WHEREAS, the prices of foreign leaf tobacco which is a necessary ingredient in the manufacture of quality cigarettes are steadily rising;

WHEREAS, there is urgent need for effective measures to lessen the cost of locally manufactured cigarettes and to protect the consuming public who would eventually be made to pay for the increase on the cost;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution, do hereby decree and order that Section 4 of Republic Act No. 4155, as amended by Presidential Decree No. 62, be further amended to read as follows:

"SEC. 4. Importation of foreign leaf tobacco only for blending purposes.— No person will import leaf tobacco except as herein provided. When the Philippine Virginia Tobacco Administration Board believes that it is necessary to improve the quality of locally made cigarettes and there are no sufficient stocks of foreign leaf tobacco for blending purposes available in the country, the Philippine Virginia Tobacco Administration may authorize any bona-fide cigarette manufacturer, owned or controlled by Filipino citizens, to import foreign leaf tobacco for blending purposes at the ratio of not more than one (1) kilogram of imported foreign leaf tobacco to every four (4) kilograms of local Virginia leaf tobacco purchased, subject to limitations, requirements, rules and regulations promulgated by the Philippine Virginia Tobacco Administration. In no case shall the importation exceed six (6) million kilograms in any year unless the exigencies of the industry require otherwise. No other tariff or taxes shall be imposed on foreign leaf tobacco so imported except an amount equivalent to one hundred per centum (100%) of its landed cost: Provided, however, That, such tariff or tax shall not be less than an amount equivalent to the sum of P10.00 for every kilogram of imported foreign leaf tobacco irrespective of grade and cost.

This Decree is hereby made part of the law of the land and shall take effect immediately.

Done in the City of Manila, this 7th day of May, in the year of Our Lord, nineteen hundred and seventy-four.