Governing And Regulating Trading Of Locally Grown Virginia Leaf Tobacco
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Governing And Regulating Trading Of Locally Grown Virginia Leaf Tobacco
Presidential Decree No. 1481
June 11, 1978
Case Overview and Summary
Summary:Title and Scope (Section 1):
- This law is called the "DECREE GOVERNING AND REGULATING TRADING IN LOCALLY GROWN VIRGINIA LEAF TOBACCO".
- It governs and regulates the trading of locally grown Virginia leaf tobacco in the Philippines.
- It applies to all persons, corporations, companies, partnerships, or consortiums engaged in buying or selling Virginia tobacco.
Objectives (Section 2):
- Establish suitable marketing centers for Virginia tobacco in the Ilocos Region.
- Ensure reasonable prices for Virginia tobacco farmers.
- Prescribe the manner of grading, buying, and selling leaf tobacco under governmental supervision.
Definitions (Section 3):
- Defines terms like "tobacco", "farmer", "cooperative association", "buyer", "trading center", "purchase commitment", "PVTA", "Board", "General Manager", "PVTA Official", "PVTA Tobacco Inspector or Grader", and "BIR".
Duration and Place of Trading (Sections 4-5):
- Buying and selling of tobacco shall be done from February 15 to August 7 of each year.
- Farmers and authorized sellers shall sell tobacco only at authorized trading centers designated by PVTA.
Classification and Grading (Sections 6-7):
- Tobacco must be classified according to grades, tied into hands or bundles, and baled or rolled in jute sacks.
- The official grades and specifications for Virginia tobacco are prescribed in Annex "A".
- Buyers shall not use a different grading system.
Minimum Prices and Shrinkage Allowance (Sections 8-9):
- No person shall buy tobacco at prices lower than those prescribed by PVTA.
- No buyer shall deduct a shrinkage allowance from the weight of tobacco sold.
Buyers' Qualifications and Requirements (Sections 10-15):
- Buyers must be registered and licensed by PVTA, with specific requirements like financial capacity, purchase commitment, bond, and trading center.
- Buyers must comply with requirements like obtaining trading forms, employing a competent grader, displaying signboards and samples, and using licensed scales.
Sellers (Sections 11-14):
- Buyers shall buy only from registered farmers with valid IDs, accredited cooperative associations, or persons with Special Permits to Sell issued by PVTA.
- Farmers must register with PVTA, and cooperatives must apply for accreditation.
Buying Procedure (Sections 16-21):
- Tobacco shall be attended to on a "first come, first served" basis, recorded in an Incoming Logbook.
- Grading, weighing, recording, and payment procedures are specified.
- Buying outside trading centers is allowed with a Special Permit to Buy in remote areas or municipalities without buyers.
Possession of Unexpired Tobacco Stocks (Section 22):
- Persons without a license found with excess tobacco stocks shall be presumed to have acquired them illegally and shall pay fees and penalties.
Records and Assistance to Rural Banks (Sections 23-24):
- Buyers must maintain records and allow inspection by PVTA.
- Buyers shall assist rural banks in collecting loans from farmer-borrowers.
Fees and Contributions (Sections 25-29):
- Buyers shall pay a Research and Regulation Fee of ₱0.10 per kg of tobacco purchased.
- Buyers shall contribute ₱0.025 per kg to the Philippine Virginia Tobacco Board.
- Fees and contributions are due within the following calendar month, with surcharges for late payment.
- Excess purchases shall be presumed illegal, and buyers shall pay fees and surcharges.
Suspension or Cancellation of Licenses and Permits (Section 30):
- Licenses, permits, or accreditations may be canceled or suspended by PVTA for non-compliance or violations, after due notice and hearing.
Offenses by PVTA Officials and Employees (Section 31):
- PVTA officials or employees aiding or conniving in violations shall be prosecuted and suspended pending investigation.
Authority of PVTA (Section 32):
- PVTA is vested with the overall responsibility and authority to implement and enforce this law.
- PVTA may promulgate rules and regulations on various aspects of tobacco trading.
Inspectors' Appointment and Powers (Sections 33-36):
- PVTA may appoint tobacco inspectors and graders.
- Inspectors have powers like entering premises, inspecting tobacco, detaining tobacco, and requiring production of records.
- Obstructing inspectors is an offense.
- Detained tobacco may be forfeited if an offense is committed.
Offenses and Penalties (Section 37):
- Serious offenses (e.g., buying below floor prices, deducting shrinkage allowance, buying without a license) are punishable by imprisonment of 4 years and 1 day to 5 years and/or a fine of ₱15,000 to ₱20,000.
- Less serious offenses (e.g., buying outside trading centers, using false licenses, obstructing officials) are punishable by imprisonment of 1 year and 1 day to 3 years and/or a fine of ₱5,000 to ₱10,000.
- Light offenses are punishable by imprisonment of 2 months and 1 day to 6 months and/or a fine of ₱500 to ₱2,000.
- Additional penalties include license cancellation, disqualification from public office, deportation for aliens, and civil or administrative liabilities.
Repealing Clause and Effectivity (Sections 38-39):
- Inconsistent laws, decrees, or issuances are repealed or modified.
- This law takes effect immediately.
Annex "A":
- Provides the official grades and specifications for Virginia tobacco, including definitions and rules for grading application.
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Executive Issuances
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Virginia tobacco
tobacco trading
tobacco grading
tobacco prices
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tobacco farmers
tobacco cooperatives
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tobacco regulations
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tobacco penalties
Law
Governing And Regulating Trading Of Locally Grown Virginia Leaf Tobacco
Presidential Decree No. 1481
•June 11, 1978
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 1481
GOVERNING AND REGULATING TRADING OF LOCALLY GROWN VIRGINIA LEAF TOBACCO
WHEREAS, the full development of the Virginia tobacco industry is a declared policy of the State;
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;
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:
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...
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