RMC No. 43-2026: Circularizing Republic Act No. 12022, Entitled “An Act Defining the Crimes of Agricultural Economic Sabotage Prescribing Penalties Therefor, Vesting Jurisdiction Over Such Offenses with the Court of Tax Appeals Providing Mechanisms for its Implementation and Enforcement, Repealing for the Purpose Republic Act No. 10845 or the ‘Anti-Agricultural Smuggling Act of 2016’ “

Key points

1. Smuggled tobacco. Smuggled tobacco is tobacco that does not comply with BIR and other agency import requirements, namely brand and variant registration, pre-approval of packaging with graphic health warnings and fiscal markings, and advance payment of Excise Taxes with a genuine tax stamp or marking. It also covers tobacco subject to misdeclaration, misclassification, or undervaluation that leaves the proper customs duties unpaid.
2. Price presumption. Selling tobacco products at a price thirty percent (30%) below the Daily Price Index (DPI) raises the presumption that smuggling was committed.
3. Price index and minimum price. AMAS and BAR of the Department of Agriculture establish and maintain the DPI. The BIR, in consultation with the National Tobacco Administration, sets a minimum price for tobacco products based on applicable taxes, reasonable production cost, and trade margins for the lowest priced brands registered with the BIR.
4. Records. All persons in a business involving agricultural and fishery products must keep business records, stored for five (5) years from the dates of transactions.
5. Storage facilities. Owners of warehouses, cold storage facilities, or other storage property must register them with the appropriate regulatory agencies, stating the owner, contractual arrangement, address, products stored, maximum capacity, and inventory. They prepare a monthly operations report, submitted electronically each quarter to the Council through the regulatory agency.
6. Prima facie violation. Failure to produce required records or an updated facility report upon demand by the Enforcement Group is prima facie evidence of violation. Handling of the records follows the Data Privacy Act of 2012 (Republic Act No. 10173).

Who is affected

• Importers and sellers of tobacco products
• Persons in businesses involving agricultural and fishery products
• Owners of warehouses and cold storage facilities for agricultural and fishery products

Deadlines and effectivity

• Records kept for five (5) years from the dates of transactions
• Facility reports submitted quarterly
• Issued: May 13, 2026