CHAPTER I Articles Subject to Specific Tax
Articles subject to specific tax.
SEC. 123. Articles subject to specific tax. — Specific internal-revenue taxes apply to things manufactured or produced in the Philippines for domestic sale or consumption and to things imported from the United States or foreign countries, but not to anything produced or manufactured here which shall be removed for exportation and is actually exported without returning to the Philippines, whether so exported in its original state or as an ingredient or part of any manufactured article or product.
In case of importations the internal-revenue tax shall be in addition to the customs duties, if any.
No specific tax shall be collected on any articles sold and delivered directly to the United States Army or Navy for actual use or issue by the Army or Navy, or on any article sold to the Bureau of Coast and Geodetic Survey, purchased with funds furnished by the Government of the United States, and any taxes which have been paid on articles so sold and delivered for such use or issue shall be refunded upon sale and delivery.
Payment of specific tax on domestic products.
SEC. 124. Payment of specific tax on domestic products. — Specific taxes on domestic products shall be paid by the manufacturer, producer, owner, or person having possession of the same; and, except as otherwise especially allowed such taxes shall be paid immediately before removal from the place of production.
Payment of specific tax on imported articles.
SEC. 125. Payment of specific tax on imported articles. — Specific taxes on imported articles shall be paid by the owner or importer to the customs officers, conformably with regulations of the Department of Finance and before the release of such articles from the customhouse.
Mode of computing contents of cask or package.
SEC. 126. Mode of computing contents of cask or package. — Every fractional part of a proof liter equal to or greater than a half liter in a cask or package containing more than one liter shall be taxed as a liter, and any smaller fractional part shall be exempt; but any package of spirits the total contents of which are less than a proof liter shall be taxed as one liter.
Tax on preparations containing distilled spirits as chief ingredient.
SEC. 127. Tax on preparations containing distilled spirits as chief ingredient. — Medicinal and toilet preparations, flavoring extracts, and all other preparations, of which, excluding water, distilled spirits from the chief ingredient, shall be subject to the same tax as such chief ingredient.
Upon permit from the Collector of Internal Revenue and subject to the regulations of the Department of Finance, manufacturers of cigars may withdrew from bond free of tax imported wine in specific quantities and grades for use in the treatment of tobacco leaf to be used in the manufacture of cigars; but such wine must first be suitably denatured.
Exemption in favor of domestic denatured alcohol.
SEC. 128. Exemption in favor of domestic denatured alcohol. — Domestic alcohol of not less than one hundred eighty degrees proof (ninety per centum absolute alcohol) may, when denatured, be withdrawn from a registered distillery or bonded warehouse of the distiller or of the Government without the payment of the specific tax prescribed in section 133, for the purpose of being used for fuel, or light or for use generally in the arts and industries.
Removal of spirits or cigars under bond.
SEC. 129. Removal of spirits or cigars under bond. — Spirits requiring rectification may be removed from the place of their manufacture to some other establishment for the purpose of rectification without the prepayment of the specific tax, provided the distiller removing such spirits and the rectified receiving them shall file with the Collector of Internal Revenue their joint bond conditioned upon the future payment by the rectifier of the specific tax that may be due on any finished products, and cigars may be removed by a manufacturer of tobacco products owning and operating a branch factory separate from his principal factory, from the branch factory to the principal factory, for exportation, without the prepayment of the specific tax, provided the manufacturer shall file with the Collector of Internal Revenue his bond conditioned upon the future payment of the specific tax that may be due on the finished product.
Removal of fermented liquors to bonded warehouse.
SEC. 130. Removal of fermented liquors to bonded warehouse. — Any brewer may remove or transport or cause to be removed or transported from his brewery or other place of manufacture to a bonded warehouse used by him exclusively for the storage or sale in bulk of fermented liquors of his own manufacture, any quantities of such fermented liquors not less than one thousand liters at one removal, without paying the tax thereon at the time of removal from the place of manufacture, under a permit which shall be granted by the Collector of Internal Revenue; and thereafter the manufacturer of such fermented liquors shall pay the tax in the same manner and under the same penalty and liability as when paid at the brewery. Such permit shall be affixed to every package so removed and shall be canceled or destroyed in such manner as the Collector of Internal Revenue may prescribe.
Removal of damaged liquors free of tax.
SEC. 131. Removal of damaged liquors free of tax. — When any fermented liquor has become sour or otherwise damaged so as to be unfit for use as such, brewers may sell and, after securing a special permit from the Collector of Internal Revenue and under the regulations of the Department of Finance, remove the same without the payment of the tax thereon to any place where such liquor is to be used for manufacturing purposes, in casks or other packages, unlike those ordinarily used for fermented liquors, containing each not less than one hundred seventy-five liters and having a note of their contents marked thereon.
Removal of tobacco products without prepayment of tax.
SEC. 132. Removal of tobacco products without prepayment of tax. — Products of tobacco entirely unfit for chewing or smoking may be removed free of tax for agricultural or industrial use, under such conditions as may be prescribed in the regulations of the Department of Finance; and stemmed leaf tobacco, fine-cut shorts, the refuse of fine-cut chewing tobacco, refuse, scraps, cuttings, clippings and sweepings of tobacco may be sold in bulk as raw material by one manufacturer directly to another, under such conditions as may be prescribed in the regulations of the Department of Finance, without the prepayment of the tax.
"Stemmed leaf tobacco," as herein used means leaf tobacco which has had the stem or midrib removed. The term does not include broken leaf tobacco.
Specific tax on distilled spirits.
SEC. 133. Specific tax on distilled spirits. — On distilled spirits there shall be collected, except as hereinafter provided, specific taxes as follows:
(a) If produced from sap of the nipa, coconut, cassava, camote, or hurl palm, or from the juice, syrup, or sugar of the cane, per proof liter, thirty-eight centavos.
(b) If produced from any other material, per proof liter, one peso and thirty centavos.
This tax shall be proportionally increased for any strength of the spirits taxed over proof spirits.
"Distilled spirits," as here used, includes all substances known as ethyl alcohol, hydrated oxide of ethyl, or spirits of wine, which are commonly produced by the fermentation and subsequent distillation of grain, starch, molasses, or sugar, or of some syrup or sap, including all dilutions or mixtures; and the tax shall attach to this substance as soon as it is in existence as such, whether it be subsequently separated as pure or impure spirits, or be immediately or at any subsequent time transformed into any other substances either in process of original production or by any subsequent process.
"Proof spirits" is liquor containing one-half its volume of alcohol of a specific gravity of seven thousand nine hundred and thirty-nine ten-thousandths at fifteen degrees centigrade. A proof liter means a liter of proof spirits.
Specific tax on wines.
SEC. 134. Specific tax on wines. — On wines and imitation wines there shall be collected, per liter of volume capacity regardless of proof, the following taxes:
(a) Sparkling wines, one peso and sixty centavos.
(b) Still wines containing fourteen per centum of alcohol or less twenty centavos.
(c) Still wines containing more than fourteen per centum of alcohol, forty centavos.
Imitation wines containing more than twenty-five per centum of alcohol shall be taxed as distilled spirits.
Specific tax on fermented liquors.
SEC. 135. Specific tax on fermented liquors. — On beer, lager beer, ale, porter, and other fermented liquors (except tuba, basi, tapuy and similar domestic fermented liquors), there shall be collected, on each liter of volume capacity twelve and one-half centavos.
Specific tax on products of tobacco.
SEC. 136. Specific tax on products of tobacco. — on manufactured products of tobacco, except cigars, cigarettes, and tobacco specially prepared for chewing so as to be unsuitable for consumption in any other manner, but including all other tobacco twisted by hand or reduced into a condition to be consumed in any manner other than by the ordinary mode of drying and curing; and on all tobacco prepared or partially prepared for sale or consumption, even if prepared without the use of any machine or instrument and without being pressed or sweetened; and on all fine-cut shorts and refuse, scraps, clippings, cuttings, and sweepings of tobacco, there shall be collected on each kilogram, sixty centavos on tobacco specially prepared for chewing so as to be unsuitable for use in any other manner, on each kilogram, forty-eight centavos.
Specific tax on cigars and cigarettes.
SEC. 137. Specific tax on cigars and cigarettes. — On cigars and cigarettes there shall be collected the following taxes:
(a) Cigars —
(1) When the manufacturer's or importer's wholesale price, less the amount of the tax, does not exceed thirty pesos per thousand, on each thousand, two pesos and thirty centavos.
(2) When the manufacturer's or importer's wholesale price, less the amount of the tax, exceeds thirty pesos but does not exceed sixty pesos per thousand, on each thousand, four pesos and sixty centavos.
(3) When the manufacturer's or importer's wholesale price, less the amount of the tax, exceeds sixty pesos per thousand, on each thousand, seven pesos.
(b) Cigarettes —
(1) When the manufacturer's or importer's wholesale price, less the amount of the tax, is four pesos or less per thousand, on each thousand, one peso and thirty centavos.
(2) When the manufacturer's or importer's wholesale price, less the amount of the tax, is more than four pesos but not more than six pesos per thousand, on each thousand, three pesos.
(3) When the manufacturer's or importer's wholesale price, less the amount of the tax, exceeds six pesos per thousand, on each thousand, four pesos.
The maximum price at which the various classes of cigars and cigarettes are sold at wholesale in the factory or in the establishment of the importer to any member of the public shall determine the rate of tax applicable to such cigars and cigarettes; and if the manufacturer or importer also sells, or allows to be sold, his cigars and cigarettes at wholesale in another establishment of which he is the owner or in the profits of which he has an interest, the maximum sale price in such establishment shall determine the rate of the tax applicable to the cigars and cigarettes therein sold.
Every manufacturer or importer of cigars and cigarettes shall file with the Collector of Internal Revenue, on the date or dates designated by the latter, a sworn statement of the maximum wholesale prices of cigars and cigarettes, and it shall be unlawful to sell said cigars and cigarettes at wholesale at a price in excess of the one specified in the statement required by this Title without previous written notice to said Collector of Internal Revenue.
Specific tax on matches.
SEC. 138. Specific tax on matches. — On matches there shall be collected:
(a) On each gross of boxes containing not more than eighty sticks to the box, forty centavos;
(b) On each gross of boxes containing over eighty sticks to the box, a proportionate additional tax.
Specific tax on mechanical lighters.
SEC. 139. Specific tax on mechanical lighters. — On every mechanical lighter, there shall be collected a tax of forty centavos. The term "mechanical lighter" includes any mechanical or chemical contrivances for causing ignition which is portable and which operates by producing a spark or flame whether by itself or when brought into contact with electric current or gas, and includes also a mechanical lighter issued from a manufactory in an incomplete state or requiring for its completion the addition of a flint.
Specific tax on firecrackers.
SEC. 140. Specific tax on firecrackers. — On all firecrackers, there shall be collected for each kilogram a tax of forty centavos. Section141. Specific tax on skimmed milk. — On all condensed skimmed milk and on all skimmed milk, in whatever form, from which the cream has been removed entirely or in part, sold in the Philippines, there shall be collected for each kilogram of the gross weight of said milk and container, twenty centavos.
Specific tax on manufactured oils and other fuels.
SEC. 142. Specific tax on manufactured oils and other fuels. — on refined and manufactured mineral oils and motor fuels, there shall be collected the following taxes:
(a) Kerosene or petroleum, per liter of volume capacity, one and one-half centavos;
(b) Lubricating oils, per liter of volume capacity, four centavos;
(c) Naphtha, gasoline, and all other similar products of distillation, per liter of volume capacity, five centavos; and
(d) On denatured alcohol to be used for motive power per liter of volume capacity, one-half centavo: Provided, That if the denatured alcohol is mixed with gasoline the specific tax on which has already been paid, only the alcohol content shall be subject to the tax herein prescribed.
For the purposes of this subsection, the removal of denatured alcohol of not less than one hundred eighty degrees proof (ninety per centum absolute alcohol) shall be deemed to have been removed for motive power, unless shown to the contrary.
Whenever the above-mentioned oils are used in aviation the specific tax thereon shall be refunded by the Collector of Internal Revenue upon the submission of a sworn certificate satisfactory to him proving that the said oils were actually used in aviation.
Specific tax on coal.
SEC. 143. Specific tax on coal. — On all coal and coke, there shall be collected, per metric ton, twenty-five centavos.
Specific tax on bunker fuel oil.
SEC. 144. Specific tax on bunker fuel oil. — On fuel oil, commercially known as bunker fuel oil, and on all similar fuel oils, having more or less the same generating power, there shall be collected, per metric ton, forty centavos.
Specific tax on Diesel fuel oil.
SEC. 145. Specific tax on Diesel fuel oil. — On fuel oil, commercially known as Diesel fuel oil, and all similar fuel oils, having more or less the same generating power, there shall be collected, per metric ton, eighty centavos.
Specific tax on cinematographic films.
SEC. 146. Specific tax on cinematographic films. — There shall be collected, once only, on each cinematographic film (not including cinematographic films of sixteen millimeters or less in width) imported into or manufactured in the Philippines a tax of five centavos per linear meter.
This tax shall not be collected on any tax paid cinematographic film subsequently returned to the Philippines or on any negative films or unprinted positive film and may taxes heretofore paid on cinematographic films so returned or on any negative films or unprinted positive films shall be refunded subject to the provisions of section 309.
Specific tax on playing cards.
SEC. 147. Specific tax on playing cards. — (a) On each pack of cards containing not more than fifty-eight cards, there shall be collected a tax of thirty-five centavos: Provided, however, That when the size of playing cards is two and one-half centimeters by six centimeters or less there shall be collected a tax of twenty centavos on each pack containing not more than fifty-eight cards.
(b) On each pack containing more than fifty-eight cards, there shall be collected the tax established in subsection (a) and a proportionate additional tax on the number in excess of fifty-eight.
Specific tax on saccharine.
SEC. 148. Specific tax on saccharine. — On saccharine there shall be collected a tax of sixty pesos per kilogram.
CHAPTER II - Administrative provisions regulating business of persons dealing in articles subject to specific tax.
SEC. 149. 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 or kept. The Secretary of Finance shall 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 Assessment based therein.
SEC. 150. Records to be kept by manufacturers Assessment based therein. — The Secretary of Finance is authorized to prescribe, by regulations, 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. 151. Premises subject to approval by Collector. — No person shall engage in business as a manufacturer of or dealer in 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 form of packages.
SEC. 152. Labels and form of packages. — 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 regulations of the Department of Finance; and goods of similar character imported into the Philippines shall likewise be packed and marked in such manner as may be required.
Removal of articles after payment of tax.
SEC. 153. 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.
Storage of goods in internal-revenue bonded warehouse.
SEC. 154. Storage of goods in internal-revenue bonded warehouse. — An internal-revenue bonded warehouse may be maintained in any. port of entry for the storing of imported or manufactured goods which are subject to a specific tax. The taxes on such goods shall be payable only upon removal from such warehouse, and a reasonable charge shall be made for their storage therein. The Collector of Internal Revenue may, in his discretion, exact a bond to secure the payment of the tax on any goods so stored.
Proof of exportation.
SEC. 155. 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 Philippines 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 upon the exportation of the same in good faith.
Manufacturers' and importers' bonds.
SEC. 156. 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 centum of the taxes payable by them during an average year. Such bond shall be conditioned upon the faithful compliance, during the time such business is followed, with the law and regulations relating to such business and for the satisfaction of all fines and penalties imposed by this Code. No such bond shall be required in an amount exceeding fifty thousand pesos nor be received in a sum less than one thousand pesos.
Records to be kept by wholesale dealers.
SEC. 157. 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 regulations of the Department of Finance. These records and the entire stock of goods subject to tax shall be subject at all times to the inspection of internal-revenue officers.
Records to be kept by dealers in leaf tobacco.
SEC. 158. Records to be kept by dealers in leaf tobacco. — Dealers in leaf tobacco shall keep records of the product sold or delivered by them to other persons in such manner as may be prescribed in the regulations of the Department of Finance, such records to be at all times subject to the inspection of internal-revenue officers.
Preservation of invoices and stamps.
SEC. 159. Preservation of invoices and stamps. — All dealers whosoever shall preserve for the period prescribed in section 337 all official invoices received by them from other dealers or from manufacturers, together with the fractional parts of stamps affixed thereto, if any, and upon demand shall deliver or transmit the same to any internal revenue officer.
SEC. 160. Information to be given by manufacturers or importers of any apparatus or mechanical contrivance specifically for the manufacture of articles subject to specific tax. — Manufacturers and importers of any apparatus or mechanical contrivance specifically for the manufacture of articles subject to specific tax shall, before any such apparatus or mechanical contrivance is removed from the place of manufacture or from the customhouse, 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 apparatus or mechanical contrivance shall not be set up without a permit in writing from the Collector of Internal Revenue.
Establishment of distillery warehouses.
SEC. 161. 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 declared to be a bonded warehouse, to be known as a distillery warehouse.
Custody of distillery or distillery warehouse.
SEC. 162. Custody of distillery or distillery warehouse. — Every distillery or distillery 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. 163. 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. 164. Requirements incident to process of denaturing alcohol. — Where alcohol is withdrawn for denaturing for use in the arts and industries, or as motor fuel, 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 warehouse alcohol may be transferred under bond and under conditions prescribed in the regulations of the Department of Finance.
Recovery of alcohol for use in arts and industries.
SEC. 165. 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 Department of Finance, be permitted to recover the alcohol so used and restore it again to a condition suitable solely for use in manufacturing processes.
Requirements governing rectification and compounding of liquors.
SEC. 166. Requirements governing 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: Provided, That where a rectifier makes use of spirits upon which the specific tax has been paid no further tax shall be collected on any rectified spirits produced exclusively therefrom: And provided, further, That compounders, in the manufacture of any intoxicating beverage whatever, shall not be allowed to make use of spirits upon which the specific tax has not been previously said.
Authority of internal-revenue officer in searching for taxable articles.
SEC. 167. Authority of internal-revenue officer in searching for taxable articles. — Any internal-revenue officer may in the discharge of his official duties enter any house, building, or place where articles subject to tax under this Title 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, discover, or seize the same.
He may also stop and search any vehicle or other means of transportation when upon reasonable grounds he believes that the same carries any article on which the specific tax has not been said.
Detention of package containing taxable articles.
SEC. 168. 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. 169. 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 Philippines 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.
CHAPTER III - Penal Provisions
Unlawful practices relative to payment of specific taxes.
SEC. 170. Unlawful practices relative to payment of specific taxes. — Any person who, without express authority from the Collector of Internal Revenue, makes, imports, sells, uses, or possesses any die for printing or making internal-revenue stamps, labels, tags, or playing cards shall be punished by a fine of not less than three hundred pesos nor more than five thousand pesos or by imprisonment for a term of not less than three months nor more than five years, or both.
Any person who erases the cancellation marks on any internal-revenue stamp which has been previously used or who alters the written or printed figures or letters or cancellation marks on any internal-revenue stamp previously used, or who has in his possession any false, counterfeit, restored, or altered internal-revenue stamp, label, or tag for the purpose of using the same in the payment of specific taxes or in securing any exemption or privilege conferred by this Title, or who procures the commission of any such offense by another, shall be fined in a sum of not less than three hundred pesos nor more than five thousand pesos or imprisoned for a term of not less than three months nor more than five years, or both.
Any person who gives away or accepts from another, or who sells, buys, or uses any container on which the stamps or labels are not utterly destroyed shall for each such offense be fined in a sum of not less than fifty pesos nor more than five hundred pesos or imprisoned for a term not exceeding seven months, or both.
Any internal-revenue officer may destroy any emptied container upon which an internal-revenue stamp or official tax-paid label is found still undestroyed.
Unlawful use of denatured alcohol.
SEC. 171. Unlawful use of denatured alcohol. — Any person who, for the purpose of manufacturing any beverage, uses denatured alcohol or alcohol withdrawn under bond for industrial uses, or who knowingly sells any beverage made in whole or in part from such alcohol, or who uses such alcohol for the manufacture of liquid medicinal preparations, or knowingly sells such preparations containing as an ingredient such alcohol, shall on conviction be fined not more than one thousand pesos or be imprisoned for not more than one year, or both.
Any person who shall unlawfully recover or attempt to recover by redistillation or other process any denatured alcohol or who knowingly uses, sells, conceals, or otherwise disposes of alcohol so recovered or redistilled shall be subject to the same penalty as above provided.
Forfeiture of goods illegally stored or removed.
SEC. 172. Forfeiture of goods illegally stored or removed. — All articles subject to a specific tax which are stored or allowed to remain in a distillery, distillery warehouse, bonded warehouse, or other place where made, after the tax thereon has been paid, shall be forfeited; and all such articles unlawfully removed from any such place without the payment of the required tax shall likewise be forfeited.
Forfeiture of property used in unlicensed business, or of dies used for printing false stamps, etc.
SEC. 173. Forfeiture of property used in unlicensed business, or of dies used for printing false stamps, etc. — All chattels, machinery, and removable fixtures of any sort used in the production of articles subject to specific tax when the required tax has not been paid for such business, shall be forfeited.
Dies used for the printing or making of any internal revenue stamp, label, or tag which is in imitation of or purports to be a lawful stamp, label, or tag shall also be forfeited.
Unlawful possession or removal of articles subject to specific tax without payment of tax.
SEC. 174. Unlawful possession or removal of articles subject to specific tax without payment of tax. — Any person who is found in possession of articles subject to specific tax, the tax on which has not been paid in accordance with law, shall be punished by a fine of not less than three times the amount of the specific tax due on the articles found but not less than two hundred pesos nor more than five thousand pesos or by imprisonment of from four months and one day to four years and two months, or both. Any manufacturer, owner, or person in charge of any article subject to a specific tax who removes or allows or procures the unlawful removal of any such article from the place of manufacture or bonded warehouse, upon which article the specific tax has not been paid in the time and manner required, and any person who knowingly aids or abets in the removal of such articles as aforesaid, or conceals the same after illegal removal, shall for the first offense be punished by a fine of not less than five times the amount of the specific tax due on the articles removed, but not less than five hundred pesos nor more than ten thousand pesos or by imprisonment of not less than six months and one day but not more than six years, or both.
Every manufacturer so offending shall, before continuing or resuming business, execute a bond in double the amount of his original bond and containing the same conditions.
Punishment for subsequent offense.
SEC. 175. Punishment for subsequent offense. — In case of reincidence, the offender under the preceding section shall be punished by a fine of not less than ten times the amount of the specific tax due on the articles found or removed, but not less than one thousand pesos nor more than twenty thousand pesos or by imprisonment of from one year and one day to eight years, or both; and if the offense be committed by the owner or the manufacturer, or with his connivance, the factory and the ground upon which it stands, including the machinery and apparatus used in and about the business shall be forfeited.
Shipment of liquor or tobacco under false name or brand.
SEC. 176. Shipment of liquor or tobacco under false name or brand. — Any person who ships, transports, or removes spirituous or fermented liquors, wines, or tobacco under any other than the proper name or brand known to the trade as designating the kind and quality of the contents of the cask or package containing the same, or causes such act to be done, shall be subject to a fine of five hundred pesos, and in addition the article or articles so transported or removed shall be forfeited.
Illegal sale of skimmed milk.
SEC. 177. Illegal sale of skimmed milk. — Any person who sells or puts on sale in the Philippines any condensed skimmed milk or milk from which the fat has been removed totally or in part, on which the specific tax has not been fully paid, or which does not bear the legend provided for therein, shall, upon conviction thereof, be punished by a fine of not exceeding six hundred pesos or by imprisonment not exceeding six months, or both.
Source: Official Gazette of the Republic of the Philippines — Philippine laws are public documents (works of the government).
