ARTICLE I.—Provisions Relative to Persons and Establishments Subject to Privilege Taxes.
Registration of name or style with provincial treasurer.
SEC. 101. Registration of name or style with provincial treasurer.—Every person engaged in any business or occupation on which a privilege tax is imposed by law shall register with the provincial treasurer his name or style, place of residence, business or occupation, and the place where such business or occupation is carried on. In case of a firm the names and residences of the various persons constituting the same shall also be registered.
Sign to be exhibited by distiller or rectifier.
SEC. 102. Sign to be exhibited by distiller or rectifier.—Every person engaged in distilling or rectifying spirits, and every wholesale liquor dealer, shall keep conspicuously on the outside of his place of business a sign exhibiting, in letters not less than six centimeters high, his name or firm style, with the words "Registered distiller," "Rectifier of spirits," or "Wholesale liquor dealer," as the case may be, and his assessment number.
Sign to be exhibited by manufacturer of products of tobacco.
SEC. 103. Sign to be exhibited by manufacturer of products of tobacco.—Every manufacturer of cigars, cigarettes, or tobacco, and every wholesale dealer in leaf tobacco or manufactured products of tobacco shall place and keep on the outside of the building wherein his business is carried on, so that it can be distinctly seen, a sign stating his full name and business in letters not less than six centimeters high, and also giving his assessment number in figures.
Exhibition of certificate of payment at place of business.
SEC. 104. Exhibition of certificate of payment at place of business.—The certificate or receipt showing payment of tax issued to a person engaged in a business or occupation subject to a privilege tax shall be kept conspicuously exhibited in plain view in or at the place where the business is conducted or occupation plied; and in case of a peddler or other person not having a fixed place of business shall be kept in the possession of the holder thereof, subject to production upon the demand of any internal-revenue officer.
ARTICLE II.—Provisions Regulating Business of Persons Dealing in Articles Subject to Specific Tax.
Extent of supervision over establishments producing taxable output.
SEC. 105. Extent of supervision over establishments producing taxable output.—The Bureau of Internal Revenue has authority to supervise establishments where articles subject to a specific tax are made and to prescribe regulations as to the mode in which the processes of production shall be conducted in so far as may be necessary to secure a sanitary output and to safeguard the revenue.
Records to be kept by manufacturers; assessments based thereon.
SEC. 106. Records to be kept by manufacturers; assessments based thereon.—The Collector of Internal Revenue is authorized to prescribe, by regulation, the records which shall be kept by manufacturers of articles subject to specific tax, and such records, whether of raw materials received into the factory or of articles produced therein shall be deemed public and official documents for all purposes.
The records of raw materials kept by such manufacturers may be used as a species of evidence by which to determine the amount of specific taxes due from them and whenever the amount of raw materials received into any factory exceeds the amount of manufactured or partially manufactured products on hand and lawfully removed from the factory, plus waste removed or destroyed, and a reasonable allowance for unavoidable loss in manufacture, the Collector of Internal Revenue may assess and collect the tax due on the products which should have been produced from the excess.
Premises subject to approval by Collector.
SEC. 107. Premises subject to approval by Collector.—No person shall engage in business as a manufacturer of articles subject to a specific tax unless the premises upon which the business is to be conducted shall have been approved by the Collector of Internal Revenue.
Labels and farm of packages prescribed by Collector.
SEC. 108. Labels and farm of packages prescribed by Collector.—All articles of domestic manufacture subject to a specific tax and all leaf tobacco shall be put up and prepared by the manufacturer or producer, when removed for sale or consumption, in such packages only and bearing such marks or brands as shall be prescribed in the Bureau Regulations; and goods of similar character imported into the Islands shall likewise be packed and marked in such manner as may be required.
Removal of articles after payment of tax.
SEC. 109. Removal of articles after payment of tax.—When the tax has been paid on articles or products subject to a specific tax the same shall not thereafter be stored or permitted to remain in the distillery, distillery warehouse, bonded warehouse, or other factory or place where produced.
Proof of exportation; exporter's bond.
SEC. 110. Proof of exportation; exporter's bond.—Exporters of goods that would be subject to a specific tax if sold or removed for consumption in the Philippine Islands shall submit proof of exportation satisfactory to the Collector of Internal Revenue, and when the same is deemed necessary, shall be required to give a bond prior to the removal of the goods for shipment, conditioned for the exportation of the same in good faith.
Manufacturers' and importers' bonds.
SEC. 111. Manufacturers' and importers' bonds.—Manufacturers and importers of articles subject to a specific tax shall give bond in an amount equal, as nearly as can be estimated, to twenty per cent of the taxes payable by them during an average year. Which bond shall be conditioned for the faithful compliance, during the time such business is followed, with the law and regulations relating to such business and for the payment of all taxes lawfully accruing in respect to the goods manufactured or imported, as well as for the satisfaction of all fines and penalties imposed by the Internal Revenue Law. No such bond shall be required in an amount exceeding twenty-five thousand pesos nor be received in a sum less than two hundred pesos.
Records to be kept by wholesale dealers.
SEC. 112. Records to be kept by wholesale dealers.—Wholesale dealers shall keep records of their purchases and sales or deliveries of articles subject to a specific tax, in such form as shall be prescribed in the Bureau Regulations. These records and the entire stock of goods subject to tax shall be open at all times to the inspection of internal-revenue officers.
Records to be kept by dealers in leaf tobacco.
SEC. 113. Records to be kept by dealers in leaf tobacco.—Dealers in leaf tobacco shall keep records of the product1CC'" s' sold or delivered by them to other persons in such manner as may be prescribed in the Regulations of the Bureau of Internal Revenue, such records to be at all times open to the inspection of internal-revenue officers.
Preservation of invoices and stamps.
SEC. 114. Preservation of invoices and stamps.—All dealers whosoever shall preserve all official invoices received by them from manufacturers, together with the fractional parts of stamps affixed thereto and upon demand shall deliver or transmit the same to any internal-revenue officer.
Information to be given by manufacturers of distilling apparatus.
SEC. 115. Information to be given by manufacturers of distilling apparatus.—Manufacturers of stills, boilers, or other vessels to be used for distilling shall, before any such apparatus or utensil is removed from the place of manufacture, give written information to the Collector of Internal Revenue as to the nature and capacity of the same, the time when it is to be removed, and the place for which it is destined, as well as the name of the person by whom it is to be used; and such still, boiler, or vessel shall not be set up without a permit in writing from the Collector of Internal Revenue.
Establishment of distillery warehouses.
SEC. 116. Establishment of distillery warehouses.—Every distiller, when so required by the Collector of Internal Revenue, shall provide at his own expense a warehouse, to be situated on and to constitute a part of his distillery premises and to be used only for the storage of distilled spirits of his own manufacture until the tax thereon shall have been paid; but no dwelling house shall be used for such purpose. Such warehouse, when approved by the Collector of Internal Revenue, is hereby declared to be a bonded warehouse, to be known as a distillery warehouse.
Custody of distillery warehouse.
SEC. 117. Custody of distillery warehouse.—Every warehouse shall be in the joint custody of the storekeeper, if one is assigned thereto, and of the proprietor thereof. It shall be kept securely locked, and shall at no time be unlocked or opened or remain unlocked or open unless in the presence of such storekeeper or other person who may be designated to act for him as provided by law.
Limitation on quantity of spirits removed from warehouse.
SEC. 118. Limitation on quantity of spirits removed from warehouse.—No distilled spirits shall be removed from any distillery, distillery warehouse, or bonded warehouse in quantities of less than fifteen gauge liters at any one time, except bottled goods, which may be removed by the case of not less than twelve bottles.
Requirements incident to process of denaturing alcohol.
SEC. 119. Requirements incident to process of denaturing alcohol.—Where alcohol is withdrawn free of tax for use in the arts and industries, the process of denaturing shall be effected either on the distillery premises or in a bonded warehouse designated by the Collector of Internal Revenue for denaturing purposes only. To such warehouses alcohol may be transferred under bond and under conditions -prescribed in the Bureau Regulations.
Recovery of alcohol for use in arts and industries.
SEC. 120. Recovery of alcohol for use in arts and industries.—Manufacturers employing processes in which denatured alcohol used in arts and industries is expressed or evaporated from the articles manufactured may, under regulations to be prescribed by the Bureau, be permitted to recover the alcohol so used and restore it again to a condition suitable solely for use in manufacturing processes.
Supervision over rectification and compounding of liquors.
SEC. 121. Supervision over rectification and compounding of liquors.—Persons engaged in the rectification or compounding of liquors shall, as to the mode of conducting their business and supervision over the same, be subject to all the requirements of law applicable to distilleries, but if they make use of spirits upon which the specific tax has been paid no further tax shall be collected on any liquors produced exclusively therefrom.
Authority of officer in searching for taxable articles.
SEC. 122. Authority of officer in searching for taxable articles.—Any officer or agent of internal revenue may in the discharge of his official duties enter any house, building, or place where articles subject to an internal-revenue tax are produced or kept, or are believed by him upon reasonable grounds to be produced or kept, so far as may be necessary to examine or discover the same.
Detention of package containing taxable articles.
SEC. 123. Detention of package containing taxable articles.—Any revenue officer may detain any package containing or supposed to contain articles subject to a specific tax when he has good reason to believe that the lawful tax has not been paid or that the package has been or is being removed in violation of law, and every such package shall be held by such officer in a safe place until it shall be determined whether the property so detained is liable by law to be proceeded against for forfeiture; but such summary detention shall not continue in any case longer than seven days without process of law or intervention of the officer to whom such detention is to be reported.
Inscription to be placed on skimmed milk.
SEC. 124. Inscription to be placed on skimmed milk.— All condensed skimmed milk and all milk, in whatever form, from which the fatty part has been removed totally or in part, sold or put on sale in the Philippine Islands, shall be clearly and legibly marked on its immediate containers, and in all the languages in which such containers are marked, with the words "this milk is not suitable for nourishment for infants less than one year of age," or with other equivalent words.
ARTICLE III.—General Provisions Relative to Weights and Measures.
Standard weights and measures in Philippine Islands.
SEC. 125. Standard weights and measures in Philippine Islands.—The weights and measures to be used throughout the Philippine Islands are those of the metric system, with the following units:
(a) The unit of length is the standard meter, being the one ten-millionth part of the distance from the equator to
(b) The unit of area is either the square meter or an area of one hundred square meters known as the are;
(c) The unit of cubical contents or capacity is either the cubic meter or the one-thousandth part thereof known as the liter;
(d) The unit of weight is the gram;
The length of the standard meter shall be determined for the Philippine Islands by the length at the temperature of zero degrees centigrade of the fundamental standard measure Numbered Seventy-one, now preserved in the Bureau of Science and certified to by the International Bureau of Weights and Measures.
The weight of the standard gram shall be determined for Philippine Islands by the weight at Manila of one-millionth of a cubic meter of pure water at the temperature of four degrees centigrade, or the one-thousandth part of the standard kilogram certified to by the International Bureau of Weights and Measures, designated by the symbol "L" and now preserved in the Bureau of Science.
Weights and measures of metric system alone legal; exception in case of lumber.
SEC. 126. Weights and measures of metric system alone legal; exception in case of lumber.—Save in the purchase and sale of manufactured lumber the use of other weights and measures than those of the metric system shall not be legal, and said system, with its recognized scales, shall be used in all contracts, deeds, and other instruments publicly and officially attested, and in all official documents; and subject to the same exception only weights and measures of the metric system shall be officially sealed and licensed.
In the purchase and sale of manufactured lumber the English system of measures may be employed; and in ordering commodities or articles from abroad such weights and foreign orders, measures may be employed as are commonly used in the country to which the order is sent or from which the goods are shipped.
Secondary standards preserved by provincial treasurers; testing of same.
SEC. 127. Secondary standards preserved by provincial treasurers; testing of same.—For use in the testing of weights and measures in the provinces, provincial treasurers shall keep full sets of secondary standards in the provincial buildings. The Collector of Internal Revenue shall be responsible for the inspection and proper testing of all provincial and municipal standards of weight and measure.
Comparison of secondary and fundamental standards.
SEC. 128. Comparison of secondary and fundamental standards.—The comparison of the secondary and fundamental standards shall be made in the Bureau of Science at the instance of the Collector of Internal Revenue. When found to be sufficiently accurate the secondary standard shall be distinguished by a label, tag, or seal and shall be accompanied by a certificate showing the amount of its variation from the fundamental standard. If the variation is of sufficient magnitude to impair the utility of the instrument, it shall be destroyed in the Bureau of Science.
Inspectors of weights and measures.
SEC. 129. Inspectors of weights and measures.—Internal-revenue agents shall inspect and test balances or scales, weights and measures, and report upon the condition thereof in the territory assigned to them. It shall be their duty to collect evidence of infringements of the law or of fraud in the use of weights and measures or of neglect of duty on the part of any officer engaged in sealing weights and measures. Evidence so collected by them shall be presented forthwith to the Collector of Internal Revenue and also to the proper prosecuting officer.
Sealers of weights and measures.
SEC. 130. Sealers of weights and measures.—The sealing and licensing of weights and measures shall be the duty of the provincial treasurers and their deputies, and for the purposes of this law such officers shall be termed sealers of weights and measures.
Destruction of defective instrument of weight or measure.
SEC. 131. Destruction of defective instrument of weight or measure.—Any defective instrument of weight or measure may be destroyed by any inspector or sealer of weights and measures if its defect is such that it cannot readily and securely be repaired.
Testing of instruments used in Government work.
SEC. 132. Testing of instruments used in Government work.—All measures and instruments for determining weight used in the Government work or maintained for public use by any province or municipality shall be tested and sealed free of charge.
Form and duration of license for use of weights and measures.
SEC. 133. Form and duration of license for use of weights and measures.—The receipt for the fee charged for the sealing of weights and measures shall serve as a license to use such instrument for one year from the date of sealing, unless deterioration or damage occurs in that period which renders the weight or measure inaccurate. Such receipt shall be preserved by the owner and shall be exhibited on demand of any internal-revenue officer.
Dealers' permit to keep unsealed weights and weights measures.
SEC. 134. Dealers' permit to keep unsealed weights and weights measures.—Upon obtaining written permission from the Collector of Internal Revenue any dealer may keep instruments of weight and measure in stock for sale without sealing, until sold or used.
ARTICLE IV.—Provisions Relative to Prohibited Drugs.
Words and phrases defined.
SEC. 135. Words and phrases defined.—"Prohibited drug," as herein used, includes opium, cocaine, alpha, and beta eucaine, their derivatives, and all preparations made from them.
"Opium" embraces every kind, class, and character of opium, whether crude, prepared, ash, or refuse, and all narcotic preparations thereof or therefrom, and all morphine or alkaloids of opium and all preparations in which opium, morphine, or any alkaloid of opium enters as an ingredient, together with all opium leaves and wrappings of opium leaves, whether such leaves or wrappings are prepared for use or not.
Lawful possession and uses of prohibited drugs specified.
SEC. 136. Lawful possession and uses of prohibited drugs specified.—Prohibited drugs may be lawfully kept, used, administered, and dealt in under the following conditions and by the following persons only:
(a) Duly licensed and practicing physicians, dentists, and veterinarians may prescribe and administer, or cause to be administered, prohibited drugs as medicine or ansesthetic and may receive and keep the same in their possession for such use;
(b) Government Bureaus or officers of the Government duly designated in writing for such purpose by the Governor-General may receive, keep, use, and dispose of such drugs in accordance with law, and the same may be lawfully sold, transferred, or delivered to them;
(c) Pharmacists and second-class pharmacists may receive, keep, and dispense prohibited drugs upon the prescription of a duly licensed and practicing physician, dentist, or veterinarian, and upon permit from the Collector of Internal Revenue may transfer and deliver the same to other pharmacists and second-class pharmacists or to any person or institution lawfully authorized to receive the same.
Importation of opium; storage of same.
SEC. 137. Importation of opium; storage of same.— Opium shall be imported only by the Philippine Government through the Bureau of Internal Revenue; and all imported opium, after the payment of duties, taxes, and charges, shall be delivered by the customs authorities to the Collector of Internal Revenue for storage in a place to be approved by him. Except in case of fire or similar necessity, opium so stored shall be removed only for delivery to a person authorized to receive the same, and before removal from storage the drug shall be marked or labeled in such manner as may be prescribed in the Regulations of the Bureau.
A reasonable charge may be made for such storage, to be paid before the opium is removed.
Record to be kept by pharmacists; inspection of same.
SEC. 138. Record to be kept by pharmacists; inspection of same.—Physicians, dentists, veterinarians, pharmacists, and second-class pharmacists shall keep true and correct records of all prohibited drugs received and dispensed or transferred by them, in such form and manner as may be prescribed in the Regulations of the Bureau of Internal Revenue.
Such record and the stock of prohibited drugs on hand shall be subject to inspection at all times by the duly authorized officers and agents of the Bureau of Internal Revenue.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
