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(NAR) VOL. 20 NO.1 / JANUARY – MARCH 2009

[ NTA MEMORANDUM CIRCULAR NO. 001, S. 2009, January 05, 2009 ]

ADDITIONAL REQUIREMENTS IN THE PROCESSING OF APPLICATIONS FOR LICENSE/PERMIT/AUTHORITY TO BUY/PURCHASE LEAF TOBACCO, AMENDING RULE 2 OF REGULATION III AND RULE 3 OF REGULATION VI OF THE AMENDED TRADING RULES AND REGULATIONS (TRR) AND PROVIDING FOR THE DEADLINES IN THE FILING OF APPLICATION OF LICENSE/PERMIT/AUTHORITY



Pursuant to the powers vested upon the National Tobacco Administration (NTA) by Executive Order No. 245 and the results of the consultation made during the Tobacco Stakeholders Consultative Conference on Safeguarding Stakeholders’ Interest in the Marketing of Quality Tobacco Leaf held on 06 November 2008, the following are hereby adopted for the compliance of all concerned, to wit:

Section 1. Rule 2 of Regulation III of the TRR is hereby amended to include the following additional requirements, to wit:

“Rule 2. Requirements To Support The Application For License To Buy Leaf Tobacco – An application (RD Form No. 1) for the issuance of a License to Buy leaf tobacco, shall be filed with the Branch Office where the TC is located, and the same shall be supported by the following:

x x x

i. List of NTA-registered tobacco farmers/cooperatives/associations with whom he/she has entered into a Memorandum of Agreement (MA) and not otherwise contracted by any other NTA-licensed buyer/s, indicating the location and area planted, as well as, estimated yield/ production (RD Form No. 6);

j. List of contracted WTDs where he/she will sell his/her leaf tobacco acceptances (RD Form No. 7);

k. List of contracted or independent FRs from whom he/she will buy leaf tobacco and estimated purchases, as well as, the list of NTA-registered tobacco farmers/cooperatives/associations with whom the FRs had entered into an MA and not otherwise contracted by any other NTA-licensed buyer/s, indicating the location and area planted, as well as, estimated yield/production (RD Form No. 6).”

For Crop Y ear 2008-2009, the applicants are hereby required to submit the aforesaid additional requirements to the NTA BO before any license/permit/authority will be released.

Beginning Crop Year 2009-2010, all applicants are hereby required to simultaneously append the additional requirements as provided in this Section in the filing of application for license/permit/authority and the same shall be considered on a “first-come first-served” basis, which means, the applicant who first submitted the name of a particular FC shall no longer be included in the list/s to be submitted by the second and/or succeeding applicants.

Section 2. The license fees as provided in Rule 1 of Regulation VI is likewise amended, as follows:

Volume Deliveries/acceptances based from the immediately preceding Trading Season Fees (PhP)


5,000 kg and below 1,000.00*
5,001 – 10,000 kg 1,500.00
10,001 – 20,000 kg 2,000.00
20,001 – 30,000 kg 2,500.00
30,001 – 40,000 kg 3,000.00
40,001 – 50,000 kg 3,500.00
50,001 – 100,000 kg 4,500.00
100,001 – 250,000kg 5,625.00
*applicable to new FR applicant  

Section 3. Rule 3 of Regulation VI of the TRR is further amended to include the following additional requirements, to wit:

“Rule 3. Requirements To Support The Application Of A Field Representative:

x x x

b. Duly notarized Special Authority issued by the Contracting TC with whom he/she has an MA;

x x x

f. List of NTA-registered tobacco farmers-cooperators under his/her MA and not otherwise contracted by any NTA-licensed buyer/s.”

Section 4. The following rules and conditions/requirements shall be implemented in the application of Certificate of Authority (COA), to wit:

a. The FR shall apply for separate COA for each type of tobacco intended to be purchased;
b. All applications for COA shall be filed through NTA-Branch Office (NTA BO) where the FR intends to operate on or before the date hereinafter provided;
c. In case of delay in the issuance of COA by the NTA, the Official Receipt issued by the NTO BO may be used by the applicant as his temporary COA for a period of seven (7) days from the date of its issuance by the NTA, pending the issuance of the duly approved COA; and
d. The FR may be allowed to apply for more than one (1) COA corresponding to the tobacco type, provided that each COA application is supported with the pre-determined area and farmer covered under his MOA/Contract Growing Agreement. However, a FR shall be allowed to operate/purchase tobacco only within the area/ place as pre-determined in his COA application and correspondingly limited to the volume of production of his FCs’ area of coverage.

Section 5. The following are hereby set as the maximum production, per hectare, per tobacco type, to wit:

TYPE/SUB-TYPE

MAXIMUM AVERAGE YIELD (KG/HECTARE)


A.VIRGINIA  
      NEUTRAL FLAVOR 1,950
      IMPROVED/FULL FLAVOR 2,350


B. BURLEY  
      NEUTRAL FLAVOR 2,150
      IMPROVED FLAVOR 2,100


C. NATIVE  
      CIGAR FILLER/WRAPPER 2,300
      BATEK 2,050

The aforesaid maximum production, per hectare, shall be the basis in assessing the estimated acceptances/purchases of any NTA-licensed buyer/s.

In the event that the buyer exceeds the aforesaid maximum average yield as per submitted list of FCs and area planted, the NTA shall notify the buyer of such excess and require him/her to pay a penalty equivalent to the permit fees corresponding to the excess acceptances/purchases, R&R fee, plus administrative penalty of P3.00 per kilogram.

Section 6. Tobacco Purchases Outside of the Pre-determined Area/FCs/Contract Growing Coverage – Tobacco purchases outside of the pre-determined area of coverage and/or non-Contract Growing areas, shall be subject to Special Permit to Buy, which is valid only on the day of purchase and to the location/area, type of tobacco and volume, specifically applied for.

Section 7. The following dates are hereby set as the deadlines in the filing of application of License/COA/Permit to Bu y, Exportation & Importation Leaf Tobacco, to wit:

A. For Local Trading:  


1.Virginia January 15, 2009
2.Burley
      Region I and Mindoro January 15, 2009
      Region II February 15, 2009
3. Native
      Region I January 15, 2009
      Region II February 15, 2009
B. For Exportation & Importation : January 31, 2009

A surcharge of fifty percent (50%) of the Annual License/Permit Fee for both trading of locally grown leaf tobacco and Exportation/Importation of leaf tobacco and tobacco products shall be assessed for applications filed after the deadlines set.

For your compliance.

Adopted: 05 Jan. 2009

(SGD.) CARLITOS S. ENCARNACION
Administrator

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