Excise tax rules on minerals and mineral products

Broad categorization includes metals and non-metals
Metals subdivided into ferrous (e.g., iron ore, manganese) and non-ferrous (e.g., copper, aluminium, gold, uranium)
Non-metals include mineral fuels (petroleum, coal, natural gas) and other common minerals and quarry resources (e.g., sand, gravel, limestone, precious stones)

"Minerals": Naturally occurring inorganic substances in any state
"Mineral products": Marketable substances produced by simple treatment without chemical changes
"Mineral lands": Lands with mineral deposits economically viable for extraction
"Mineral concentrates": Concentrated ores separated mechanically without chemical alteration
"Lessee": Includes leaseholders, operators, permittees
"Quarry resources": Common stones and mineral substances declared as such, excluding metals in profitable quantities
"Gross Output": Market value at removal without most deductions
"Indigenous petroleum": Locally extracted oil and gas excluding coal and bituminous deposits
"Integrated operations": Entities that both mine and manufacture products using minerals
Other terms include quarry cost, cost of goods sold, average selling price

All lessees, concessionaires, owners or operators of mines and mineral processors
Liability also extends to owners or possessors when minerals/products are removed without tax payment

Tax rates specified:
- Coal and coke: P10 per metric ton
- Non-metallic minerals/quarry resources: 2% of market value at removal
- Metallic minerals (copper/others): graduated rates from 1% to 2% over 6 years
- Gold and chromite: 2%
- Indigenous petroleum: 15% of fair international market price on first taxable sale
Value determined mainly at removal without deduction except specific allowances (freight, insurance, refining deductions for concentrates)
Mineral concentrates have special valuation and invoicing rules, including provisional invoice and exporter bond requirements
Minerals used in integrated operations value calculated by formula based on quarry cost, average selling price, and cost of goods sold

Export shipments require permits from Revenue District Officer (RDO)
Export documentation includes details of kind, quantity, destination, vessel, and invoice
Excise tax payment generally due upon removal or customs release (imported goods)
Return filing (BIR Form No. 2223) and payment to accredited banks or collection officers mandated
Quarterly filing options with bond posting allowed

Excise tax payable before customs release
Application for authority to release imported minerals and proof of tax payment required

Pre-engagement application with Regional Director stating business details
Submission of location maps, Bureau of Mines approval, trade registration, income tax return, corporate documents, and manufacturer’s bond
Bond amount approximates 20% of average annual taxes, capped between P10,000–P500,000

Mandatory maintenance of O.R.B. to record all mineral extraction and removal transactions
Installation and certification by Revenue Officer
Monthly submission of transcripts to RDO
New O.R.B. must be secured when full, with balances carried forward
Preservation of books for periods mandated by Tax Code and submission upon demand

Annual and semiannual sworn statements detailing quantities, market values, production costs, and expenses
Duplicate inventories to be submitted
Commissioner or authorized representatives conduct at least annual stocktaking with taxpayer representation
Discrepancies to be reconciled and reported

Revenue Officers may be assigned on-site and at customs for supervision and verification
Mining entities to provide office space, equipment, and lodging as necessary

All conflicting regulations, rulings, and orders are repealed or modified accordingly

Regulations become effective fifteen (15) days after publication in a newspaper of general circulation in the Philippines