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LETTER OF INSTRUCTIONS
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LETTER OF INSTRUCTIONS NO. 166
TO
: The Chairman-General Manager
Philippine Virginia Tobacco Administration
Pursuant to Proclamation No. 1081 dated September 21, 1972, and in my capacity as Commander-in-Chief of all Armed Forces of the Philippines, and in order to accelerate the development of the Virginia tobacco industry and to advance the economic well-being of the millions of people who are depending upon it, you are hereby ordered:
1.
To regulate, control and supervise the trading of
Virginia tobacco which shall be done only at trading centers to be
designated by you in strategic places in the North.
2. To conduct
research work for the Virginia tobacco
industry in all its phases, with particular emphasis on the search for
fuel substitutes for flue-curing in view of the energy crisis and
forest denudation.
3. In order to
augment the income of the tobacco
farmers due to the rise on the cost of production, such as: cost of
fertilizers, insecticides, and fuel; and considering that the prices of
Virginia tobacco prescribed under Republic Act No. 1194 and
Presidential Decree No. 62 were determined twenty (20) years ago, you
shall also see to it that no person shall buy or sell locally grown
flue-cured leaf tobacco at prices lower than the following:
GRADE PRICE
A
P5.00
B
4.50
C
4.00
D
3.50
E
3.00
4. To carry out the above instructions, you are hereby authorized and directed to collect a research and regulation fee equivalent to four per centum (4%) of the gross purchase price of every kilogram of the flue-cured tobacco sold, to be paid by the producer-seller. No buyer shall deduct a shrinkage allowance in excess of six per centum (6%) of the gross purchase price of the tobacco.
5. To require every trading center operator to contribute to the Philippine Virginia Tobacco Board created under Executive Order No. 331, S. of 1971, the amount of P0.025 per net kilo of tobacco brought at the trading centers, which shall be due and payable at the end of the trading season and shall be used for the improvement of the Virginia tobacco industry. The PVTA shall spend for the same purpose an amount at least equal to whatever is contributed by the trading center operators.
6. To direct the management and operation of trading centers in order to see that a system of recording all tobacco purchased is instituted and that payment to the farmers shall be in cash and not lower than the new schedule of prices.
All concerned, particularly the cigarette manufacturers, tobacco redriers and exporters, tobacco entities and producers are enjoined to take notice of this Order.
Any violation of this Order shall mean the outright cancellation, withdrawal, and revocation of the permit to trade, the closure of the establishment involved, as well as the arrest and prosecution of any person concerned. In the implementation hereof, you shall coordinate with the Bureau of Internal Revenue and other proper agencies of the government.
Done in the City of Manila, this 25th day of February, in the year of Our Lord, nineteen hundred and seventy-four.
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