Everbest Shipping Agency

September 16, 2009 BIR RULING [DA-(EXT-005) 547-09] Everbest Shipping Agency 240 G. Sevilla Street 5th Avenue Grace Park Kalookan City Attention: Mr. Crisanto V. Zabala General Manager Gentlemen : This refers to your letter dated September 14, 2009 requesting clarification, of BIR Ruling No. DA(EXT-004) 493-2009 dated September 4, 2009, wherein it was ruled that DHCcST ". . . all alcohol or tobacco products intended for transshipment to a foreign port shall not be subject to the imposition and payment of excise and value-added taxes provided all of the following conditions are satisfied, among which is: xxx xxx xxx (d) A guarantee in the amount equivalent to not less than the amount of internal revenues taxes and duties otherwise due from the shipment, shall be filed with the Bureau of Customs (BOC), in a form and validity period acceptable to the Commissioner of Customs; TSaEcH xxx xxx xxx" that instead of the guarantee mentioned above, Everbest Shipping Agency be allowed to submit instead an Oath of Undertaking and still not be subject to the payment of excise and value-added taxes on the transshipment of alcohol and tobacco without violating the provisions of Revenue Regulations No. 3-2006. In reply, please be informed that the term "undertaking" connotes guarantee as it is issued to assume payment of an obligation, like internal revenue taxes and duties due on the shipment, and for the purpose of complying with the rules, guidelines and order both of the BIR and BOC. Its acceptance however, as to form and validity period rests on the determination of the Commissioner of Customs as provided for under said Section * Such being the case, it is therefore advised that your request for acceptance of the proposed undertaking be referred to the Bureau of Customs for appropriate action. Please be guided accordingly. Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service