Question & AnswerQ&A (CUSTOMS MEMORANDUM CIRCULAR NO. 310-2002, OCTOBER 21, 2002)
The purpose is to provide a mechanism for the gradual phase-out of the issuance of Authority to Release Imported Goods (ATRIG) by the Bureau of Internal Revenue (BIR) prior to the release of imported articles from the Bureau of Customs (BOC).
Imported articles that are clearly exempt from the imposition of value-added tax under Section 109 of the Tax Code of 1997 no longer require an ATRIG prior to release from BOC.
1) Articles subject to excise tax; 2) Raw materials, machineries and mechanical contrivances specially used in the manufacture of articles subject to excise tax; 3) Articles exempt from the value-added tax.
Examples include live animals and unprocessed meat carcasses (except race horses, game cocks, and pets), live marine food products (except ornamental fish), unprocessed vegetable products, unprocessed edible fruits and nuts, unprocessed cereals, and unprocessed seeds, fruits, medicinal herbs, and plants.
Depending on the product group, documents may include a Health Certificate from country of origin, Veterinary Quarantine Clearance from the Bureau of Animal Industry, Import permit from BAI, Phytosanitary Certificate, Import Permit and Clearance from concerned regulatory agencies (e.g., Bureau of Fisheries and Aquatic Resources, Bureau of Plant Industry), among others.
Phase 1 - Joint Memorandum Circular listing VAT-exempt imported articles exempt from ATRIG; Phase 2 - Issuance of amendatory circular expanding VAT-exempt articles exempt from ATRIG; Phase 3 - Issuance of amendatory circular exempting articles subject to excise tax and raw materials and machinery used in manufacture once BIR has direct online access to BOC databases.
The Commissioner of Customs and his subordinates are constituted as agents of the Commissioner of Internal Revenue with respect to the collection of national internal revenue taxes on imported goods.
The MOA mandates promulgation of rules delineating responsibilities, prompt resolution of issues, mutual information exchange subject to confidentiality rules, and the creation of an Inter-Agency Committee to oversee implementation.
Articles such as feed and feed ingredients, fertilizers, articles subject to excise tax and their manufacturing equipment, and other VAT-exempt importations not included in the listed exemptions still require ATRIG until further supplemental circulars are issued.
Section 270 of the Tax Code of 1997 and Customs Administrative Order No. 5-2001 govern the limitation on unlawful divulgence of information exchanged between BIR and BOC.