Scope of Regulations
- Amend provisions granting outright excise tax exemptions on removal of excisable articles for export, sale/delivery to international carriers, or tax-exempt entities/agencies.
- Prescribe mechanisms for claims for product replenishment.
- Promulgated under Sections 244 and 245 of the NIRC of 1997, as amended.
Imposition of Excise Tax on Removal
- Manufacturers must pay excise tax due on removal from production site intended for export, international carriers, or tax-exempt entities.
- If articles sold domestically, excise tax rate same as domestic sales.
- If no domestic equivalent, excise tax based on declared value.
- BIR-bonded storage facility permits revoked; excise tax due on such inventories.
- Separate regulations apply for bonded customs facilities and economic/freeport zones.
Discovery of Tax-Paid Articles in Domestic Market
- Finding such articles domestically does not automatically amend export permits.
- Penalties apply for violations.
Compliance with Printing Requirements
- Strict compliance with labeling and packaging print rules required.
- Non-compliance disqualifies entitlement to tax credit/refund or product replenishment.
Exemption Conditions for Certain Entities
- Embassies, legates (e.g., Papal Nuncio), international organizations may remove articles without excise tax upon:
- Securing prior written permit from LTAD II.
- Submitting liquidation report within 30 days including specific documentary requirements.
- Subsequent permits contingent on liquidation submission.
Claim for Product Replenishment
Conditions:
- Manufacturer may opt for product replenishment instead of tax credit/refund after excise tax prepayment.
- Articles for export or delivery to international carriers or tax-exempt agencies can be removed tax-free to replenish previously taxed exported articles, provided sufficient excise tax credit.
- Differences in tax due must be settled or excess balance carried forward.
- Changes in excise tax rates treated accordingly.
- Claims filed per shipment with excise tax paid on removal; advance deposit payments not accepted.
- Proper documentary submission within 90 days required; failure results in tax assessment.
Application Process:
- File application for Product Replenishment Certificate (PRC) with Chief, LTFOD.
- Required documents vary by transaction type (export, international carriers, freeport zones), including permits, invoices, delivery receipts, customs documents, proof of payment, and certifications.
Time and Processing:
- Application filed within 90 days from shipment.
- Denial or untimely filing does not bar filing tax credit/refund claims.
- PRC issued within 10 days from complete filing.
Utilization and Validity:
- PRC authorizes removal without excise payment, subject to no outstanding tax liabilities.
- Valid for 5 years; one-time revalidation allowed.
- PRC may be converted to Tax Credit Certificate (TCC) or refund.
- Sale, transfer, or assignment of PRC prohibited.
- Compliance with BIR withdrawal forms is mandatory.
Disallowance of Claims for Imported Articles
- Excise tax claims do not cover imported components in excisable articles.
- Separate claim process with BIR and Bureau of Customs for imported content.
- Imported articles excluded from product replenishment.
Transitory Provisions
- Manufacturers must submit notarized inventory of under-bond articles with proofs of excise tax payment within 5 days from effectivity.
- Heads of Excise Tax Areas forward lists within 24 hours.
- BIR validates and collects deficiencies.
- Excise tax payments for under-bond inventory must indicate subject to replenishment/refund.
Penalties
- Violations subject to penalties under Title X of NIRC.
Repealing Clause
- All inconsistent regulations, rulings, or orders revoked or amended.
Effectivity
- Regulations effective 15 days after publication in newspapers of general circulation.