Title
Importation Procedures for Excise Tax Articles
Law
Bir Revenue Memorandum Order No. 55-99
Decision Date
Jul 6, 1999
BIR Revenue Memorandum Order No. 55-99 establishes uniform procedures and documentary requirements for the importation of excise tax articles, including raw materials and machinery, mandating taxpayer registration, surety bonds, and specific labeling for imported goods.
excise tax
importation
revenue memorandum
A

Objectives of the Order

  • The Order establishes a uniform framework for importation of excise-tax articles and their inputs.
  • The Order requires standardized documentary processing from permit application through customs release supervision.

Importer registration and surety bond

  • Before any importation, every covered taxpayer-importer must register as an importer of articles subject to excise tax in the Revenue District Office (RDO) that has jurisdiction over the taxpayer’s head office or principal place of business.
  • The taxpayer-importer must obtain a Permit/Certificate as an Importer of Articles Subject to Excise Tax as a condition for importation.
  • The taxpayer-importer must post a surety bond of PHP 100,000.00 as a condition for issuance of the Permit/Certificate.
  • If after six (6) months of operation the bond amount is less than the amount of excise tax paid during that period, the bond must be adjusted to twice the tax actually paid for the period.
  • For succeeding years, the surety bond amount must be based on the taxpayer’s actual total excise tax paid during the year immediately preceding the year of operation.

Permit to import: application filing

  • For every intended impression, the taxpayer-importer must file a duly notarized application for a permit to import.
  • If the taxpayer’s head office or principal place of business is located within Revenue Region Nos. 4, 5, 6, 7, 8, and 9, the application must be filed with the Excise Tax Service, Attention: The Chief, Regulatory Operations Monitoring Division (ROMD), Rm. 203, National Office Bldg., Diliman, Quezon City.
  • If the taxpayer’s head office or principal place of business is located within revenue regions other than Revenue Region Nos. 4, 5, 6, 7, 8, and 9, the application must be filed with the respective Revenue District Office in accordance with Revenue Administrative Order No. 10-95.
  • The application must state the following among others:
    • Name and address of suppliers/consignors
    • Volume of importation, classified as to:
      • (1) impression intended for sale to the general public
      • (2) importation intended for sale to tax and duty free outlets
      • (3) importation intended for use as raw materials in manufacture of articles subject to excise tax
      • (4) others (to be specified)
    • Name of brand(s)
    • Suggested retail price
    • Pro Forma Invoice
    • Letter of Credit

Special marking and label requirements

  • For importation of cigarettes and alcohol products, the importer must require the supplier/manufacturer to print in bold letters in every carton/case/box the required phrases depending on the intended disposition:
    • For impressions intended for sale to the public:
      • “For Export to the Philippines; Tax and Duty Paid”
    • For impressions intended for sale to duty free shops:
      • “For Export to the Philippines; Tax and Duty Free”
      • “Not For Resale Outside of Free Port Zone”
  • For importation of apparatus or mechanical contrivances specially used for the manufacture of articles subject to excise tax, the importer must, in the application, state:
    • the nature and capacity of the contrivance
    • the time when it is to be removed
    • the place for which it is destined
    • the name of the person by whom it is to be used
  • For importation of cigarette paper in bobbins or rolls, cigarette tipping paper, or cigarette filter tips, the importer must state the name and address of the prospective buyer.
  • For importation of distilled spirits and wines, the importer must request an Authority to Purchase Auxiliary and Regular Labels from the Asst. Commissioner, Excise Tax Service, Attention: The Chief, ROMD, or from the concerned RDO, and then purchase labels via the Accountable Forms Division at the BIR National Office.
  • The importer must require that auxiliary labels be permanently affixed across the top of the cap of each bottle, and that regular labels be permanently affixed on the opening of the carton/box/case for distilled spirits and wines.
  • For importation of cigars and cigarettes, the importer must follow the procedures for purchasing internal revenue strip stamps and require the consignor to permanently affix the stamps on each and every pack of cigars or cigarettes.

Sworn declaration on importation costs and intended use

  • The Permit to Import application must be accompanied by a sworn statement/declaration on importations.
  • The sworn statement/declaration must state among others:
    • the actual cost per unit/carton/box/bottle of the products
    • the expenses incident to the importation up to release from customs custody
    • the corresponding suggested net retail price per unit
    • the intended sales retail outlets
    • the finished products intended to be produced from the imported raw materials

Authority to Release Imported Goods (ATRIG)

  • After goods arrive in customs custody, the importer-taxpayer must file a duly notarized application for Authority to Release Imported Goods (ATRIG).
  • If the port of entry is within Revenue Region Nos. 4, 5, 6, 7, 8, and 9, the ATRIG application must be filed with the Asst. Commissioner, Excise Tax Service, Attention: The Chief, ROMD, Rm. 203, National Office Bldg., Diliman, Quezon City.
  • If the port of entry is within revenue regions other than Revenue Region Nos. 4, 5, 6, 7, 8, and 9, the ATRIG application must be filed with the respective RDO in accordance with RAO No. 10-95.
  • The ATRIG application must be accompanied by:
    • Approved permit to import
    • Commercial Invoice, Bill of Lading, Packing List, and other importation documents where applicable
    • Import Entry and Internal Revenue Declarations
  • When the taxability of the imported articles cannot be determined, the importer must submit a sample for laboratory analysis in the BIR Laboratory, Tax Fraud Division of the National Office.

Supervision of release and excise tax stamping

  • Upon issuance of the ATRIG, the Chief of ROMD or the concerned RDO must assign Revenue Officer(s) to supervise the release of imported goods from customs custody.
  • After supervision, the designated office must submit a report and then ensure proper processing by stamping the Permit to Import and the ATRIG as “EXCISE TAX EXEMPT” for articles not subject to excise tax.

Repealing clause and effectivity

  • The Order supersedes all other existing issuance or portions thereof that are inconsistent with the Order.
  • The Order takes immediate effect.
  • The Order was adopted on July 06, 1999 and issued by the Commissioner of Internal Revenue.

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