Question & AnswerQ&A (BIR REVENUE REGULATIONS NO. 3 - 2008)
The main purpose is to amend provisions on the grant of outright excise tax exemption on removal of excisable articles intended for export or sale/delivery to international carriers or tax-exempt entities/agencies, and to prescribe provisions for availing claims for product replenishment.
All manufacturers must pay the excise tax due on every removal of excisable articles intended for export or sale/delivery to international carriers or tax-exempt entities, subject to subsequent filing of a claim for excise tax credit/refund or product replenishment.
Excisable articles may be removed without payment of excise tax for sale/delivery to certain tax-exempt entities such as embassies, legates like the Office of the Papal Nuncio, or international organizations, provided that a prior written permit is secured and a liquidation report on previously purchased tax-exempt articles is submitted within 30 days.
Failure to comply means the articles will not be entitled to any tax credit/refund or product replenishment under the regulations.
Product replenishment is a remedy that allows manufacturers to remove excisable articles without paying the excise tax again, by using the excise tax previously paid on similar exported or tax-exempt sales, subject to conditions and filing procedures.
Documents required include export permit, proof of excise tax payment, purchase order, commercial invoice and delivery receipt, packing list, bill of lading, withdrawal certificate or official delivery invoice, inward remittance of export proceeds, certificate of loading from Bureau of Customs, container scanner's report, batch liquidation statements, and other necessary documents.
Violations are subject to penalties under Title X of the National Internal Revenue Code of 1997, as amended.
No, the sale, assignment, or transfer of any Product Replenishment Certificate to another person is prohibited.
The discovery does not automatically amend the previous permit to export and is subject to applicable penalties for diversion.
The PRC is valid for five years from the date of issuance and may be revalidated once by filing an application before its expiration.