Article 65p. 65

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

permit

from

the

Commissioner:

Provided,

That

withdrawals shall be taxed and accounted for on a

'first-in, first-out' basis.

SEC. 158. Storage of Goods in Internal-revenue Bonded

Warehouses. - 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

excise 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

Commissioner, may, in his discretion, exact a bond to

secure the payment of the tax on any goods so stored.

SEC.

159.

Proof

of Exportation; Exporter's Bond. -

Exporters of goods that would be subject to excise tax, if

sold or removed for consumption in the Philippines, shall

submit

proof

of

exportation

satisfactory

to

the

Commissioner,

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.

SEC.

160.

Manufacturers'

and

Importers'

Bond.

-

Manufacturers and importers of articles subject to excise

tax shall post a bond subject to the following conditions:

(A) Initial Bond. - In case of initial bond, the amount

shall be equal to One Hundred thousand pesos

(P100,000): Provided, That if after six (6) months of

operation, the amount of initial bond is less than the

amount of the total excise tax paid during the

period, the amount of the bond shall be adjusted to

twice the tax actually paid for the period.

(B) Bond for the Succeeding Years of Operation. -

The bonds for the succeeding years of operation

shall be based on the actual total excise tax paid

during the period the year immediately preceding

the year of operation.

Such bond shall be conditioned upon faithful compliance,

during the time such business is followed, with laws and

rules and regulations relating to such business and for

the satisfaction of all fines and penalties imposed by this

Code.

SEC. 161. Records to be Kept by Wholesale Dealers. -

Wholesale dealers shall keep records of their purchases

and sales or deliveries of articles subject to excise tax, in

such

form

as

shall be prescribed in the rules and

regulations by the Secretary of Finance. These records

and the entire stock of goods subject to tax shall be

subject at all times to inspection of internal revenue

officers.

SEC.

162.

Records to be Kept by Dealers in Leaf

Tobacco. - Dealers in leaf tobacco shall keep records of

the products sold or delivered by them to other persons

in such manner as may be prescribed in the rules and

regulations by the Secretary of Finance, such records to

be at all times subject to inspection of internal revenue

officers.

SEC. 163. Preservation of Invoices and Stamps. - All

dealers

whosoever

shall

preserve,

for

the

period

prescribed in Section 235, 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 interval revenue officer.

SEC. 164. Information to be Given by Manufacturers,

Importers,

Indentors,

and

Wholesalers

of

any

Apparatus or Mechanical Contrivance Specially for the

Manufacture of Articles Subject to Excise Tax and

Importers,

Indentors,

Manufacturers

or

Sellers

of

Cigarette Paper in Bobbins, Cigarette Tipping Paper or

Cigarette

Filter

Tips.

-

Manufacturers,

indentors,

wholesalers

and

importers

of

any

apparatus

or

mechanical contrivance specially for the manufacture of

articles subject to tax shall, before any such apparatus or

mechanical contrivance is removed from the place of

manufacture or from the customs house, give written

information to the Commissioner 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

nor dismantled or transferred without a permit in writing

from the Commissioner.

A written permit from the Commissioner for importing,

manufacturing or selling of cigarette paper in bobbins or

rolls, cigarette tipping paper or cigarette filter tips is

required

before

any

person

shall

engage

in

the

importation, manufacture or sale of the said articles. No

permit to sell said articles shall be granted unless the

name and address of the prospective buyer is first

submitted to the Commissioner and approved by him.

Records, showing the stock of the said articles and the

disposal thereof by sale of persons with their respective

addresses as approved by the Commissioner, shall be

kept by the seller, and records, showing stock of said

articles and consumption thereof, shall be kept by the

buyer, subject to inspection by internal revenue officers.

SEC. 165. Establishment of Distillery Warehouse. - Every

distiller, when so required by the Commissioner, shall

provide at his own expense a warehouse, and shall be

situated in and 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

Commissioner, is declared to be a bonded warehouse,

and shall be known as a ' distillery warehouse '.

SEC. 166. Custody of Distillery or Distillery Warehouse. -

Every distillery or distillery warehouse shall be in the joint

custody of the revenue inspector, 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 opened unless in the

presence of such revenue inspector or other person who

may be designated to act for him as provided by law.

SEC. 167. 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 (15) gauge

liters at any one time, except bottled goods, which may

be removed by the case of not less than twelve (12)

bottles.

SEC. 168. Denaturing Within Premises. - For purposes of

this Title, the process of denaturing alcohol shall be

effected only within the distillery premises where the

alcohol to be denatured is produced in accordance with

formulas

duly

approved

by

the

Bureau

of

Internal

Revenue and only in the presence of duly designated

representatives of said Bureau.

SEC. 169. 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 rules and regulations to be prescribed by the

Secretary

of

Finance,

upon

recommendation of the

Commissioner, be permitted to recover the alcohol so

used and restore it again to a condition suitable solely for

use in manufacturing processes.

SEC. 170. 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 excise tax has been

paid, no further tax shall be collected on any rectified

spirits produced exclusively therefrom: Provided, further,

That

compounders

in

the

manufacture

of

any

intoxicating beverage whatever, shall not be allowed to

make use of spirits upon which the excise tax has not

been previously paid.

SEC.

171.

Authority of Internal Revenue Officer in

Searching

for

and

Testing

Taxable Articles. - Any

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