[ NTA, July 31, 2000 ]
RULES AND REGULATIONS GOVERNING THE TRADING OF ALL TYPES OF LOCALLY GROWN LEAF TOBACCO, AS AMENDED
REGULATION I - GENERAL PROVISIONS
RULE 1. Definition of Terms - As used in these Rules and Regulations:
a) Trading Rules and Regulations - refers to the rules and regulations governing the trading of all types of locally grown leaf tobacco.
b) NTA - refers to the National Tobacco Administration, a government agency created and existing by virtue of Executive Order No. 245.
c) NTA Board - refers to the NTA Board of Directors, as the policy-making body of the Agency.
d) Administrator - refers to the Chief Executive Officer of the NTA.
e) NTA Classifier/Grader - refers to an NTA official/employee duly assigned or designated by the NTA Administrator as a tobacco classifier/grader to supervise/monitor the classifying/grading of leaf tobacco.
f) moa (Memorandum of Agreement) - refers to the production and marketing agreement between and among the NTA, the farmer-cooperator and the buying firm.
g) Leaf Tobacco Buyer - refers to any person, natural or juridical, duly licensed by the NTA, to buy leaf tobacco from the tobacco farmer-producers.
h) Principal Buyer - refers to a tobacco buyer who, under a purchase commitment, commits to purchase the leaf tobacco bought by the licensed leaf tobacco buyers.
i) Buyer Firm (BF) - refers to a tobacco company, duly licensed by the NTA, to buy leaf tobacco directly from the tobacco farmers, which has entered into a Tobacco Contract Growing project with the NTA and certain tobacco farmers under a MOA.
j) Tobacco Trading Center - refers to the place (building or warehouse), including its accessories/facilities, which is used for buying, selling, baling, grading, weighing, paying and/or storing of leaf tobacco in accordance with the herein rules.
k) Purchase Commitment - refers to a collective written commitment of the tobacco buyers to buy a specific quantity of leaf tobacco from tobacco farmer-producers during a particular crop year.
l) Tobacco Farmer-Producer - refers to a person whose stock of leaf tobacco is the product of the land tilled by him personally.
m) Leaf Tobacco - refers to locally grown tobacco leaves that are traded at the trading center level.
n) License to Buy - refers to a written authority, issued by the NTA to qualified tobacco bf/tc operator, to buy leaf tobacco directly from the tobacco farmer-producers, at a designated tobacco trading center/s.
o) Permit to Purchase - refers to a written authority issued by the NTA, to wholesale tobacco buyer/trader/principal buyers to purchase leaf tobacco from tobacco bf/tc operators or other wholesale tobacco buyer/traders/principal buyers.
p) Certificate of Authority - refers to a written authority issued by the NTA, to a field representative, of a duly licensed tobacco bf/tc operator, to get, collect and/or deliver to the bf/tc operator, the leaf tobacco produce of the tobacco farmer-producers.
q) PATDA - refers to the Philippine Aromatic Tobacco Development Association, whose members are the principal buyers of all types of leaf tobacco.
r) MDRD - refers to the Market Development and Regulation Department of the NTA-Central Office.
s) Branch Office - refers to any of the branch offices of the NTA and its extension offices located at the tobacco producing provinces.
t) Tobacco Trading - refers to the buying and selling, barter or exchange of leaf tobacco from the tobacco farmer-producers to the trading center and/or to the principal buyer.
u) Roving Teams - refers to NTA officials/employees, designated by the Administrator to enforce and oversee the proper, effective, and efficient compliance of the herein rules and regulations, at the trading center/s, particularly on the accurate weighing, proper grading, prompt payment and proper documentation.
v) Field Representative - refers to a person who is registered with the NTA, as the duly authorized agent of a licensed tobacco bf/tc operator to get, collect and/or deliver leaf tobacco from farmer-producers outside the trading center, after compliance with certain conditions and requirements, herein set forth.
w) Tobacco Bale Tag - refers to an accountable form/document that identifies the tobacco bale or roll, relating to the name of the farmer-seller, the weight and the grade of the leaf tobacco being sold directly by the tobacco farmer-producer at the trading center as the main document to support the corresponding purchase invoice voucher.
x) Purchase Invoice Voucher (PIV) - refers to an accountable form/document that identifies the tobacco purchased by the duly licensed tobacco bf/tc operator from a tobacco farmer-producer, indicating the name of farmer-seller, source of the tobacco, the weight, grade, total price per grade, total market value of the tobacco sold, name and signature of tc operator, time of arrival and the payment of the sales proceeds of the tobacco and the corresponding serial number/s of the tobacco bale tag/s.
y) Certificate of Purchase (COP) - refers to an accountable form/document that identifies the leaf tobacco gathered/collected by a field representative from the tobacco farmer-producer and delivered to a duly licensed tobacco bf/tc operator.
REGULATION II - Jurisdiction and General Functions
For the effective enforcement of these Tobacco Trading Rules and Regulations;
RULE 1. The NTA Board of Directors shall:
a) Adopt, prescribe and promulgate the proper and needed tobacco trading policies, rules and regulations in consultation with the management.
b) Approve/ratify the implementing guidelines that are recommended by the Administrator for the effective and efficient enforcement of the tobacco trading rules and regulations governing the trading of all types of locally grown leaf tobacco.
RULE 2. The NTA Administrator shall:
a) Primarily be responsible for the effective and efficient implementation of the trading rules and regulations, particularly, on the rules relating to proper classification and bundling by the tobacco farmer-producer of his tobacco produce and by the tobacco buyer on accurate weighing, proper grading, prompt payment and proper documentation of tobacco acceptances.
b) Grant/issue licenses to tobacco buyers of whatever category/type, to buy leaf tobacco directly from the tobacco farmer-producers only after complying with the requirements as prescribed under these rules and regulations and subject to the conditions provided herein. The same condition/s shall be complied with in the granting/issuance of permit to redry vis-a-vis with the redrying plant operators and permit to purchase leaf tobacco from licensed tobacco traders, vis-a-vis wholesale tobacco buyers/trader/s/redrying plant.
REGULATION III - NTA LICENSE TO ENGAGE IN TOBACCO TRADING
RULE 1. Who May Apply For License To Buy Leaf Tobacco - Any person of legal age and having the legal capacity to enter into contract, a corporation, partnership, company, cooperative, or any other juridical entity, duly licensed to do business in the Philippines, and/or recognized and affiliated with PATDA, as a member of good standing, may apply for a License to Buy leaf tobacco from the tobacco farmer-producer/s thru its trading center/s, subject to the provisions of Rule 2 hereof and after paying to the NTA cashier the corresponding processing and license fees in the amount of:
| For Virginia Tobacco | PhP 2,000.00 |
| For Burley Tobacco | 2,000.00 |
| For Dark/Native Cigar Filler/Batek Tobacco | 700.00 |
RULE 2. Requirements To Support The Application For License To Buy Leaf Tobacco - Any application (MDRD Form No. 1) for the issuance of a License/Authority to buy leaf tobacco, shall be filed with the Branch Office where the trading center is located, the same to be supported by the following:
a) Information sheet of the trading center operator (MDRD Form No. 2);
b) If trading center is a corporation or operates under the corporate name of a principal buyer, designation from the principal buyer/corporation, as duly authorized operator of such trading center (MDRD Form No. 3);
c) Endorsement/recommendation by the Branch Office where the trading center is located (MDRD Form No. 4);
d) Clearance from the Branch Office, as to payment of R & R fees and other obligations (MDRD Form No. 5);
e) Photocopy of Articles of Incorporation/By-Laws, if the applicant is a corporation (For new applicant);
f) Latest certified copy of audited financial statements and/or latest copy of Income Tax Returns of the trading center operator or the corporation:
g) Vicinity/location and floor plan of the trading center, indicating its total area, location and dimension of the different service areas (if the applicant is new);
h) Latest certified copy of the Mayor s Permit from the municipality/city where the trading center is located;
i) Photocopy of NTA Official Receipt indicating full payment of the processing and license fees.
REGULATION IV - TRADING OF LEAF TOBACCO
RULE 1. The Following Are Qualified To Buy Virginia, Burley And/Or Dark/Native Cigar Leaf/Batek Leaf Tobacco:
1.1.a A duly licensed tobacco bf/tc operators;
1.1.b A duly licensed tobacco bf/tc operator qualified to buy all the contracted tobacco produce of its farmer-cooperators under a TCGP Memorandum of Agreement and Marketing Agreement.
1.1.c A duly licensed wholesale tobacco buyer/trader authorized to buy leaf tobacco from a duly licensed tobacco bf/tc operator/s and/or other Wholesale Tobacco buyer/trader.
RULE 2. Time, Place and Duration of Trading - The buying of leaf tobacco at the trading center shall be from 8:00 AM to 5:00 PM, Monday to Saturday, except if any of the said days is declared as an official holiday. However, the buying at the TC outside of the official working days may be allowed upon written request by the tobacco bf/tc operator and duly approved by the branch manager concerned and with prior notice of at least seven (7) working days, provided, that the overtime pay of the NTA personnel assigned thereat shall be for the account of the tobacco bf/tc operator.
RULE 3. Location And Use Of Trading Center - The trading center shall be located in a place adjacent to a street or thoroughfare, permitting easy access to it by farmer-producer/seller. The use of the trading center/warehouse/building, for purposes other than tobacco trading, may be allowed, provided, that the other business activities are conducted outside the trading center and do not in any way hamper/obstruct the effective and efficient implementation of these rules.
RULE 4. Requirements Before Buying - Before buying leaf tobacco, a tobacco bf/tc operator shall:
a) Obtain from the NTA a License to buy leaf tobacco, duly approved and signed by the Administrator;
b) Obtain all the prescribed trading forms (e.g). Purchase Invoice Voucher (PIV), Purchase Books, Tobacco Bale Tags, Tally-Out Sheet/Delivery Receipt, Certificate of Purchase for its authorized field representative/s and register them with the NTA Branch Office;
c) Submit to the NTA Branch Office, the name/s and facsimile signature/s of the TC Manager and/or his representative, tobacco grader/s, weigher/s and other persons who are authorized to sign for and in behalf of the tobacco bf/tc operator/s;
d) Set up in front of the trading center, a signboard measuring 3 feet x 6 feet containing, among others, the name and address of the trading center, the corresponding NTA license number, his regular business hours and days of trading (e.g., Open for business 8:00 am to 5:00 p.m., Monday to Friday, 8:00 am to 12:00 noon, Saturdays and Sundays );
e) Display conspicuously inside the trading center samples of tobacco leaves that meet the minimum specifications or descriptions of each official grade/s. These samples shall be approved and certified by the Roving Team and shall be kept in an appropriate glass-encased display board that is visible to the public and should be changed every fifteen (15) days, or earlier in case of sudden deterioration or change in the color and quality of the tobacco samples;
f) Install at least one (1) weighing scale that is duly calibrated and sealed by the Roving Team. The weighing scale shall be inspected and calibrated regularly by the Roving Team, who shall monitor at random the accuracy of such weighing scale;
g) Exhibit the original copy of the NTA License To Buy Leaf Tobacco in a conspicuous place within the premises of the trading center;
h) Provide a separate receiving ramp/area for the weighing and grading of leaf tobacco that are personally delivered by the tobacco farmer-producer/s;
i) Hire sufficient number of personnel to undertake the proper accomplishment of the prescribed trading forms; and
j) Provide a permanent/adequate space for the NTA bulletin/billboard/s that is visible to the public.
RULE 5. Classification And Baling Of Tobacco - The tobacco farmer-producer/seller shall bring/sell his leaf tobacco produce to a duly licensed tobacco bf/tc operator, properly bundled into 25 to 30 leaves per bundle/roll, tied at the butts and reasonably classified in accordance with the grading standards prescribed by the NTA.
The equivalent tare to be deducted from the gross weight of the leaf tobacco is one (1) kilo per bale, if the baling material used is a plastic sack and two (2) kilos, if it is a jute sack.
RULE 6. Order Of Buying/Acceptance - The tobacco farmer-producer shall personally bring his tobacco produce to a duly licensed tobacco bf/tc operator and shall be attended to strictly on a first come, first serve basis and shall be chronologically recorded in the trading center incoming logbook.
RULE 7. Weighing Of The Leaf Tobacco - Upon arrival of the leaf tobacco in the tobacco trading center, it shall be weighed on a duly calibrated weighing scale. Weighing of the leaf tobacco shall be done in the presence of the farmer-producer/seller and the Roving team.
RULE 8. Tobacco Grading During Tobacco Season - During tobacco trading season, the Administrator shall assign a responsible, capable and knowledgeable trading official/employee, at the trading center, to enforce and oversee the proper, effective and efficient enforcement/compliance of these trading rules and regulations, particularly, on the proper grading, accurate weighing, prompt payment and proper documentation of leaf tobacco acceptances. The Administrator shall also field/commission trading roving team/s for the same purpose. The NTA designated representative/s shall have the authority to intervene, at any time, in the enforcement of these trading rules and regulations, particularly, on specific matters as cited herein. The power to arbitrate is vested on the trading officials/employees assigned thereat, and/or to NTA officials of higher rank.
RULE 9. Pricing Of Leaf Tobacco - Leaf tobacco shall be bought by the duly licensed tobacco buyers at prices not lower than the prescribed floor prices corresponding to a particular leaf tobacco grade, as determined and approved by the NTA Board of Directors.
RULE 10. Tobacco Bale Tag - The tobacco trading center, shall use tobacco bale tag/s at all times when buying leaf tobacco during the trading season. The name of the farmer-seller, the weight and the grade of the leaf tobacco shall be written legibly on each of the three segments of the tobacco bale tag by the trading center/buyer s weigher and grader. The segments of the tobacco bale tag shall be distributed as follows:
| Segment No. 1 | TC s Copy (to be attached to the tobacco bale/roll) |
| Segment No. 2 | NTA s Copy (to be attached to the PIV Copy for MDRD) |
| Segment No. 3 | Farmer s Copy |
The grade/s of the tobacco subjected to mediation/arbitration shall be indicated in the tobacco bale tag and shall be signed by the Roving Team and the TC tobacco grader.
RULE 11. Purchase Invoice Voucher (PIV) - Every leaf tobacco purchased from a tobacco farmer-producer shall be covered by a PIV, duly registered with the NTA and BIR. The PIV shall be properly accomplished by the bf/tc personnel immediately after the grading, weighing and payment of the sales proceeds of the leaf tobacco or within 24 hours after its delivery/acceptance. It shall be accomplished in three (3) copies to be distributed as follows:
| Original | NTA-MDRD |
| Duplicate | Buyer |
| Triplicate | Farmer-Seller |
The PIV shall indicate the name of the trading center, its business address, BIR registration number, etc., name of tobacco farmer-producer/seller, date of transaction, source of the tobacco, as to barangay and municipality, grade/s of the tobacco, net weight of each grade, the corresponding buying price for each grade, the total price for each grade, the total market value of the tobacco sold, name and signature of the trading center manager, the time of arrival of the leaf tobacco at the trading center and the time of payment of the sales proceed/s and serial number of the tobacco bale tag/s and the Certificate of Purchase (COP), if applicable.
RULE 12. Certificate Of Purchase (COP) - Every leaf tobacco gathered/collected by a field representative from the tobacco farmer-producer and delivered to a licensed tobacco bf/tc operator shall be covered by a COP, properly accomplished and duly signed by the tobacco farmer-producer/seller. It shall be submitted by the field representative to the tobacco bf/tc operator upon delivery of the leaf tobacco gathered/collected by him and attached to the PIV, issued for the purpose.
REGULATION V - PAYMENT OF TOBACCO
RULE 1. Manner Of Payment - All leaf tobacco purchased by the duly licensed leaf tobacco bf/tc operator/s shall be paid in cash.
RULE 2. Payment In Check Or Other Negotiable Instruments - Payment in the form of personal check, postal check, money order or any other form of negotiable instrument maybe allowed, if the amount due is more than ten thousand (PhP10,000.00) pesos and there is a bank or other facility for encashment within the province where the trading center is located, provided, however, that such mode of payment is acceptable to the tobacco farmer-producer.
RULE 3. Time Of Payment - The licensed leaf tobacco bf/tc operator shall pay the tobacco farmer-producer/seller, immediately after the grading, weighing and issuance of the corresponding PIV. However, if payment cannot be made promptly due to fortuitous event or circumstances beyond the control of the tobacco bf/tc operator/s, payment shall be made within forty-eight (48) hours after the normal conditions are restored.
RULE 4. Place Of Payment - The place of payment shall be at or near the place where the trading center is located. Payment in a place other than the trading center may be allowed, if the payment cannot be effected at or near the trading center by reason of the deterioration of the peace and order conditions in that place or any other cause beyond the control of both parties, provided, that payment shall not be made in any bar/disco house or drinking establishment, gambling or other similar places.
REGULATION VI REGISTRATION OF TC FIELD REPRESENTATIVES
RULE 1. Who May Apply As Tobacco BF/TC Operator s Field Representative - Any person of legal age and having legal capacity to enter into contract, duly recognized and authorized by a duly licensed tobacco bf/tc operator, may apply for a Certificate of Authority to gather/collect leaf tobacco from the tobacco farmer-producers and deliver the same to the licensed tobacco bf/tc operator, subject to the provisions of Rule 2 hereof and after paying to the NTA cashier the required registration fee in the amount of :
| For Virginia tobacco | PhP 1,000.00 |
| For Burley tobacco | 1,000.00 |
| For Dark/Native Cigar Filler/Batek tobacco | 500.00 |
RULE 2. Requirements To Support The Application Of A Field Representative:
a. Information sheet
b. Name of tobacco bf/tc to which the applicant is affiliated
c. Proof of payment of the required registration fee.
REGULATION VII COLLECTION AND RECORDING OF PURCHASE INVOICE VOUCHERS (PIVs)
RULE 1. Every Monday and Friday, during the trading operations, the Roving Team shall gather/collect the properly accomplished PIVs, COPs and Tobacco Bale Tags issued by the tobacco bf/tc operator and submit the same to the Branch Office to clerk who shall record chronologically in the Purchase Book, the following information and data:
* Name of Farmer-Producer-Seller
* Source of the tobacco (Barangay, Municipality)
* Date of payment/arrival
* Volume, grade and value of the leaf tobacco
* Serial Number of PIV and tobacco Bale Tags
REGULATION VIII - RESEARCH AND REGULATION (R & R) FEES
RULE 1. Research & Regulation Fees - Every tobacco bf/tc operator shall pay to the NTA the amount of thirty centavos ( PhP0.30) for every kilogram of tobacco purchased/accepted, representing Research and Regulation (R & R) Fees.
RULE 2. Payment Of R & R Fees - The R & R fees herein provided, shall be due and payable within the calendar month immediately following the month the leaf tobacco was purchased/accepted. It shall be the duty of the tobacco bf/tc operator to pay the corresponding R & R fees, including the accrued penalties due therefrom, if any, to the NTA Branch Office where such trading center is located.
RULE 3. The Basis Of The R & R Fees shall be the quantity/volume of tobacco that is recorded in the purchase book, using as source document, the PIV, less three (3%) percent handling loss/shrinkage allowance.
RULE 4. Surcharge For Late Payment Of Research & Regulation Fees - In case the R & R fees are not paid within the reglementary period prescribed herein, a penalty/surcharge of three (3%) percent per month, compounded monthly, shall be imposed, paid and collected in the manner prescribed herein, provided, that the NTA Administrator may summarily order the revocation/suspension of the License to Buy and closure of the trading center concerned until such time that it complies with the payment of all the required R & R fees and penalties due.
The penalty/surcharge of three (3% ) percent per month shall be due and demandable within one month after the principal R & R Fees are due for payment. Such penalties/surcharges shall be for the account of the trading center concerned and shall be paid in the same manner and procedure as in the payment of R & R Fees.
RULE 5. Billing And Collection Of R & R Fees - At the end of each month, the Branch Office shall prepare a billing letter and send to the tobacco bf/tc operator/s on or before the 10th day of the succeeding month. In case the R & R Fees remain unpaid on the 20th day of the month, another billing letter shall be prepared and sent to the tobacco bf/tc operator not later than the 25th day of said month.
All R & R Fees, penalties and surcharges shall be collected and deposited by the Branch Office concerned to the NTA-Central Office On-Line Bank Account.
REGULATION IX - SPECIAL PROVISIONS
In view of the peculiar trading system and the various sub-types and uses of native/dark tobacco produced and grown in the Visayas and Mindanao regions, the following special provisions, in addition to the herein provisions under Regulation Nos. I to VIII, which are not inconsistent therewith, shall govern the trading of udlot, tugko, sapud, lulong, barot, pasta and batek leaf tobacco, to wit:
RULE 1. Definition of Terms:
a) Authority to Buy - refers to a written authority issued by the NTA, through the Branch Manager, to a buyer of leaf tobacco, called viajero, to buy leaf tobacco directly from the farmer-producers/sellers.
b) Batek/Udlot/Tugko - refers to the upper leaf of a native/dark leaf tobacco produced in the Visayas and Mindanao regions.
c) Sapod/Lulang/Barot - refers to the lower leaf of a native/dark leaf tobacco produced in the Visayas and Mindanao regions.
d) Pasta - refers to the lower leaves that are shredded into three (3) millimeter wide and sold as raw material for chewing tobacco and cigarette making.
e) Paldo - refers to a bale of leaf tobacco containing 50 to 60 kilograms of leaf tobacco.
f) Manos - refers to a bundle/pack of leaf tobacco containing 100 leaves per bundle/pack.
g) Tabo System - refers to the leaf tobacco trading system, conducted thru an auction, at a designated place within a municipality.
h) Viajero - refers to a leaf tobacco buyer, other than a leaf tobacco bf/tc operator, who buys native/dark type of leaf tobacco directly from the tobacco farmer-producer and sells, delivers, transports and ships the same to other barangay/s, municipality/ies, province/s or other leaf tobacco buyers.
RULE 2. Leaf Tobacco Trading By The Viajeros - Before buying leaf tobacco, a viajero shall secure an Authority to Buy by filing the properly accomplished prescribed application form with the NTA Branch Office concerned, and pay the corresponding processing and registration Fees. This authority shall be valid for one trading season. Only NTA-registered viajeros are allowed to buy leaf tobacco directly from the tobacco farmer-producers within the province indicated in the NTA Authority to Buy leaf tobacco, by following the herein rules:
a) The Authority to Buy shall be carried personally by the viajero, at all times, when buying leaf tobacco.
b) Buying of tobacco may be in manos or paldos , provided, that there shall be a corresponding equivalent volume in kilos of the manos or paldos which shall be properly indicated in the Certificate of Purchase to be issued by the viajero, to the farmer-producer/seller.
c) The tobacco farmer-producer/seller shall be paid within 24 hours after the consummation of the sale or before the delivery/release of the tobacco from his bodega/storage.
d) The viajero shall secure a Certificate of Inspection from the NTA Branch Office/Field Office, before transporting any leaf tobacco purchased, to other barangay, municipality or province, indicating therein that the corresponding Research & Regulation Fees for the leaf tobacco purchased, are fully paid to the NTA Branch Office concerned, which shall issue the corresponding official receipt.
e) The viajero shall not buy leaf tobacco produced by a tobacco farmer-producer covered by a tobacco contract growing project supervised by the NTA, unless the contractor-buyer refuses to buy the subject tobacco.
RULE 3. Tabo System Of Tobacco Trading - Buying and selling of leaf tobacco under a tabo system shall follow the rules stipulated herein:
a) Any local government unit (LGU) which operates or intends to operate a tabo system of leaf tobacco trading shall notify the NTA Branch Office concerned, by providing the following data/information:
1) Copy of the resolution of the Sangguniang Bayan/Barangay concerned, to operate a tabo system of leaf tobacco trading;
2) Location plan of the place/s where the tabo system shall be conducted;
3) Floor plan of the building, indicating its total area, location and dimension of the different service area/s; and
4) Designated day/s and time of tabo trading.
b) Tobacco farmer-producer/s and NTA-licensed tobacco buyers shall be allowed to participate in the tabo system of leaf tobacco trading.
c) During the designated day/s and time of tabo system of leaf tobacco trading, an NTA official/employee and/or a Roving Team shall be assigned to oversee the trading activity/ies thereat.
d) Leaf tobacco purchased/auctioned thereat shall be properly weighed on a duly-calibrated weighing scale in the presence of the tobacco farmer-producer and NTA Roving Team, who thereafter issue a Certificate of Inspection and the corresponding official receipt for the payment of the Research & Regulation Fees.
REGULATION X - TRADING OF LEAF TOBACCO WITH WHOLESALE TOBACCO BUYERS/TRADERS /REDRYING PLANT OPERATORS
RULE 1. Permit To Purchase And/Or To Redry Issued To Wholesale Tobacco Buyers/Traders And Redrying Plants - Any Wholesale Tobacco Buyer/Trader and Redrying Plant Operator, may engage in the trading of locally grown leaf tobacco by securing the necessary permit from the NTA.
RULE 2. Requirements To Support Application For The Issuance Of Permit To Purchase And Permit To Redry - Any natural/juridical person who intends to engage in the purchase and redrying of leaf tobacco, shall secure Permit To Purchase and/or Permit To Redry , after compliance with the following requirements:
a) Purchase Commitment to buy/redry a specific quantity/volume of leaf tobacco from duly licensed tobacco bf/trading center operators;
b) Certified list of duly licensed tobacco trading center/s that shall operate under its Purchase Commitment and the duly authorized signatories in all trading documents;
c) Financial guarantee or any document to prove the financial capacity of the affiliated trading center operator/s to buy leaf tobacco; and
d) Photocopy of NTA official receipt indicating full payment of the processing and license fees.
RULE 3. Wholesale Tobacco Buyers/Traders And Redrying Plant Operators are authorized to buy/accept/receive leaf tobacco deliveries from licensed tobacco bf/tc operator/s and/or other wholesale tobacco buyers/traders for redrying/processing/sale. Every leaf tobacco delivery/ies shall be supported by a tally-out-sheet or delivery receipt signed by the trading center/wholesale tobacco buyer/trader and duly signed as Received by the wholesale tobacco buyer/trader/redrying plant operator/s.
RULE 4. The Wholesale Tobacco Buyer/Trader/Redrying Plant Operator Shall Require The Following Documents:
a) Tally-out-sheet/Delivery sheet
b) Certificate of Inspection issued by NTA Branch Office/Roving Team
REGULATION XI - TOBACCO TRADING VIOLATIONS AND SANCTIONS
RULE 1. For violation/s of any of the herein prescribed provisions of these tobacco trading rules and regulations, particularly, on proper grading, accurate weighing, prompt payment and proper documentation of the leaf tobacco traded, the NTA Administrator shall impose the necessary administrative sanction/s, ranging from warning to revocation/cancellation of the license/permit, depending on the gravity of the act/s committed.
RULE 2. For any violation/s committed by NTA officials/employees, particularly on the implementation/enforcement of these rules and regulations, the NTA Administrator shall impose the corresponding administrative sanction/s.
These Trading Rules and Regulations shall take effect immediately.
31 July 2000
Approved by the NTA Board of Directors under NTA Board Resolution No. 010 series of 2000