BIR Ruling [DA-203-01]

October 19, 2001 BIR RULING [DA-203-01] Director Alexander B. Arcilla Bureau of Import Services Department of Trade and Industry 3rd Floor OPPEN Building 349 Sen. Gil J. Puyat Avenue Makati City S i r : This refers to your letter dated August 2, 2001 requesting clarification if Revenue Memorandum Circular No. 14-95 dated May 3, 1995 has already been rescinded. Your question arose because of an incident which happened last July 27, 2001 when an applicant of the Bureau of Import Services (BIS) was allegedly refused issuance of an Authority to Release Imported Goods (ATRIG) by Mr. Ananias Goco, Jr., Section Chief, Service Delivery Section, BIR Manila, reasoning out that the BIR does not issue an ATRIG for imported used motor vehicles exempted from ad valorem tax, like pick-up. Hence, the instant request for clarification since one of the requirements prior to the issuance by your Office of a certificate of release of used motor vehicles from the Bureau of Customs is an ATRIG from the BIR. In reply, please be informed that Revenue Memorandum Order No. 14-95 which merely delegated the authority to issue ATRIG for motor vehicles imported under the No-Dollar Importation Program heretofore exercised by the BIR Regional Director of Manila under RMO No. 19-90, has not yet been rescinded and/or superseded by another memorandum circular. However, the real herein boils down to the propriety of the issuance of ATRIG when the imported used motor vehicle is exempt from ad valorem tax. In this regard, please be informed that Revenue Memorandum Order No. 55-99 prescribes a uniform procedure and set of documentary requirements in the importation of all articles subject to excise tax as well as the raw materials and apparatus or mechanical contrivances specially used for the manufacture thereof. Paragraph 8 of said RMO No. 55-99 expressly provides that "Upon issuance of the ATRIG, the Chief of ROMD or the RDO concerned shall assign Revenue Officer(s) to supervise the release of imported goods from custom's custody and shall submit a report thereafter. The Permit to Import and Authority to Release Imported Goods (ATRIG) for article not subject to excise tax shall be stamped "EXCISE TAX EXEMPT." Accordingly, the issuance of an ATRIG for imported used motor vehicles under the No-Dollar Importation program is required even if said motor vehicle is exempt from excise (ad valorem) tax. The concerned internal revenue officer will be instructed to follow strictly the requirements prescribed in said Revenue Memorandum Order No. 55-99 in the processing and issuance of ATRIG. Very truly yours, (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner Legal and Inspection Group