Authorities and Responsibilities
- The Commissioner of Customs and subordinates act as agents of the Commissioner of Internal Revenue for tax collection on imports.
- Both bureaus have instituted measures to ensure correct tax collection and efficient service delivery.
- A collaborative system and information exchange are established to monitor and control importers’ activities and the disposition of imported articles.
Phased Phase-Out of ATRIG Issuance
- Phase 1: Issue a Joint Memorandum Circular listing imported articles exempt from VAT for which ATRIG will no longer be required.
- Phase 2: Amend circular to expand VAT-exempt articles covered by ATRIG exemption upon resolving legal and procedural matters.
- Phase 3: Extend ATRIG exemption to articles subject to excise tax and related raw materials, coinciding with the availability of direct online access of BOC database to BIR.
Scope of Articles Exempted from ATRIG
- Includes live animals and unprocessed meat (except race horses, gamecocks for fighting, and pets).
- Live marine food and unprocessed marine products (excluding ornamental and aquarium fishes).
- Unprocessed vegetables, edible fruits, nuts, cereals, seeds, medicinal herbs, and plants.
- Articles must be accompanied by necessary health, import, quarantine, or phytosanitary certificates from relevant authorities.
Documentation Required for Release
- Health Certificates and Veterinary Quarantine Clearance for animals and meats.
- Import permit and clearance from Bureau of Fisheries for marine food products.
- Phytosanitary Certificates and import permits for plant products, fruits, seeds, and cereals.
- Specific import permits for certain items such as rice from National Food Authority.
Continuing ATRIG Requirement
- ATRIG must still be secured for:
- Feed and feed ingredients.
- Fertilizers.
- Articles subject to excise tax and their related manufacturing inputs.
- Other VAT-exempt goods not included in the exemption list until further guidelines are issued.
Legal and Operational Provisions
- A joint BIR-BOC Inter-Agency Committee will oversee implementation and resolve legal, technical, and operational issues.
- Rules and regulations will be promulgated to delineate responsibilities and procedures.
- Information exchange shall comply with privacy and non-divulgence rules under the Tax Code and Customs Administrative Orders.
- The agreement is effective upon signing and remains in force until mutually amended or rescinded.
Publicity and Compliance
- All customs and revenue officials are mandated to widely disseminate the provisions of the circular.
- Strict compliance with the phased phase-out and documentation requirements is enjoined to ensure proper taxation and release procedures.
This comprehensive mechanism promotes efficiency, transparency, and proper tax administration in import releases by clarifying VAT exemptions and eliminating redundant ATRIG issuance where applicable.