WHEREAS,
the full development of the Virginia tobacco industry is a declared
policy of the State;chanroblesvirtualawlibrary
WHEREAS, it is essential that the Virginia tobacco farmer be given
assistance in enhancing the quality and quantity of his yield and
protection from unfair and unscrupulous trade practices and such other
economic vicissitudes that unduly deprive him of the just and fair
price of his agricultural produce;chanroblesvirtualawlibrary
WHEREAS, it has become necessary for the State to take firmer measures
to safeguard the general interest of the Virginia tobacco industry.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
adopt and promulgate this Decree, the full text of which follows:cralaw:red
Section 1. Title and Scope. — This Decree shall be
known as the "DECREE GOVERNING AND REGULATING TRADING IN LOCALLY GROWN
VIRGINIA LEAF TOBACCO" and shall govern and regulate the conduct and
manner of trading in locally grown Virginia leaf tobacco in the
country, and shall apply to all persons, corporations, companies,
partnerships, consortium of tobacco dealers, who may now or hereafter
be engaged in the trading of Virginia tobacco, whether as buyers or as
sellers, and whether acting as principals or agents or representatives
of such persons, corporations, companies, partnerships, associations or
entities. chanroblesvirtualawlibrary
Section 2. Statement of Objectives. — The specific
objectives of this Decree are to provide the establishment of suitable
marketing centers for Virginia tobacco in strategic places in the
Ilocos Region so that the Virginia tobacco farmer may enjoy reasonable
prices that will secure their return on his investments, and to
prescribe the manner of grading, buying and selling of leaf tobacco and
insure governmental supervision thereof in accordance with this Decree
and other related laws and decrees.
Section 3. Definition of Terms. — As used in this
Decree,
(a) Person — refers to any natural person,
corporation, company, partnership, association, cooperatives,
consortium of tobacco dealers, or any other juridical entity.
(b) Tobacco — refers to locally grown Virginia type
tobacco, excluding those that are redried, threshed or blended.
(c) Farmer — is a person whose stock of leaf tobacco
is the product of the land tilled by him or is given to him as
remuneration for assisting in the growing of tobacco or in the
flue-curing of tobacco leaves.
(d) Cooperative Association — is an association of
farmers organized and existing under the cooperative laws of the
Philippines and duly registered with the Bureau of Cooperatives
Development of the Department of Local Government Community Development.
(e) Buyer — is a person, corporation, company,
partnership, consortium of tobacco dealers or entity duly authorized by
the PVTA under license to buy tobacco from farmers and other authorized
dealers.
(f) Trading Center — is a building or warehouse,
including its accessories, used exclusively for buying, selling, baling
or handling and storing of tobacco.
(g) Purchase Commitment — is a written undertaking
in favor of the PVTA 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 PVTA,
the amount of which shall not be less then ten per cent of the
estimated average value of the unpurchased quantity, in the event of
unreasonable refusal and failure to produce the quantity undertaken to
be purchased.
(h) PVTA — refers to the Philippine Virginia Tobacco
Administration, a government agency created and existing under Rep. Act
No. 2265.
(i) Board — refers to the Board of Directors of the
PVTA.
(j) General Manager — refers to the managing head or
officer-in-charge of PVTA.
(k) PVTA Official — refers to the General Manager;
Assistant General Manager; Chairman or any member of the Board; Chiefs
and Assistant Chiefs or Provincial Offices or the head of any special
trading inspection team of the PVTA.
(l) PVTA Tobacco Inspector or Grader — refers to any
other PVTA employee duly appointed or assigned by the General Manager
to assist in the implementation and enforcement of this Decree.
(m) BIR — refers to the Bureau of Internal Revenue.
Section 4. Duration of Trading. — The buying and
selling of tobacco between buyers and farmers and other authorized
sellers shall be done only during the period beginning the fifteenth
day of February up to and including the seventh day of August of each
year.
Section 5. Place of Trading. — Farmers and other
authorized sellers shall sell or deliver for sale their tobacco only at
the authorized trading centers of buyers which shall be established in
strategic places designated by the PVTA.
Section 6. Classification and Baling of Tobacco. —
No buyer shall buy tobacco from farmers or other authorized sellers
unless it is classified according to grades, tied on the butt into
hands or bundles of about 25 to 30 leaves each, and baled or rolled in
jute sacks. The buying of Tobacco in sticks is strictly
prohibited. chanroblesvirtualawlibrary
Section 7. Tobacco Grades and Specifications. — The
grades and specifications for locally grown Virginia leaf tobacco, as
well as the rules for the application of the official grades, are
prescribed in Annex "A" which is attached hereto and made part hereof.
No buyer shall use or adopt a different system or standard of grading.
Section 8. Minimum Prices. — No person shall buy
tobacco at prices lower than those which the PVTA may reasonably
prescribe from time to time for each grade of tobacco.
Section 9. Shrinkage Allowance Prohibited. — No
buyer shall deduct a shrinkage allowance from the weight of any tobacco
sold.
Section 10. Buyers; Qualifications. — No person
shall buy tobacco from farmers and any authorized seller unless duly
registered and licensed by the PVTA; Provided, That no license shall be
issued unless the applicant;chanroblesvirtualawlibrary
(a) has the financial capacity to buy a definite
minimum quantity of tobacco, which shall not be less than 250,000
kilograms from farmers and other authorized sellers during a particular
trading season;chanroblesvirtualawlibrary
(b) is willing to execute a purchase commitment;chanroblesvirtualawlibrary
(c) can post a bond in the amount of not less than
fifty thousand pesos in favor of the PVTA to secured faithful
compliance by him of his obligations as a buyer, including but not
limited to the payment of liquidated damages in case of failure to buy
his purchase commitment and the payment of research and regulation
fees; and chanroblesvirtualawlibrary
(d) is willing to establish, operate and maintain a
trading center(s) is such a place or places to be designated by PVTA in
which he shall buy tobacco from farmers and other authorized sellers in
accordance with the manner and procedure prescribed herein;chanroblesvirtualawlibrary
Provided, however, That an Association, organization or consortium of
the 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
otherwise 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 and severally with its members: Provided, finally, That the
bond herein required may be waived entirely by the PVTA 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 obligations as a buyer.
Section 11. Sellers. — Buyers shall buy only from
the following:cralaw:red
(a) Farmers duly registered with the PVTA and with
valid identification cards, or their authorized representatives;chanroblesvirtualawlibrary
(b) Cooperative associations accredited with the
PVTA; and
(c) Other persons, firms or entities with Special
Permits to Sell issued by the PVTA. chanroblesvirtualawlibrary
Section 12. Registration. — Farmers intending to
sell their tobacco shall apply for registration with the PVTA
Provincial Office in the province where they reside. For this purpose,
the PVTA shall keep and maintain an up-dated roster of farmers in each
municipality of every Virginia tobacco producing province.
Section 13. Accreditation of Cooperatives. —
Cooperative associations desiring to sell the tobacco of their members
shall apply for registration and accreditation with the PVTA; Provided,
That no cooperative association shall be permitted to sell tobacco in
excess of the total estimated production of its members.
Section 14. Other Authorized Sellers. — Any person
whose stock of leaf tobacco is acquired through other lawful means may
be issued a Special Permit to Sell by the PVTA, provided such tobacco
stock was acquired by the applicant through accidental and isolated
legitimate transaction and there is no reason to believe that the
applicant is habitually engaged in dealing with tobacco without a
license.
Section 15. Requirements Before Buying. —
Notwithstanding the issuance of a license, no buyer shall be permitted
to buy tobacco unless he has complied with the following requirements:cralaw:red
(a) Obtained all prescribed trading forms and
registered them with the PVTA and the BIR;chanroblesvirtualawlibrary
(b) Employed a competent tobacco grader who was
successfully completed an orientation seminar or training course on
Virginia Tobacco grading conducted by the PVTA;chanroblesvirtualawlibrary
(c) Submitted to the PVTA a list of his personnel at
the trading center, including a copy of the contract of employment of
his grader; chanroblesvirtualawlibrary
(d) Set up in front of his trading center an
appropriate signboard containing, among others, his name and address;
the words "Trading Center" and the phrase "PVTA License No. ___";chanroblesvirtualawlibrary
(e) Set up in front of his trading center an
appropriate board indicating his hours and days of trading (i.e., "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")
(f) Displayed conspicuously in his trading center
samples of the different grades of tobacco to serve as visible
practical guides for farmers and other authorized sellers selling their
tobacco. The samples shall be subject to the approval of the PVTA
grader assigned in the trading center and shall be kept in an
appropriate glass-encased display board visible to the public, and the
same should be changed every fifteen days, or in a shorter period in
case of early deterioration or change in the color and quality of the
said samples; and
(g) Installed at least one (1) licensed and sealed
platform scale. No other type of weighing scale shall be used.
Section 16. Incoming Logbook. — Tobacco delivered
for sale at the trading centers shall be attended to on a "First come,
first served" basis; and for this purpose, every buyer shall keep an
Incoming Logbook to record chronologically the order of arrival of
tobacco for sale.
Section 17. Hours of Trading. — The buyer shall buy
tobacco daily from Monday to Friday, from 8:00 A.M. to 5:00 P.M. If he
intends to open for business during Saturdays, Sundays and holidays, he
should give a 72-hour advance notice to the PVTA Field Inspector and to
the public.
Section 18. Supervision of Buying. — Suspension of
temporary stoppage of buying for reasons such as cleaning or repair of
the trading center, re-piling and inventory of stocks, shall be allowed
only with the approval of the PVTA tobacco Inspector and after posting
appropriate notices or announcements in front of the trading center for
a period of at least five consecutive days prior to such suspension or
temporary closing of the trading center.
Section 19. Procedure of Buying. — Tobacco offered
for sale at the trading centers shall be processed in the following
manner;chanroblesvirtualawlibrary
(a) Grading — The grade of the tobacco shall be
determined in accordance with the official grades and guidelines (Annex
"A") hereof. The samples displayed at the trading center shall be used
for comparison. The person who grades the tobacco shall affix to each
bale on roll of tobacco graded by him a tag or label wherein the grade
of the tobacco shall be legibly written and initiated by him. In case
of disagreement as to the grades of tobacco between the buyer and
seller, the controversy shall be immediately referred to the PVTA
Tobacco Inspector for mediation, and if necessary, to a PVTA Grader for
arbitration: Provided, That in case of doubt as to the proper grades of
the tobacco, the arbiter shall receive the doubt in favor of the seller.
(b) Weighing — The gross weight of the tobacco shall
likewise be indicated on the tag by weigher and initialed by him.
(c) Recording — The tobacco, if accepted, shall be
immediately covered by an invoice voucher prescribed by the PVTA:
Provided, That no other forms evidencing purchase of tobacco from a
farmer or other authorized seller be used by the buyer.
(d) Payment — The tobacco purchased shall be paid in
cash immediately after the grading and weighing, at or near the trading
center: Provided, however, That if the purchase price of the tobacco is
more than five thousand pesos, payment thereof may be made by check if
there is a bank or other facilities for encashment within the province
wherein the trading center is located and that the mode of payment is
acceptable to the seller.
Section 20. Supervision. — The grading, weighing and
recording of tobacco shall be made in the presence of the seller of his
representative and the PVTA Tobacco Inspector. Tobacco purchases made
by a buyer without a PVTA Inspector, shall, without prejudice to the
imposition of appropriate penalty as provided herein, not be credited
to his purchase commitment.
Section 21. Buying Outside Trading Centers. —
Notwithstanding any provisions of this Decree to the contrary, a buyer
upon request of an association of tobacco growers duly recognized by
the PVTA may be issued a Special Permit to Buy, either personally or
through an authorized representative, tobacco (a) in remote areas or
places where farmers find great difficulty in transporting their
produce to the nearest trading center, or (b) in a municipality where
there is no buyer actually operating.
Section 22. Possession of Unexpired Tobacco Stocks.
— Any persons to whom no license to buy has been issued by the PVTA and
who is not a cigarette manufacturer, exporter, redrier or legitimate
end-user, who is found in possession of tobacco stocks in excess of his
estimated production, if any, shall be presumed to have acquired such
tobacco stock in violation of this Decree and, without prejudice to the
imposition of appropriate penalty specified herein, he shall be
assessed and shall pay the corresponding research and regulation fee
and contribution to PVTA for such tobacco stock, plus fifty per cent
thereof as additional penalty.
Section 23. Place of Records. — All records of a
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
General Manager or his duly authorized representative, at any time
during working hours. They shall be preserved in good condition for a
period of two (2) trading seasons. chanroblesvirtualawlibrary
Section 24. Assistance to Rural Banks. — All buyer
shall extend proper and necessary assistance and cooperation to rural
banks participating in the Integrated Agricultural Financing Program
for the Ilocos Region, in the collection of loans granted to
farmer-borrowers.
Section 25. Research and Regulation Fee. — Every
buyer of tobacco shall pay to the PVTA the amount of ten (P0.10)
centavos for every kilogram (less tare) of tobacco purchased by him as
Research and Regulation Fee.
Section 26. Contribution to Philippine Virginia
Tobacco Board (PVTB). — Every buyer shall contribute to the Philippine
Virginia Tobacco Board created under Executive Order No. 331, s. 1971,
the amount of two and one-half (P0.025) centavos per kilogram (less
tare) of tobacco purchased by him.
Section 27. Remittance of Fees and Contributions. —
The fees and contributions herein provided shall be due and payable
within the calendar month immediately following the month the tobacco
were purchased, and it shall be the duty of the buyer to remit such
fees and contributions to the PVTA using the form prescribed by the
PVTA.
Section 28. Surcharge for Late Payment. — In case
the fees and contributions are not paid to PVTA within the period
prescribed herein, there shall be added to the fees and contributions
or to the deficiency fees and contributions, in case any partial
payment has been made, a surcharge of three (3%) per cent, per month,
of the amount unpaid: Provided, That the amount so added to any fee or
contributions shall be paid or collected at the same time as the fees
and contributions and in the manner prescribed by the PVTA: Provided,
further, That the General Manager may summarily order the suspension of
the license to buy and the closure of the trading center of the
defaulting buyer until such time as he complies with the provisions of
this Decree. chanroblesvirtualawlibrary
Section 29. Unreported Excess Purchases. — In case
the total inventory and deliveries of tobacco of a buyer to other
persons 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 this Decree, and without prejudice to the imposition of
appropriate penalty provided herein, the buyer shall be assessed and
shall pay the corresponding research and regulation fee and
contributions to PVTA for such excess, plus twenty five per cent
thereof as surcharge.
Section 30. Suspension or Cancellation of Licenses
and Permits. — Any license, permit or accreditation issued hereunder
may, without prejudice to the imposition of appropriate penalties
hereunder provided, be cancelled or suspended by the PVTA after due
notice and hearing for failure to comply with any of the provisions of
existing applicable laws, decrees and other Presidential issuances or
for violation of any provisions of this Decree and such other rules and
regulations as may be promulgated hereafter by the PVTA pursuant to the
authority herein granted; Provided, That any such license, permit or
accreditation may be summarily suspended by the General Manager or any
other PVTA official (a) in case of any act of gross or apparent
violation of any of the provisions of this Decree or of any applicable
laws, decrees, or Presidential issuances committed by any buyer or
authorized seller in the presence of any PVTA official; or (b) in case
of repeated or persistent violations of any such law, decree or
regulations notwithstanding earlier admonitions or warnings by any PVTA
official or PVTA Tobacco Inspector.
Section 31. Any official, tobacco inspector, grader
or any other employee of the PVTA whods, abets, or connives with any
person in violating any of the provisions of this Decree, or who
withholds personal knowledge of any violation hereof from the General
Manager, shall be prosecuted against accordingly and immediately
suspended by the General Manager pending formal investigation of the
charges against him.
Section 32. Authority of PVTA to Enforce This Decree
and to Promulgate Rules. — The PVTA shall be vested with the overall
responsibility and authority of implementing and enforcing the
provisions of this Decree, and for this purpose, to time hereafter such
rules and regulations or order as it may deem proper and necessary, in
addition to or supplementing the provisions of this Decree, including
but not limited to such orders or regulations.
(a) Providing for the issuance of licenses, permits,
accreditations and the terms and conditions thereof, and for the
renewal, refusal, suspension or revocation of such licenses, permits
and accreditations;chanroblesvirtualawlibrary
(b) Prescribing the fees for licenses, permits and
other accreditation;chanroblesvirtualawlibrary
(c) Prescribing the terms and conditions of the
purchase commitment and the amount of bond;chanroblesvirtualawlibrary
(d) Prescribing the type, location and use of
trading centers;chanroblesvirtualawlibrary
(e) Prescribing the trading forms to be used by
buyers, including the reports to be submitted by them;chanroblesvirtualawlibrary
(f) Prescribing the procedure for mediation and
arbitration in case of controversy between the buyers and sellers;chanroblesvirtualawlibrary
(g) Fixing reasonable minimum prices for tobacco
after taking into consideration the prevailing world market conditions,
production cost, reasonable margins of profits for the farmers,
dealers, manufacturers and exporters, the quality of the tobacco and
other relevant factors and conditions; chanroblesvirtualawlibrary
(h) Respecting the buying, selling, advertising,
handling, shipping and transporting, redrying and exporting of tobacco
by buyers, other traders or end-users;chanroblesvirtualawlibrary
(i) Prescribing the manner in which buyers shall
sell, deliver, or transfer their purchases to redrying plants or other
buyers and end-users;chanroblesvirtualawlibrary
(j) Prescribing the descriptions or specifications
of certain grades of tobacco, and the guidelines for application of the
official grades;chanroblesvirtualawlibrary
(k) Prescribing the powers, jurisdiction and duties
of the PVTA tobacco inspectors or graders;chanroblesvirtualawlibrary
(l) Respecting the cleanliness and sanitation of
tobacco to be sold or offered for sale or stored;chanroblesvirtualawlibrary
(m) Prescribing the areas where tobacco may be grown
and/or limiting the maximum quantity of tobacco to be produced thereon;chanroblesvirtualawlibrary
(n) Ordering the burning, destruction or
condemnation of any standing tobacco crop that is infested with Mosaic
disease or other serious tobacco infestation;chanroblesvirtualawlibrary
(o) Providing for the exemption from this Decree or
the regulations, or any part thereof, any person or group of persons;chanroblesvirtualawlibrary
(p) Respecting any matter necessary or advisable to
carry out effectively the intents and purposes of this Decree.
such rules and regulations or orders that PVTA may promulgate shall,
upon approval by the Office of the President, be considered as part,
and shall have the same full force and effect, of this Decree.
Section 33. Inspectors Appointment. — The PVTA may
appoint or designate from among its qualified employees, tobacco
inspectors and grades whose duties are to carry out the provisions of
this Decree.
Section 34. Powers of Inspectors. — (a) Every
inspector, for the purpose of enforcing this Decree and the
regulations, may (1) enter any premises, vessel boat, car truck or
other conveyance used for the storage, processing, grading, packing,
redrying, selling or offering for sale, shipping or transporting of any
tobacco and inspect any tobacco found therein; (2) stop any conveyance
that he believes to contain any tobacco and inspect such conveyance or
any tobacco found therein; (3) obtain any tobacco at the expense of the
owners for the purpose of making an inspection thereof; (4) require the
production or furnishing of copies of, or extracts from any shipping
documents, bills of lading or other records relating to the
tobacco. chanroblesvirtualawlibrary
(b) For the purpose of inspecting a tobacco, the
PVTA inspector may detain it at the risk of its owner and, after
detaining it, the PVTA tobacco inspector shall forthwith notify the
owner of the person who has possession of its detention by telegram or
such other means as in the circumstances he deems proper.
(c) No person shall hinder or obstruct a PVTA
tobacco inspector or a grader in the course of his duties or furnish an
inspector or grader with false information of refuse to permit tobacco
to be inspected or refuse to furnish an inspector or grader with
information.
(d) A person, when required by a PVTA tobacco
inspector, shall produce copies of or extracts from any shipping
documents, bills of lading and other records relating to any tobacco.
Section 35. Detention and Forfeiture of Tobacco. —
Any tobacco, in respect of which in the opinion of a PVTA tobacco
inspector an offense against this Decree or regulations has been
committed, may be placed under detention at the risk and expense of the
owner by the PVTA tobacco inspector until such time as the owner of the
tobacco complies with this Decree and the regulations and, where a
person is convicted of an offense in respect of any such tobacco, the
convicting court may declare such tobacco to be forfeited to the
Republic of the Philippines, whereupon it may be destroyed or otherwise
disposed of as the court directs. chanroblesvirtualawlibrary
Section 36. Where Matter Complained of Demand To
Have Arisen. — For the purpose of jurisdiction, in an information or
conviction for a violation of any of the provisions of this Decree or
the regulations, the matter complained of may be alleged and shall
deemed to have arisen at the place where the tobacco was packed, sold,
offered, exposed or had in possession for the sale or transportation,
as the case may be, or at the residence or usual place of business of
the person charged with the contravention.
Section 37. Offenses and Penalties. —
Notwithstanding the provisions of any law or regulation to the
contrary, and for the purposes of carrying out the provisions of this
Decree, the following acts or omission are hereby considered as
serious, less serious, and light offenses and corresponding penalties
therefor are herein prescribed:cralaw:red
(a) Serious Offenses. — Any of the following acts or
omissions shall constitute as serious offense:cralaw:red
(1) buying of tobacco at prices lower than the
prescribed floor prices;chanroblesvirtualawlibrary
(2) deducting shrinkage allowance from the weight of
the tobacco sold;chanroblesvirtualawlibrary
(3) buying tobacco from farmers or other authorized
sellers without a license issued by PVTA;chanroblesvirtualawlibrary
(4) knowingly and deliberately using tampered or
inaccurate weighing scale.
The offender shall upon conviction, be punished by imprisonment of not
less than four years and one day or more than five years, and/or a fine
of not less than fifteen thousand pesos nor more than twenty thousand
pesos.
(b) Less Serious Offenses. — Any of the following
acts of omission shall constitute a less serious offense:cralaw:red
(1) buying tobacco from farmers and other authorized
sellers outside trading center;chanroblesvirtualawlibrary
(2) failure or refusal to issue prescribed invoice
or receipt covering tobacco purchases;chanroblesvirtualawlibrary
(3) buying unclassified tobacco or tobacco in sticks;chanroblesvirtualawlibrary
(4) buying or selling tobacco by using false,
fictitious, or another person's license, permit or identification card;chanroblesvirtualawlibrary
(5) selling or buying tobacco with an expired,
suspended or cancelled license, permit or accreditation;chanroblesvirtualawlibrary
(6) hindering or obstruction any PVTA official or
employee in the course of his duties, including refusal to furnish
information or copies of documents relating to any tobacco or to permit
the inspection of a tobacco.
The offender shall, upon conviction, be punished by imprisonment of not
less then one year and one day to three years and/or by a fine of not
less than five thousand pesos nor more than ten thousand pesos.
(c) Light Offenses. — Any other violation of the
provisions of this Decree or the regulations to be promulgated by the
PVTA for which no specific penalty is prescribed and which is not
punished by any other existing law shall be considered a light
offense. chanroblesvirtualawlibrary
The offender shall, upon conviction, be punished by imprisonment of not
less than two months and one day nor more than six months and/or a fine
of not less than five thousand pesos nor more than two thousand pesos.
(d) Additional Penalties. — (1) The license of any
buyer found guilty of serious, less serious of 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 employee, including an official
or employee of the PVTA or any other government-owned or controlled
corporation, he shall, upon conviction, be disqualified from holding
public office.
(2) Acts or omissions for which no specific
penalties are provided for under this Decree but are punishable by any
other existing law shall be punished under such law.
If any act or omission constitutes an offense under this Decree as well
as 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 police or private, the penalties provided for under
this Decree shall be imposed upon the directors, officers, graders,
employees or other officials or persons therein responsible for the
offense; Provided, That if the offender is an alien, he shall be
deported immediately without further proceedings.
(4) The prosecution of any offense under this Decree
shall be without prejudice to the civil or administrative liabilities
or the offender.
Section 38. Repealing Clause. — Any laws, decrees,
Presidential issuances, executive and administrative orders or
regulations inconsistent herewith are hereby repealed or modified
accordingly.
Section 39. Effectivity. — This Decree shall take
effect immediately.
Done in the City of Manila,
this 11th day of June, in the year of Our Lord, nineteen hundred and
seventy-eight.
ANNEX "A"
OFFICIAL GRADES & SPECIFICATIONS OF LOCALLY
GROWN VIRGINIA LEAF TOBACCO
I. Grades. The grades for Virginia
tobacco are as follows:cralaw:red
1. "Grade A", consisting of flue-cured tobacco that
is,
(a) in lemon or orange colors; and
(b) of choice quality, having the following
characteristics;
i. ripe (mature)
ii. thin to medium thin in body
iii. rich in oil
(c) not less than 38.40 cms. (15 inches) in length,
and 10% allowance in injury.
2. "Grade B", consisting of flue-cured tobacco that
is,
(a) lemon or orange in color;
(b) of good to choice quality, having the following
characteristics:
i. ripe
ii. thin to medium in body
iii. rich in oil
(c) not less than 33.28 cms. (13 inches) in length;
and 10% allowance in injury.
3. "Grade C", consisting of flue-cured tobacco that
is,
(a) lemon or orange in color;
(b) of good quality, having the following
characteristics;
i. ripe
ii. medium in body
iii. fair in oil
(c) not less than 28.6 cms. (11 inches) in length;
and 10% allowance to injury.
4. "Grade D", consisting of flue-cured tobacco, that
is,
(a) lemon orange of brownish shade with dominating
lemon or orange in color; and
(b) of fair quality having the following
characteristics::
i. fairly ripe
ii. medium or thick in body
iii. lean in oil
(c) not less the 23.04 cms. (9 inches) in length;
and 10% allowance to injury.
5. "Grade E", consisting of flue-cured tobacco that
is,
(a) lemon orange or brownish with dominating lemon
orange color; and
(b) of fair to poor quality having the following
characteristics:
i. fairly ripe
ii. medium or thick body
iii. lean in oil
c) below 23.04 cms. (9 inches) in length; and 10%
allowance to injury. chanroblesvirtualawlibrary
II. Reject Tobacco. — The following tobacco do not
fall in any of the above-mentioned grades and are hereby described as
reject tobacco.
1. black 12.
redried
2. black-rot 13.
salty
3. chemically treated 14.
scalded
4. dead leaves 15.
scorched
5. fixed green 16.
sponged
6. foul-smelling 17.
slick
7. immature 18.
sucker
8. infested 19.
sundried
9. injured 20.
tips
10. moldy 21.
toady
11. rained-out 22.
wet
III. Definitions. — In this Decree
1. Black — means leaves that have more than 50%
black coloring on their surface.
2. Black-rot — means leaves which are black to sooty
black in color, has excessive moisture content, and easily
disintegrated and decays when handled and packed in a case or hogshead
for fermentation.
3. Body — means the thickness and density of a leaf
or the weight per unit of surface.
5. Color — means the third factor of a grade based
on the relative hues, saturation or chromas, and color values common to
the type.
6. Dead leaves — means leaves that are grayish to
brown in color, with no elasticity, easily crack when handled, do not
absorb moisture, and in many respects, are like sundried leaves.
7. Fixed-green — means leaves which have a permanent
greenish tinge or pale green color.
8. Foul-smelling — means leaves that give off
abnormal obnoxious odor.
9. Immature — (Unripe) — means leaves which were
harvested too early or not properly ripe which have greenish color
affecting 20% or more of the entire leaf surface.
10. Infested — means leaved damaged by insects while
in the field or in storage.
11. Injured — means leaves that are hurt or impaired
due to such causes and diseases, insects or pests, weather conditions,
use or unappropriate pesticides, hormones, nutritional deficiencies or
excess or from improper harvesting, curing or handling.
12. Injury — means hurt or impairment from any cause
except in fungus or bacterial diseases which attack tobacco in its
cured state, but which is not serious enough to be classified as
waste. chanroblesvirtualawlibrary
13. Lemon — means yellow.
14. Length — means linear measurement of cured
leaves from the base of the leaf to its extreme tip.
15. Maturity — means the degree of ripeness.
16. Moldy — means leaves with 14% or more moisture
content which activates mold growth, and emits a moldy odor.
17. Oil — means a soft, semifluid constituent of
tobacco.
18. Orange — means a reddish yellow. chanroblesvirtualawlibrary
19. Rained-out — means leaves that have been caught
by early rains while still in the field.
20. Redried — means leaves that have undergone
reprocessing or redrying.
21. Salty (pale or gray) — means leaves that give
off a urine like odor when cured. The bright yellow color becomes faded
to pale or gray upon exposure to moistr especially.
22. Scalded — means leaves that are dark with
chocolate-colored area on curve of leaves, caused by excessive humidity
in the curing process, over-crowding on the stick, and inadequate
ventilation.
23. Scorched — means having abnormal reddish brown
color and odor suggestive of caramel, caused by exclusive leaf during
the curing process. chanroblesvirtualawlibrary
24. Sponged — means leaves that are dull grayish
brown in appearance caused by allowing tobacco to become over-ripe in
the field, or by holding low temperature too long in the early part of
the curing.
25. Slick — means leaves of lemon or orange color of
which 50% or more of its surface is close or tight.
26. Sucker — means leaves harvested from suckers or
tillers growing along the tobacco stem. Suckers usually grow if tobacco
flowerheads are cut off.
27. Sundried — means leaves that have been cured
under the sun. The color is brown and it lacks the aroma and
characteristics of a flue-cured leaf.
28. Tips — means leaves harvested from the uppermost
part of a tobacco plant. The leaves are narrow with pointed tips, large
midrib and fibers folding or closing face, oily or lively bodies, very
acute fiber venation. chanroblesvirtualawlibrary
29. Toady — means leaves that are slick, dense,
thick and leathery and grayish brown in color. The leaves have no grain
and are very compact in body.
30. Wet — tobacco leaves containing excessive
moisture to the extent that they are likely to be damaged when kept in
storage.
IV. Rules — The application of the official grades
shall be accordance with the following rules:cralaw:red
1. In the grading of flue-cured tobacco regard shall
be had to:
a) the color of the tobacco leaves;
b) the quality of the tobacco leaves; and
c) the length and injury of the tobacco leaves.
2. The determination of a grade shall be based upon
a thorough examination of a bale or roll of tobacco or of an official
sample thereof.
3. The bale or roll of tobacco meets the
specifications of a grade when it is not lower in any degree than the
minimum specifications for such grade.
4. The appraisal of injuries shall be based upon the
percentage of affected leaf surface or degree of injury.
5. In determining the grade of tobacco, the entire
bale or roll shall be considered. Minor imperfections which do not
affect over 10 per cent of the tobacco shall be over-looked, provided
such imperfections meet the minimum specifications of the next lower
grade, and provided, further, that if the tobacco falls under Grade E,
the allowance imperfections shall consist only of scorched, slick and
scalded tobacco.
6. A bale or roll consisting of tobacco belonging to
two or more grades which does not fall under the immediately proceeding
rule or which contains injured leaves in excess of the 10% injury
allowance shall be considered mixed tobacco which shall be returned to
the seller for reclassification. chanroblesvirtualawlibrary
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