Tax Exemption Workflow Application System

September 2, 2011 DOF MEMORANDUM FOR : Commissioner Angelito Alvarez Bureau of Customs SUBJECT : Tax Exemption Workflow Application System This refers to the grant provided by the Government of Japan through the Non-Project Grant Assistance-Counter Value Fund (NPGA-CVF) to finance the Phase I implementation of this Department's capacity in Revenue Generation and Financial Resource Management Project. Phase I includes the development of a workflow application or the Tax Exemption System (TES) that provides electronic tracking of Tax exemption applications. This is aimed at streamlining the issuance of tax exemptions specifically by the Revenue Office which includes the Mabuhay Lane, this Department. The system automatically generates tax exemption instructions electronically through the Management Information System (MIS) and Questronix Corporation, our service provider. Please be informed that the TES workflow application was already installed in the Revenue Office and in December 2010, a parallel testing was conducted using actual transactions. After a couple of months, a full cycle test of the application was done and is now ready for full implementation. In this connection, the Revenue Office and Mabuhay Lane under the Revenue Operations and Legal Affairs Group, will do away with the usual indorsements and will henceforth transmit tax exemptions that are electronically generated effective September 15, 2011. Actions which are not considered as Tax Exemption or Tax Exempt transactions are not electronically generated, thus, the usual form manually prepared will be transmitted to that Bureau until such time that these are incorporated in the system. Attached are samples of electronically generated tax exemptions. All concerned shall be guided accordingly. (SGD.) CARLO A. CARAG Undersecretary Revenue Operations and Legal Affairs Group ATTACHMENT Republic of the Philippines DEPARTMENT OF FINANCE Roxas Boulevard Pablo Ocampo, Sr. Street, Manila 1004 THE MABUHAY LANE 1st Indorsement August 31, 2011 Respectfully referred to the Commissioner of Customs, Manila, Port of Discharge NAIA Date Applied August 31, 2011 Consignee The Area President of the Church of Jesus Consignee TIN 000 583 481 Legal Basis Pursuant to Annexes A [i] and A [ii] of the UNESCO Florence Agreement classified as "Printed Books" and "Newspapers and Periodicals" and likewise exempt from the payment of the Value Added Tax [VAT] pursuant to Section 109 [r] of the National Internal Revenue Code, as amended by RA 9337. Conditions 1) Moreover, if any manifestation or representation made in any of the underlying documents submitted for the obtention of the tax/duty exemption herein requested is false, fraudulent, misleading, faulty, inaccurate or not in accord with the findings of an audit that we may conduct post importation, the exemption embodied herein shall be deemed nullified and voided, without prejudice to any legal action that this Department may pursue against the persons responsible for such misrepresentation. Grant [x] VAT-EXEMPT [x] DUTY-EXEMPT Shipment Full Status Approved Quantity Description B/L AWB B/L Date Invoice No. Invoice Date Value 0- Books, pamphlets and AWB# 08/19/2011 Identification 08/18/2011 USD 4,447.82 other printed matter 4530104804 No. PHL132 Other Information The Films which form part of the above shipment, may be released duty-free pursuant to Annex C [i] of the UNESCO Florence Agreement, subject however, to the payment of the Value Added Tax pursuant to Section 105 of the National Internal Revenue Code, as amended. Upon actual examination, the books, pamphlets and other printed matter and microfilms should be purely educational [economic, technical, scientific, historical, philosophical, religious or cultural] in nature, as represented in the attached Affidavit of Mr. Vermilo A. Cruz. Items other than those classified by UNESCO as qualified for exemption pursuant to the provisions of the UNESCO Florence Agreement but are part and parcel of the above shipment valued at US$1,033.49, are not covered by this Authority, and may be released only upon payment of the customs duties and taxes due thereon, except those that are prohibited by law and that the shipping and commercial documents attached hereto should tally with the original presented to that Bureau. This is a computer generated print-out with TES No. TES20110831006 2nd Indorsement August 31, 2011 Respectfully referred to the Commissioner of Customs, Manila, Port of Discharge Manila Date Applied August 24, 2011 Consignee World Health Organization WHO Consignee TIN - Legal Basis Sections 9 (b)/ 11 (b)/ 11 (c)/ 22 (f)/ 22 (g) of the Host Agreement between the Philippine Government and the World Health Organization dated July 22, 1951, in line with the last paragraph of Section 105 of the Tariff and Customs Code and Section 109 (k) of the National Internal Revenue Code, both as amended. Conditions 1) Moreover, if any manifestation or representation made in any of the underlying documents submitted for the obtention of the tax/duty exemption herein requested is false, fraudulent, misleading, faulty, inaccurate or not in accord with the findings of an audit that we may conduct post importation, the exemption embodied herein shall be deemed nullified and voided, without prejudice to any legal action that this Department may pursue against the persons responsible for such misrepresentation. 2) The photocopies of the supporting documents herewith attached, should, however, tally with the original documents presented to that Bureau. DHAcET Grant [x] VAT-EXEMPT [x] DUTY-EXEMPT Shipment Full Status Approved Quantity Description B/L AWB B/L Date Invoice No. Invoice Date Value 0- Books, pamphlets and AWB# 08/19/2011 Identification 08/18/2011 USD 4,447.82 other printed matter 4530104804 No. PHL132 Other Information Letter-request No. WP/SHP/2011/096 dated August 12, 2011. DFA recommendation dated August 18, 2011. Legal Basis: Section 9 (b) By authority of the Secretary: THELMA A. MARIANO Director IV Revenue Office This is a computer generated print-out with TES No. TES20110824074 1st Indorsement August 31, 2011 Respectfully referred to the Commissioner of Customs, Manila, Port of Discharge NAIA Date Applied August 25, 2011 Consignee Cebu Pacific Consignee TIN 000-948-992 Legal Basis Section 105 (u) of the TCCP, as amended Section 109 (s) of the NIRC, as amended by R.A. 9337 and as implemented by BIR Rev. Reg. No. 16-2005 Conditions 1) That the original copies of the commercial and other pertinent document covering subject importation are in the name of the consignee. 2) That the aforesaid importation shall be actually, directly and exclusively used in the operations of its business as authorized under its franchise and shall not be transferred or disposed of in any manner whatsoever without prior approval of this Office 3) That this Office may conduct pre and post release inspection of said articles to be released duty-free in line with its monitoring activities 4) That the term/conditions under its franchise shall have been complied with, and 5) That pertinent import laws and regulations are complied with 6) Moreover, if any manifestation or representation made in any of the underlying documents submitted for the obtention of the tax/duty exemption herein requested is false, fraudulent, misleading, faulty, inaccurate or not in accord with the findings of an audit that we may conduct post importation, the exemption embodied herein shall be deemed nullified and voided, without prejudice to any legal action that this Department may pursue against the persons responsible for such misrepresentation. Grant [x] VAT-EXEMPT [x] DUTY-EXEMPT Shipment Full Status Approved Quantity Description B/L AWB B/L Date Invoice No. Invoice Date Value 1 Four (4) Sensor US102792160 03/07/2011 SIAECS11FS5 04/07/2011 USD 4,548.56 Package not Reliable J0213 Other Information - Complied with the requirements of Office Order No. 55-2010. - Submitted the Civil Aviation Authority of the Philippines (CAAP) Certificate dated 11 August 2011 - Submitted the affidavit of end use dated 18 August 2011 executed by Mr. Nelson E. Guevarra, Import Operation Supervisor, Import Department, CEBU AIR, INC. ADDITIONAL CONDITION: - The photo copies of the attached documents, however, should tally with the original documents presented to that Bureau. By authority of the Secretary: CARLO A. CARAG Undersecretary Revenue Operations & Legal Affairs This is a computer generated print-out with TES No. TES20110825083