Leaf tobacco, tobacco products, and other tobacco related supplies, materials and ingredients
- Document symbol
- G/LIC/N/3/PHL/15/Rev.1
- Original language
- English
- Published on
- 21/02/2023
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
Pursuant to Executive Order No. 245 of 1987, the National Tobacco Administration was mandated to promulgate and enforce rules and regulations on the production, standardization, classification, grading and trading of leaf tobacco, tobacco products, and other tobacco related supplies, materials and ingredients, and for other purposes as may be necessary to attain its purposes and objectives and to pursue the policy of government on tobacco.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Importers/applicants are required to secure an Authority to Import (ATI) as a “license” to import which is valid within a year. Likewise, importers/applicants are also required to apply for an Import Commodity Clearance (ICC) which is required for every importation of the products enumerated below:
See Products - "Leaf tobacco, tobacco products, and other tobacco related supplies, materials and ingredients"
Q3. The system applies to goods originating in and coming from which countries?
The requirements apply to goods originating from all countries and the prospective importers decide from what country they wish to import goods.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
The ATI and ICC are required to keep strict and constant control over the importation of manufactured tobacco, unmanufactured tobacco, other tobacco related materials, flavourings, spare parts, E-cigarette and E-liquid, (transferred to DTI and BFAD) to at least minimize manipulation and misdeclaration.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
The requirement is covered by the NTA Amended Rules and Regulations Governing the Exportation and Importation of Leaf Tobacco, Tobacco Products and Other Tobacco Related Materials and Ingredients and Memorandum Circular No. 002, series of 2018 pursuant to the regulatory powers vested under Executive Order No. 245 dated 24th of July 1987.
Exemption in the filing of commodity clearance for exportation/importation/transshipment of certain maximum volume of tobacco products/E-cigarette/E-juice for personal consumption under Memorandum Circular No.003, Series of 2019 - Annex A - Tobacco Commodities;
Exemption in the Filing of Commodity Clearance for Exportation/Importation/ Transshipment of Tobacco Free Products Whether for Personal Consumption or For Sale/Distribution under Memorandum Circular No.004, Series of 2019;
Memorandum Circular No.002, Series of 2020 - Guidelines and Procedures in the Application, Processing and Issuance of License to Import/Export and Import/Export/Transshipment Commodity Clearance (ICC/ECC/TCC) Through the Tradenet.Gov.Ph, Further Amending For This Purpose the NTA Export/Import Rules and Regulations;
Memorandum Circular No.001, Series of 2022 - Amendment of Memorandum Circular No.002, Series of 2020, Revising the Monitoring, Regulation and/or Evaluation fee for SNUS/Nicotine Pouch Tobacco Product.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
The application for the ATI can be filed at any given time at any working day of the year, while the ICC must be filed at any working day at least three-days prior to the loading of the imported commodity.
The application for the ATI can be filed at any given time at any working day of the year, while the ICC must be filed at any working day at least three days prior to the loading of the imported commodity.
Q7.b. Can a licence be granted immediately on request?
Depending on the urgency of the request, the ATI and ICC can be granted immediately.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
Please refer to the answer item 7a
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Applications are handled and processed by the Regulation Department of the NTA, Scout Reyes corner Panay Avenue, Quezon City.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
Are the reasons for any refusal given to applicants?
In the event of denial or disapproval of an application for Authority to Import, the applicant is informed of the reason for such disapproval.
Have applicants a right of appeal in the event of refusal to issue a licence?
In the event of denial or disapproval of an application for Authority to Import, the applicant is given the opportunity to complete all the requirements.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
For restricted licensing system, any person of legal age and having the legal capacity to enter into a contract, a corporation, partnership, company, cooperative, or any other juridical entity, and duly licensed to manufacture/sell/distributed tobacco leaf and tobacco products, may apply with the NTA for the issuance of an Authority to Import tobacco leaf, tobacco products, other tobacco related materials, ingredients/flavourings and spare parts.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
What information is required in applications?
Likewise, below are the requirements in applying for the ICC:
(a) Name, address, and telephone number of the importer/applicant;
(b) Name and address of the consignee;
(c) Name of the shipper;
(d) Country of origin;
(e) Description, Class, Grade, Quantity in terms of kilos/cases and value (FOB) of the commodity.
What documents is the importer required to supply with the application?
Below are the documentary requirements in applying for ATI, which are as follows:
(a) Application Form (NTA-RD-F-016) properly accomplished;
(b) Information Sheet of Applicant (NTA-RD-F-002 rev 02);
(c) Names of company officers, their designation and nationalities; and, official designation of authorized representative/s to apply for a Permit and/or Commodity Clearance, signed by the Corporate Secretary or Owner/President;
(d) DTI Certificate of Business Name Registration for Single Proprietorship, or Articles of Incorporation & By-Laws or Articles of Partnership, for corporations or partnerships; (if new)
(e) Copy of Latest Income Tax Return and/or Audited Financial Statement;
(f) Bureau of Internal Revenue (BIR) Certificate of Registration;
(g) Certified Photocopy of the latest Mayor’s Permit issued by the Municipality/City where the business is located or Certification as a Registered Locator for applicants operating within PEZA-register or Freeport Zones and/or proof of payment of fees to the concerned agencies if the permit/certificate has not been issued;
(h) Photocopy of preceding year’s Authority to Import/License Manufactured and Unmanufactured Tobacco/Other tobacco related materials/ingredients or flavourings/Spare parts. (Renewal).
These documents shall be filed with other import documents such as; Purchase Invoice, Bill of Lading, and other pertinent import documents as may be required of the Bureau of Customs (BOC), the Department of Trade and Industry (DTI), and the Bureau of Internal Revenue (BIR).
Q11. What documents are required upon actual importation?
The ICC is the required document to undertake the importation.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
Is there any licensing fee or administrative charge?
Yes
What is the amount of the fee or charge?
Below are the fees which the importer/applicant has to pay for the ATI and ICC:
Authority to Import - P16,200.00
Import Commodity Clearance
Processing Fee - P2,400.00
Monitoring fees:
1. Monitoring, Regulation, Supervision and/or Evaluation of the Commodity – The following monitoring, regulation and/or evaluation fee for tobacco leaf, tobacco products, other tobacco related materials, spare parts and ingredients:
a. For Legitimate Local Manufacturers Not Buying Locally Grown Leaf Tobacco:
a.1 Manufactured Tobacco
a.1.1 Export
a. Cigarette/HTPs PhP12.00/case
b. Cigar 0.12/pc
c. Snuff/Cheroot/Chewing and the likes 0.12/pc
d. Other Tobacco Related Materials, Supplies and Ingredients 0.10/kilo
a.1.2 Import
a. Cigarette/HTPs PhP 30.00/case
b. Cigar 0.24/pc
c. Snuff/Cheroot/Chewing and the likes 0.24/pc
d. Snus/Nicotine Pouch 0.003/pc
e. Other Tobacco Related Materials, Supplies And Ingredients 3.00/kilo
a.2 Unmanufactured Tobacco
a.2.1 Export
a. Raw Leaf 0.12/net kg
a.2.2 Import
a. Raw Leaf 1.02/net kg
b. Partially Processed Tobacco 3.60/net kg
c. Unmanufactured & wholly and/or partially processed leaf tobacco
Legitimate Local Tob. Products Mftr/0.30/net kg
Processors who are not buying Locally Produced Tobacco
b. For Legitimate Local Manufacturers/Traders Buying Locally Grown Leaf Tobacco
b.1 Manufactured Tobacco
b.1.1 Export
a. Cigarette PhP 12.00/case
b. Cigar/Snus/Snuff/pipe/chewing/and the likes 12/pc
Other Tobacco Related Materials, Supplies and Ingredients 0.10/kilo
b.1.2 Import
a. Cigarette/HTPs 12.00/case
b. Cigars/Snus/Snuff/Pipe/Chewing and the likes 0.12/pc
b. Other Tobacco Related Materials, Supplies 0.10/kilo
and Ingredients
c. For PEZA Locators
c.1 Manufactured Tobacco
c.1.1 Export
a. Other Tobacco Related Materials, PhP 0.10/kilo
Machine/Spare parts and Ingredients
c.1.2 Import
a. Cigarettes PhP 12.00/case
b. Other Tobacco Related Materials, Machine/Spare parts and Ingredients 0.50/kilo
c.2 Unmanufactured Tobacco
c.2.1 Import
a. PEZA-registered locators (semi-processed) Excluding local manufacturers 0.60/kilo
Inspection fees:
The following fees shall apply for commodities subject for inspection, to wit:
DESTINATION/INSPECTION SITE INSPECTION FEES
1. Subic Bay Freeport Zone - PhP 5,750.00
2. Clark Field Economic Zone - 4,750.00
3. Bacolor, Pampanga - 4,600.00
4. Cavite Economic Zone
a. Dasmariñas, Cavite - 2,850.00
b. Rosario, Cavite - 2,800.00
5. Laguna - 3,400.00
6. Parañaque/Pasay/Las Piñas - 1,300.00
7. Manila - 1,300.00
8. Quezon City - 1,300.00
9. Rizal/Pasig/Marikina - 1,700.00
10. Camanava Area - 2,000.00
11. Manila Airport - 2,700.00
12. Antipolo* - 1,300.00
13. San Miguel, Bulacan - 3,200.00
Surcharge for rescheduling of previously confirmed inspection 1,000.00
Photo copy - P 2.50 per page; and
Printing - P5.00 printing per page
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
There is no deposit or advance payment requirement associated with the issuance of ATI and ICC.
Please refer to https://www.nta.da.gov.ph for further information.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
Authority to Import is issued to importers which is valid within the Calendar Year of issuance and in all cases renewable upon written application by interested parties. For products that fall under the DTI-BPS' product certification schemes, licenses under the Import Commodity Clearance (ICC) are valid per bill of lading only, while licences under the Philippine Standards Safety and/or Quality Licences (PS) are valid for a three-year period subject to annual surveillance audits.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for the non-utilization of the ATI and ICC. Penalties are imposed in cases of violations of mandatory provisions of the Import Rules and Regulations.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Authority to Import and ICC are made in the name of the importer/applicant only and are non-transferable.