Guidelines for the Replacement of TCCs Issued by the One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center

November 5, 2001 DOF DEPARTMENT ORDER NO . 026-01 GUIDELINES FOR THE REPLACEMENT OF TAX CREDIT CERTIFICATES (TCCs) ISSUED BY THE ONE-STOP SHOP INTER-AGENCY TAX CREDIT AND DUTY DRAWBACK CENTER (CENTER) AND LOST WHILE IN THE CUSTODY OF A GOVERNMENT AGENCY In the interest of the service, the following guidelines shall be observed in the replacement of Tax Credit Certificates (TCCs) which are issued by the One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center (CENTER) and lost while in the custody of the CENTER, the Bureau of Internal Revenue (BIR) or the Bureau of Customs (BOC): SECTION 1. Statement of Policy . Where a Tax Credit Certificate (TCC) issued solely by the CENTER is lost while in the custody of this Department or any of its attached agencies, it is the policy of this Department to issue forthwith the TCC replacement, without any expense on the part of the TCC owner and with due regard to the difficulties that may be faced by the TCC owner as a result of the loss of the TCC. SECTION 2. Definition of TCCs Issued by the CENTER . For the purpose of these guidelines, the TCCs issued by the CENTER refer to those TCCs issued solely by the CENTER. TCCs issued jointly by the CENTER with the BIR or the BOC will be covered by the guidelines as provided in Section 7 hereof. SECTION 3. Requirements for Replacement of Lost TCC . The owner of the TCC, which is lost while in the custody of the CENTER, the BIR or the BOC shall file with the CENTER an application for replacement of the lost TCC. Such application shall be accompanied by the following: a. Affidavit by the TCC Owner . The owner of the TCC shall execute an affidavit attesting to the circumstances surrounding the loss of the TCC and the track record of utilizations of the said TCC; and b. Affidavit of Loss from the Agency Responsible for the TCC Loss . The owner of the TCC shall secure the affidavit of loss from the agency in whose custody the TCC is lost. Such affidavit shall indicate the following: i. The circumstances surrounding the loss of the TCC; ii. Particulars about the TCC, such as, the company to whom the TCC was issued, the TCC number, the original amount of the TCC and the unused outstanding balance of the TCC; iii. The basis for establishing the balance of the TCC. SECTION 4. TCC Replacement Within Forty-Eight (48) Hours . Where the fact of the loss of the TCC in the custody of the government has been established, the CENTER is hereby mandated to cancel the lost TCC and to issue, within forty-eight (48) hours from the filing of the application for replacement of the lost TCC, a replacement TCC in the amount equivalent to the unused balance of the lost TCC. EcDSTI SECTION 5. Dissemination and Publication of the Notice of Loss . In addition to the replacement of the lost TCC, the CENTER shall comply with the following: a. The CENTER shall immediately inform the BIR and the BOC of the TCC loss and the CENTER's subsequent cancellation of the lost TCC; and b. The CENTER shall cause the immediate publication once of a Notice of TCC Loss in a newspaper of general circulation, the expense for which publication shall be chargeable against the Trust Fund of the CENTER. The notice shall inform the public of the loss of said TCC and the cancellation thereof by the CENTER. SECTION 6. Roles of BOC and BIR . Upon receipt of the notice of TCC loss and the cancellation of lost TCC, the BIR and the BOC shall verify further their respective histories of utilizations of the said TCC. In case the TCC is established to have been used after the loss of the TCC, the BIR or the BOC, as the case may be, shall take appropriate measures to institute recovery efforts. SECTION 7. Issuance of Regulations or Order . The BIR and the BOC, consistent with the objectives of this order, are hereby directed to issue such regulations or order as may be necessary to establish a similar system for replacing lost tax credit certificates solely processed and issued by their respective offices and which are lost while in their respective custodies. The BIR and the BOC are also directed to work together with the CENTER to come up with similar guidelines for TCCs issued jointly by the said agencies with the CENTER. SECTION 8. Continuing Force and Effect of (CENTER) Office Order 94-01 . Nothing in this Order shall be construed to repeal or otherwise affect the validity of the guidelines for replacement of TCCs, which are lost due to reasons attributable to the TCC owner, provided under (CENTER) Office Order No. 94-01, entitled, "GUIDELINES FOR THE REPLACEMENT OF LOST TAX CREDIT CERTIFICATES," or any amendments thereto. Said office order or any amendments thereto are hereby recognized as continuing in force and effect. This Order shall take effect upon approval. (SGD.) JOSE ISIDRO N. CAMACHO Secretary