Abolition of the One-Stop-Shop Tax Credit and Duty Drawback Center Pursuant to Administrative Order No. 04

February 28, 2023 DOF MEMORANDUM TO : Undersecretary Maria Edita Z. Tan Policy Development and Management Services Group Assistant Secretary Dakila Elteen M. Napao Officer-in-Charge, Revenue Generation and Local Finance Group Director Emee I. Macabales Executive Director, One-Stop-Shop Tax Credit and Duty Drawback Center Commissioner Romeo D. Lumagui, Jr. Bureau of Internal Revenue Commissioner Bienvenido Y. Rubio Bureau of Customs SUBJECT : Abolition of the One-Stop-Shop Tax Credit and Duty Drawback Center Pursuant to Administrative Order No. 04 Pursuant to Administrative Order (AO) No. 04, entitled "Directing the Abolition of the One-Stop-Shop Inter-Agency Tax Credit and Duty Drawback Center, and Transferring its Assets, Liabilities and Obligations to the Department of Finance" (Annex "A"). DETACa The Revenue Generation and Local Finance Group (RGFLG) and the One-Stop-Shop Tax Credit and Duty Drawback Center (OSS Center), the Bureau of Internal Revenue (BIR), Bureau of Customs (BOC), and the Policy Development and Management Services Group (PDMSG), are hereby instructed to take all proper and necessary steps to fully implement the abolition and winding down of operations of the OSS Center, namely: 1. Transfer of Functions 1.1 The RGFLG shall ensure the smooth transfer of the OSS Center's functions of processing and issuing tax credits and duty drawbacks to the BIR and BOC, respectively, subject to existing laws, rules and regulations on or before May 31, 2023; 1.2 The OSS Center shall complete the transfer of all relevant files, documents, and records for the processing of tax credits and duty drawbacks to the BIR and BOC, respectively, on or before April 30, 2023; 1.3 The BIR shall submit to the Department of Finance (DOF), for approval, the regulations and orders prescribing the procedures for the processing and issuance of tax credits, including the necessary control measures to safeguard against fraudulent claims on or before April 30, 2023; and 1.4 The BOC shall submit to the DOF, for approval, the regulations and orders prescribing the procedures for the processing and issuance of duty drawbacks, including the necessary control measures to safeguard against fraudulent claims on or before April 30, 2023; and 1.5 The RGFLG shall likewise be responsible for managing all pending concerns, such as the notices of disallowance issued by the Commission on Audit (COA), as well as coordination with the COA for any subsequent audit/s, as may be appropriate. HEITAD 2. Transfer of Assets and Liabilities 2.1 All cash held by the OSS Center, including the OSS trust fund, shall be directly remitted to the Bureau of Treasury (BTr) on or before April 30, 2023: 2.1.1 The OSS Center and the Central Financial Management Office (CFMO) shall provide all relevant information, records, and other documents related to the OSS trust fund and other cash held by the OSS Center and cause the remittance of any balance thereof to the BTr; and 2.1.2 The CFMO shall ensure compliance with COA Circular No. 92-375 as regards the reconciliation, consolidation, adjustment, and closing of books of accounts. 2.2 The OSS Center shall transfer all non-cash assets and liabilities to the DOF in accordance with pertinent auditing laws, rules and regulations on or before May 31, 2023: 2.2.1 The OSS Center shall prepare and submit an inventory of all assets to the General Services Division on or before April 30, 2023; 2.2.2 The OSS Center shall prepare and submit an inventory of any liabilities to the CFMO on or before April 30, 2023; and 2.2.3 The OSS Center shall complete the turn over of all assets and liabilities to the DOF on or before May 31, 2023. 3. Separation of Personnel 3.1 Pursuant to AO No. 04, the OSS Center personnel shall be separated from service and shall be allowed to receive separation benefits under applicable laws, rules and regulations, unless they are appointed to other positions in the government, in accordance with existing civil service laws. 3.1.1 The last day of employment of affected OSS personnel shall not be later than July 06, 2023; 3.1.2 OSS Center personnel who are qualified to retire under existing retirement laws shall be allowed to retire and receive retirement benefits to which they may be entitled under applicable laws, rules and regulations, provided that, the retirement shall be effective not later than July 06, 2023; aDSIHc 3.1.3 The Human Resource Management and Development Division (HRMDD) shall assist all affected OSS Center personnel to ensure that the affected employees exit in a structured and orderly manner and in compliance with applicable civil service rules and regulations; 3.1.4 The HRMDD shall likewise assist the affected OSS Center personnel in coordinating with the Government Service Insurance System (GSIS) with regard to their claims for benefits pursuant to applicable laws, rules and regulations; 3.1.5 The HRMDD shall facilitate the processing of the terminal benefits to OSS Center personnel following applicable laws, guidelines, rules and regulations; and 3.1.6 Terminal benefits shall be charged against the available funds of the DOF, and such other funding sources that the Department of Budget and Management may identify, subject to budgeting, accounting and auditing laws, rules and regulations. 3.2 All vacant positions in the OSS Center shall be abolished on July 06, 2023. 4. Monitoring and Reporting 4.1 The RGFLG be responsible for monitoring and ensuring compliance with the above and perform such acts as may be necessary to implement the provisions of AO No. 04. It shall report the status of compliance and accomplishment on the 15th of every month to this Office. For appropriate action. (SGD.) BENJAMIN E. DIOKNO Secretary of Finance