and
solvency of the buyer or his evident capability to comply with his
Purchase Commitment and his other obligations as a Buyer.
RULE 5. Purchase Commitment of Association, Consortium or Organization of Tobacco Dealers
— An association, organization or consortium of tobacco dealers may be
allowed for special reasons to execute and sign the required Purchase
Commitment for the purpose of the issuance of licenses unto and in favor
of its members, or the agents or representatives as may be designated
by such members, for whom the said association, organization or
consortium of tobacco dealers is acting and whose identities must be
disclosed and who, upon being found to be qualified and eligible
hereunder to engage in tobacco trading, shall be issued the
corresponding License to Buy in their own respective names and account.
Such association, organization or consortium may execute and sign the
Purchase Commitment alone or jointly or severally with its members;
Provided, finally that the bond herein required may be waived entirely
by the NTA upon showing by the Buyer or by any other interested party of
good and special reasons such as but not limited to the financial
stability and solvency of the Buyer or his evident capability to comply
with his Purchase Commitment and his other obligation as a Buyer.
RULE 6. Location and use of Trading Center
— The Trading Center shall be located on or adjacent to a street or
thoroughfare, permitting easy access to it by farmers and other
authorized Sellers, and shall be used exclusively for buying, baling,
packing and storing tobacco.
RULE 7. Type of Building — A
Trading Center shall be built of strong or mixed materials. If mixed
materials are used, the frame must be made of durable wood, and the roof
may be of cogon or nipa and the walls may be made of double sawali or
bamboo. In any case, the building must be capable of being securely
locked and the roof must be waterproof. The floor may be of concrete
tile, brick, stone or similar materials: Provided, That wooden or
centimeters above the level of the ground and are capable of supporting
the weight of the tobacco. The Trading Center must be free from hazards
that may cause or likely to cause physical harm or great discomfort to
Authorized Sellers or loss or damage to their tobacco, and it must also
have sufficient office space for NTA personnel.
RULE 8. Form and Contents of Application
— Application for License to Buy shall be accomplished and signed in at
least three (3) copies on the form prescribed by the NTA and stating
particularly among others, with sufficient fullness and clarity, the
following:
a. Full name and postal or business address of the applicant;
b. Applicant’s citizenship, age, sex and civil status, in
case of individual, the date of registration and length of authorized
organization or corporate life or existence in case the applicant is a
partnership or corporation (Articles of Incorporation and By-Laws of
Corporation; Articles of Partnership if Partnership);c. The address or location of the proposed warehouse or bodega which the applicant intends to use as Trading Center;
d. Name and registered owner/Manager of trading center premises;
e. Authorized signatories of trading center documents;
f. Certification of the Municipal/City/Provincial Treasurer
that the Weighing Scales used or to be used by such T/C is/are duly
calibrated, together with a photocopy of the official receipt; andg. Tax Account No. and Residence Certificate No.
RULE 9. Documents to Support New Application — The following documents shall be attached to the application of new applicants:
a. Copy of the Articles of Incorporation/By-Laws or Articles
of Partnership duly registered with the Securities and Exchange
Commission, if the applicant is a corporation or partnership, and in
case of an individual, his bio-data or information sheet;b. A copy of the latest audited financial statements of the
corporation or T/C and certified copies of his Income Tax Return for the
last two years, and other convincing proof of his financial capacity to
engage in tobacco trading;c. Latest Mayor’s Permit and License;
d. Vicinity or location plan of the proposed Trading Center;
e. Floor plan of the proposed Trading Center, indicating its
total area and the location and dimensions of the different service
areas;f. List of equipment and other facilities to be used in the trading center;
g. Certification of the Municipal/City/Provincial Treasurer
that the Weighing Scales used or to be used by such T/C is/are duly
calibrated, together with a photocopy of the official receipt; andh. List of signatories in trading documents and name of its Manager and 3 specimen signatures.
RULE 10. Application and Processing Fee —- An
application and processing fee of Five Hundred (P500.00) Pesos shall be
first paid before any application for a license shall be received and
failure on the part of the applicant to pay the same shall be a ground
for the NTA Provincial Office not to receive the application.
RULE 11. When and Where to File Application
— An application for license in the prescribed form together with the
accompanying papers shall be filed with the Office of the Chief of the
NTA Branch office concerned, on or before the opening of the trading
season.
A principal Buyer or WTD that has more than one T/C as
satellites may file application for license for its T/C satellites in
the NTA Central Office; Provided, that such satellite or T/Cs had
operated as T/Cs previously without change of ownership or management
for the preceding trading seasons.
RULE 12. Verification and Evaluation
— Upon receipt of the application, the Branch Manager of the NTA
Provincial Office shall verify the correctness of the information
contained therein, and for this purpose, he may require an ocular
inspection of the Applicant’s Trading Center and his equipment and
facilities to determine its adequacy in meeting the basic requirements
of a legitimate buyer. The Chief of the NTA Branch Office concerned
shall inform the applicant, after verifying and processing the
application, as to deficiencies, if any, and shall require the submittal
of additional papers and documents that are needed in the evaluation of
the application.
Thereafter, the Chief of the NTA Branch Office
shall forward the application, together with his observation and
recommendation, to the Administrator thru the Marketing Department for
appropriate action.
Application of T/Cs maybe filed and received
by the NTA Central Office and the corresponding License maybe issued
subject to the following conditions:
a. That such T/C has been operating for the last two (2) preceding years;
b. That the NTA clearance has been duly issued;
c. That all documents supporting the application have been completed and submitted;
d. That the license fees for the trading season have been paid to the Treasury Division; and
e. That a certification of the Principal Buyer is attached to
the application stating that the same is a Satellite/Buyer of such
Mother Buyer/Principal Buyer.
RULE 13. Notice of Approval or Denial — The Administrator shall within a reasonable time, inform the applicant of the approval or denial of his application.
RULE 14. Automatic Registration of Certain Trading Centers —
Certain qualified trading centers that complied with the following
requirements in previous trading operation/s shall be considered as
automatically registered for the ensuing tobacco trading season, subject
to the approval of the NTA Administrator:
a. Trading Centers of good standing that have been in continuous operation for the last three successive trading season;
b. Trading Centers that have no administrative or derogatory case/information filed or pending;
c. Trading Centers that have a financial capacity to buy a
definite quantity of tobacco which shall not be less than 250,000 kilos
during a particular trading season or Trading Centers that are under the
financial guarantee of Principal Buyers; andd. Trading Centers that have no back accounts for Research and Regulation fees and other obligations to NTA.
RULE 15. Issuance of License/Payment of Regulation Fees —
Upon approval by the NTA Administrator of the list of T/Cs qualified
for automatic registration, the MDRD, shall notify immediately the T/C
concerned or its Mother Buyer of the approval and to secure their
License subject to the payment of regulation fees for the preceding
trading season and License fees for the ensuing trading season. The
Branch Manager shall be notified accordingly.
RULE 16. License Fee, Purchase Commitment and Bond
— Within ten (10) days following receipt of the notice of approval of
his application as ordinary Trading Center or Notice of Automatic
Registration, the qualified trading center shall pay the amount of One
Thousand (P1,000.00) Pesos as License Fee, execute the Purchase
Commitment and post a surety bond, if necessary.
RULE 17. Granting Licenses to Trading Centers that are not Automatically Registered —
Upon compliance with all the requirements related to the application of
T/Cs not qualified for automatic registration, a License to Buy Tobacco
shall be issued by the Administrator. A License shall in no case be
allowed to use one (1) license for two or more Trading Centers.
RULE 18. Term of License to Buy
— Unless sooner cancelled or revoked by the NTA for cause, the term of
all Licenses to buy shall be for a period of one tobacco trading season,
renewable for another like period upon timely application.
RULE 19. Rights Conveyed Under a License —
The License issued under the provision of these Rules and Regulations,
conveys upon the Licensee from the date of its issuance and during its
term the privilege and authority to buy locally grown Virginia leaf
tobacco at the Trading Center specified therein from Registered Farmers,
other Authorized Sellers and/or TC Agents/Middlemen at prices not lower
than the minimum floor prices prescribed by the NTA.
RULE 20. Non-Transferrability of License —
No License shall be assigned, transferred, or conveyed by the holder in
any manner to or in favor of any person, firm or entity, nor it be used
in any place other than that fixed in the License.
RULE 21. Change of Address —
Any transfer of business address or site of a Trading Center within the
Municipality indicated in the License may be done only with the prior
approval of the NTA.
RULE 22. Additional Trading Centers
— To comply with his Purchase Commitment, a buyer may apply for as many
licenses to buy tobacco as such additional Trading Centers in places to
be designated by the NTA by:
a. Filing with the Branch Manager concerned a written
application attaching thereto the location and floor plan of the
proposed Trading Centers and list of the equipment and facilities to be
used thereat;b. Paying to the NTA Cashier the corresponding application
and processing fee of Five Hundred (P500.00) Pesos for each Trading
Center;c. If it shall be determined that the proposed additional
T/Cs are adequate to meet the normal requirements of the buyers and
sellers, the Administrator shall issue the necessary license upon
payment of the corresponding license fee of One Thousand (P1,000.00)
Pesos for each additional Trading Center; andd. The tobacco purchased by a buyer at such additional Trading Center/s shall be credited to its Purchase Commitment.
RULE 23. Renewal of License — Any holder of a License to Buy Tobacco may secure renewal of such License by:
a. Filing on a prescribed application form before the official opening of the tobacco trading season;
b. Submitting the following documents in support of such application:
- Original License to Buy Tobacco;
- Copy of the latest Income Tax Return;
- Convincing proof of his financial capacity to buy;
- BIR Tax Clearance; and
- Certification from the NTA Officers concerned that the
applicant has submitted all the necessary report/s; paid the required
regulation fees and contributions and penalties, thereof; and that there
is no derogatory report or pending case against the applicant
concerning violations of the pertinent tobacco laws and trading
regulations.c. Paying to the NTA Cashier the amount of Two Hundred Fifty (P250.00) Pesos as application and processing fee;
d. Paying to the NTA Cashier the amount of One Thousand
(P1,000.00) Pesos as License Fee, within ten (10) days following notice
of approval of the application; ande. Executing the Purchase Commitment and posting the required surety bond, if any.
RULE 24. Cancellation of License — The statement
made in the application or made in support thereof, shall be considered
as conditions and essential parts of every license to Buy Tobacco that
may be granted by virtue of such application, and any falsehood in these
statements or omissions of facts which may alter, change or affect,
substantially the facts set forth in said statements may cause the
cancellation of such license.
RULE 25. Other Causes for Cancellation or Suspension
— Any license may likewise be cancelled or suspended for failure of the
Licensee or his grader/s and other employees, to comply with any of the
provisions of existing applicable laws, decrees and other Presidential
issuances, or for violations of any provisions of the Decree or of these
Rules and Regulations and such other rules and regulations as may be
promulgated hereafter by the NTA.
RULE 26. Procedure for Cancellation or Suspension
— Except as herein provided, before any license is cancelled or
suspended, the License shall first be notified in writing of the cause
of causes of the cancellation or suspension and shall be given an
opportunity to be heard and to show cause why the License shall not be
suspended or cancelled. If upon investigation, the Administrator shall
find the respondent to be guilty, the License may be suspended or
cancelled in an order to that effect, a copy of which shall be furnished
to the Licensee and which order shall become final if not contested
after seven (7) days from receipt thereof.
RULE 27. Consequence Cancellation or Suspension
— Upon receipt of the order of cancellation or suspension, the Licensee
shall immediately cease and desist from buying tobacco, close his T/C
and surrender his License to NTA. Such suspension and cancellation shall
not relieve the Licensee from his undertakings under the Purchase
Commitment and under these Rules/Regulations. Failure of the Licensee
to comply with the order of cancellation shall render him liable for
criminal prosecution under existing laws not inconsistent herewith.
RULE 28. Summary Suspension of License — A License to Buy Tobacco may be summarily suspended by the Administrator or any other NTA Official in the following instances:
a. In case of any act of gross and apparent violation of any
of the provisions of these rules/regulations and applicable laws
committed by the Licensee, his grader or other employees, in the
presence of NTA Official/s; andb. In case of reported or persistent violations by the
Licensee, his grader or other employees of the aforementioned tobacco
laws, decrees, regulations notwithstanding earlier admonitions or
warnings by any NTA Official/s.
The NTA Officials concerned shall issue on the spot the
corresponding suspension order; serve the order to the Licensee or his
representative; demand the surrender of his License; and immediately
submit a written report to the Administrator.
REGULATION IV
Registration and Rules Applicable to
Middlemen/Trading Center Agents
RULE 1. Who May Apply for Registration — Any person of
legal age, Filipino, and who has the capacity to enter into a contract
and/or duly affiliated to a Trading Center may apply for registration as
Trading Centers Agent or Middlemen. Registered Trading Centers may
also apply for registration of its T/C Agents by submitting requirements
in the prescribed form. Registration fee of One Hundred Fifty (P150.00)
Pesos shall be paid by each TC Agent/Middlemen upon filing of
application.
RULE 2. Form and Contents of Application —
Application for registration shall be accomplished and filed in
triplicate in the prescribed form and subscribed and sworn to before a
person authorized to administer oath or attested to by a Barangay
Officer or the President of Farmers Association or T/C Association in
that province and stating among others:
a. Full name and address of applicant;
b. Applicant’s citizenship, age, sex and civil status;
c. Name and location of Trading Center/s affiliated to, if any;
d. Area of jurisdiction and 2 ID pictures (1″ x 1″) of
applicant, police clearance/certificate of good moral character from
Barangay Captain/Mayor/OIC or President of Farmers Association or T/C
Association; ande. Affidavit that such applicant will purchase/buy not more
than 50,000 kilos during said trading season, for any particular type of
tobacco (Virginia leaf tobacco).
RULE 3. Evaluation and Verification — Upon receipt of the
application, the Manager, M D R Department or NTA Branch Manager shall
cause the evaluation and verification of the information contained
therein and shall inform the applicant of any action/s taken. NTA
personnel deployed in T/Cs are deputized to register and evaluate
applications of Middlemen/Agents and shall report to NTA any person
operating as such without a License/I.D.
RULE 4. Issuance of Agent’s Identification Card (AIC) —
Upon satisfactory showing that the applicant is duly affiliated to a
trading center and/or has complied with the requirements
above-mentioned, the NTA Administrator thru the MDRD or NTA Branch/Field
Office shall issue the necessary identification card free of charge,
upon payment of the corresponding registration fee.
RULE 5. Privileges and Rights of the Agent’s Card (ID Holder) — The ID Card issued to a Trading Center Agent or Middlemen shall entitle him from date of issue the following:
a. Right to buy or offer to buy tobacco from registered
farmers or authorized sellers within the province where he is registered
as such but such purchase should not exceed 50,000 kilos only. He may
register also as T/C Agent or Middleman in other provinces provided he
complies with these Rules and Regulations;b. Right to pay the farmer/sellers and receive the tobacco for his principal trading center/s;
c. Right to sell and/or deliver tobacco to registered
trading centers. They are not allowed to sell/deliver tobaccos directly
to WTDs/End-Buyers/RP.; andd. AIC’s shall be exhibited when buying tobacco from farmers.
RULE 6. Validity, Cancellation or Suspension of Agent’s ID Card
— Agent’s ID Card shall be valid for one tobacco trading season. It
may be voided, cancelled or suspended on any of the ground/s and
according to the procedures prescribed for cancellation of License to
Buy Tobacco under existing trading rules and regulations. Unless sooner
cancelled or revoked by NTA the Agent’s ID shall be valid only for a
period of one tobacco trading season for one type of tobacco subject to
renewal as provided herein.
RULE 7. A Licensed Trading Center shall inform NTA in writing the name/s of all its middlemen or trading center agents.
RULE 8. All
sales of tobacco between the Trading Center Agent/Middlemen and the
farmer-seller or any authorized seller shall be considered as final sale
only at the Trading Center level insofar as that particular tobacco
delivery is concerned. Accordingly, the trading center agent shall
issue a temporary PIV or a Provisional PIV to the farmer/seller subject
to a final PIV in the name of the Middlemen/TC Agent to be issued by the
Principal Trading Center. A temporary receipt maybe issued in the
absence of a PIV.
RULE 9. A Trading Center shall be
authorized to buy tobacco for his Principal TC and/or any other
registered TC in accordance with existing tobacco laws and rules. All
acts performed outside the scope of his authority as Agent and beyond
the ambit of existing laws and rules shall be considered as the agent’s
personal act and liability.
RULE 10. Registered
Middlemen or T/C Agents are only allowed to sell the tobacco bought from
farmers or other authorized sellers to registered trading centers.
They are not allowed to sell/deliver directly to WTDs/End-Buyers/RPs.
RULE 11.
At the end of a tobacco trading season, the TC Principal shall
submit to NTA thru the Branch Offices or MDRD, a summary of tobaccos
purchased by the Trading Center Agent/s or middlemen.
REGULATION V
Trading in Locally Grown Virginia
Leaf Tobacco at Trading Centers
RULE 1. Place and Duration of Trading — The buying and
selling of tobacco between Buyers and Registered Farmers and other
Authorized Sellers shall be done only at the Trading Center or at the
farmer/sellers place during the period beginning the second day of
January until all tobaccos of farmers/sellers are purchased unless
otherwise determined or changed by the Administrator.
RULE 2. Classification and Baling of Tobacco
— Registered Farmers and other Authorized Sellers intending to sell
their tobacco shall, before delivering their produce to a Buyer, should
first classify their tobacco according to the official grades, tie them
into butts or bundles of about 25 to 30 leaves each, and bale or roll
them in sacks. The buying and selling of tobacco in sticks is allowed
provided they are properly classified. Any buyer found in possession of
tobacco in sticks which are not classified shall be presumed prima
facie to have acquired the same in violation of these rules and
regulations.
RULE 3. Minimum Prices — Unless otherwise
fixed by law or the NTA, no buyer shall buy tobacco from Registered
Farmers or Authorized Sellers at prices lower than the floor prices set
by NTA after consultations with the legitimate farmers and the Principal
Buyers/Trading Centers concerned, or any other government agency
concerned.
RULE 4. Requirement Before Buying — Before buying tobacco, a Buyer/Trading Center shall:
a. Obtain all prescribed trading forms (e.g., Invoice/Receipt, Purchase/Sales Book, and register them with NTA and BIR);
b. Submit to the NTA Branch Office copy of the contract of
employment of his Tobacco Grader who has successfully completed a
training course in grading of Virginia tobacco conducted by NTA and/or
the Principal Buyer;c. Submit to the NTA name/s and facsimile signatures of the
Licensees’ Manager or his representatives, graders, weighers, and other
persons who are authorized to sign for and in behalf of the Licensee;d. Submit to the NTA a certified copy of his business or revenue permit (L-3 TC);
e. Set up in front of the Trading Center a signboard
measuring 3 feet x 6 feet containing, among others his name and address,
the words “Virginia Tobacco Trading Center” and the phrase “NTA License
No. ___”;f. Set up in front of the Trading Center a bulletin board
indicating his hours and days of trading (e.g., “Open for Business: 8:00
A.M. to 5:00 P.M., Mondays to Fridays; 8:00 A.M. to 12:00 Noon,
Saturdays and Sundays”);g. Display conspicuously in the Trading Center samples of
tobacco leaves that meet the minimum specifications or descriptions of
each official grade. These samples shall be approved and certified by
an NTA Tobacco Grader assigned thereat and shall be kept in an
appropriate glass-encased display board that is visible to the public
and should be changed every fifteen days or earlier in case of sudden
deterioration or change in the color and quantity of the tobacco
samples;h. Install at least one licensed/certified and sealed
platform or Toledo scale which is duly registered, calibrated and
certified by the Municipal Treasurer or any government agency concerned.
The weighing scale shall be inspected and calibrated every now and
then by NTA personnel who shall monitor the same during trading season.i. Advise the Marketing Department or Branch Office of the
name and address of the redrying plant/wholesale tobacco dealer where
the tobacco purchases shall be delivered for redrying and/or sale;j. Exhibit the original copy of T/C License to Buy Tobacco in a conspicuous place in the Trading Center; and
k. Post the names of T/C Agents/Middlemen.
RULE 5. Schedule of Trading — The Buyer shall buy tobacco
daily from Monday to Friday, from 8:00 A.M. to 5:00 P.M.; Provided, that
if he intends to open for business during Saturdays, Sundays and
Holidays; he shall give an advance written notice to the Branch Office
of NTA and the public;
RULE 6. Order of Acceptance — Tobacco delivered for acceptance at Trading Center shall be attended strictly on a “first come, first serve” basis.
RULE 7. Incoming Logbook
— Every Buyer shall keep an Incoming Logbook to record chronologically
the order of arrivals of tobacco for sale/acceptance. Each page of the
logbook shall be prenumbered consecutively and it shall contain
appropriate columns for the names of sellers, the estimated quantity of
tobacco brought in by them, and the time of arrival. Entries in the
logbook shall be closed at the end of each trading day by the Buyer and
the NTA representative detailed thereat.
RULE 8. Supervision
— The inspection, grading, weighing, recording and payment of every
tobacco delivery shall be made in the presence of the Registered Farmer
or his Authorized Representative or Authorized Seller /Tobacco
Middlemen/Agent and under the supervision of the NTA Tobacco
Inspector/Grader/Contractual employee detailed thereat, subject to
inspection and monitoring on a case to case basis, by the Branch office
or Central Office Monitoring teams.
RULE 9. Grading — The
grade of tobacco offered for sale shall be determined in accordance
with the official grades and Rules prescribed by the NTA. The grading
shall be done publicly. The official tobacco samples displayed at the
Trading Center shall be used for comparison. In case of apparent
misgrading of the tobacco and/or upon complaint by a farmer/seller, the
NTA Inspector or Grader/Supervisor assigned thereat shall direct the TC
Grader to regrade the tobacco.
RULE 10. Grades and Tags
— The grade of each tobacco bale or roll shall be written legibly on
each of the three segments of the bale tag by the Buyer’s Grader and
initialed by him and the tobacco farmer/middlemen/agent shall be given a
copy.
RULE 11. Weighing — The net weight of the bale or roll of tobacco shall likewise be indicated and the tag by the weigher and initialed by him.
RULE 12. Tag Distribution — After the grading and weighing of the tobacco, the three segments of the tag shall be distributed as follows:
Segment No. 3 – To be attached to bale or roll of tobacco
Segment No. 2 – To Buyer
Segment No. 1 – To Seller/Farmer/Agent
RULE 13. Purchase Invoice Voucher (PIV) — Every
purchase of tobacco from a Registered Farmer or any authorized seller
must invariably be covered by an Invoice Receipt (PIV) duly registered
with the NTA and BIR, which shall be accomplished by the Buyer
immediately after the grading and weighing of the tobacco and prepared
in four copies to be distributed as follows:
Original – To Buyer
Duplicate – To NTA
Central Office
Triplicate – To the Selle
r
Quadruplicate – To Stub Copy
RULE 14. Receipt of Reject Tobacco — Every Buyer
who shall buy reject tobacco shall indicate on the corresponding invoice
the kind of Reject tobacco purchased by him (e.g., black rot,
sun-dried, etc.)
RULE 15. Purchase/Sales/Transfer Book —
At the end of each business day, the NTA representative deployed at the
trading center shall record in the Purchase/Sales/Transfer Book all
tobaccos purchased/sold/transferred, in chronological manner all
information pertaining to all transactions including but not limited to
the following:
– name of farmer/seller/agent
– date of purchase/sale
– quantity, grade and value
– serial number of source document
RULE 16. Semi-Monthly Report — within the first ten
days of each quincena, the NTA TC representative shall submit a
semi-monthly report on purchase/sales/transfer based on the
Purchases/Sales/Transfer Book which shall be signed by the Buyer and the
NTA representative.
REGULATION VI
Mediation, Arbitration, and Review
RULE 1. Mediation — In case of disagreement, as to the
grades of a tobacco between the Buyer and the Seller, including any
dispute involving reject tobacco, the matter shall be immediately
referred to an NTA Tobacco Grader/Inspector for mediation.
RULE 2. Arbitration —
If mediation fails, the NTA Tobacco Inspector or Grader shall advise
the Seller that he may request the Branch office Tobacco Inspector or
Grader to arbitrate and determine the correct grade of his tobacco, or
he may withdraw his tobacco from the Trading Center; Provided, that if
the tobacco is subject to arbitration, the decision of the Branch Office
Tobacco Inspector or Grader shall be binding upon the Buyer, the
Registered Farmers or the Authorized Seller.
RULE 3. Procedure in Arbitration —
If the Seller is willing to have the grades of his tobacco determined
by an NTA Tobacco Grader, the following procedures shall be followed:
a. The NTA Branch Office Tobacco Grader shall inform the Buyer and direct the segregation of the tobacco;
b. The NTA Branch Office Tobacco Grader shall then direct the
Arbiter Grader authorized by the Branch Manager to immediately inspect,
examine and determine the grade/s of the tobacco subject of
arbitration, using as the basis of the official grades and rules
prescribed by the NTA. In case of doubt as to the proper grades of the
tobacco, the arbiter grader shall resolve the doubt in favor of the
Registered Farmer;c. The Arbiter shall summarize his findings in written
report or memorandum to be submitted to the NTA Tobacco Grader and
Branch Manager; andd. The NTA Tobacco Grader/Branch Manager shall see to it that
the arbitrated tobacco shall be immediately weighed, covered by
Purchase Invoice (PIV) and paid by the Buyer.
RULE 4. Review of Arbiter’s Decision — Notwithstanding the
decision of the Arbiter and the payment of the arbitrated tobacco, the
Arbiter’s decision may be appealed to and reviewed by a special Review
Committee, composed of an NTA Official or another NTA Grader as
Chairman, a representative designated by the Buyer and another
designated by the Seller or an association of tobacco growers recognized
by the NTA, as members, if it is alleged that there is a strong
evidence that:
a. The Arbiter or NTA Tobacco Grader is grossly incompetent or evidently partial; or
b. There is fraud or collusion.
RULE 5. Procedure in the Review of Arbiter’s Decision — The procedure to be followed in the review of the Arbiter’s decision shall be as follows:
a. A party aggrieved by the Arbiter’s decision shall, upon
being informed of the decision, signify his protest thereto by informing
the NTA Tobacco Grader/Branch Manager of his desire to have the
Arbiter’s decision reviewed by a Special Committee to be formed by NTA
Administrator and indicating his ground/s therefore;b. The NTA Tobacco Grader shall see to it that copies of all
the Purchase Invoice Vouchers covering the tobacco subject to
arbitration and the Arbiter’s written report or decision are immediately
stamped “PROTESTED”. He shall also see to it that the entire tobacco
subject to arbitration shall remain segregated; and that they shall be
securely wrapped or bundled and likewise marked “PROTESTED” and placed
under his control or custody;c. Upon receipt of the notice of protest the Branch Manager
or the Head of the Branch Special Trading Enforcement Team shall
immediately direct the members of the Special Review Committee to
convene with-in-twenty-four (24) hours at the Trading Center. In the
presence of the Buyer and Seller, the Committee shall immediately
proceed to investigate;d. In case the protest is based on fraud or collusion, the
Special Review Committee shall, aside from determining the correct
grades of the tobacco subject to arbitration, endeavor to secure sworn
statements and other pertinent evidence in support thereof and forward
the same to the NTA Administrator for appropriate action;e. The decision of the Special Review Committee as formed by
the NTA Administrator shall be in writing and shall indicate, among
others:
- The quantity of and grade of tobacco subject of controversy as decided by the Arbiter;
- The quantity and grades of the same tobacco as decided by the Committee;
- The price already paid to received by the Seller and price differentials to be paid or refunded, if any; and
- A statement as to whether or not there is prima facie
evidence of incompetence or partiality against the arbiter or whether he
has committed acts of fraud or collusion to the prejudice of the party
seeking review of his decision.
RULE 6. Decision is Final — The decision of the Special
Review Committee with respect to the disputed grades of tobacco shall be
final and unappealable and shall be binding upon the Buyer and the
Seller.
RULE 7. The Original Copy of the decision shall
be forwarded to the Administrator through the NTA Tobacco Grader/Branch
Manager, together with all documentary exhibits and the Seller, Buyer
and the Arbiter concerned, shall each be furnished a copy of the
decision.
The NTA Tobacco Grader/Branch Manager shall see to it that the decision of the Committee is immediately enforced.
REGULATION VII
Payment of Tobacco
RULE 1. Manner of Payment — Tobacco purchases shall be
paid in cash and the use of promissory notes, negotiable instruments or
other forms of payment other than legal tender shall be allowed when
both parties consent/agree.
RULE 2. Time of Payment — The
buyer shall pay the tobacco immediately after grading and weighing and
issuance of the corresponding invoice. However, if payment can not be
made promptly due to circumstances beyond the Buyer’s control, payment
shall be made within forty eight (48) hours after the issuance of the
Invoice/Receipt, unless otherwise agreed by both parties.
RULE 3. Place of Payment
— The place of payment shall be at or near the place of the Trading
Center. Payment in a place other than the Trading Center shall be
permissible if payment cannot be effected at or near the trading center
by reason of deterioration of peace and order conditions or any other
causes; provided that no payment shall be made in any bar/club or
drinking establishment, gambling or other similar places.
REGULATION VIII
Regulation Fees
RULE 1. Regulation Fees — Every buyer of tobacco shall
pay to the NTA the amount of Twelve & 1/2 centavos for every
kilogram of Virginia leaf tobacco purchased by him a Regulation Fee.
RULE 2. Remittance of Regulation Fee —
The Regulation Fee herein provided shall be due and payable within the
calendar month immediately following the month the tobaccos were
purchased/delivered to the WTD/RP and it shall be the duty of the
Principal Buyer/WTD/RP to pay such fees to the NTA for the account of
the registered trading center, using the form prescribed for the
purpose. The basis of the regulation fee shall be the quantity recorded
on the Tally-in Sheet issued by the Buyer/WTD/RP. The total regulation
fees for the account of a trading center shall be equal to its total
deliveries to Principal Buyer/WTD/RP concerned shall be responsible only
for the regulation fees of tobacco delivered to it based on the
Tally-in Sheet and the difference, if any, shall be for the account of
the T/C concerned or other Principal Buyer/WTD/RP, where such difference
is delivered.
RULE 3. Surcharge for Late Payment — In
case the regulation fee are not fully paid to the NTA within the period
prescribed herein, there shall be added to such fees a surcharge of
three (3%) percent, per month of the unpaid regulation fees due from the
WTD/PB/RP for the account of the T/C concerned.
RULE 4. Unreported Excess Purchases
— In case the total inventory and deliveries of tobacco of a T/C Buyer
to Principal Buyer/WTD/RP or to his buyers will be found to be more than
his total purchases on the basis of records, such excess shall be
presumed as purchases made in violation of these Regulations. Without
prejudice to the imposition of appropriate penalty provided therein, T/C
Buyer/s shall be assessed and shall pay the corresponding regulation
fees to the NTA for such excess, plus twenty-five (25%) percent thereof
as surcharge, which is due and payable by the T/C concerned at the end
of its official closure or End of the trading operation, whichever is
earlier.
RULE 5. Mode of Payment — The correct amount of
regulation fee including surcharge, if any, as prescribed by these rules
and regulations, shall be paid by every Principal Buyer/WTD/RP for the
account of the trading center concerned to the NTA Cashier either in
cash or in the form of Bank Draft, Certified Check, Bank Manager’s or
Cashier’s Check, Money Order or Personal Check drawn against any bank
established in the Philippines; Provided, that such Personal Check shall
be drawn by the Principal Buyer/WTD/RP and made payable to the NTA and
that under no circumstances shall the following checks be accepted:
a. Checks drawn payable in the name of any NTA official or employee;
b. Endorsed Checks;
c. Post-dated checks; and
d. Stale Checks.
REGULATION IX
Miscellaneous Regulations On Trading at the Trading Center
RULE 1. Suspension of Buying — Suspension or stoppage of
buying for reasons such as cleaning or repair of the Trading Center,
repiling and inventory of stocks, shall be allowed only with the prior
approval of the NTA Branch Manager, after posting proper notices or
announcements in front of the Trading Center. Provided; that in no case
shall the suspension or stoppage of buying exceed five (5) consecutive
days; and Provided, further, that such suspension or closing shall not
relieve the Buyer from complying with his undertakings under these
Rules/Regulations.
RULE 2. Place of Records — All records of the Buyer
shall be kept and maintained in or about the premises of the Trading
Center, and shall be open for inspection and examination by the NTA
Administrator or his duly authorized representative/s or any Tobacco
Trader/Branch Manager at any time during reasonable working hours/days.
They shall be preserved in good condition for a period of two (2)
trading seasons.
RULE 3. False Statements — It shall be
unlawful for any Buyer to make, keep or maintain any statement, report
or record as required by these Rules and Regulations knowing such
statement, report or record to be false in any material respect.
RULE 4. Sale or Transfer of Tobacco Outside Province of Origin
— A Farmer or any other Authorized Seller desiring to sell or transfer
tobacco from its province of origin to another, shall inform the NTA
Branch Office of the quantity and grade of the tobacco involved prior to
such sale or transfer for purposes of recording and not for purposes of
restraining or limiting his rights as the owner of such tobacco. Free
trade shall not be hampered and the Farmer/Seller shall be given the
opportunity to sell/deliver his tobacco stocks to any Buyer/TC of his
choice, subject to any other contract/s entered into by such
Farmer/Seller.
RULE 5. Additional Receiving or Storage Areas
— If the volume of trading demands, a Buyer may be permitted, upon
proper application and showing, to establish such additional receiving
or storage areas; Provided, that such additional receiving areas shall
be located within the premises of his Trading Center.
RULE 6. Assistance to Financial Institution —
All Buyers shall extend assistance and cooperation for financial
institutions in any financing program for the tobacco-producing region,
in the collection of loans granted by them to Farmer-Seller-Borrowers.
Any participating Financial Institution may request for reasonable
assistance directly to the Buyer or through the NTA which shall forward
the request to the tobacco Buyer immediately. The request shall be in
writing and it shall indicate the assistance desired and such other
pertinent information.
REGULATION X
Trading of Virginia Leaf Tobacco with
Wholesale Tobacco Dealers/Principal Buyers
RULE 1. Permit to Purchase and/or Redry of Wholesale Tobacco Dealers and End-Buyers —
Any Wholesale Tobacco Dealer or End-Buyer may trade in locally grown
Virginia tobacco by securing the necessary Permit from the NTA
Administrator through the Manager, MDRD. Any redrier that is
exclusively engaged in redrying and processing shall be issued a Permit
to Redry upon proper application.
RULE 2. Shipping or Transferring Leaf Tobacco — No leaf
tobacco shall be shipped, removed or transferred either for domestic
sale, barter or exchange, warehousing or factory use or export unless it
is purchased in accordance with these Rules and Regulations. Only
registered trading centers and/or registered WTDs/End-buyers/RPs are
allowed to trade with WTDs/Principal Buyers. Tobacco Middlemen/Agents
are not allowed to sell directly to Principal Buyers, unless such
Principal Buyer is also a registered trading center.
RULE 3. Preparation of Shipment —
Before selling or transferring leaf tobacco to a Wholesale Tobacco
Dealer, Principal Buyer/RP, the same must be classified in accordance
with the NTA Official Grades.
RULE 4. Shipping Documents —
In addition to the documents required under existing revenue
regulations every shipment shall be accompanied by the following
documents on the form prescribed by NTA.
Delivery Receipt or
Tally-Out-Sheet which shall contain a summary of the shipment on the
quantity by the bale which shall be signed by the NTA representative
assigned thereat and the T/C concerned.
RULE 5. Reception of Shipment —
No whole-sale Tobacco Dealer shall purchase or accept for deposit,
processing, stripping, redrying, warehousing and/or for any other
purpose, leaf tobacco unless the shipment is in conformity with these
Rules and Regulations.
RULE 6. Notice of Arrival — Upon
arrival of the tobacco shipment, the shipper or his representative shall
immediately notify the NTA Tobacco Grader and/or NTA representative
thereat and submit the shipping documents for verification and
recording.
RULE 7. Notice of Unloading — Before the
tobacco shipment is unloaded, the shipper or consignees shall give
notice to the NTA Tobacco Grader and/or NTA representative assigned in
the area of the time and date of acceptance; Provided, that leaf tobacco
shipment shall be unloaded on a “first come, first served” basis.
RULE 8. Issuance of Official Receipt or Tally-in-Sheet by Principal Buyer or Consignee —
Immediately after the grading and weighing of a tobacco delivery coming
from a registered trading center, the Principal Buyer or Consignee
shall prepare and issue to the Seller a Purchase Invoice or receipt and
shall furnish a correct copy thereof to the NTA representative assigned
thereat. The Purchase Invoice or Receipt shall indicate, among others,
the quantity, grades, weight and purchase price or value thereof.
RULE 9. Permit to Purchase and/or Redry of Wholesale Tobacco Dealers and End-Buyers —
Any Wholesale Tobacco Dealer or End-Buyer may trade in locally grown
Virginia leaf tobacco by securing the necessary permit from the NTA
Administrator thru the Manager, MDRD. Any redrier that is exclusively
engaged in redrying and processing shall be issued a Permit to Redry
upon proper application.
RULE 10. Wholesale
Tobacco Dealers who shall accept leaf tobacco for Redrying or processing
from other Wholesale Tobacco Dealer shall submit to the NTA a daily
production report of redried tobaccos. The report shall indicate among
others, the names of the owners of tobacco, the quantity, grade and
weight of the tobacco. No Wholesale Tobacco Dealer or End-Buyer shall
purchase, or accept for deposit, processing (stripping, redying,
warehousing and/or any purpose) leaf tobacco unless the shipment is in
conformity with NTA Rules and Regulations.
RULE 11. The
provisions of the rules and regulations on trading of Virginia leaf
tobacco by and among WTDs, particularly those on shipping and
transferring leaf tobacco; preparation of shipment, shipping documents,
request for and making of inspection, notice of arrival and unloading,
grading and weighing of tobacco deliveries, mediation and arbitration,
issuance of Official Receipts or Tally-In-Sheets by Buyer or Consignee,
provisions for suitable space and equipment for NTA personnel, and
overtime work and overtime pay for NTA personnel equally apply to
End-Buyers on Redriers.
RULE 12. Whenever in the opinion of the
Administrator it is necessary that two (2) or more NTA personnel shall
be assigned in an establishment where any leaf tobacco shall be accepted
for any purpose, the Owner or Manager of such establishment shall
provide such NTA employees with suitable space and such equipment as are
necessary in the performance of their duties.
RULE 13.
The Wholesale Tobacco Dealer shall be responsible for overtime pay
of the NTA personnel assigned at its establishment for services rendered
by such employees beyond the official working hours from Mondays to
Fridays and during Saturdays, Sundays and Holidays.
RULE 14. Production Reports —
Any End-Buyer who accepts leaf tobacco for redrying or processing, for
itself or for other Wholesale Tobacco Dealers and End-Buyers, shall
submit to the NTA Marketing Department weekly production reports of the
redried tobacco. The report shall indicate, among others, the name of
owners, the quantity and weight of the tobacco.
RULE 15. Continuity of Operations of WTDs and End-Buyers —
Any WTD or End-Buyer with a Permit to Purchase and/or Redry issued by
NTA shall continue its operation without interruption from its official
opening up to its official closure, except for valid and justifiable
reasons.
The WTD and/or End-buyer shall notify the Administrator
thru the Manager, MDRD, a written notice of its closure date of
operation at least ten (10) days prior to said closure date.
REGULATION XI
Offenses and Penalties
RULE 1. Applicable laws provide for the
following offenses and penalties. Notwithstanding the provisions of any
law or regulation to the contrary, and for the purpose of carrying out
the provisions of said laws and these rules/regulations, the following
acts or omissions are hereby considered as serious, less serious, and
light offenses and corresponding penalties, therefore are herein
prescribed, in accordance with existing laws that are not inconsistent
hereto.
a. Serious offenses — Any of the following acts or omissions shall constitute a serious offense:
- Buying of tobacco at prices lower than the NTA prescribed floor prices;
- Deducting shrinkage allowance from the weight of the tobacco sold, except for tobacco sticks and baling materials;
- Buying tobacco from farmers or other unauthorized sellers or
T/C Agents/Middlemen without a license/permit issued by the NTA;- Principal Buyers/WTDs/Rps accepting tobacco from TC
Agents/Middlemen or TC Agents/Middlemen delivering tobacco to
RPs/WTDs/Principal Buyers; and- Knowingly and deliberately using tampered or inaccurate weighing scale/s.
The offender shall, upon conviction, be punished by imprisonment
of not less than four years and one day but no more than five years,
and/or a fine of not less than Fifteen Thousand Pesos but not more than
Twenty Thousand Pesos.b. Less serious offenses — Any of the following acts or omissions shall constitute a less serious offense:
- Failure or refusal to issue prescribed invoice or receipt covering tobacco purchases;
- Buying unclassified tobacco or tobacco in sticks which are not classified;
- Buying or selling tobacco by using fake, fictitious or another person’s license, permit or IDs;
- Selling or buying tobacco with an expired, suspended or cancelled license, permit or accreditation;
- Hindering or obstructing any NTA Official or employee in the
course of his duties, including refusal to furnish information or
copies of documents relating to any tobacco and refusal to permit the
inspection of a tobacco.The offender shall, upon conviction, be punished by imprisonment
of not less than one year and one day to three years and/or by a fine of
not less than five thousand pesos but not more than ten thousand pesos.c. Light offenses — Any other violation of the
provisions of trading rules or regulations promulgated by the NTA for
which no specific penalty is prescribed and which is not punished by any
other existing law shall be considered a light offense.The offender shall, upon conviction, be punished by imprisonment
of not less than two months and one day or more than six months, and/or a
fine of not less than five hundred pesos but not more than two thousand
pesos.d. Additional penalties — (1) The license of any buyer
found guilty of serious or less serious or light offense, shall also be
cancelled; Provided, however that the license of the offender shall not
be renewed during the pendency of any investigation or prosecution for
the commission of any such offenses.If the offender is a public officer or government employee,
including any official or employee of the NTA or any other
government-owned or controlled corporation shall, upon conviction, be
disqualified from holding public office.2. Acts of omissions for which no specific penalties are
provided for under existing laws, decrees, orders but are punishable by
any other existing law shall be punished under such law.If an act or omission constitutes an offense under any decree/law
which is also a violation of another existing law, or regulation, the
law which imposes a heavier penalty shall be made to apply;3. If the violation or offense is committed by a corporation,
partnership, association, cooperative or other juridical entity,
whether public or private, the penalties provided hereunder shall be
imposed upon the directors, officers, graders, employees or other
officials or persons therein responsible for the offense; except for the
civil liabilities herein imposed, which shall be jointly and severally
imposed on the corporation/partnership/trading center and/or
officers/employees concerned. Provided, that if the offender is an
alien, he shall be deported immediately without further proceedings.4. The prosecution of any offense under the
rules/regulations, laws, decrees or orders shall be without prejudice to
the civil or administrative liabilities of the offender.
Be guided accordingly.
Adopted: Apr. 1991
(Sgd.) EDILBERTO V. CARIASO
Administrator