MALACAÑANG 
Manila

PRESIDENTIAL DECREE No. 62

AMENDING TOBACCO LAWS CONCERNING THE VIRGINIA TOBACCO INDUSTRY AND FOR OTHER PURPOSES.

WHEREAS, the economic viability and well-being of the Virginia tobacco farmers should be assured;

WHEREAS, the exportation of the old PVTA tobacco stocks, as a prerequisite to the importation of foreign leaf tobacco for blending purposes will cause irreparable damage to the favorable acceptance now enjoyed by current Philippine Virginia tobacco crop in the foreign market;

WHEREAS, the exportation of current and future Philippine Virginia tobacco of good quality should be encourage, so as to strengthen the economy of the nation by bringing in more dollars;

WHEREAS, the Philippine Virginia Tobacco Administration should liquidate its indebtedness to the Central Bank of thePhilippineswithin the shortest possible time;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines and pursuant to Proclamation No. 1081, dated September 21, 1972, and General Order No. 1, dated September 22, 1972, as amended, do hereby order and decree that:

1. No person will import leaf tobacco 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 within the country, the Philippine Virginia Tobacco Administration may authorize any bona fide cigarette manufacturer(s), owned or controlled by Filipino citizen, 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 five (5) 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.

2. All stocks of locally producedVirginialeaf tobacco of the Philippine Virginia Tobacco Administration shall be sold at the best prices available. The proceeds shall be used to pay the Philippine Virginia Tobacco Administration’s obligation to the farmers, the FaCoMas, and the Central Bank of thePhilippines. After June 1974, the Philippine Virginia Tobacco Administration shall be given an extension of five (5) years within which to pay the balance of its indebtedness to the Central Bank of thePhilippines. Any surplus shall accrue to the Tobacco Fund established under Republic Act Numbered Forty-One Hundred Fifty-Five.

3. The Trading operations at trading centers supervised by the Philippine Virginia Tobacco Administration shall continue up to December 31, 1973. Thereafter, private enterprise shall undertake exclusively the trading of locally producedVirginialeaf tobacco. No person shall purchase locally grown and produced flue-curedVirginialeaf tobacco at prices less than those fixed in the following schedule:

The description of each grade shall be determined by the Philippine Virginia Tobacco Administration.

4. All provisions of Republic Acts Numbered Six Hundred ninety-eight, Eleven hundred ninety-four, Twenty-two hundred sixty-five and Forty-one hundred fifty-five and all enactments, legislative acts and rules and regulations inconsistent and incompatible with this Decree are hereby repealed or modified accordingly.

5. The PhilippineVirginiaTobacco Administration shall promulgate such rules and regulations for the proper implementation and enforcement of this Decree.

Done in the City of Manila, this 20th day of November, in the year of Our Lord, nineteen hundred and seventy-two.