iii

iv
 v

MESSAGE
THE National Tobacco Administration, as the steward of the tobacco industry in the
country, continues its unwavering commitment to help tobacco
growers raise their income from quality tobacco production. In
doing so, we publish technology guides, such as the Tobacco
Production Manuals and the Techno-Calendar, that provide
farmers step-by-step guide in tobacco production from
seedbedding to harvesting and post-harvest operations.
Considering that trading is one major activity that determines how
much the farmers have gained in the production, we come up
with this Manual on NTA Harmonized Grades of Locally Grown
Virginia and Burley Leaf Tobacco.
The purpose of this Manual is to provide both the buying station operators and the farmers
unified reference material for leaf grading, and establish good connection of both the
buyer and the seller in resolving issues, such as grading and classification in the trading
floor, thereby creating a good trading atmosphere in the buying stations.
The Manual focuses on every information buying station operators, NTA technicians
assigned therein, farmers, researchers and other interested individuals would want to
know about the harmonized grades of leaf tobacco.
I am glad to say that the publication of this manual is a culmination of the comprehensive
research of our staff in the Quality Assurance Division of the Industrial Research
Department, in the exercise of their research and development function, and the full effort
and generous inputs of those who were involved in quality tobacco production, particularly
the members of the Operations Group in our branch offices and our farmer leaders, and
close collaborations with the private tobacco companies.
It is then my pleasure and honor to present this manual to all our stakeholders.

ROBERT L. SEARES, M.D.

Administrator
 vi
FOREWORD

IT was during my first year at the helm of the NTA Operations

Group when the final draft of the Harmonized Grades of Locally
Grown Virginia and Burley Leaf Tobacco was presented to me
by Dr. Roberto R. Bonoan, Manager of the Industrial Research
Department.
I was surprised this was not approved for printing and distribution
before I came on board, notwithstanding the effort made by a team
of leaf experts at the IRD Quality Assurance Division (IRD-QAD) who authored the
manual, as part of their research and development function and involvement in the quality
tobacco production. The draft underwent couple of revisions, according to the results of
consultations and collaborations with the local tobacco growers and leaf grading experts
from the major leaf buyers.
I was part of the series of consultative meetings conducted by IRD-QAD to discuss and
finalize the draft with the Top Management, Department Managers under the Operations
Group, the Branch Managers, and representatives from the private sector, including
follow-up consultations with leaf experts from the major leaf buyers.
This culminated in the approval of the final draft in April 2017 by the NTA Governing Board
who recognizes the importance of harmonized grading system in tobacco trading to
eliminate confusion on the different grading systems and classifications of the buying
stations vis-à-vis the NTA grade standards and misunderstanding between farmers and
traders.
With this Manual, we have set the rules and procedures for general guidance in
conducting local trading operations, particularly in leaf grading/classification, and specific
instructions for those personnel who are responsible for leaf grading. As a supplement,
because trading is also part of Operations, we include here the Revised Rules and
Regulations on Tobacco Trading that requires Buying Stations to appraise leaf tobacco
with appriate grades in accordance with the NTA-prescribed grade/classification.
It can be anticipated that this publication will be a useful guidebook not only for our
stakeholders, but for all those who plan to research on the leaf grading system in the
country, and the conduct of trading operations in general.

Atty. MEL JOHN I. VERZOSA

Deputy Administrator for Operations
 vii

TABLE OF CONTENTS

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Memorandum Circular No. 001 s. 2018 . . . . . . . . . . . . . . . . 6

Implementing Rules and Guidelines on the NTA

Standard Grades of Locally Grown Leaf Tobacco . . . . . . 8

 NTA Standard Grades of Locally

Grown Virginia Leaf Tobacco . . . . . . . . . . . . . . . . 8

Definition of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Rules of Grading for the Standard NTA Grades
of Locally Grown Virginia Leaf Tobacco . . . . . . . . . . 14
Harmonized Grades for the Locally
Grown Virginia Tobacco . . . . . . . . . . . . . . . . . . . . . . 16

The Virginia Tobacco Plant . . . . . . . . . . . . . . . . . . . . . . . 22

 NTA Standard Grades of Locally

Grown Burley Leaf Tobacco . . . . . . . . . . . . . . . . . 23

Definition of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Rules of Grading for the Standard NTA Grades
of Locally Grown Burley Leaf Tobacco . . . . . . . . . . . . 28
Harmonized Grades for the Locally
Grown Burley Tobacco . . . . . . . . . . . . . . . . . . . . . . . . 30

 Effectivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

The Burley Tobacco Plant . . . . . . . . . . . . . . . . . . . . . . . . . 37

Features of the Harmonized Leaf Grades (Virginia Leaf) . . 38

Features of the Harmonized Leaf Grades (Burley Leaf) . . . 39

Appendix: 2018 Revised Rules and Regulations

Governing the Trading and Redrying
of Locally Grown Leaf Tobacco . . . . . . . . . . . . . . . . . . . . 40

Acknowledgment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
viii
 1

INTRODUCTION

ROBERTO R. BONOAN, Ph.D.

Department Manager III
Industrial Research Department

A major purpose of this Manual on NTA Harmonized Grades of

Locally Grown Virginia and Burley Leaf Tobacco is to provide buying
station operators, NTA technicians assigned therein, and tobacco growers
with an invaluable resource material and enable them to better understand
the principles and application of the harmonized leaf grading system. It
contains the definition of terms and the rules governing the grading of locally
grown leaf tobacco, both for Virginia and Burley.
Since leaf classification and grading system is applicable during the
trading operations, we deem it proper to also include in this manual the
2018 Revised Rules and Regulations Governing the Trading and
Redrying of Locally Grown Leaf Tobacco. Users of this Manual need also
to be informed of these trading rules, as the agency, through the Regulation
Department and Branch Offices, make reasonable efforts to implement the
TRR in the buying stations. Rule 7 of Regulation V of said revised trading
rules and regulations requires that the grading of the leaf tobacco be done in
the presence of the farmer, and the appropriate grade/s shall be in
accordance with the grade/classification prescribed by the NTA.
Leaf classification and grading system is the most disputed and very
critical aspect of trading, as it determines whether the farmer gains or loses,
so it is very important that everyone involved in the tobacco trading be
knowledgeable on the proper application of the new harmonized grading
system for easy understanding, and achieve smooth trading operations.
In writing this manual, Lina A. Cera and Alfonso E. Sabado of the
Quality Assurance Division, Industrial Research Department, applied the
principles of the international grading system which they learned during the
USA Tobacco Visitors Information Course in North Carolina in 2008 where
they studied the U.S. Standard Leaf Grades for Flue-cured and Burley
tobacco (U.S. grown and foreign grown).
After the training, the QAD team started characterizing locally grown
Virginia and Burley tobacco using the U.S. Grade Standards, from 2008 to
2011. The team started working on the harmonization of the grades being
 2

used by the U.S. and the system adopted by the world traders beginning
2012.
The process of approval of the harmonization of leaf grades passed
through a series of consultations, as we solicited the active cooperation and
collaboration with our stakeholders, especially the farmers and the leaf
experts from the buying firms and our agency.
The draft of the proposed implementing rules and guidelines of NTA
harmonized grades was presented to the different tobacco buyer companies
and also to the NTA Branch Managers for review and comments.
After rigid reviews through continuous consultations with the
stakeholders, a revised draft was presented to the extension workers and
representatives of the buying firms and the farmers, in a series of orientation
seminars. The presentations contributed in highly positive ways to the
understanding of the principles and application of international grading
system aligned with the harmonization of NTA grading system and other
systems being used by different buying stations.
Another big step forward in the harmonization was a pilot testing of the
harmonized grades in selected buying stations. The pilot testing helped the
agency determine the harmonized grades of locally produced tobacco
including the frequency and the economic advantage of using the
harmonized grades over the grading system of private buying firms.
The final draft of the Implementing Guidelines on the NTA Standard
Grades of Locally Grown Leaf Tobacco was presented to Administrator
Robert L. Seares, Deputy Administrator for Operations Atty. Mel John I.
Verzosa, the managers from the different branch offices, and to the
technical experts of the country’s major leaf buyers for their comments,
review, and additional inputs.
It takes us so many years to come up with this manual, a first in our
agency. So we can say this is a big development in the industry, as the
harmonization of leaf grades is approved by the NTA Governing Board, and
now contained in Memorandum Circular No. 001, series of 2018 signed by
Administrator Seares on February 20, 2018. The said Circular, which took
effect beginning trading season 2018, covers the adoption of the
Harmonized Grading and Classification System by all registered tobacco
buying stations and field canvassers.
Before the harmonization, the farmers had been claiming that their
tobacco leaves were not being given the appropriate grade, that some are
graded arbitrarily, and that the buying stations show them leaf grades and
classifications different from those of the NTA. We hope that this
harmonization of leaf grades helps eliminate confusion on the different
 3

grading systems/classifications of the buying stations and misunderstanding

between farmers and sellers in grading the quality of leaves.
We urge buying station operators, NTA technicians assigned therein,
farmers to become familiar with the contents of this manual as it pertains to
their particular task or obligation in tobacco trading.
The Industrial Research Department, especially the Quality Assurance
Division; and the managers, chief agriculturists, and other senior staff from
branch offices, and researchers are to be commended for their substantial
contributions to the technical content of this manual. Our commendation
also goes to the leaf grading experts from the major leaf buyers for their
valuable inputs; the NTA Top Management headed by Administrator Seares
and the members of the NTA Governing Board for their support; and to
many individuals who have contributed to the preparation of this manual,
especially to the Public Relations Office of the Office of the Administrator for
reviewing the materials, and their technical editing and graphic designs.
We recognize that this manual will benefit from further improvements
and we will appreciate comments and suggestions from our stakeholders.
However, we hope that, even in its present form, the manual will prove
helpful to the intended users.
 4

TIMETABLE

2001 NTA Governing Board approved the NTA Grading System under
Board Resolution No. 011-2000 dated 15 February 2000, with the
following grades: AA, A, B, C, D, E, F1, F2, R for Virginia; and A, B,
C, D, E, F, R for Burley.
2002 Tobacco companies started adopting the international grades in
response to the requirement of their importing clients. They used
different symbols in the grade marks, leaving the tobacco farmers,
NTA TPROs/Agriculturists, confused on the new grading system.
2008 Lina A. Cera and Alfonso E. Sabado, Chief Science Research
Specialist and Supervising Science Research Specialist,
respectively, of the Quality Assurance Division (QAD), attended the
USA Tobacco Visitors Information Course in North Carolina where
they learned the principles and application of the U.S. Standard Leaf
Grades for Flue-cured and Burley tobacco (U.S. grown and foreign
grown).
2009 After the training, they started characterizing the Philippine-grown
Virginia and Burley tobacco based on U.S. standard grades.
2011 A Technical Working Group was constituted to come up with the 1st
draft of the implementing rules and guidelines of the NTA Standard
Grades for Locally Grown Leaf Tobacco. The said draft was
presented to the different tobacco companies like PMFTC, ULPI,
TMI, and ConLeaf, and NTA Branch Managers for review and
comments.
2012 Through continuous consultations with the leaf buyer firms, a revised
draft was presented for pilot testing. This is to determine the
harmonized grades of locally produced tobacco including the
frequency and its economic advantage over the private firms’ grading
system.
2014 Bobby Wellons, Division Training Instructor, Agricultural Marketing
Service of Raleigh, North Carolina, USA, in his visit to the
Philippines, was given a copy of the proposed implementing rules
and guidelines of the NTA Standard Grades. Mr. Wellons found the
draft to be technically sound and in harmony with the principles of the
internationally accepted leaf grading standards of Flue-cured and
Burley tobacco.
 5

October 2015 NTA conducted series of orientation seminars of the

proposed implementing rules and guidelines of harmonized
grades with extension workers, farmer leaders and graders
of the trading centers.
April 21, 2017 NTA Governing Board, through Resolution No. 653-2017
approved the Implementing Rules and Guidelines of the NTA
Grading and Classification System.
July 13-14, 2017 QAD presented the Proposed NTA Harmonized Grades to
the Deputy Administrator for Operations and NTA Branch
Managers for final comments.
July 17, 2017 QAD presented Proposed NTA Harmonized Grades to
technical experts of leaf buying firms: PMFTC, ULPI, TMI,
and ConLeaf.
July 31, 2017 PMFTC discussed and presented their comments in a follow-
up consultation.
Sept. 15, 2017 ULPI discussed and presented their comments in a follow-up
consultation.
Oct. 20, 2017 QAD conducted Orientation with the Approved Harmonized
Grades.
Feb. 20, 2018 NTA Administrator Robert L. Seares issued Memorandum
Circular No. 001, series of 2018 to all licensed tobacco
buying stations and field canvassers with the subject
Harmonized Grades for Locally Grown Leaf Tobacco
(Virginia and Burley) effective trading season 2018. The said
Circular which took effect immediately, covers the adoption
of the Harmonized Grading and Classification System by all
registered tobacco buying stations and field canvassers.
 6

Republic of the Philippines

DEPARTMENT OF AGRICULTURE
NATIONAL TOBACCO ADMINISTRATION

MEMORANDUM CIRCULAR NO. 001 SERIES OF 2018

TO : ALL LICENSED TOBACCO BUYING STATIONS AND
FIELD CANVASSERS
SUBJECT : HARMONIZED GRADES FOR LOCALLY GROWN LEAF
TOBACCO (VIRGINIA AND BURLEY) EFFECTIVE
TRADING SEASON 2018
DATE : 20 February 2018
____________________________________________________________

WHEREAS, the National Tobacco Administration (NTA) pursuant to

Executive Order No. 245, has issued the Revised Rules and Regulations
(Revised TRR) Governing the Trading and Redrying of Locally Grown
Leaf Tobacco;
WHEREAS, pursuant to Rules 4, 6, and 7 of Regulation V, the Revised
TRR requires that tobacco to be delivered/sold shall be properly graded
and classified in accordance with the standards prescribed by the NTA
and that leaf samples must be displayed at a conspicuous place within the
premises of the Buying Station;
WHEREAS, it has been observed that each Buying Station uses different
system of leaf grading and classification based on international grading
system; and
WHEREAS, the NTA Governing Board, through its Resolution No. 653-
2017 dated 21 April 2017, has approved the Implementing Rules and
Guidelines in order to harmonize the NTA Grading and Classification
System with the International Grading System adopted by the Buying
Stations which was the result of a series of consultative meetings with the
Technical Experts and Graders of the Private Sector.
NOW THEREFORE, for and in consideration of the foregoing premises
and by virtue of the powers conferred into the NTA, effective immediately,
the following harmonized grading and classification system shall be
adopted by all Buying Stations and Field Canvassers, as follows:
 7

SECTION 1. Harmonized Grades for the Locally Grown Virginia

Tobacco (see pages 16-21)
SECTION 2. Harmonized Grades for the Locally Grown Burley
Tobacco (see pages 30-35)

SECTION 3. Display of Sample Tobacco Grades. Buying Stations shall

regroup their grading and classification system following the above
harmonized grading system. The said regrouped tobacco samples shall
be displayed conspicuously with the BS premises or replace/revise the
samples which were already displayed.
SECTION 4. Purchase Invoice Voucher and Buying Prices. PIVs to be
issued shall be the actual buying price, per grade, excluding any amount
given as incentive. Said actual buying price, less incentives, should not be
less than the prevailing Floor Prices for each NTA harmonized grade.
SECTION 5. Effectivity. This Memorandum Circular shall take effect
immediately.
For the guidance and compliance of all concerned.

ROBERT L. SEARES, M.D.

Administrator and Vice-Chairman
NTA Governing Board
 8

Implementing Rules and Guidelines

on the NTA Standard Grades
of Locally Grown Leaf Tobacco

WHEREAS, the National Tobacco Administration (NTA) has

established a grading and classification system which has
been the basis of setting the floor prices;

WHEREAS, it has been observed that different Tobacco

Buyer Firms use different system of leaf grading and
classification based on international standards;

WHEREAS, there is a need to harmonize the NTA grading

and classification with the internationally accepted grading
and classification system to be uniformly accepted by all
Tobacco Buyer Firms;

NOW, THEREFORE, for and in consideration of the

foregoing premises and pursuant to the authority vested to
the NTA by virtue of Executive Order No. 245, the following
rules governing the grading of locally grown leaf tobacco
are hereby promulgated for the information and guidance of
all concerned.

Article I

NTA STANDARD GRADES OF

LOCALLY GROWN VIRGINIA LEAF TOBACCO
Definitions of Terms

As used in these standards, the words and phrases hereinafter defined shall
have the indicated meaning so assigned.
1. Body. The thickness and density of a leaf or the weight per unit of
surface.
2. Class. A major division of tobacco based on method of cure or principal
usage.
3. Clean. Tobacco is described as clean when it contains only a normal
amount of sand or soil particles. Leaves grown on the lower position of
 9

the stalk normally contain more sand or dirt than those from higher stalk
positions (Rule 4).
4. Color. The third factor of a grade based on the relative hues,
saturations or chromas, and color values common to the type. It is
basically related to body and other overall characteristics of the type.
5. Color intensity. The varying degree of saturation or chroma. Color
intensity as applied to tobacco describes the strength or weakness of a
specific color or hue. It is applicable in all colors except in variegated,
running green, and green colors.
6. Color symbols. As applied to flue-cured tobacco, single color symbols
are as follows:
L – lemon,
O – orange,
R – orange red,
V – running green,
K – variegated, and
G – green.
7. Condition. The state of tobacco which results from the method of
preparation or from the degree of fermentation. Words used to describe
the conditions of tobacco are as follows: undried, air dried, steam-dried,
sweating, and sweated.
8. Crude. A sub-degree of maturity. Crude leaves are usually hard and
slick as a result of extreme immaturity. A similar condition may result
from fire-kill, sunburn, or sunscald. Any leaf which is crude to the extent
of 20 percent or more of its leaf surface may be described as crude
(Rule 16).
9. Cured. Tobacco dried of its sap by either natural or artificial processes.
10. Damage. The effect of mold, must, rot, or other fungus or bacterial
diseases which attack tobacco in its cured state. Tobacco having the
odor of mold, must, or rot is considered damaged (Rule 17).
11. Dirty. The state of tobacco containing moderate to excessive amounts
of dirt or sand, or tobacco to which additional quantities of dirt or sand
have been added (Rule 17).
12. Elasticity. The flexible, springy nature of the tobacco leaf to recover
approximately its original size and shape after it has been stretched.
13. Elements of Quality. Elements of quality and the degrees used in the
specifications of the NTA Official Standard Grades for Philippine grown
flue-cured. Words have been selected to describe the degrees of each
element. Some of the words are almost synonymous in their meaning,
 10

yet, they are sufficiently different to represent steps within the range of
the elements of quality to which they are applied.
14. Form. The stage or preparation of tobacco such as stemmed or
unstemmed.
15. Grade. A subdivision of a type according to group, quality and color.
16. Grade mark. Normally consists of three symbols which indicate group,
quality, and color. A letter is used to indicate group, a number to indicate
quality and a letter or letters to indicate color. For example, C1L means
cutters, choice quality, and lemon color.
17. Grade name. Description of leaf group, quality, and color.
18. Green (G). A color term applied to immature or crude tobacco. Any leaf
which has a green color affecting 20 percent or more of its surface may
be described as green (Rule 15).
19. Group. A division of a type covering closely related grades based on
certain characteristics which are related to stalk position, body or the
general quality of the tobacco. Groups in Philippine Flue-cured tobacco
are: Lugs (X), Cutters (C), Leaf (B), and Tip (T).
20. Injury. Caused by field diseases (wildfire, rust, frogeye, mosaic, root rot,
wilt, black shank, or other diseases), insects, or weather conditions;
insecticides, fungicides, or cell growth inhibitors; nutritional deficiencies
or excesses; improper fertilizing, harvesting, curing, or handling. Injured
tobacco includes dead, burnt, hail-cut, torn, broken, frostbitten,
sunburned, sun scalded, scorched, fire-killed, bulk-burnt, steam-burnt,
barn-burnt, house-burnt, bleached, bruised, discolored, or deformed
leaves (Rule 12).
21. Leaf. Whole unstemmed leaf.
22. Leaf scrap. A by-product of stemmed or unstemmed tobacco. Leaf
scrap results from handling unstemmed tobacco and consists of loose
and tangled whole or broken leaves.
23. Leaf structure. The cell development of a leaf as indicated by its
porosity.
24. Lemon (L). Yellow.
25. Length. The linear measurement of cured tobacco leaves from the butt
of the midrib to the extreme tip.
26. Lot. Tobacco stored or delivered in a pile, basket, bulk, bale or bales,
case, package, or other defined package unit.
 11

27. Maturity. The degree of ripeness. Tobacco is mature when it reaches

its prime state of development. The extremes are expressed as
immature and mellow.
28. Mixed group. This group consists of tobacco from three or more groups
or two distinctly different groups which are mixed together in various
combinations.
29. Nested. Any lot of flue-cured tobacco which has been loaded, packed,
or arranged to conceal tobacco of inferior grade, quality, or condition, or
non-tobacco related materials. Nested includes:
a) any lot of tobacco which contains injured or other inferior tobacco,
any of which cannot be readily detected upon inspection because of
the way the lot is packed or arranged;
b) any lot of tobacco which consists of distinctly different grades,
qualities, or conditions (Rule 17).
30. Non-Tobacco Related Materials (NTRM) / Foreign matter. Any
extraneous substance or material such as stalks, suckers, straw,
strings, rubber bands, grass, weeds, or excessive amount of dirt or
sand, etc. referred to as NTRM (Rule 17).
31. Oil. A soft semifluid constituent of tobacco.
32. Off type. Tobacco of distinctly different characteristics which cannot be
classified as flue-cured (Rule 17).
33. Orange (O). A reddish yellow.
34. Orange red (R). A yellowish red.
35. Order (case). The state of tobacco with respect to its moisture content.
36. Oxidized. A term applied to tobacco that has deteriorated and turned
black during the curing process or in storage.
37. Package. A bale or other securely enclosed parcel or bundle.
38. Papery. A term used to describe thin-bodied, oil-less tobacco usually
associated with a weak whitish-lemon color.
39. Prematurity. A condition of growth and development characteristics of
the lower leaves of the tobacco plant. Premature leaves have some
appearance of ripeness due to a process of starvation caused by
translocation of plant food elements from these leaves to other leaves
higher on the stalk.
40. Quality. A division of a group or the second factor of a grade based on
the relative degree of one or more elements of quality in tobacco.
 12

41. Raw. Freshly harvested tobacco or tobacco as it appears between the

time of harvesting and the beginning of the curing process.
42. Rework. Any lot of flue-cured tobacco which needs to be re-sorted or
otherwise reclassified to prepare it properly for market, including:
a) tobacco which contains non-tobacco related materials, wet leaves/
high moisture content, muddy or extremely dirty leaves, off type,
semi-cured, fire killed, smoked or has an odor foreign to the type,
mixed groups, and nested tobacco which should be removed; and
b) tobacco not properly tied, bundled and packed in bales as
prescribed by NTA or otherwise not properly prepared for market
(Rule 17).
43. Running green (V). A color term applied where the lamina portion of
the leaf has a green tinge—this coloration may “run” or disappear during
storage. Any leaf which has a running green color affecting 20 percent
or more of its surface may be described as mature (Rule 14).
44. Semi-cured. Tobacco in the process of being cured or which partially
but not thoroughly cured. Semi-cured includes tobacco which contains
fat stems, swelled stems, or stems that have not been thoroughly dried
in the curing process (Rule 17).
45. Side. A certain phase of quality, color, or length as contrasted with
some other phase of quality, color or length; or any peculiar
characteristics of tobacco.
46. Slick. A term used to denote tobacco having a close or tight leaf
structure. Any leaf of lemon or orange color of which 20 percent or more
of its surface is close or tight may be described as slick.
47. Smoked. Any tobacco affected by smoke or fumes in the curing process
(Rule 17).
48. Sound. Free of damage.
49. Spready. The widths of the leaf when it is 75% of the length of the leaf;
normal when 50% of the length and narrow when 25% of the length.
50. Steam-dried. The condition of unfermented tobacco as customarily
prepared for storage by means of a redrying machine or other steam–
conditioning machine.
51. Stem. The midrib or large central vein of a tobacco leaf.
52. Stemmed. A form of tobacco, including strips or strip scrap, from which
the stems or midribs have been removed.
53. Strips. The sides of a tobacco leaf from which the stem has been
removed or a lot of tobacco composed of strips.
 13

54. Sweated. The condition of tobacco which has passed through one or
more fermentations natural to tobacco packed with a normal percentage
of moisture. This condition sometimes is described as aged.
55. Sweating. The condition of tobacco in the process of fermentation.
56. Tobacco. Tobacco as it appears between the time it is primed, cured,
stemming, threshing, sweating, and conditioning before the
manufacturing processes.
57. Tobacco products. Manufactured tobacco, including cigarettes, cigars,
smoking tobacco, chewing tobacco and snuff, which is subject to
Internal Revenue tax.
58. Type. A division of a class of tobacco having certain common
characteristics and closely related grades. Tobacco which has the same
characteristics and corresponding qualities, colors, and lengths is
classified as one type, regardless of any factors of historical or
geographical nature which cannot be determined by an examination of
the tobacco.
59. Uniformity. An element of quality which describes the consistency of a
lot of tobacco as it is prepared for market. Uniformity is expressed as a
percentage in grade specifications (Rule 11).
60. Unstemmed. A form of tobacco, including whole leaf and leaf scrap,
from which the stems or midribs have not been removed.
61. Variegated (K). Any lot of unripe tobacco that does not blend with the
normal colors of the types; any leaf of which 20 percent or more of its
surface is scorched, grayish, mottled bleached, dotty-faced, scalded, or
sunbaked (Rule 13).
62. Virginia/Flue-cured. Tobacco cured under artificial atmospheric
conditions by a process of regulating the heat and ventilation without
allowing smoke or fumes from the fuel to come in contact with the
tobacco; or tobacco cured by some other process which accomplishes
the same results.
63. Waste. The portion or portions of the web of tobacco leaves which have
been lost or rendered less usable for tobacco products, including:
a) portions which have decomposed or largely decomposed by field
diseases, field firing, pole-burning; and
b) portions which are dead, lifeless, and do not have sufficient strength
or stability to hold together in the normal manufacturing process due
to excessive injury of any kind.
64. Wet (W). Any sound tobacco containing excessive moisture (more than
18%) to the extent that it is in an unsafe or doubtful-keeping order. Wet
 14

applies to any tobacco which is not damaged but which is likely to

damage if treated in the customary manner (Rule 17).
65. Width. The relative breadth of a tobacco leaf expressed in relation to its
length. Width, as an element of quality, does not apply to tobacco in
strip form.

Rules of Grading for the Standard NTA Grades

of Locally Grown Virginia Leaf Tobacco

The application of these official standard grades shall be in accordance with

the following rules:

Rule 1. Each grade shall be treated as a subdivision of a particular type.

When the grade is stated in a bale tag, the type also shall be stated.
Rule 2. The determination of a grade shall be based upon a thorough
examination of a lot/bale of tobacco or of an official sample of the lot.
Rule 3. In drawing an official sample from a lot or other package of tobacco,
at least one break shall be made at such points and in such manner as the
grader or sampler may find necessary to determine the kinds of tobacco and
the percentage of each kind contained in the lot. The break shall be made
so that the tobacco contained in the center of the lot is visible to the
sampler. The sample shall include tobacco of each different group, quality,
color, length, and kind found in the lot in proportion to the quantities of each
contained in the lot.
Rule 4. All standard grades must be clean, containing only the normal
amount of sand or soil particles.
Rule 5. The grade assigned to any lot of tobacco shall be a true
representation of the tobacco at the time of inspection and certification. If, at
any time, it is found that a lot of tobacco does not comply with the
specifications of the grade previously assigned, it shall not thereafter be
represented as such grade.
Rule 6. A lot of tobacco on the marginal line between two colors shall be
placed in the color with which it best corresponds with respect to body or
other associated elements of quality (color follows the body).
Rule 7. Any lot of tobacco which meets specifications of two grades shall be
placed in the lower grade.
Rule 8. A lot of tobacco meets the specifications of a grade when it is not
lower in any degree of any element of quality than the minimum
specifications of such grade.
 15

Rule 9. In determining the grade of a lot of tobacco, the lot as a whole shall
be considered. Minor irregularities which do not affect over one (1) percent
of the tobacco shall be accepted.
Rule 10. Any lot, except strip form, of Leaf (B Group) tobacco in which 20
percent or more of its leaves are under 30.48 cm (12 inches) in length shall
be designated as Tip (T Group).
Rule 11. Degrees of uniformity shall be expressed in terms of percentage.
The percentage shall govern the portion of a lot which must meet the
specifications of the grade (This percentage shall not affect limitations
established by other rules). The minor portion must be closely related, but
may be of a different group, quality, and color from the major portion.
Rule 12. The application of injury tolerance as an element of quality shall be
expressed in terms of a percentage. The appraisal of injury shall be based
upon the percentage of affected leaf surface or the degree of injury. In
appraising injury, consideration shall be given to the normal characteristics
of the group as related to injury.
Rule 13. Any lot of unripe tobacco with 20 percent or more of its surface is
scorched, grayish, mottled bleached, dotty faced, scalded or sunbaked shall
be described as variegated and designated by the color symbol “K.” Unripe
tobacco is generally characterized by a lower degree of leaf structure.
Rule 14. Any lot of mature tobacco in lemon or orange color containing 20
percent or more of running green tobacco, shall be designated by the color
symbol “V.”
Rule 15. Any lot of tobacco containing 20 percent or more of green leaves
and crude combined shall be designated by the color symbol “G” a color
applied to immature tobacco.
Rule 16. Crude leaves shall not be included in any grade of any color
except green and immature tobacco.
Rule 17. Any lot of tobacco shall not tolerate the presence of mixed group,
damaged and wet tobacco, sand and dirt except for what is the normal
amount in the leaf, non-tobacco related materials (NTRM), off-type, semi-
cured, fire killed, smoked or has an odor foreign to the type and nested
tobacco. Any lot of tobacco found to include earlier stated conditions and
materials need to be reworked.
 16

SECTION 1
Harmonized Grades for the Locally Grown Virginia Tobacco

Standard Leaf HG
NTA Position Grade Grade Name
Maturity Body
Grade Mark
AA Lugs (X) B1O Choice Quality Orange Leaf Ripe Fleshy
Cutters B1R Choice Quality Orange Red Ripe Fleshy
(C) Leaf
Leaf (B) B1L Choice Quality Lemon Leaf Ripe Medium
C1O Choice Quality Orange Ripe Medium
Cutters
C1L Choice Quality Lemon Cutters Ripe Thin
X1O Choice Quality Orange Lugs Ripe Medium

A Lugs (X) B2O Fine Quality Orange Leaf Ripe Fleshy

Cutters B2R Fine Quality Orange Red Leaf Ripe Fleshy
(C) C2O Fine Quality Orange Cutters Ripe Medium

Leaf (B) C2L Fine Quality Lemon Cutters Ripe Thin

X2O Fine Quality Orange Lugs Ripe Medium
X1L Choice Quality Lemon Lugs Ripe Thin

B Lugs (X) T3O Good Quality Orange Tips Ripe Fleshy

Cutters T3R Good Quality Orange Red Ripe Fleshy
(C) Tips
Leaf (B) B3O Good Quality Orange Leaf Ripe Fleshy
Tip (T) B3R Good Quality Orange Red Ripe Fleshy
Leaf
B2L Fine Quality Lemon Leaf Ripe Medium
C3O Good Quality Orange Cutters Ripe Medium
X3O Good Quality Orange Lugs Ripe Medium
X2L Fine Quality Lemon Lugs Ripe Thin

C Lugs (X) T4O Fair Quality Orange Tips Ripe Fleshy

Cutters T4R Fair Quality Orange Red Tips Ripe Fleshy
(C)
Leaf (B) T3L Good Quality Lemon Tips Ripe Medium
Tip (T) T3V Good Quality Running Green Mature Fleshy
Tips
T3K Good Quality Variegated Tips Unripe Heavy
B4O Fair Quality Orange Leaf Ripe Fleshy
B4R Fair Quality Orange Red Leaf Ripe Fleshy
 17

Elements of Quality
Leaf Color Uniform- Tolerance (%)
Color Oil Width
Structure Intensity ity Injury Waste
Firm Orange Oily Deep Spready 90 15 5
Firm Orange Oily Deep Spready 90 15 5
red
Firm Lemon Oily Deep Spready 90 15 5
Open Orange Oily Deep Spready 90 15 5

Open Lemon Oily Deep Spready 90 15 5

Open Orange Oily Strong N/A 80 20 10

Firm Orange Oily Strong Normal 85 20 10

Firm Orange red Oily Strong Normal 85 20 10
Open Orange Oily Strong Spready 85 20 10

Open Lemon Oily Strong Spready 85 20 10

Open Orange Oily Strong N/A 70 30 15
Open Lemon Oily Strong N/A 80 20 10

Firm Orange Oily Strong Normal 80 25 15

Firm Orange Oily Strong Normal 80 25 15
red
Firm Orange Oily Strong Normal 80 25 15
Firm Orange Oily Strong Normal 80 25 15
red
Firm Lemon Oily Strong Normal 85 20 10
Open Orange Oily Strong Normal 80 25 15
Open Orange Lean Moderate N/A 70 40 25
Open Lemon Oily Strong N/A 75 30 15

Firm Orange Oily Moderate Normal 70 30 20

Firm Orange Oily Moderate Normal 70 30 20
red
Firm Lemon Oily Strong Normal 80 25 15
Firm Running Oily N/A Normal 80 25 15
green
Close Variegated N/A N/A Normal 80 25 15
Firm Orange Oily Moderate Normal 70 30 20
Firm Orange red Oily Moderate Normal 70 30 20
 18

Standard Leaf HG
NTA Position Grade Grade Name
Maturity Body
Grade Mark
C Lugs (X) B3L Good Quality Lemon Leaf Ripe Medium
(con’t) Cutters B3V Good Quality Running Green Mature Fleshy
(C) Tips
Leaf (B) B3K Good Quality Variegated Leaf Unripe Heavy
Tip (T) C4O Fair Quality Orange Cutters Ripe Medium
C3L Good Quality Lemon Cutters Ripe Thin
C3V Good Quality Running Green Mature Medium
Cutters
C3K Good Quality Variegated Unripe Medium
Cutters
X3L Good Quality Lemon Lugs Ripe Thin
X3V Good Quality Running Green Mature Medium
Lugs
X3K Good Quality Variegated Lugs Unripe Medium

D Lugs (X) T5O Low Quality Orange Tips Ripe Fleshy

Cutters T5R Low Quality Orange Red Tips Ripe Fleshy
(C)
Leaf (B T4L Fair Quality Lemon Tips Ripe Medium
Tip (T) T4V Fair Quality Running Green Mature Fleshy
Tips
T4K Fair Quality Variegated Tips Unripe Heavy
B5O Low Quality Orange Leaf Ripe Fleshy
B5R Low Quality Orange Red Leaf Ripe Fleshy

B4L Fair Quality Lemon Leaf Ripe Medium

B4V Fair Quality Running Green Mature Fleshy
Leaf
B4K Fair Quality Variegated Leaf Unripe Heavy
C5O Low Quality Orange Cutters Ripe Medium
C4L Fair Quality Lemon Cutters Ripe Thin
C4V Fair Quality Running Green Mature Medium
Cutters
C4K Fair Quality Variegated Unripe Medium
Cutters
X4V Fair Quality Running Green Mature Medium
Lugs
X4K Fair Quality Variegated Lugs Unripe Medium
 19

Elements of Quality
Leaf Color Uniform- Tolerance (%)
Color Oil Width
Structure Intensity ity Injury Waste
Firm Lemon Oily Strong Normal 80 25 15
Firm Running Oily N/A Normal 80 25 15
green
Close Variegated N/A N/A Normal 80 25 15
Open Orange Lean Moderate Normal 70 30 20
Open Lemon Oily Strong Normal 80 25 15
Open Running Lean N/A Normal 80 25 15
green
Close Variegated N/A N/A Normal 80 25 15

Open Lemon Lean Moderate N/A 70 40 25

Open Running Lean N/A N/A 70 40 25
Green
Close Variegated N/A N/A N/A 70 40 25

Firm Orange Lean Weak Narrow 65 45 30

Firm Orange Lean Weak Narrow 65 45 30
red
Firm Lemon Oily Moderate Normal 70 30 20
Firm Running Oily N/A Normal 70 30 20
green
Close Variegated N/A N/A Normal 70 30 20
Firm Orange Lean Weak Narrow 65 45 30
Firm Orange Lean Weak Narrow 65 45 30
red
Firm Lemon Oily Moderate Normal 70 30 20
Firm Running Oily N/A Normal 70 30 20
green
Close Variegated N/A N/A Normal 70 30 20
Open Orange Lean Weak Normal 65 40 25
Open Lemon Lean Moderate Normal 70 30 20
Open Running Lean N/A Normal 70 30 20
green
Close Variegated N/A N/A Normal 70 30 20

Open Running Lean N/A N/A 65 50 35

green
Close Variegated N/A N/A N/A 65 50 35
 20

Standard Leaf HG
NTA Position Grade Grade Name
Maturity Body
Grade Mark
E Lugs (X) T5L Low Quality Lemon Tips Ripe Medium
Cutters T5V Low Quality Running Green Mature Fleshy
(C) Tips
Leaf (B) T5K Low Quality Variegated Tips Unripe Heavy
Tip (T) B5L Low Quality Lemon Leaf Ripe Medium
B5V Low Quality Running Green Mature Fleshy
Leaf
B5K Low Quality Variegated Leaf Unripe Heavy
C5L Low Quality Lemon Cutters Ripe Thin
C5V Low Quality Running Green Mature Medium
Cutters
C5K Low Quality Variegated Cutters Unripe Medium
X5V Low Quality Running Green Mature Medium
Lugs
X5K Low Quality Variegated Lugs Unripe Medium

F1 Lugs (X) X4O Fair Quality Orange Lugs Ripe Medium

X4L Fair Quality Lemon Lugs Ripe Thin

F2 Lugs (X) X5O Low Quality Orange Lugs Ripe Medium

X5L Low Quality Lemon Lugs Ripe Thin

R Lugs (X) Ripe (XND, CND, BND, TND)

Cutters Unripe (XND, CND, BND, TND)
(C) Mature (XND, CND, BND, TND)
Leaf (B) Immature (XND, CND, BND,
Tip (T) TND)
 21

Elements of Quality
Leaf Color Uniform- Tolerance (%)
Color Oil Width
Structure Intensity ity Injury Waste
Firm Lemon Lean Weak Narrow 65 45 30
Firm Running Lean N/A Narrow 65 45 30
green
Close Variegated N/A N/A Narrow 65 45 30
Firm Lemon Lean Weak Narrow 65 45 30
Firm Running Lean N/A Narrow 65 45 30
green
Close Variegated N/A N/A Narrow 65 45 35
Open Lemon Lean Weak Normal 65 40 25
Open Running Lean N/A Normal 65 40 25
green
Close Variegated N/A N/A Normal 65 40 25
Open Running Lean N/A N/A 60 60 45
green
Close Variegated N/A N/A N/A 60 60 45

Open Orange Lean Weak N/A 65 50 35

Open Lemon Lean Weak N/A 65 60 35

Open Orange Lean Pale N/A 60 60 45

Open Lemon Lean Pale N/A 60 60 45

70 50
70 50
70 50
N/A N/A

Key to Harmonized Grade Marks

The harmonized grade marks for Virginia tobacco are symbols that
described the leaf group, leaf quality and leaf color as identified below:
Groups Qualities Colors
T – Tips 1 – Choice L – Lemon
B – Leaf 2 – Fine F – Orange
C – Cutters 3 – Good R – Orange red
X – Lugs 4 – Fair V – Running green
 22

THE TOBACCO PLANT

Virginia
Tips (T):
These leaves grow at the very top
of the stalk and make up around
18% of the plant’s total weight. Tip
leaves are narrow and pointed,
smaller than lower leaves yet
thicker and more full bodied. Tips
of flue-cured tobacco contain from
3% to 3.5% nicotine, 6% to 6.5%
sugars.
Leaf (B):
More than a third of the plant
(42%) is made up of the
leaves on the middle to upper
stalk. These leaves are firm,
thick and heavy bodied with
pointed tips. From 3% to 3.5%
nicotine, up to 15.5% sugars.

Cutters (C):
The largest leaves on the
plant, both in length and width
although only 15% of its
weight. Thin to medium-bodied
leaves from the middle of the
stalk or below, cutters have
rounded tips and the most
desirable color when ripe. High
in oil and resin content, cutters
contain about 2.5% nicotine,
12% to 22% sugars.

Lugs (X):
These thin, blunt tipped
leaves around the bottom of
the stalk make up 25% of
the plant weight. Lugs
contain about 2.5% nicotine,
12% to 20% sugars.

More than 2,500 different chemical compounds have been identified in the leaves of
Nicotiana tabacum, the commercially grown tobacco plant. The most important of these is
nicotine, of course. But the various sugar levels found in the plant also play a vital role
when different tobacco leaves are blended.
Note: The nicotine and sugars in the leaves will vary according to soil, light conditions,
moisture and temperature, as well as stalk position.
 23

Article 2

NTA STANDARD GRADES OF

LOCALLY GROWN BURLEY LEAF TOBACCO
Definitions of Terms

As used in these standards, the words and phrases hereinafter defined shall
have the indicated meaning so assigned.
1. Air-cured. Tobacco cured under natural atmospheric conditions.
2. Air-dried. The condition of unfermented tobacco as customarily
prepared for storage under natural atmospheric conditions.
3. Body. The thickness and density of a leaf or the weight per unit of
surface.
4. Burley. That type of bright air-cured tobacco, commonly known as
Burley.
5. Buff (L) color. A light or pale tan.
6. Class. A major division of tobacco based on method of cure or principal
usage.
7. Clean. Tobacco is described as clean when it contains only a normal
amount of sand or soil particles. Leaves grown on the lower position of
the stalk normally contain more sand or dirt than those from higher stalk
positions (Rule 4).
8. Color. The third factor of a grade based on the relative hues,
saturations or chromas, and color values common to the type. It is
basically related to body and other overall characteristics of the type.
9. Color intensity. The varying degree of saturation or chroma. Color
intensity as applied to tobacco describes the strength or weakness of a
specific color or hue. It is applicable in all colors except in variegated,
running green, and green colors.
10. Color symbols. As applied to Burley tobacco, single color symbols are
as follows:
L – buff,
F – tan,
R – tannish red,
V – running green,
K – variegated, and
G – green.
 24

11. Condition. The state of tobacco which results from the method of
preparation or from the degree of fermentation/conditioning. Words used
to describe the conditions of tobacco are: undried, air-dried, sweating,
and fermented/conditioned. Burley is air-dried for storage and
conditioning.
12. Crude. A sub-degree of maturity. Crude leaves are usually hard and
slick as a result of extreme immaturity. A similar condition may result
from sunburn, or sunscald. Any leaf which is crude to the extent of 20
percent of its leaf surface may be described as crude (Rule 16).
13. Cured. Tobacco dried of its sap by either natural or artificial processes.
14. Damage. The effect of mold, must, rot, black rot or other fungus or
bacterial diseases which attack tobacco in its cured state. Tobacco
having the odor of mold, must, or rot is considered damaged (Rule 16).
15. Dirty. The state of tobacco containing moderate to excessive amounts
of dirt or sand, or tobacco to which additional quantities of dirt or sand
have been added (Rule 16).
16. Elasticity. The flexible, springy nature of the tobacco leaf to recover
approximately its original size and shape after it has been stretched.
17. Elements of Quality. Elements of quality and the degrees used in the
specifications of the NTA Official Standard Grades for Philippine grown
Burley. Words have been selected to describe the degrees of each
element. Some of the words are almost synonymous in their meaning,
yet, they are sufficiently different to represent steps within the range of
the elements of quality to which they are applied.
18. Finish. The reflectance factor in color perception. Finish indicates the
sheen or shine of the surface of a tobacco leaf. Descriptive terms range
from bright to dingy.
19. Form. The stage or preparation of tobacco such as stemmed or
unstemmed.
20. Grade. A subdivision of a type according to group, quality, and color.
21. Grade mark. Normally consists of three symbols which indicate group,
quality, and color. A letter is used to indicate group, a number to indicate
quality and a letter or letters to indicate color. For example, C1L means
cutters, choice quality, buff color.
22. Grade Name. Description of leaf group, quality, and color.
23. Green (G) color. A color term applied to immature or crude tobacco.
Any leaf which has a green color affecting 20 percent or more of its
surface may be described as green (Rule 15).
 25

24. Group. A division of a type covering closely related grades based on

certain characteristics which are related to stalk position, body or the
general quality of the tobacco. Groups in Philippine Burley Tobacco are
Flyings (X), Cutters (C), Leaf (B) and Tip (T).
25. Injury. Caused by field diseases (wildfire, rust, frogeye, mosaic, root rot,
wilt, black shank, or other diseases), insects, or weather conditions;
insecticides, fungicides, or cell growth inhibitors; nutritional deficiencies
or excesses; improper fertilizing, harvesting, curing, or handling. Injured
tobacco includes dead, burnt, hail-cut, torn, broken, frostbitten,
sunburned, sun scalded, scorched, fire-killed, bulk-burnt, steam-burnt,
barn-burnt, house-burnt, bleached, bruised, discolored, or deformed
leaves (Rule 11).
26. Leaf. Whole unstemmed leaf.
27. Leaf scrap. A by-product of stemmed or unstemmed tobacco. Leaf
scrap results from handling unstemmed tobacco and consists of loose
and tangled whole or broken leaves.
28. Leaf structure. The cell development of a leaf as indicated by its
porosity.
29. Leaf surface. The smoothness or roughness of the web or lamina of a
tobacco leaf. Leaf surface is affected to some extent by the size and
shrinkage of the veins.
30. Length. The linear measurement of cured tobacco leaves from the butt
of the midrib to the extreme tip.
31. Lot. Tobacco stored or delivered in a pile, basket, bulk, bale or bales,
case, package, or other defined package unit.
32. Maturity. The degree of ripeness. Tobacco is mature when it reaches
its prime state of development. The extremes are expressed as
immature and mellow.
33. Mixed group. This group consists of tobacco from three or more groups
or two distinctly different groups which are mixed together in various
combinations.
34. Nested. Any lot of Burley tobacco which has been loaded, packed, or
arranged to conceal tobacco of inferior grade, quality, or condition, or
non-tobacco related materials. Nested includes:
a) any lot of tobacco which contains injured or other inferior tobacco,
any of which cannot be readily detected upon inspection because of
the way the lot is packed or arranged;
b) any lot of tobacco which consists of distinctly different grades,
qualities, or conditions (Rule 16).
 26

35. Non-Tobacco Related Material (NTRM) / Foreign matter. Any

extraneous substance or material such as stalks, suckers, straw,
strings, rubber bands, grass, weeds, or excessive amount of dirt or
sand, etc., referred to as NTRM (Rule 16).
36. Off type. Tobacco of distinctly different characteristics which cannot be
classified as Burley (Rule16).
37. Order (case). The state of tobacco with respect to its moisture content.
38. Packaged. A bale or other securely enclosed parcel or bundle.
39. Quality. A division of a group or the second factor of a grade based on
the relative degree of one or more elements of quality in tobacco.
40. Raw. Freshly harvested tobacco or tobacco as it appears between the
time of harvesting and the beginning of the curing process.
41. Rework. Any lot of flue-cured tobacco which needs to be re-sorted or
otherwise re-classified to prepare it properly for market, including:
a) tobacco which contains non-tobacco related materials, wet leaves/
high moisture content, muddy or extremely dirty leaves, off type,
semi-cured, fire killed, smoked or has an odor foreign to the type,
mixed groups, and nested tobacco which should be removed; and
b) tobacco not properly tied, bundled and packed in bales as
prescribed by NTA or otherwise not properly prepared for market
(Rule 16).
42. Running green (V) color. A color term applied where the lamina
portion of the leaf has a green tinge—this coloration may “run” or
disappear during storage. Any leaf which has a running green color
affecting 20 percent or more of its surface may be described as unripe
(Rule 13).
43. Semi-cured. Tobacco in the process of being cured or which partially
but not thoroughly cured. Semi-cured includes tobacco which contains
fat stems, swelled stems, or stems that have not been thoroughly dried
in the curing process (Rule 16).
44. Side. A certain phase of quality, color, or length as contrasted with
some other phase of quality, color or length; or any peculiar
characteristics of tobacco.
45. Sound. Free of damage.
46. Stem. The midrib or large central vein of a tobacco leaf.
47. Stemmed. A form of tobacco, including strips or strip scrap, from which
the stems or midribs have been removed.
 27

48. Strips (S). The sides of a tobacco leaf from which the stem has been
removed or a lot of tobacco composed of strips.
49. Sweated. The condition of tobacco which has passed through one or
more fermentations/conditioning natural to tobacco packed with a
normal percentage of moisture. This condition sometimes is described
as aged.
50. Sweating/Conditioning. The condition of tobacco in the process of
fermentation/conditioning.
51. Tan (F) color. An even shade of light brown.
52. Tannish red (R) color. A darker shade of tan.
53. Tobacco. Tobacco as it appears between the time it is primed, cured,
stemming, threshing, sweating, and conditioning before the
manufacturing processes.
54. Tobacco products. Manufactured tobacco, including cigarettes, cigars,
smoking tobacco, chewing tobacco, and snuff, which is subject to
Internal Revenue tax.
55. Type. A division of a class of tobacco having certain common
characteristics and closely related grades. Tobacco which has the same
characteristics and corresponding qualities, colors and lengths is
classified as one type, regardless of any factors of historical or
geographical nature which cannot be determined by an examination of
the tobacco.
56. Undried. The condition of unfermented tobacco which has not been air-
dried.
57. Uniformity. An element of quality which describes the consistency of a
lot of tobacco as it is prepared for market. Uniformity is expressed as a
percentage in grade specifications (Rule 10).
58. Unstemmed. A form of tobacco, including whole leaf and leaf scrap,
from which the stems or midribs have not been removed.
59. Variegated. Any leaf of which 20 percent or more of its surface is
yellow, pink, grayish, mottled, or bleached and does not blend with the
normal colors of the type or group and is generally characterized by a
lower degree of leaf structure and maturity than tobacco of the
corresponding group and quality (Rule 12).
60. Wet (W). Any sound tobacco containing excessive moisture (more than
18%) to the extent that it is in an unsafe or doubtful-keeping order. Wet
applies to any tobacco which is not damaged but which is likely to
damage if treated in the customary manner (Rule 16).
 28

61. Width. The relative breadth of a tobacco leaf expressed in relation to its
length. Width, as an element of quality, does not apply to tobacco in
strip form.

Rules of Grading for the Standard NTA Grades

of Locally Grown Burley Leaf Tobacco

The application of these official standard grades shall be in accordance with

the following rules:
Rule 1. Each grade shall be treated as a subdivision of a particular type.
When the grade is stated in a bale tag, the type also shall be stated.
Rule 2. The determination of a grade shall be based upon a thorough
examination of a lot of tobacco or of an official sample of the lot.
Rule 3. In drawing an official sample from a lot or other package of tobacco,
at least one break shall be made at such points and in such manner as the
grader or sampler may find necessary to determine the kinds of tobacco and
the percentage of each kind contained in the lot. The break shall be made
so that the tobacco contained in the center of the lot is visible to the
sampler. The sample shall include tobacco of each different group, quality,
color, length, and kind found in the lot in proportion to the quantities of each
contained in the lot.
Rule 4. All standard grades must be clean, containing only the normal
amount of sand or soil particles.
Rule 5. The grade assigned to any lot of tobacco shall be a true
representation of the tobacco at the time of inspection and certification. If, at
any time, it is found that a lot of tobacco does not comply with the
specifications of the grade previously assigned, it shall not thereafter be
represented as such grade.
Rule 6. A lot of tobacco on the marginal line between two colors shall be
placed in the color with which it best corresponds with respect to body or
other associated elements of quality (color follows the body).
Rule 7. Any lot of tobacco which meets specifications of two grades shall be
placed in the lower grade.
Rule 8. A lot of tobacco meets the specifications of a grade when it is not
lower in any degree of any element of quality than the minimum
specifications of such grade.
Rule 9. Any lot, except strip form, of Leaf (B Group) tobacco in which 20
percent or more of its leaves are less than 30.48 cm (12 inches) in length
shall be designated as Tip (T Group).
 29

Rule 10. Degrees of uniformity shall be expressed in terms of percentage.

The percentage shall govern the portion of a lot which must meet the
specifications of the grade. (This percentage shall not affect limitations
established by other rules.) The minor portion must be closely related, but
may be of a different group, quality, and color from the major portion.
Rule 11. The application of injury tolerance as an element of quality shall be
expressed in terms of a percentage. The appraisal of injury shall be based
upon the percentage of affected leaf surface or the degree of injury. In
appraising injury, consideration shall be given to the normal characteristics
of the group as related to injury.
Rule 12. Any lot of tobacco with 20 percent or more of variegated leaves
shall be described as “variegated” and designated by the color symbol “K.”
Rule 13. Any lot of tobacco containing leaves with 20 percent or more of
running green leaves combine shall be designated by the color symbol “V.”
Rule 14. Any lot of tobacco containing 20 percent or more of green leaves,
and crude combined shall be designated by the color symbol “G” applicable
to immature.
Rule 15. Crude leaves shall not be included in any grade of any color
except green for immature leaves.
Rule 16. Any lot of tobacco shall not tolerate the presence of mixed group,
damaged and wet tobacco, sand and dirt except for what is the normal
amount in the leaf, non-tobacco related materials (NTRM), off type, semi-
cured or has an odor foreign to the type and nested tobacco. Any lot of
tobacco found to include earlier stated conditions and materials need to be
reworked.
 30

SECTION 2
Harmonized Grades for the Locally Grown Burley Tobacco

Standard HG
Leaf Grade
NTA Grade Name
Position Mark Maturity Body
Grade
(

A Flyings B1F Choice Quality Tan Leaf Ripe Medium

(X) B1R Choice Quality Tannish Red Ripe Fleshy
Cutters Leaf
(C) C1F Choice Quality Tan Cutters Ripe Medium
Leaf (B) C1L Choice Quality Buff Cutters Ripe Thin
X1F Choice Quality Tan Flyings Mellow Thin
X1L Choice Quality Buff Flyings Mellow Tissuey

B Flyings B2F Fine Quality Tan Leaf Ripe Medium

(X) B2R Fine Quality Tannish Red Ripe Fleshy
Cutters Leaf
(C) C2F Fine Quality Tan Cutters Ripe Medium
Leaf (B) C2L Fine Quality Buff Cutters Ripe Thin
X2F Fine Quality Tan Flyings Mellow Thin
X2L Fine Quality Buff Flyings Mellow Tissuey

C Flyings T3F Good Quality Tan Tips Mature Medium

(X) T3R Good Quality Tannish Red Mature Fleshy
Cutters Tips
(C) B3F Good Quality Tan Leaf Mature Medium
Leaf (B) B3R Good Quality Tannish Red Mature Fleshy
Tip (T) Leaf
B3K Good Quality Variegated Leaf Ripe Medium
B3V Good Quality Running Green Unripe Medium
Leaf
C3F Good Quality Tan Cutters Ripe Medium
C3L Good Quality Buff Cutters Ripe Thin
C3K Good Quality Variegated Ripe Medium
Cutters
C3V Good Quality Running Green Unripe Thin
Cutters
X3F Good Quality Tan Flyings Ripe Thin
X3L Good Quality Buff Flyings Ripe Tissuey
 31

Elements of Quality
Injury
Leaf Unifor
Leaf Color Width Tole-
Color Finish Surface -mity
Structure Intensity rance
(Smoothness) (%)
(%)
Open Tan Deep Clear Smooth Spready 90 20
Open Tannish Deep Clear Smooth Spready 90 20
red
Open Tan Deep Bright Smooth Broad 90 20
Open Buff Deep Bright Smooth Broad 90 20
Open Tan Strong Clear Even N/A 90 20
Porous Buff Strong Clear Even N/A 90 20

Open Tan Strong Moderate Even Spready 85 25

Open Tannish Strong Moderate Even Spready 85 25
red
Open Tan Strong Clear Even Spready 85 25
Open Buff Strong Clear Even Spready 85 25
Open Tan Moderate Moderate Even N/A 80 30
Porous Buff Moderate Moderate Even N/A 80 20

Firm Tan Moderate Moderate Wavy Normal 80 30

Firm Tannish Moderate Moderate Wavy Normal 80 30
red
Firm Tan Moderate Moderate Wavy Normal 80 30
Firm Tannish Moderate Moderate Wavy Normal 80 30
red
Open Variegated N/A N/A Wavy Normal 80 30
Firm Running N/A Moderate Even Normal 80 30
green
Open Tan Moderate Clear Even Normal 80 30
Open Buff Moderate Clear Even Normal 80 30
Open Variegated N/A N/A Even Normal 80 30

Open Running N/A Clear Even Normal 80 30

green
Open Tan Weak Dull Wavy N/A 70 40
Porous Buff Weak Dull Wavy N/A 70 40
 32

Standard HG
Leaf Grade
NTA Grade Name
Position Mark Maturity Body
Grade
(

D Flyings T4F Fair Quality Tan Tips Mature Medium

(X) T4R Fair Quality Tannish Red Tips Mature Fleshy
Cutters
(C) T4K Fair Quality Variegated Tips Mature Fleshy
Leaf (B) T4V Fair Quality Running Green Unripe Fleshy
Tip (T) Tips
B4F Fair Quality Tan Leaf Mature Medium
B4R Fair Quality Tannish Red Leaf Mature Fleshy

B4K Fair Quality Variegated Leaf Mature Fleshy

B4V Fair Quality Running Green Unripe Fleshy
Leaf
C4F Fair Quality Tan Cutters Mature Medium
C4L Fair Quality Buff Cutters Mature Thin
C4K Fair Quality Variegated Mature Medium
Cutters
C4V Fair Quality Running Green Unripe Medium
Cutters
X4F Fair Quality Tan Flyings Mature Thin
X4L Fair Quality Buff Flyings Mature Tissuey
X4K Fair Quality Variegated Ripe Tissuey
Flyings

E Flyings T5F Low Quality Tan Tips Mature Medium

(X) T5R Low Quality Tannish Red Tips Mature Fleshy
Cutters
(C) T5K Low Quality Variegated Tips Unripe Heavy
Leaf (B) T5V Low Quality Running Green Unripe Fleshy
Tip (T)) Tips
B5F Low Quality Tan Leaf Mature Medium
B5R Low Quality Tannish Red Leaf Mature Fleshy

B5K Low Quality Variegated Leaf Unripe Heavy

B5V Low Quality Running Green Unripe Fleshy
Leaf
C5F Low Quality Tan Cutters Mature Medium
 33

Elements of Quality
Injury
Leaf Unifor
Leaf Color Width Tole-
Color Finish Surface -mity
Structure Intensity rance
(Smoothness) (%)
(%)
Firm Tan Weak Dull Wavy Narrow 70 40
Firm Tannish Weak Dull Wavy Narrow 70 40
red
Firm Variegated N/A N/A Wavy Narrow 70 40
Close Running N/A Dull Wrinkly Narrow 70 40
green
Firm Tan Weak Dull Wavy Narrow 70 40
Firm Tannish Weak Dull Wavy Narrow 70 40
red
Firm Variegated N/A N/A Wavy Narrow 70 40
Close Running N/A Dull Wrinkly Narrow 70 40
green
Firm Tan Weak Moderate Even Normal 70 40
Firm Buff Weak Moderate Even Normal 70 40
Firm Variegated N/A N/A Even Normal 70 40

Firm Running N/A Moderate Even Normal 70 40

green
Open Tan Pale Dingy Wrinkly N/A 60 50
Porous Buff Pale Dingy Wrinkly N/A 60 50
Porous Variegated Pale Dingy Wavy N/A 60 50

Firm Tan Pale Dingy Wrinkly Stringy 60 50

Firm Tannish Pale Dingy Wrinkly Stringy 60 50
red
Close Variegated N/A N/A Wrinkly Stringy 60 50
Close Running N/A Dingy Rough Stringy 60 50
green
Firm Tan Pale Dingy Wrinkly Stringy 60 50
Firm Tannish Pale Dingy Wrinkly Stringy 60 50
red
Close Variegated N/A N/A Wrinkly Stringy 60 50
Close Running N/A Dingy Rough Stringy 60 50
Green
Firm Tan Pale Dull Wavy Narrow 60 50
 34

Standard HG
Leaf Grade
NTA Grade Name
Position Mark Maturity Body
Grade
(

E Flyings C5K Low Quality Variegated Mature Medium

(X) Cutters
(con’t)
Cutters C5V Low Quality Running Green Unripe Medium
(C) Cutters
Leaf (B) X5F Low Quality Tan Flyings Mature Thin
Tip (T) X5K Low Quality Variegated Mature Medium
Flyings

F Flyings C5L Low Quality Buff Cutters Mature Thin

(X) X5L Low Quality Buff Flyings Mature Tissuey
Cutters
(C)

R Flyings Ripe (XND, CND, BND, TND)

(X) Unripe (XND, CND, BND,
Cutters TND)
(C) Mature (XND, CND, BND,
Leaf (B) TND)
Tip (T) Immature (XND, CND, BND,
TND)
 35

Elements of Quality
Injury
Leaf Unifor
Leaf Color Width Tole-
Color Finish Surface -mity
Structure Intensity rance
(Smoothness) (%)
(%)
Firm Variegated N/A N/A Wavy Narrow 60 50
Running
Firm green N/A Dull Wavy Narrow 60 50

Open Tan Pale Dingy Wrinkly N/A 55 60

Firm Variegated Pale Dingy Wrinkly N/A 55 60

Firm Buff Pale Dull Wavy Narrow 60 50

Porous Buff Pale Dingy Wrinkly N/A 55 60

70
70

70

N/A

Key to Harmonized Grade Marks

The harmonized grade marks for Burley tobacco are symbols that described
the leaf group, leaf quality, and leaf color as identified below:

Groups Qualities Colors

T - Tips 1 - Choice L - Buff
B - Leaf 2 - Fine F - Tan
C - Cutters 3 - Good R – Tannish-red
X - Flyings 4 - Fair K - Variegated
ND - Nondescript 5 - Low V – Running green
G - Green
 36

Article 3

EFFECTIVITY

These proposed harmonized grades of locally grown leaf tobacco

shall take effect upon approval of the NTA Board of Directors.1

BY THE AUTHORITY OF THE NTA BOARD OF DIRECTORS

1 Approved per MEMORANDUM CIRCULAR NO. 001 SERIES OF 2018 by the NTA
Board of Directors on February 20, 2018. (See pages 5 and 6 of this Manual.)
 37

THE TOBACCO PLANT

Burley
Tips (T):
These leaves grow at the very top of
the stalk. Relatively narrow and sharp
pointed tip. These leaves are similar to
leaf grades but shorter and narrower
with a slightly lower degree of maturity
and leaf structure than other leaves on
the stalk. Tips make up 5% of total
plant weight and contain nicotine level
of 3.5% to 4%.

Leaf (B):
These leaves grow above the
midpoint of the stalk. Cured leaves
tend to fold concealing the face of the
leaf and exposing the stem or midrib.
These leaves have a pointed tip, are
medium to heavy in body, and are
narrower in relation to their length
than lugs and cutters. Tan and red
leaves make up more than 60% of
the total plant weight with nicotine
level of 4% to 4.5%.

Cutters (C):
These leaves grow just below the
middle portion of the stalk. Cured
leaves from this stalk position have a
tendency to roll, concealing the stem
or midrib. These broad leaves have
an oblate to rounded tip and are
usually thin to medium in body. Less
than 25% of total plant weight, with
nicotine level of about 3.25% to 22%
sugars.
Flyings (X):
These leaves normally grow at the
bottom of the stalk. These flat, open
faced leaves have blunt or oblate
tip. Flyings are relatively thin leaves
which show the highest degree of More than 2,500 different chemical compounds have been
maturity, the most open leaf identified in the leaves of Nicotiana tabacum, the
structure. They may also show commercially grown tobacco plant. The most important of
injuries, characteristic of leaves these is nicotine, of course. But the various sugar levels
grown near the ground. Less than found in the plant also play a vital role when different
10% of the total plant weight. tobacco leaves are blended.
Flyings contain nicotine levels of
about 2.5%. Note: The nicotine and sugars in the leaves will vary
according to soil, light conditions, moisture and
temperature, as well as stalk position.
 38

Features of the Harmonized Leaf Grades (Virginia Tobacco)

The leaf buyers of Virginia tobacco would go for degrees of elements toward
the highest degrees (ripe, thin/medium, open, oily, deep, spread, higher
percentage of uniformity and lower percentage of injury and waste) compared to
the lowest degrees (immature, heavy, tight, weak, narrow, lower percentage of
uniformity, and higher percentage of injury and waste) as stated below.

Elements of Quality and Degrees of Each Element, Virginia Tobacco

Degrees
Elements
Highest Lowest
Maturity Ripe Mature Unripe Immature
Body Thin Medium Fleshy Heavy
Leaf Structure Open Firm Close Tight
Oil Oily Lean
Color Intensity Deep Strong Moderate Weak
Width Spready Normal Narrow
Uniformity * * * *
Injury tolerance * * * *
Waste tolerance * * * *
Note: * Uniformity and Injury tolerance are expressed in percentage.

Summary of Standard Grades (72 grade marks)

The proposed harmonized grades for Virginia tobacco had a total of 72
grades where the tips had 15, 21 for leaf, 16 for cutters, 16 for lugs, and four for
nondescript as can be seen below:

15 Grades of Tips 16 Grades of Lugs

T3L T3O T3R T3V T3K X1L X1O
T4L T4O T4R T4V T4K X2L X2O
T5L T5O T5R T5V T5K X3L X3O X3V X3K
X4L X4O X4V X4K
21 Grades of Leaf X5L X5O X5V X5K
B1L B1O B1R
B2L B2O B2R 4 Grades of Nondescript
B3L B3O B3R B3V B3K TND BND CND XND
B4L B4O B4R B4V B4K
B5L B5O B5R B5V B5K

16 Grades of Cutters
C1L C1O
C2L C2O
C3L C3O C3V C3K
C4L C4O C4V C4K
C5L C5O C5V C5K
 39

Features of the Harmonized Leaf Grades (Burley Tobacco)

Generally buyers of Burley tobacco would desire the highest degrees of

elements (mellow/ripe, tissuey/thin/medium, deep, bright, broad, higher
percentage of uniformity and lower percentage of injury) compared to the lowest
degrees of elements (immature, heavy, solid, dingy, stringy, lower percentage of
uniformity and higher percentage of injury) as stated below.

Elements of Quality and Degrees of Each Element, Burley Tobacco

Degrees
Elements
Highest Lowest
Maturity Mellow Ripe Mature Unripe Immature
Body Tissuey Thin Medium Fleshy Heavy
Leaf Structure Porous Open Firm Close Solid
Color Intensity Deep Strong Moderate Weak Pale
Finish Bright Clear Moderate Dull Dingy
Width Broad Spready Normal Narrow Stringy
Uniformity * * * * *
Injury tolerance * * * * *
Note: * Uniformity and Injury tolerance are expressed in percentage.

Summary of Standard Grades (58 grade marks)

The proposed harmonized grades for Burley tobacco had a total of 58
grades where the tips had 10, 16 for leaf,16 for cutters, 12 for lugs and four for
nondescript as can be seen below.

10 Grades of Tips 12 Grades of Flyings

T3F T3R X1L X1F
T4F T4R T4K T4V X2L X2F
T5F T5R T5K T5V X3L X3F
X4L X4F X4K
16 Grades of Leaf X5L X5F X5K
B1F B1R
B2F B2R 4 Grades of Nondescript
B3F B3R B3K B3V TND BND CND XND
B4F B4R B4K B4V
B5F B5R B5K B5V
16 Grades of Cutters
C1L C1F
C2L C2F
C3L C3F C3K C3V
C4L C4F C4K C4V
C5L C5F C5K C5V
 40

APPENDIX

2018 REVISED RULES AND REGULATIONS

GOVERNING THE TRADING AND REDRYING
OF LOCALLY GROWN LEAF TOBACCO

Pursuant to the authority vested in the National Tobacco Administration (NTA) by virtue
of Executive Order No. 245, Section 32 of Presidential Decree No. 1481, and Section 5,
paragraph (c) of Presidential Decree No. 1143, the following rules and regulations
governing the trading of locally grown leaf tobacco are hereby promulgated, for the
information and guidance of all concerned.

REGULATION I – GENERAL PROVISIONS

Rule. 1. Definition of Terms – As used in these Rules and Regulations:
a. Accountable Record/Columnar Book (ARCB) – refers to an accountable book assigned
to each BS to be used by the NTA Designated Inspector in recording tobacco
acceptances and deliveries.
b. Administrator – refers to the Chief Executive Officer of the NTA.
c. Branch Office Tobacco Production and Regulation Officers (BO-TPROs) – refers to the
branch office employees who are tasked to implement these rules and regulations.
d. Buying Station (BS) – refers to the place (building or warehouse), including its
accessories/facilities, which is used for buying, selling, baling, grading, weighing, paying
and/or storing leaf tobacco in accordance with these rules and regulations.
e. Central Office Tobacco Production and Regulation Officers (CO-TPROs) – refers to the
central office employees who are tasked to formulate, recommend and monitor the
adoption/implementation of rules and regulations governing the trading of locally grown
leaf tobacco.
f. Certificate of Authority (COA) – refers to a written authority issued to a Viajero to
gather/collect/purchase only Dark-air cured type tobacco to and from the Visayas and
Mindanao areas.
g. Certificate of Inspection (COI) – refers to a serially numbered certificate issued by the
NTA to BS/BS/WTD/RP/CM/Viajero for the actual inspection of tobacco delivered,
accepted and/or shipped/exported.
h. Cigar/Cigarette Manufacturer (CM) – refers to a local entity engaged in the manufacture
of cigars and cigarettes for domestic consumption and exports, and duly licensed by the
NTA to purchase leaf tobacco from the WTD/Farmer Cooperators.
h. Competitiveness Enhancement Fee (CEF) – refers to the fee paid by the CMs for actual
purchases of locally grown tobacco to support the production of quality Philippine
tobacco.
 41

i. Composite Team – refers to a group of NTA officials created by the NTA Administrator
with the primary function to review/study and recommend specific modification/action of
these rules and regulations and/or the systems and procedures, in coordination with the
Regulation Department.
j. Deputy Administrator for Operations (DAOP) – the second highest official of the NTA
who is tasked to assist the NTA Administrator in the effective enforcement and
implementation of these rules and regulations.
k. Dry Weight – weight of tobacco after undergoing redrying process.
l. Farmer-Cooperator (FC) – refers to a tobacco farmer who has been contracted to
produce tobacco by a Licensed Buyer under a Marketing Agreement.
m. Farmer Leader (FL) – refers to any person, who must be a contracted tobacco farmer
himself/herself, duly designated by a contracting buyer to supervise the members of
his/her cluster in the production of their contracted tobacco.
n. Field Canvasser – refers to the representative of the Buying Station duly authorized by
the NTA to buy tobacco directly from the FC, for and in behalf of the Buying Station.
o. Financial Guarantee – refers to a duly notarized written undertaking with performance
bond equivalent to the value of the estimated volume of tobacco purchases based on
the existing floor price executed by the contracting buyer to guaranty that it is financially
qualified and capable and assumes the payment of all the leaf tobacco to be purchased
by buyers without MA with farmers.
p. Green/Fresh Weight – refers to the farm-gate weight of cured tobacco and without
having undergone any further processing.
q. License and Authority to Buy – refers to a license issued by the NTA to qualified
contracting tobacco buying firm to buy leaf tobacco.
r. Manos – refers to a bundle/pack of leaf tobacco containing 100 leaves per bundle/pack.
s. Marketing Agreement (MA) – refers to the written contract by and among the NTA, the
farmer-cooperator and the tobacco contracting buyer firm or by and between the FC and
the contracting buying firm wherein the farmer-cooperator commits to sell his/her
tobacco to the latter and the latter commits to purchase all the usable tobacco produce
of the former, while the NTA renders technical and marketing assistance to the FC.
t. National Tobacco Administration (NTA) – a government agency mandated to administer
and regulate the Philippine tobacco industry.
u. NTA Board – refers to the policy-making body of the Agency.
v. NTA Branch Office (NTA BO) – refers to any of the branch offices of the NTA located at
the tobacco-producing provinces and headed by a Branch Manager, which is tasked to
implement and enforce these rules and regulations governing the trading of locally
grown leaf tobacco.
w. NTA Inspector/Grader – refers to an NTA official/employee who had undergone training
and gained expertise on tobacco grading and inspection and duly assigned or
designated by the NTA Administrator to supervise/monitor the classifying/grading/
inspection of leaf tobacco.
x. NTA Designated Inspector – NTA personnel who is issued with a designation and
authority to conduct actual inspection of all tobacco acceptances and
deliveries/shipments.
y. Paldo – refers to a bale of leaf tobacco containing 50 to 60 kilograms of leaf tobacco.
 42

z. Packed Weight – the weight of tobacco after having been packed which shall further
undergo redrying process.
aa. Permit and Authority to Purchase – refers to a permit issued by the NTA to WTD and
CM to purchase leaf tobacco on wholesale basis from contracting tobacco buyer firm
with marketing agreement.
bb. Permit and Authority to Redry – refers to a permit issued by the NTA to redrying plant
operator to redry/process/thresh/pack leaf tobacco of contracting tobacco buying firm
and not an authority for the RP to purchase any tobacco from any tobacco seller.
cc. Contracting Tobacco Buyer Firm – refers to the entity that buys tobacco produce of
contracted tobacco farmers.
dd. Pole Vaulting – An individual or group of tobacco farmer-cooperators with an existing
MA to a Buyer Firm (BF) that sells his/her tobacco produce to other tobacco buyer
firm/non-contracting BF.
ee. Purchase Commitment – is a duly notarized written undertaking with a corresponding
performance bond equivalent to the volume committed to purchase based on the
existing average floor price issued by the contracting tobacco buyer firm in favor of the
NTA to buy or caused to be procured a quantity equal to the estimated purchases of all
his/her identified contracted Farmer-Cooperators and to pay liquidated damages to the
NTA the amount not less than one hundred percent (100%) of the value of the
unpurchased quantity due to any reason, exception case of force majeure.
ff. Purchase Invoice Voucher (PIV) – refers to an accountable form that identifies the leaf
tobacco purchased by the contracting tobacco buying firm with Marketing Agreement,
indicating the name of farmer-seller, source of the tobacco, the weight, grade, total price
per grade, total market value of the tobacco sold, time of arrival and payment of the
sales proceeds of the tobacco and name and signature of the owner of the Extension
Buying Station (BS) operator/authorized representative.
gg. Regulation Department (RD) – refers to the department of the NTA which acts as the
regulatory arm of the agency.
hh. Request for Inspection (RFI) – refers to the written request submitted by the contracting
tobacco buyer firm/exporter to NTA for the inspection of every tobacco to be delivered,
shipped, accepted, redried, and exported.
ii. Redrying Plant (RP) – refers to a company duly licensed by the NTA to redry, process,
thresh and/or pack leaf tobacco.
jj. Tabo System – refers to the leaf tobacco trading system, conducted thru an auction, at
a designated place within a municipality within the Visayas and Mindanao areas.
kk. Tally-In-Sheet (TIS) – refers to an NTA prescribed Form used by WTD/RP/CM for every
tobacco purchased/redried.
ll. Tally-Out-Sheet (TOS) – refers to an NTA prescribed Form used by BS/WTD/RP for
every tobacco delivered/shipped.
mm. Tobacco Contract Growing System (TCGS) – is a market-oriented production system
that assured the tobacco manufacturer and exporter of the volume and quality of
tobacco they need; and, at the same time, assures the farmers of the technology,
production assistance, technical assistance, from seedbedding to delivery of produce,
ready market, proper grading, accurate weighing and better prices for their produce,
 43

including incentives for good performance, like production quota, 100% delivery, prompt
repayment and high nicotine, among others.
nn. Tobacco Farmer – refers to a person whose stock of leaf tobacco is the product of the
land tilled by him. He may be a self-financed or buyer firm/NTA financed.
oo. Tobacco Leaf – locally produced material which is used in the manufacture of cigarettes
and cigars consisting of three (3) types: a) Virginia; b) Burley; and c) Native, which
undergoes flue-curing, air curing or dark-air curing, respectively.
pp. Trading Rules and Regulations (TRR) – refers to the approved rules and regulations
governing the trading, wholesale, and redrying of locally grown leaf tobacco.
qq. Viajero – refers to a leaf tobacco buyer, who buys native/dark type of leaf tobacco
directly from the tobacco farmer-producer and sells, delivers, transports and ships the
same to other barangay/s, municipality/ies, province/s or other leaf tobacco buyers
within the Visayas and Mindanao areas.
rr. Wholesale Tobacco Dealer (WTD) – refers to the tobacco company which, under a
purchase commitment and financial guaranty, commits to purchase all the leaf tobacco
bought by the licensed contracting tobacco buyer firm on a Wholesale Basis contracted
under the Marketing Agreement.

REGULATION II – JURISDICTION AND GENERAL FUNCTIONS

For the effective enforcement of these Rules and Regulations:
Rule 1. The NTA Board of Directors shall:
a) Adopt policies in the promulgation of appropriate leaf tobacco trading rules and
regulations in consultation with the management; and
b) Adopt policies in the promulgation and prescription of tobacco grade descriptions/
classifications and floor prices.
Rule 2. The NTA Administrator shall:
a) Approve Licenses and Authority to Buy for tobacco buyers from its contracted farmer
cooperators and Permit and Authority to Purchase/Redry after compliance with the
requirements prescribed under these rules and regulations.
b) Primarily responsible for the proper, effective and efficient implementation of the trading
rules and regulations, particularly, on the rules relating to the proper classification and
grading, accurate weighing, prompt payment and proper documentation of tobacco
acceptances; and
c) Prosecute criminal offenses and impose appropriate administrative sanctions and/or
fines to erring WTD/RP/contracting tobacco Buyer Firm/Viajero/Farmer Cooperators for
violations of the herein trading rules and regulations.

REGULATION III – NTA LICENSE TO ENGAGE IN THE TRADING OF LEAF

TOBACCO BY BUYING STATIONS AND FIELD CANVASSERS
Rule 1. Who May Apply for License and Authority to Buy Leaf Tobacco – Only person of
legal age and having the legal capacity to enter into contract, a corporation, partnership,
 44

company, cooperative, or any other juridical entity, and duly licensed to do business in the
Philippines may apply for a License and Authority to Buy, subject to the provisions of Rules 3
and 4, hereof, and after paying the required processing and licensing fees, the amount of
which shall be computed on the basis of the average volume of tobacco purchases/
acceptances for the last three (3) trading seasons or estimated production of his/her
contracted FCs for the trading season/year applied for, whichever is higher.
The amount to be paid for the processing and licensing fees shall be determined in
accordance with the following table, to wit:
Volume of Tobacco Purchased/Accepted Amount
A. For Virginia or Burley Tobacco
250,000 kilograms and below PhP9,500.00(*)
250,001–350,000 kilograms 11,500.00
350,001–450,000 kilograms 13,500.00
Above 450,000 kilograms 15,500.00

B. Native/Dark Leaf Tobacco

250,000 kilograms and below PhP3,000.00(*)
250,001– 350,000 kilograms 4,000.00
350,001– 450,000 kilograms 4,500.00
Above 450,000 kilograms 5,500.00
(*) covers new applicants
In addition to the above fees, the BS shall likewise pay for the Certificate of Authority for its
duly designated Field Canvassers at the following rate:
Volume of Acceptances Fees
2,000kg and below P1,500.00*
2,001-20,000 kg 2,900.00
20,001-40,000 kg 4,300.00
40,001-100,000 kg 6,500.00
100,001-250,000 kg 8,000.00
* applicable to new applicants
Provided, that a Field Canvasser shall not be authorized to purchase tobacco from the FCs in
excess of the maximum limit as provided above, otherwise, they shall be treated as a buying
station and shall comply with the requirements as such. The Certificate of Authority shall be
valid for the NTA branch office where the application was filed, hence, a Field Canvasser
shall be required to apply for another Certificate of Authority in case it shall operate to other
areas within the jurisdiction of other NTA branch office/s.
Rule 2. Where and When to File Application for License and Authority to Buy Tobacco
– Application for license and authority to buy/certificate of authority shall be filed with the NTA
Administrator, through the NTA BO concerned where the contracting tobacco buyer firm
operates. In case of provinces/regions with no NTA BO, the application may be filed with the
 45

NTA Administrator, through the RD, by means of on-line application or any mode of available
and fastest way of communication. It shall be filed on or before the following dates:
1. Virginia Type – January 15;
2. Burley Type
a. Region I and Mindoro – January 15;
b. Region II – January 31;
3. Native Type
a. Regions I and II – January 31;
b. Visayas/Mindanao
b.1 First Cropping – January 15;
b.2 Second Cropping – June 30.
If the last day of filing of application falls on a Saturday, Sunday or Holiday, the last day of
filing is deemed moved to the next working day. In case of unavoidable circumstances, the
deadline set above may be changed through a Memorandum Circular to be issued by the
NTA Administrator.
A surcharge of fifty percent (50%) of the annual License/Permit Fee shall be assessed for
applications filed after the deadlines set.
Rule 3. Requirements to Support the Application for License and Authority to Buy Leaf
Tobacco – An application (NTA-RD-Form No. 001-A rev 02) for the issuance of a License
and Authority to Buy leaf tobacco, shall be supported by the following:
1. Application form (NTA-RD-F-001 rev 01) properly accomplished;
2. Information sheet (NTA-RD-F-002 rev 01) of the buying station operator;
3. Designation Order (NTA-RD-F-003 rev 01) from the principal buyer/corporation, as the
duly authorized operator of such trading center, if trading center is a corporation or
operates under the corporate name of a principal buyer;
4. Photocopy of Articles of Incorporation/By-Laws, if the applicant is a corporation (NEW
APPLICANT ONLY);
5. Clearance (NTA-RD-F-004 rev 01) from the Branch Office, as to where the
BS/WTD/RP/Viajero is located and as to the payment of R&R fees and other
obligations;
6. Photocopy of audited financial statements and/or Income Tax Returns of the buying
station operator or the corporation, for the two (2) past preceding calendar/fiscal year (IF
NEW APPLICANT) (IF RENEWAL CURRENT/LATEST FINANCIAL STATEMENT);
7. Duly notarized Purchase Commitment (NTA-RD-F-014 rev 02) and Financial Guarantee
(NTA-RD-F-005 rev 02) with Performance Bond;
8. List of Farmer-Cooperators (NTA-RD-F-006 rev 02) under its Marketing Agreement,
including their personal circumstances (age, civil status, address), area and location of
the parcel of land where tobacco shall be grown, as well as their estimated production;
9. Names and Duly Notarized Designation Letters of Field Canvassers and the specific
area/s they intend to purchase tobacco from FCs contracted by their principal Buying
Station.
 46

10. List of contracting tobacco buyer firm (NTA-RD-F-006-A rev 01) where he/she will
sell/deliver his/her leaf tobacco acceptances;
11. Vicinity/location and floor plan of the buying station, indicating its total area, location and
dimension of the different service areas (FOR NEW APPLICANT ONLY);
12. Photocopy of the Mayor’s Permit for the current year or proof of payment (O.R.) issued
by the municipality/city where the buyer applied for a Mayor’s Permit; (IF APPLICANT
FILES ON DECEMBER OF THE CURRENT YEAR THE MAYOR’S PERMIT OF THE
CURRENT YEAR WILL SUFFICE);
13. Photocopy of Official Receipt of Registration Fee for attendance to the Orientation
Seminar conducted by the NTA; and
14. Photocopy of preceding year’s License and Authority to Buy Leaf Tobacco (NTA-RD-F-
033) (FOR RENEWAL ONLY).
Rule 4. Evaluation of Application and Issuance of License and Authority to Buy Leaf
Tobacco – The BO shall pre-process the application upon receipt of the full payment of the
corresponding processing/licensing fees. If the supporting documents are complete, the BO
shall endorse the application to the DAOP, thru the RD within five (5) working days from
receipt of the application, for further verification and evaluation.
If the application is found in order, the RD shall prepare the License and Authority to Buy
Leaf Tobacco and recommend the same, thru the DAOP, for the approval of the NTA
Administrator. Immediately upon the approval of the License to Buy, the RD shall issue the
license and authority to buy to the Applicant, through the Branch Office concerned.
Rule 5. Validity of License and Authority to Buy – The License shall be valid only for each
type of tobacco applied for and does not authorize the contracting tobacco buyer firm to
purchase other tobacco types and shall be valid for a period of one (1) tobacco trading
season, which shall be as follows:
A. Virginia/Flue-Cured leaf tobacco – January 15 to June 30
B. Burley/Bright Air-Cured Leaf Tobacco
Region I – February 1 to July 31
Region II – April 1 to September 30
Visayas and Mindanao – June 1 to December 31
C. Native/Dark Air-Cured Leaf Tobacco
Region I – March 1 to December 31
Region II – April 1 to December 31
Visayas and Mindanao
1) First Cropping – February 1 to May 31
2) Second Cropping – July 1 to December 31
 47

Opening and closing of trading operations shall be simultaneous to all contracting tobacco
buyer firm. However, opening and closing of trading operations earlier or later than the
aforesaid period may be undertaken upon filing of written request at least ten (10) working
days by the tobacco contracting buyer firm and duly approved by the NTA Administrator,
provided, that early or late closing should not be undertaken beyond fifteen (15) days before
or after the official trading period as aforestated.

REGULATION IV – TOBACCO TRIPARTITE CONSULTATIVE CONFERENCE

Every two (2) years, except, in cases when unforeseen and extraordinary circumstances
surrounding the tobacco industry occur, the setting of floor prices for all types of locally grown
leaf tobacco is being conducted by the NTA, to protect the tobacco farmer-producers and to
keep abreast with the varying tobacco market and price conditions/situations. The objective
of this Regulation is to ensure and guarantee a 25% fair return of the investments made by
the tobacco farmer-producer in the production of tobacco.
Rule 1. Pre-Consultative Tripartite Conference Procedure – The RD, in coordination with
the Farm Technology and Services Department (FTSD), shall review the Cost of Production
(COP) and other data from the last tripartite conference and shall recommend the proposed
NTA Floor Prices, per tobacco type, per grade, for approval of the Administrator, thru the
DAOP. The NTA shall invite selected farmer leaders-representatives NAFTAC Officers to a
scheduled date of conduct of Tripartite Consultative Conference.
Rule 2. Conference Proper Procedure – The NTA shall be in charge in the conduct of the
conference, with the RD Department Manager as the facilitator and the Administrator as the
Moderator. The following procedures shall be observed in the following order:
a. The Farmers Group through their designated spokesperson shall present their position
paper and the proposed COP;
b. The Buyers Group through their designated spokesperson shall render a rebuttal on
the Farmers’ Group presentation;
c. The Farmers’ Group and Buyers’ Group shall make further rebuttals and sur-rebuttals
as may be allowed until all issues and questions are resolved and that both groups are
agreeable to a common COP, taking into consideration the following:
1) Formula to be used in the determination of Floor Price increase;
2) Yield per hectare;
3) Percentage Grades of Distribution; and
4) Method of computations
4.1 Cost of Production.
d. The Buyers’ Group and the Farmers’ Group, with the conformity of the NTA, shall then
agree to set the new floor prices, per type and per grade for the ensuing trading
season (at least two years).
In case of disagreement, the NTA shall present to the participants its computed cost of
production.
 48

Rule 3. Signing of the Memorandum of Agreement – Immediately after the determination

of the agreed floor prices, the parties and the NTA shall execute and sign the Memorandum
of Agreement, per tobacco type (NTA-RD-F No. 32, 32-A and 32-B VT, BT, and NT,
respectively). The fact that the MOA is not signed by any one or all of the parties shall not be
a bar for its implementation.
Rule 4. Confirmation of the New Floor Prices by the NTA Governing Board – The NTA
Administrator shall submit to the NTA Governing Board the proposed new floor prices
together with the implementing Memorandum Circular for confirmation. The approved new
floor prices and the Memorandum Circular shall be published in a newspaper of general
circulation and filed with the Office of the National Administrative Register (ONAR), UP Law
Center.
Rule 5. Effectivity of New Floor Prices – The approved new floor prices shall become
effective for two (2) trading seasons starting with the immediately succeeding tobacco trading
season and the next tobacco season and thereafter shall be subject to continuing
review/revision.

REGULATION V – TRADING OF LEAF TOBACCO

Rule 1. The Following Are Qualified to Buy Leaf Tobacco:
a. Any person, who is engaged in tobacco contract growing and duly licensed and issued
with License and Authority to Buy by the NTA, may purchase leaf tobacco from his/her
identified contracted FCs; and
b. The NTA, in case of abnormal market conditions/contingencies in accordance with Rule
6 of this Regulation from contracted FCs whose contracted buyer failed to purchase
their contracted tobacco using the performance bond issued by the defaulting
contracting tobacco buyer firm.
Rule 2. Time, Place and Duration of Trading – The buying of leaf tobacco at the BS shall
be from 8:00 a.m. to 5:00 p.m., Monday to Friday, except, if any of the said days is declared
as an official holiday. However, the buying at the BS outside the official working day may be
allowed upon written request by the BS operator filed at least twenty-four (24) hours prior to
the conduct of such operations, and duly approved by the BO Manager concerned.
If in case trading operation extends beyond the official business hours or working days, there
shall be a designated NTA inspector to supervise the trading operations. In which case the
concerned BS Operator shall be responsible for the payment of overtime pay for the services
rendered by the NTA Designated Inspector, the BO concerned shall adopt a scheme in the
assignment of inspectors to undertake overtime services to supervise the trading operations
beyond the official business hours or outside the official working day/s.
Notwithstanding any provision of these rules and regulations to the contrary, a FL who is duly
authorized by the contracting buyer firm may be allowed to collect/gather/deliver the
contracted tobacco of other FCs under his/her cluster under the following circumstances, to
wit:
a. In remote areas or places where FCs find great difficulty in transporting their
contracted tobacco to the nearest trading center; or
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b. In a province where there is no buying station (BS) actually operating.

Rule 3. Location and Use of the Buying Station (BS) – The BS shall be located in a place
adjacent to a street or thoroughfare, permitting easy access to it by the farmer-
producer/seller. The BS warehouse/building shall be used solely for leaf tobacco trading.
Other business activities conducted within the premises of the BS may also be allowed,
provided, such activities will not in any way, hamper/obstruct the regular tobacco trading
operations.
Rule 4. Requirements Before Buying – Before buying leaf tobacco, a BS shall:
a) Make available all the prescribed trading forms, such as PIV, duly registered with the
BIR, Purchase Books and TOS;
b) Submit to the NTA BO, the name/s and facsimile signature/s of the BS
operator/manager, his/her tobacco grader/s, weigher/s, and the BS official, if any, who
may be authorized/designated by the BS operator, to sign in his/her behalf;
c) Put up in front of the BS, a signboard measuring 3 feet x 6 feet containing the name
and address of the BS, the corresponding NTA license number, its regular business
hours and days of trading (e.g., “Open for business 8:00 a.m. to 5:00 p.m., Monday to
Friday,” and other information which the BS operator may opt or decide to include;
d) Display conspicuously inside the BS, the NTA duly approved and certified samples of
leaf tobacco that should meet/approximate the standard and specifications/
descriptions of each official grade/s, as prescribed by the NTA, and shall be kept in an
appropriate display board that is visible to the public and should be changed every
fifteen (15) days, or earlier, in case of sudden deterioration or change of the quality of
the samples, particularly, in the color, thereof;
e) Install weighing scale/s that is scientifically calibrated and sealed by the NTA BO-
deputized inspector/calibrator;
The installed weighing scale/s shall be inspected and calibrated annually by the NTA,
in collaboration with, the Department of Science and Technology (DOST), and
periodically be monitored by NTA calibrators/TPROs, as to the accuracy of such
weighing scale/s, at least twice during the trading season.
f) Exhibit the original copy of the NTA-issued License and Authority to Buy leaf tobacco
in a conspicuous place within the premises of the BS;
g) Hire sufficient number of BS personnel to accomplish the NTA-prescribed trading
forms in accordance with these rules and regulations;
h) Provide permanent/adequate space for the NTA bulletin/billboard/s, in a conspicuous
place, within the premises of the BS; and
i) Undergo annual orientation seminar on the TRR, which shall be conducted by the RD,
to be assisted by the concerned NTA BO.
Rule 5. Trading of Leaf Tobacco Under the Tobacco Contract Growing System (TCGS)
Production and/or Marketing Agreement
a) Tobacco production and/or marketing arrangement entered into by and between the
tobacco farmer and buyer must be covered by a duly notarized written contract or
Marketing Agreement (MA) (NTA-RD F 007 rev 01).
 50

b) All tobacco areas of a contracted FC and even the nearest of kin within the first degree
of consanguinity or affinity are not allowed to be contracted/covered by any two (2) or
more different tobacco buyers.
c) The contracted tobacco buyer firm (BF) shall buy the tobacco produce at current
prevailing market prices. However, the prevailing buying prices shall not be lower than
the tobacco floor prices per grade set by the NTA. The tobacco buyer may provide
additional incentives to farmer-cooperators (FCs) to motivate good performance, to
include good agricultural practices, productivity, quality, grading, delivery, repayment
performance and non-tobacco related materials, among others, provided that the
amount of any incentives or subsidy shall be on top of and shall not be part of the
buying prices as appearing in the PIVs.
d) All leaf tobacco under this program shall be personally delivered by the FC to the
BS/WTD with whom he/she has entered into an MA, and shall be accompanied by the
NTA TPRO assigned and/or shall be gathered/collected/delivered by the authorized
cluster FL to the contracting Buyer Firm who correspondingly issue PIV to the
FCs/FLs.
e) After the weighing and grading of the tobacco delivered by the FC, the BS operator
shall issue immediately to the FC the farmer’s copy of PIV/computer printout for the
purpose of payment of the sales proceeds of his/her leaf tobacco produced/sold.
f) The contracting buyers’ cashier shall deduct from the sales proceeds of the leaf
tobacco sold, the amount of tobacco production assistance (including interest and
service fee) due to the NTA/contracting buyer, in accordance with the schedule of loan
repayment and shall remit within 24 hours to the NTA/buyer firm the collected
production assistance from FCs.
g) All FCs who have availed of any tobacco production assistance from the NTA and/or
from the contracting buyer shall properly maintain and carry his/her record book at all
times for reconciliation and validation purposes.
h) The contracting tobacco buyer firm shall not buy/accept tobacco from farmers
contracted by other Buying Station. Likewise, a BS-financed FC shall not deliver/sell
his/her contracted tobacco to any other BS/WTD with which he/she has not entered
into an MA.
Any violation of the provision/s of the MA shall be subject to the provisions of Regulation XIV,
hereof, without prejudice to the filing of any appropriate case/s by the aggrieved party to
protect, preserve and/or promote their interest under the circumstances.
Notwithstanding the foregoing, any self-financed tobacco farmer may be allowed to produce
tobacco with or without a market tie-up; Provided, that he/she shall be solely responsible for
himself/herself and shall free the NTA or any of its officers/employees of any
obligation/liability in the event that his/her produce will not be bought. For this purpose, a self-
financed tobacco farmer refers to a farmer whose name is not included in the list of FCs
submitted to the NTA by the Buying Stations.
Rule 6. Classification of Tobacco – The FC shall deliver/sell his/her contracted tobacco
produce to his/her contracted tobacco buyer firm/WTD, properly bundled/baled and classified
 51

in accordance with the prescribed grading and classification standards prescribed by the
NTA.
However, for cigar-filler type tobacco, the FC may deliver/sell his/her contracted tobacco
produce in sticks, for fermentation purposes.
Rule 7. Procedure in the Grading of Tobacco – The grading of the leaf tobacco shall be
done in the presence of the FC, and the appropriate grade/s shall be in accordance with the
grade/classification prescribed by the NTA. The set of the NTA-approved and certified leaf
tobacco samples displayed at the BS shall be used as basis in determining the proper grade.
Issues that may arise between the contracting buyer and FC with respect to grading and
classification shall be subject to mediation and arbitration proceedings under Regulation XIII,
hereof.
Rule 8. Order of Buying/Acceptance – Buying/acceptance of tobacco shall be attended
strictly on a “first come, first serve” basis. It shall be recorded chronologically in the incoming
logbook of the BS and the ARCB (NTA-RD-F 010 rev 01) of the NTA Designated Inspector/
TPRO.
Rule 9. Weighing of the Leaf Tobacco – The leaf tobacco shall be weighed on a duly
calibrated weighing scale installed by the BS. Weighing of leaf tobacco shall be done in the
presence of the FC/BS.
Rule 10. Determination of Net Weight – The net weight of the leaf tobacco, which shall be
the basis of payment, shall be determined by deducting the weight of the baling material/s,
which is equivalent to two (2) kilos, if it is a jute sack. If appropriate, the “open-baling system”
is recommended. The use of plastic sacks or sticks shall no longer be allowed.
For cigar-filler type sold in sticks, the net weight of the leaf tobacco shall be determined by
deducting the weight of the sticks, which is equivalent to 5% of the total weight of 100 sticks.
Rule 11. Pricing of Leaf Tobacco – The leaf tobacco shall be bought at the current
prevailing market prices but not lower than the prescribed floor price corresponding to a
particular grade, as agreed upon in a Tobacco Tripartite Consultative Conference.
Rule 12. Procedure in the Documentation and Recording of Tobacco Acceptances and
Deliveries of the BS – During the tobacco trading operations, there shall be NTA
Designated Inspector/TPROs to supervise and monitor the tobacco acceptances of the BS
and deliveries to WTD.
An RD-Controlled ARCB (NTA-RD-F010 rev 01) shall be assigned for each BS to be used
by the NTA Designated Inspectors/TPROs to record all tobacco acceptances of the BS
concerned. The ARCB should indicate the following information, to wit: (1) date; (2) time of
arrival; (3) name of seller; (4) address of seller; (5) volume of acceptance; (6) source/s of
tobacco; (7) name and signature of the NTA Designated Inspector and BS representative;
and (8) remarks.
At the end of the business operations for the day, the ARCB shall be closed and signed by
the NTA Designated Inspector and witnessed/attested by the BS representative to be turned
 52

over to the next NTA Designated Inspector who shall likewise record all transactions after the
closing of the ARCB by the preceding inspector.
In case the tobacco are purchased within the jurisdiction of a particular NTA BO and are
directly delivered to another province or area of jurisdiction of another NTA BO, the place of
delivery shall be responsible in the recording of the acceptance in the ARCB, provided,
however, that the place of origin is clearly indicated. Likewise, the processing of the shipment
documents, i.e., RFI and Request for Local Permit to Transport/Special Permit to Buy (NTA-
RD-F 011 rev 01), COI/PTT (NTA-RD-F 011-A rev 01), which shall be undertaken at the
place of origin. The COI/PTT shall be accomplished in triplicate copies to be distributed as
follows:
Original – Applicant
Duplicate – Branch Office
Triplicate – Regulation Department
In the absence of BS, all tobacco deliveries made by FC to a nearby BS must be supported
by COI, duly signed by the designated TPRO/Agriculturist assigned to accompany the
delivery and the FC and the basis of preparation of PIV by the BS.
Rule 13. Purchase Invoice Voucher (PIV) – Every leaf tobacco purchased from a tobacco
farmer-cooperator shall be covered by a PIV that is duly registered with the BIR as inspected
and verified by the NTA. Upon, acceptance, the BS operator shall immediately accomplish
the PIV in triplicate copies and issue the same as follows:
Original – Farmer-Cooperator
Duplicate – Buyer
Triplicate – NTA-BO/RD
In case the BS, which uses digital/computerized-weighing scales would not be able to
immediately issue the PIV, the computer printout, if it is serially numbered and complies with
the NTA-prescribed PIV form, shall be the one to be distributed in accordance with paragraph
1 hereof, subject to the accomplishment of the PIV form to be submitted not later than seven
(7) days from date of purchase.
The same computer printout, duly reconciled with the ARCB, may be used as basis in the
computation of volume of tobacco acceptances for the purpose of billing of R&R fee.
The PIV shall indicate the name of the BS, its business address, BIR registration number,
name of tobacco farmer/cooperator whoever personally delivered/sold the tobacco produced
to the BS, date of transaction, source of the tobacco, as to barangay, municipality and
province, grade/s of the tobacco, gross weight and the corresponding deduction/s, if any, net
weight of each grade, the corresponding buying price, per kilogram, for each grade, the
purchase value for each grade, the total purchase value for the grades, name and signature
of the BS operator/Representative, the time of its arrival at the BS. However, cash incentives
or fertilizer subsidies given to the FCs shall be on top of the buying prices as appearing in the
PIVs.
 53

To avoid delays in the issuance of PIVs due to reconciliation of grades, the data contained in
the computer printout issued earlier by the buyer firm shall be the same grade/data that may
be used and the NTA BO shall do the reconciliation upon receipt of the PIVs.
During the trading operations, the NTA trading official/employee shall immediately, but not
later than seven (7) days from the date of purchase, gather/collect the PIVs used by the BS
and submit the same to the NTA BO for chronological recording in the Purchase Book of the
following information data:
 Date of transaction
 Serial number/s of the PIV
 Name of Farmer-Cooperator
 Source of the tobacco (Barangay, Municipality, Province)
 Volume, grade and value of the leaf tobacco
Rule 14. Permit to Transport – For NTA BOs which require the issuance of a Permit to
Transport [NTA-RD-F 011-A (National)/011-B (Local)], in addition to the COI/PTT (NTA-
RD-F-011 rev 01), all BS/BF/FL shall secure a Request for Inspection/PTT (NTA-RD F-011
rev 1) from the NTA BO concerned such permit for every tobacco to be delivered to another
area of jurisdiction other than the BS/BF/FLs registered province/area of operation or for
exportation. The permit shall indicate the volume and source of tobacco, place of destination
and name of FC and contracting tobacco buyer firm/BF/FL and shall serve as a gate pass to
be presented at the designated tobacco inspection points.
Rule 15. Supervision and Enforcement – During the leaf tobacco trading season, the
Administrator and/or his/her authorized representative shall designate and assign a Roving
Team to oversee the effective and efficient enforcement/implementation of these trading
rules and regulations at the BS level, particularly, on the proper grading, proper weighing,
prompt payment, and proper documentation of leaf tobacco acceptances.
Rule 16. Specific Prohibitions in the Trading of Leaf Tobacco – The following or similar
acts or circumstances are considered prohibited in the trading of locally grown leaf tobacco,
to wit:
a) Buying and selling outside the period provided in Regulation III hereof, unless with prior
written approval from the NTA;
b) Buying and Selling of tobacco by and among Farmer Leaders;
c) Selling and buying tobacco without license from the NTA;
d) Buying and selling of tobacco between or among BS;
e) Selling and delivering tobacco directly from BS directly to CM;
f) Buying and selling of tobacco with non-tobacco related materials (NTRMs);
g) Buying/accepting/selling of unclassified tobacco at the BS, except for cigar-filler type
tobacco for fermentation purposes;
h) Spraying of water on leaf tobacco, except for cigar-filler tobacco, provided it is within the
acceptable/recommended percentage of moisture content of not more than 18%;
i) Deducting shrinkage allowances or handling losses;
j) Delivering tobacco from BS to WTD/RP or from WTD/RP to CM/Export Market without
NTA inspection;
k) Buying directly from tobacco farmers except with marketing agreement;
 54

l) Selling and buying of tobacco between WTDs;

m) Buying of tobacco by RPs;
n) Delivering of tobacco by BS to WTD more than its acceptances based on the estimated
volume of production of its contracted FCs;
o) Delivering of tobacco by FC more than 100% his/her expected volume of Individual or
Cluster production based on the actual area planted as recorded by the concerned NTA
BO;
p) Buying of leaf tobacco directly from FCs by CMs without NTA License and Authority to
Purchase; and
q) Buying and accepting tobacco by the BS/BF more than the estimated maximum volume
of production as per submitted list of contracted farmers and area planted, without a
Special Permit to Buy.

REGULATION VI – PAYMENT OF TOBACCO

Rule 1. Manner of Payment – All leaf tobacco purchased by BS shall be paid in cash/ATM
Card. Payment in the form of check shall be allowed, provided that there is a bank or other
facility for encashment within the province where the BS is located, and that such mode of
payment is acceptable to the FC.
Rule 2. Time of Payment – The BS shall pay the FC, immediately after the grading and
weighing of the delivered leaf tobacco. However, if payment cannot be made promptly due to
fortuitous event or circumstances beyond the control of the BS, payment shall be made
within forty-eight (48) hours, after the normal conditions are restored.
Rule 3. Place of Payment – The place of payment shall be at the BS. Payment in a place
other than the BS may be allowed, if the payment cannot be effected at the BS by reason of
the deterioration of the peace and order conditions in that place or any other cause beyond
the control of both parties. No payment shall be effected in any bar/disco house or drinking
establishment, gambling or other similar places.

REGULATION VII – LICENSING OF “VIAJEROS”

Rule 1. Native/dark leaf tobacco trading by the viajeros in the Visayas and Mindanao
Areas can only buy native/dark leaf tobacco type – Before buying leaf tobacco, a
“viajero,” shall secure a COA by filing the properly accomplished prescribed application form
with the NTA-authorized TPROs deployed in their respective provinces/municipalities
concerned, and pay the corresponding processing and registration fees, in the amount to be
determined by the NTA.
The COA, shall be valid for one (1) trading season, the period of which shall be in
accordance with the provision of Rule 5 of Regulation III hereof. If the “viajero” intends to
buy leaf tobacco in Luzon, Rule 1 of Regulation III shall apply.
 55

Only NTA-licensed “viajeros” are allowed to buy leaf tobacco directly from the tobacco
farmer-producers within the province/s as indicated in his/her Certificate of Authority issued
by NTA, subject to the following rules:
a) The copy of COA shall be carried personally by the “viajero” at all times, when
buying/selling native/dark leaf tobacco.
b) Buying of tobacco may be in “manos” or “paldos,” provided, that there shall be a
corresponding equivalent volume in kilos of the “manos” or “paldos” which shall be
properly indicated in the COP to be issued by the “viajero,” to the native/dark leaf
tobacco farmer-producer/seller.
c) The tobacco farmer-producer/seller shall be paid within 24 hours after the
consummation of the sale or before the delivery/release of the tobacco from his/her
bodega/storage.
d) The “viajero” shall secure a Certificate of Inspection/Permit to Transport (NTA-RD 11a
rev 01) from the NTA Authorized TPROs deployed in their respective provinces/
municipalities, before transporting any leaf tobacco purchased, to other barangay,
municipality or province, indicating therein that the corresponding Research &
Regulation fees for the native leaf tobacco purchased, are fully paid to the NTA
Authorized TPROs, which shall issue the corresponding official receipt/s.
e) The “viajero” shall not buy leaf tobacco produced by a tobacco farmer-producer
covered by a tobacco contract growing project supervised by the NTA.
Rule 2. “Tabo System” of Tobacco Trading – Buying and selling of native leaf tobacco
under a “tabo system” shall follow the rules stipulated herein:
a) Any local government unit (LGU) which operates or intends to operate a tabo system of
native/dark leaf tobacco trading shall notify the NTA through the Authorized TPROs
concerned, by providing the following data/information:
1) Copy of the Resolution of the Sangguniang Bayan/Barangay concerned to
operate a “tabo system” for native/dark leaf tobacco trading;
2) Location plan of the place/s where the “tabo system” shall be conducted;
3) Floor plan of the building, indicating its total area, location and dimension of the
different service area/s; and
4) Designated day/s and time of “tabo” native/dark leaf tobacco trading.
b) Native/dark leaf tobacco farmer-producer/s and NTA-licensed native/dark leaf tobacco
buyers “viajeros” shall be allowed to participate in the “tabo system” of native/dark leaf
tobacco trading.
c) During the designated day/s and time of “tabo system” of native/dark leaf tobacco
trading, an NTA official/employee and/or a Roving Team shall be assigned to oversee
the trading activity/ies thereat.
d) The native/dark leaf tobacco purchased/auctioned thereat shall be properly weighed on
a duly-calibrated weighing scale in the presence of the tobacco farmer-producer and
NTA Roving Team/Authorized TPROs, who, thereafter, issue a Certificate of Inspection
and the corresponding official receipt for the payment of the Research & Regulation
fees.
 56

REGULATION VIII – RESEARCH AND REGULATION FEES

Rule 1. Research & Regulation Fee – A Research & Regulation (R&R) fee, at the rate of
P0.50, shall be paid for every kilogram (farm-gate weight) of leaf tobacco
purchased/accepted by the contracting BSs, with no shrinkage allowance to be deducted
therefrom. The R&R fee herein provided may be increased in consultation with the
stakeholders of the tobacco industry.
Rule 2. Additional R&R Fee – An additional R&R fee of P0.95, for every kilogram of locally
grown leaf tobacco delivered by the contracting tobacco buyer firm/WTD to local
cigarette/cigar manufacturers shall be paid by the CMs to the NTA based from the billing
issued by RD.
Rule 3. The Basis of the R&R Fees – The basis of the R&R fees shall be the total monthly
acceptances/purchases of leaf tobacco, as recorded in the ARCB, as reconciled with the PIV,
whichever is higher.
In case the “Viajero” does not have any BS tie-up, within twenty-four (24) hours after
issuance of COP to the farmer seller/s, shall correspondingly pay the R&R fees of the total
volume purchased based from his/her issued COP to the concerned NTA BO-authorized
TPROs.
Rule 4. Billing and Collection of R&R Fees – The BO Manager shall be responsible for the
billing and collection of the R&R fees on or before the 10th day of the month following the
month of purchase/acceptance of the leaf tobacco.
Rule 5. Payment of R&R Fees – The BS shall pay the R&R fees to the BO where such BS
is operating/located within three (3) days from receipt of the notice. Late payments of R&R
Fees shall be subject to the provisions of Regulation XIV hereof.
Rule 6. Remittance of R&R Fees – All collection on R&R Fees and penalties, if any, shall
be deposited by the concerned BO to the NTA Central Office’s On-Line Bank Account, in
accordance with the generally accepted principles of accounting and auditing standards.
Rule 7. Authorized Collecting Agent (Vis-Min) – In the case of provinces without existing
NTA BO, the billing, collection, and remittance of R&R fees herein provided shall be
undertaken by the NTA-authorized TPROs, and shall correspondingly issue an O.R. for every
collection made and immediately deposit to the NTA On-Line Bank Account.

REGULATION IX – TRADING AND DELIVERY OF LEAF TOBACCO BY

WHOLESALE TOBACCO DEALERS (WTDS)
Rule 1. Who May Engage in the Purchase of Leaf Tobacco – Any person may apply for a
“Permit and Authority to Purchase” from the NTA, through the BO, upon full payment of the
processing and license fee of Sixteen Thousand Two Hundred Pesos (PhP16,200.00), per
tobacco type, per province, and submission of the following requirements;.
a) Duly accomplished Application Form (NTA-RD-F No. 001 rev 01);
 57

b) Duly notarized Certificate of Financial Guarantee (NTA-RD-F No. 005 rev 02) with
performance bond of duly licensed BSs that shall operate under its Purchase
Commitment and the duly authorized signatories in all trading documents;
c) Purchase commitment (NTA-RD-F No. 014 rev 02) with performance bond, to purchase
not less than the volume of tobacco production of its contracted FCs under MOA;
d) Photocopy of the Official Receipt for attendance to the annual Orientation-Seminar
conducted by the NTA; and
e) Photocopy of the Permit and Authority to Purchase Tobacco (RENEWAL).
Rule 2. Manner of Purchase – WTDs are authorized to purchase leaf tobacco deliveries
from BS/contracting buyer firm/FCs, provided, that every delivery shall be supported by a
COI and PTT, TIS, Control Sheet/Inventory Report, BIR Tobacco Delivery Permit (Guia)
indicating therein, the volume/net weight of the tobacco purchased, date of purchase and
place of origin.
Rule 3. Conditions of Purchase Commitments – Every Purchase Commitment to be
executed by the WTD shall be duly notarized and accompanied with a performance bond. It
shall contain an undertaking to buy or caused to be procured a quantity equal to the
estimated purchases of all its identified FCs/BS operating under its Financial Guarantee.
Rule 4. Validity of Permit and Authority to Purchase – A Permit and Authority to Purchase
issued to WTDs shall be valid only for one (1) cropping season for its purchases from
FCs/BS under its Financial Guaranty and shall not in any manner authorize the WTD to
purchase tobacco directly from any farmer, except those under its MA.

REGULATION X – LICENSING OF REDRYING PLANTS

Rule 1. Who may Engage in the Redrying of Leaf Tobacco – Any natural/juridical person
may engage in the redrying of leaf tobacco by securing from the NTA a “Permit and Authority
to Redry,” after full payment of the processing and license fee of Sixteen Thousand Two
Hundred Pesos (PhP16,200.00), per province, and upon submission of the following
requirements:
a. Duly accomplished Application Form (NTA-RD-F 001 rev 01)
b. Photocopy of the Official Receipt for attendance to the annual Orientation-Seminar
conducted by the NTA; and
c. Photocopy of the Permit and Authority to Redry Tobacco (RENEWAL).
Rule 2. Manner of Redrying – An RP is authorized to redry leaf tobacco of BS/WTDs,
provided, that every delivery shall be supported by a TIS, control sheet/inventory report,
GUIA, PTT and COI indicating therein the volume/net weight of the tobacco to be redried, the
date of delivery and place of origin.
Rule 3. Validity of Permit to Redry – A permit and authority to redry shall be valid only for
one (1) year for purposes of redrying, threshing, packing and processing of leaf tobacco and
shall not in any manner authorize the RP to purchase leaf tobacco from any FC.
In case the RP intends to purchase tobacco from BSs or tobacco farmers, he/she shall be
required to secure the necessary License and Authority to Buy as Trading Center and Permit
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and Authority to Purchase as WTD and submit the documentary requirements as provided in
Regulations III and IX of these rules and regulations.

REGULATION XI – PROVISIONS COMMON TO WTDs AND RPs

Rule 1. Requirements for Documentation, Monitoring and Supervision – All WTD/RP/
CM shall be required to:
a) Allow the NTA to enter into its trading areas, redrying and/or manufacturing plants and
similar premises for purposes of inspection, monitoring, and supervision;
b) Submit to the NTA, through the BO (area of jurisdiction) the TIS, TOS and production
reports for every delivery/acceptance/job orders; and
c) Install at least one (1) unit of weighing scale to be regularly calibrated by the NTA.
Rule 2. Procedure in the Documentation of Deliveries from BS to WTD/RP and from
WTD/RP to CM – The following procedure shall govern the delivery of tobacco from BS to
WTD/RP and from WTD/RP to CM, to wit:
a) Before any BS delivers tobacco to WTD/RP, it shall file a Request for Inspection (RFI)
and/or Request for Permit to Transport (RFPTT) (NTA-RD-F-11 rev 01) with the NTA at
least 24 hours prior to the loading;
b) The WTD/RP/CM shall notify the NTA of the arrival of the tobacco and shall within
twenty-four (24) hours request for an inspection of accepted tobacco and before delivery
of the redried tobacco to CM. The tobacco delivered to WTD/Manufacturing plant/factory
shall be evidenced by a TOS and COI;
c) The RPs shall within twenty-four (24) hours likewise request for inspection of leaf
tobacco received for redrying and shall issue production report per job order and shall
likewise request for an inspection of tobacco accepted for redrying and before delivery
of the redried tobacco to WTD/CM’s plant/factory. A TOS and production reports shall
accompany the documents of the tobacco delivered to WTD/CM; and
d) A COI/PTT (NTA-RD-F 011A) shall be issued to the BS/WTD/RP/CM upon actual
inspection of the tobacco to be delivered/accepted. All COI/PTT forms shall be serially
numbered by the respective BOs.
Rule 3. Procedure in the Conduct of Inspection – The following is the procedure in the
conduct of inspection by NTA-authorized Inspectors:
a) Inspectors shall conduct actual physical inspection of loading/unloading of
incoming/outgoing leaf tobacco based on faxed information given by branch office of
origin and/or requested shipping forms from tobacco company and make random
sampling (at least 1 bale for every 20 bales) as to the actual weight of each bale
loaded/unloaded. The average weight of the bales thus sampled shall be the basis for
the computation of the total kilos of tobacco loaded/unloaded;
b) BS/WTD/RP/CM shall not load/unload any tobacco without the presence of NTA
Designated Inspector/s;
c) Inspector shall reconcile actual inspection as to volume vis-à-vis the shipping
documents, i.e., TOS, Stock Inventory/Inventory Report/Purchase Order/Job Order,
GUIA COI/PTT from the BO of origin;
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d) Inspector shall prepare incident report for any violation of these rules and regulations
within twenty-four (24) hours to be submitted to concerned BO Manager, copy furnished
the central office thru the RD, which shall correspondingly report to the Administrator
through the Deputy Administrator for Operations (DAOP);
e) If shipping documents and actual inspection are in order, Inspector shall issue the
COI/PTT to BS/WTD/RP/CM’s representative; and
f) Inspector shall advise the concerned BO/RD within 24 hours after inspection, thru the
fastest means of communication, of the expected arrival of the tobacco and furnish
copies of necessary shipping documents.
Rule 4. Inspection Fee. – All BS/WTDs/RPs requesting for an inspection shall pay the NTA
the amount of P100.00 per certificate valid for one truck load. Each vehicle shall be issued
one certificate of inspection.

REGULATION XII – COMPETITIVENESS ENHANCEMENT FEE (CEF)

(Note: Already covered by a separate rules and regulations)
Rule 1. Competitiveness Enhancement Fee – There shall be a Competitiveness
Enhancement Fee (CEF) for every kilogram of tobacco delivered to local CM, which shall be
collected from and paid by the local CM based on the following weight category:
Green/Fresh Weight Pack Weight Dry Weight
PhP0.60/kg PhP1.00/kg PhP1.66/kg
Rule 2. The Basis of the CEF Fees – The basis of the CEF fees shall be the total deliveries
of leaf tobacco, on a per shipment basis, made by Wholesale Tobacco Dealers (WTDs), as
per COI issued, and as reconciled with the TOS of WTD/RP, whichever is higher.
Rule 3. Billing and Collection of CEF Fees – The Central/BO where the accepting CM is
located shall be responsible for the billing and collection of the CEF. The NTA Finance
Manager shall prepare a Notice of Billing of CEF within twenty-four (24) hours upon receipt of
notice of the actual delivery and inspection of tobacco to CM by the RD.
Rule 4. Payment of CEF – The CM shall pay the CEF fees to the Central Office/BO where
such CM is located, within three (3) days immediately upon receipt of the billing. Late
payments of CEF shall be subject to the provisions of Regulation XIV hereof.
Rule5. Remittance of CEF – All collection on CEF and/or penalties, paid to the BO shall be
deposited to the NTA Central Office’s On-Line Bank Account, in accordance with generally
accepted principles of accounting and auditing standards.

REGULATION XIII – MEDIATION AND ARBITRATION

Rule 1. Mediation – In case of disagreement as to the grading/classification of leaf tobacco
between the farmer-seller and the BS operator, the NTA mediator assigned at the trading
center shall immediately endeavor to make both parties concerned to come to an agreement.
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The NTA, at the request of the aggrieved party, may intervene for purposes of mediation, in
any dispute between the FC and BS as to any matter pertaining to the application or
interpretation of any contract for production or marketing agreement.
Rule 2. Arbitration – If mediation fails, the NTA arbitrator shall advise the seller or the
aggrieved party in a contract or agreement that he may request for arbitration or he may
withdraw his/her tobacco from the BS.
Rule 3. Arbitration Procedure – If arbitration is requested, the following shall be followed:
a) The NTA arbitrator shall inform the BS operator that arbitration is requested and shall
direct the segregation of the tobacco in question;
b) The NTA arbitrator shall designate an arbiter, another NTA official and/or employee
present within the BS premises, provided that if one is not available, the NTA official
and/or employee, who mediated, himself, shall act as arbiter;
c) The Arbiter shall immediately inspect, examine, and determine the grades of the
tobacco subject of arbitration using as basis the official grades prescribed by the NTA.
In case of contract dispute, the NTA official shall determine the legality or propriety of
the provisions in question and, if necessary, refer the same to the RD. The RD may
request the NTA Legal Counsel for appropriate legal advice;
d) The Arbiter shall forthwith prepare his/her written decision indicating therein, among
others, the disputed grades and the grades given by him or the proper interpretation of
any questioned provision of any contract or agreement; and
e) The Arbiter’s decision shall be immediately become final and executory and binding to
both parties.

REGULATION XIV – OFFENSES AND PENALTIES

Notwithstanding the provisions of any law or regulation to the contrary, and for purposes of
carrying out the provisions of these rules and regulations, the following acts or omission are
hereby considered as serious, less serious, and light offenses and corresponding penalties
therefore are herein prescribed:
(1) Specific Offenses:
(a) Serious Offenses. – Any of the following acts or omissions shall constitute as
serious offense:
(a.1) buying and selling of tobacco at prices lower than the prescribed floor
prices;
(a.2) deducting shrinkage allowances or handling losses from the weight of the
tobacco sold;
(a.3) buying and selling of tobacco from farmers or other authorized sellers
without a license;
(a.4) knowingly and deliberately using tampered/inaccurate weighing scale; and
(a.5) buying and selling pole-vaulted tobacco.
The offender shall be imposed the penalty of fine of not less than one hundred
thousand pesos (PhP100,000.00) nor more than five hundred thousand pesos
(PhP500,000.00).
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(b) Less Serious Offenses. – Any of the following acts of omission shall constitute a
less serious offense:
(b.1) buying of tobacco from farmers and other authorized sellers outside BS
except when prior authority is given by the NTA/BS/WTD;
(b.2) failure or refusal to issue prescribed invoice or receipt covering tobacco
purchases;
(b.3) buying unclassified tobacco or tobacco in sticks, except for cigar-filler
tobacco grown in Region II for fermentation purposes;
(b.4) buying and selling of tobacco by using false, fictitious, or another person's
license, permit or identification card;
(b.5) selling or buying tobacco with an expired, suspended or cancelled license,
permit or accreditation; and
(b.6) hindering or obstructing any NTA official or employee in the course of
his/her duties, including refusal to furnish information or copies of
documents relating to any tobacco or to permit the inspection of a tobacco.
The offender shall be imposed the penalty of fine of not less than fifty thousand
pesos (PhP50,000.00) nor more than one hundred thousand pesos
(PhP100,000.00).
(c) Light Offenses. – Any other violation of the provisions of these rules and
regulations to be promulgated by the NTA for which no specific penalty is
prescribed and which is not punished by any other existing law shall be considered
a light offense, with the corresponding penalties, as follows:
(c.1) The offender shall be imposed the penalty of fine of not more than five
thousand pesos (PhP5,000.00) nor less than two thousand pesos
(PhP2,000.00).
(c.2) Violation committed by farmer-seller will be fined PhP50,000.00 and
blacklisting.
(c.3) Additional Administrative Penalties for Other Light Offenses. – In addition
to the penalties herein above-stated, the violator may be imposed with
following penalties, to wit:
(c.3.1) The license of any buyer found guilty of serious, less serious or
light offense, shall also be suspended/cancelled/revoked and
shall not be renewed during the pendency of any investigation or
prosecution for the commission of any such offenses.
(c.3.2) Any tobacco found to be violative of any provisions of these
rules and regulations shall be confiscated and/or detained and
shall be released only upon compliance with the provisions
hereof within five (5) days from notice. Any confiscated/detained
tobacco which are unclaimed within fifteen (15) days from last
day of compliance period shall be deemed abandoned and shall
be disposed of at the discretion of the NTA.
However, where a person has been found to violate these rules
in respect of any such tobacco, the said NTA may declare such
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tobacco to be forfeited in favor of the Republic of the Philippines,

where upon it may be destroyed or otherwise disposed of as the
NTA shall determine.
(c.3.3) In case the deliveries of BS to WTD/RP/CM exceeds its total
acceptances and deliveries to WTD/RP/CM outside its purchase
commitment, a fine equivalent to 25% of the gross value of the
excess tobacco delivered/sold shall be imposed, plus the
corresponding R&R fees and penalty for late payments as
hereinafter provided.
(c.3.5) Acts or omissions for which no specific penalties are provided
for under this TRR but are punishable by any other existing law
shall be punished under such law.
If any act or omission constitutes an offense under these rules and
regulations as well as a violation of another existing law or regulation, the
law that imposes a heavier penalty shall be applied.
If the violation is committed by a corporation, partnership, association,
cooperative or other juridical entity, the penalties provided for under this
TRR shall be imposed upon the directors, officers, graders, employees or
other officials or persons therein responsible for the offense; Provided,
That if the offender is an alien, he shall be deported immediately without
further proceedings.
The prosecution of any offense under this TRR shall be without prejudice
to the civil or administrative liabilities of the offender.
(c.3.6) In case the R&R or CEF fees are not paid within the
reglementary period prescribed herein, a penalty of three
percent (3%) per month, compounded monthly, shall be
imposed, paid and collected in the manner prescribed herein.
The penalty of three percent (3%) per month shall be computed
from the day immediately following the day the principal R&R
fees become due.
(c.3.7) Any violation of the provision/s of the Marketing Agreement or
any of the herein provisions of this Regulation, by the
NTA/BS/WTD/PB-financed tobacco farmer-producer and/or by
the WTD/PB/BS operator, shall be considered as unfair tobacco
trading practice, subject to the following administrative sanctions
and/or fines, in addition to the civil liability that may arise there
from in favor of the injured party, to wit:
a. An NTA/BS/WTD-financed tobacco farmer-producer who
violates the provision/s of the MA and/or any of the
provisions of this Regulation, shall be blacklisted by the
NTA and shall be disqualified as a beneficiary of any future
production and facility assistance that the NTA may grant
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and shall pay an additional fine of three percent (3%) per

month, of the unpaid loans; and
b. Any WTD/PB/BS operator who violates the same shall be
blacklisted from participating in any project/s of similar
nature and/or immediate revocation of its license to
Buy/Operate and shall pay additional fine of
PhP50,000.00.
(c.3.8) Violations of the prohibitions enumerated in Rule 16, Regulation
V and Rule 1, Regulation XI shall be subject to the imposition of
penalties provided in c.3.1 of the foregoing regulation.
(c.3.9) Tobacco acceptances in excess of the estimated production of
the BS identified FCs shall be subject to a penalty of PhP5.00
per kilogram of excess tobacco accepted, whether justified or
not. If not justified, the excess tobacco shall be further
confiscated at the disposal of the NTA, without prejudice to the
imposition of other applicable administrative penalty provided in
the foregoing regulation.

REGULATION XV – TRANSITORY AND MISCELLANEOUS PROVISIONS

AND EFFECTIVITY
Rule 1. NTA Composite Team – The NTA Administrator may create an NTA Composite
Team to Review the foregoing rules and regulations and/or the systems and procedures as
may hereafter formulated. In coordination with the RD, the Composite Team shall have the
duty to study and recommend specific modification/action in these rules and regulations
subject to the approval of the NTA Administrator.
Rule 2. Creation of a Provincial Inspection Team (PIT) – In cases of verified violation with
any provision of the TRR, the NTA Administrator may create a Provincial Inspection Team
(PIT) composed of the Branch Manager, as Chairperson, the Provincial Director of the
Philippine National Police (PNP), as the Co-Chairperson, and the Chief Agriculturist, as
member. The PIT can deputize Branch Office’s TPROs and Police Officers to monitor the
tobacco in question, its movement, can confiscate, inspect and/or detain any tobacco. Police
Officers shall be entitled to reasonable honorarium for actual duty/services rendered outside
their regular working hours.
Rule 3. Powers of the PIT and Procedures for Inspection
(a) When a verified violation occurs, the PIT, may (1) enter any premises, vessel, boat, car,
trucks, other conveyance used for the storage, processing, grading, packing, redrying,
selling or offering for sale, shipping, or transporting of the tobacco and inspect such; and
(2) stop for inspection, any conveyance that he/she believes to contain questionable
tobacco.
(b) For the purpose of inspecting a tobacco, the PIT may detain it at the risk of its owner
and after detaining it. The PIT shall forthwith notify the owner of the detained tobacco by
the fastest means of communication or such other means as the circumstances may
warrant.
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(c) No person shall hinder or obstruct, in any manner, an inspector or a grader or members
of the PIT, in the conduct of his/her duties.
Rule 4. Detention and Forfeiture of Tobacco by the PIT – Any tobacco, which in the
opinion of the PIT an offense against these rules and regulations has been committed, may
be placed under detention at the risk and expense of the owner, until such time as the owner
of the tobacco complies with these rules and regulations, and/or where a person is convicted
of an offense with respect to detained tobacco, the convicting court may declare such
tobacco to be forfeited to the Republic of the Philippines, whereupon it may be destroyed or
otherwise disposed of as the court directs.
However, the PIT shall undertake the foregoing inspection functions as a team and no
individual inspection and monitoring shall be conducted in the absence of any one
representative.
Rule 5. Regulation Department Inspectors – RD staff that are designated as Inspectors
are likewise empowered to perform the functions of the PIT for areas not covered by any BO.
Rule 6. Monitoring and Evaluation in the Implementation of the Trading Rules and
Regulations – The RD shall be responsible in the monitoring on the effectiveness and
relevance of the provisions of this TRR in coordination with the Composite Team, where they
shall conduct validation/evaluation of the implementation of the systems and procedures and
the provisions of these rules and regulations by the NTA Branch Offices.

Rule 7. Effectivity – These Amended Trading Rules and Regulations shall take effect upon
approval of the NTA Board of Directors.

BY THE AUTHORITY OF THE NTA BOARD OF DIRECTORS:

(SGD.) ROBERT L. SEARES, M.D.

Administrator/Vice-Chairman of the Governing Board

Approved by the NTA Board of Directors under Resolution No. 777-2018, dated 12 January
2018.
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