Amended Guidelines on the Tax Exemption Indorsement (TEI) Requirement under FIRB Administrative Order (AO) No. 001-2023 for RBEs in the IT-BPM Sector that Registered with the BOI for Purposes of Adopting up to 100% Work-from-Home (WFH) Arrangements without Adversely Affecting the Enjoyment of Their Fiscal and Non-Fiscal Incentives, Pursuant to FIRB Resolution No. 026-2022 Dated 14 September 2022 and as Further Extended by FIRB Resolution No. 033-2022 Dated 23 December 2022

March 16, 2023 FIRB ADMINISTRATIVE ORDER NO. 003-2023 FOR : All Heads of Investment Promotion Agencies (IPA), All Registered Business Enterprises (RBEs) in the Information Technology-Business Process Management (IT-BPM) Sector Registered with the Board of Investments (BOI), Bureau of Customs (BOC), Bureau of Internal Revenue (BIR), and the Department of Finance-Revenue Office (DOF-RO) SUBJECT : Amended Guidelines on the Tax Exemption Indorsement (TEI) Requirement under FIRB Administrative Order (AO) No. 001-2023 for RBEs in the IT-BPM Sector that Registered with the BOI for Purposes of Adopting up to 100% Work-from-Home (WFH) Arrangements without Adversely Affecting the Enjoyment of Their Fiscal and Non-Fiscal Incentives, Pursuant to FIRB Resolution No. 026-2022 Dated 14 September 2022 and as Further Extended by FIRB Resolution No. 033-2022 Dated 23 December 2022 WHEREAS , on 16 January 2023, the FIRB Secretariat issued FIRB AO No. 01-2023 as the supplemental guidelines to facilitate the operationalization of the registration of RBEs in the IT-BPM sector with the BOI, for purposes of adopting up to 100% WFH arrangements. HTcADC WHEREAS , pursuant to Section B (3) of the FIRB AO No. 01-2023, existing capital equipment and other assets that are used in the registered project or activity of the covered RBEs, which were imported on or before 31 January 2023, shall be covered by a TEI issued by the DOF-RO. WHEREAS , pursuant to Section E of the FIRB AO No. 01-2023, as proof of entitlement to import VAT and/or customs duties exemption and to facilitate the free movement of capital equipment and other assets within and outside the economic zones and/or freeport zones, the covered RBEs shall secure a TEI from the DOF-RO. Further, new capital equipment and other assets that will be imported per project starting 1 February 2023 must be covered by a TEI duly issued by the DOF-RO. WHEREAS , pursuant to Section F of the FIRB AO No. 01-2023, in order to provide sufficient time for the covered RBEs to secure the related TEIs for their existing capital equipment and other assets, the covered RBEs shall be authorized to move the related capital equipment and other assets outside the economic zones and/or freeport zones from 1 January 2023 until 31 March 2023, through a provisional goods declaration, as supported by a notarized undertaking that the related TEI will be secured, in lieu of posting any type of bond and during the pendency of securing the TEI. NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED , that it is deemed necessary to amend FIRB AO No. 01-2023, in so far as the issuance of the TEI is concerned in order to support more efficient operations of the covered RBEs in the IT-BPM sector that have registered with the BOI, allowing them to adopt up to 100% WFH arrangements. CAIHTE RESOLVED, FURTHER , all IPAs, RBEs, and officials and employees of the BIR and BOC are enjoined to follow FIRB AO No. 001-2023, as amended by these guidelines. We provide below the amended guidelines regarding the TEI requirements: 1. The last paragraph of Section B (3) of FIRB AO No. 001-2023 is hereby amended to read as follows: " 3. Application for a Certificate of Authority to Import (CAI) xxx xxx xxx For existing capital equipment and other assets that are used in the registered project or activity of the covered RBE, which were imported on or before 31 January 2023 AND ARE INTENDED TO BE MOVED OUT OF OR ARE CURRENTLY OUTSIDE THE ECONOMIC ZONES AND/OR FREEPORT ZONES , these shall be covered by a Tax Exemption Indorsement (TEI) to be issued by the Department of Finance's Revenue Office (DOF-RO). Please refer to Annex A for a step-by-step guide in securing the TEI from the DOF-RO." 2. Section E of FIRB AO No. 001-2023 is hereby amended to read as follows: "E. Movement of capital equipment and other assets FROM the economic zones and/or freeport zones As proof of entitlement to import VAT and/or customs duties exemption and to facilitate the free movement of capital equipment and other assets FROM the economic zones and/or freeport zones, the covered RBEs shall secure, PRIOR TO THE ACTUAL MOVEMENT OF ASSETS , a TEI from the DOF-RO FOR ASSETS THAT ARE INTENDED TO BE MOVED OUT OF THE ECONOMIC ZONES AND/OR FREEPORT ZONES. FOR ASSETS THAT ARE CURRENTLY OUTSIDE THE ECONOMIC ZONES AND/OR FREEPORT ZONES, THE RBES SHALL SECURE A TEI FROM THE DOF-RO WITHIN ONE (1) YEAR FROM THE ISSUANCE OF THIS ADMINISTRATIVE ORDER . Please refer to Annex A for a step-by-step guide in securing the TEI from the DOF-RO. aScITE Existing goods will be covered by a blanket TEI per project, covering existing goods that were imported as of 31 January 2023. While for importations starting 1 February 2023, these shall be processed per project per shipment. Once the TEI has been secured for existing equipment and other assets, no bond requirement, in whatever form, shall be imposed for the transfer or movement of equipment and other assets, such as laptops, desktops, and other equipment, outside the economic zones or freeport zones. Provided, that the number of equipment of the covered RBE outside the economic zone and/or freeport zone shall not exceed the number of its employees under a WFH arrangement. Upon approval of the concerned IPA, additional laptops/other equipment may be allowed if reasonably needed to perform the registered project or activity. For new capital equipment and other assets that will be imported per project starting 1 February 2023, THE ASSETS THAT ARE INTENDED TO BE MOVED OUT OF OR ARE CURRENTLY OUTSIDE THE ECONOMIC ZONES AND/OR FREEPORT ZONES must be covered by a TEI, to be issued by the DOF-RO. The step-by-step guidance in securing the TEI for new importations is provided in Annex A. Provided , further, that the covered RBEs shall, within thirty (30) days from the issuance of BOI-COR, submit a report to the concerned IPA containing the following: a) List of all equipment and other assets permanently situated inside the economic or freeport zones, and those assets brought out of the economic or freeport zones, including the quantity of laptops, desktops, furniture and fixtures, and other assets, whether local or imported; b) Acquisition cost, book value, year of acquisition of the equipment and/or other assets; and c) Total number of employees and number of employees under WFH arrangement. THEREAFTER, THE COVERED RBES SHALL SUBMIT TO THE CONCERNED IPA WITHIN FIVE (5) DAYS AFTER THE END OF EACH MONTH A REPORT ON THE (A) ADDITIONAL GOODS OR OTHER EQUIPMENT OR ASSETS BROUGHT OUT OF THE ECONOMIC ZONES AND/OR FREEPORT ZONES; AND THE (B) TOTAL NUMBER OF EMPLOYEES AND TOTAL NUMBER OF EMPLOYEES UNDER WFH ARRANGEMENTS. " 3. Section F of FIRB AO No. 001-2023 is hereby amended to read as follows: DETACa "F. Transitory period for the movement of capital equipment and other assets FROM the economic zones and/or freeport zones In order to provide sufficient time for covered RBEs to secure the related TEI for their existing capital equipment and other assets THAT ARE INTENDED TO BE MOVED OUT OF OR ARE CURRENTLY OUTSIDE THE ECONOMIC ZONES AND/OR FREEPORT ZONES , a transition period is hereby provided. From 1 January 2023 until 31 March 2023, covered RBEs shall be authorized to move the related capital equipment and other assets outside the economic zones and/or freeport zones through a provisional goods declaration (PGD), as supported by a notarized undertaking that the related TEI will be secured, in lieu of posting any type of bond and during the pendency of the TEI . GIVEN THE NOVELTY OF THE TEI REQUIREMENT FOR THE COVERED RBES, THE BOND-FREE TRANSITION PERIOD MAY, FOR COMPELLING REASONS, BE FURTHER EXTENDED BY THE FIRB. However, from 1 February 2023 until 31 March 2023, only covered RBEs registered with the BOI, as evidenced by the related BOI-COR or the corresponding Official Receipt representing the payment of the applicable fee, will be authorized to move their existing capital equipment and other assets within and outside the economic zones and/or freeport zones through a provisional goods declaration, as supported by a notarized undertaking that the related TEI will be secured, in lieu of posting any type of bond and during the pendency of the TEI . Provided , that only the capital equipment and other assets related to the registered IT-BPM project or activity that has been registered with the BOI shall be allowed to avail of the transition period. During the transition period, the covered RBEs shall secure the related TEI covering their existing capital equipment and other assets that were imported as of 31 January 2023. In summary, we provide below the timelines and the supporting documents that will authorize the free movement of goods of the covered RBEs FROM the economic zones and/or freeport zones: Date of importation of capital equipment and other assets Applicability of the TEI Covered period Surety bond requirement Documentary proof of authority to move the goods while TEI is still pending Imported on or before 31 January 2023 ( i.e. , EXISTING ASSETS) A BLANKET TEI MUST BE SECURED FOR EXISTING ASSETS ON A PER PROJECT BASIS, AS FOLLOWS: a. ASSETS INTENDED TO BE MOVED OUT OF THE ECONOMIC ZONES AND/OR FREEPORT ZONES; AND b. ASSETS THAT WERE ALREADY MOVED OUT OF THE ECONOMIC ZONES AND/OR FREEPORT ZONES. DUE TO THE LACK OF DIRECT CONTROL MEASURES, THE BLANKET TEI COVERING ASSETS THAT ARE ALREADY OUTSIDE THE ECONOMIC ZONES AND/OR FREEPORT ZONES MUST BE SECURED WITHIN ONE (1) YEAR FROM THE ISSUANCE OF THIS ADMINISTRATIVE ORDER. THE BLANKET TEI SHALL COVER: 1. EXISTING ASSETS THAT ARE ALREADY OUTSIDE OF THE ECONOMIC ZONES AND/OR FREEPORT ZONES; AND 2. EXISTING ASSETS INTENDED TO BE MOVED OUT OF THE ECONOMIC ZONES AND/OR FREEPORT ZONES. BOND-FREE TRANSITION PERIOD FROM 1 January 2023 to 31 January 2023 No requirement (bond-free transition period) BOI-COR or BOI Official Receipt (only if available) and the provisional goods declaration, together with the notarized undertaking, in lieu of posting any type of bond. BOND-FREE TRANSITION PERIOD FROM 1 February 2023 to 31 March 2023* * UNLESS EXTENDED BY THE FIRB BOI-COR or BOI Official Receipt and the provisional goods declaration, together with the notarized undertaking, in lieu of posting any type of bond. AFTER THE END OF BOND-FREE PERIOD OR FROM 1 April 2023 onwards Surety bond is needed as the BOND-FREE transition period has already lapsed. BOI-COR or BOI Official Receipt and duly filed and approved surety bond. The subject goods can be released through a provisional goods declaration, subject to the BOC's existing rules and regulations. Imported as of 1 February 2023 ( i.e. , NEW ASSETS) TEI must be secured for all imported goods that availed of VAT exemption and/or customs duty exemption AND ARE INTENDED TO BE MOVED OUT OF OR ARE CURRENTLY OUTSIDE THE ECONOMIC ZONES AND/OR FREEPORT ZONES . 1 The TEI pertaining to new goods will be secured on a per shipment per project basis. THE TEI SHALL BE SECURED PRIOR TO THE RELEASE OF GOODS FROM THE ECONOMIC ZONES AND/OR FREEPORT ZONES. HOWEVER, DURING THE INITIAL IMPORTATION FROM THE PORT OF ENTRY GOING INTO THE ECONOMIC ZONE AND/OR FREEPORT ZONE, THE EXISTING CONTROL MEASURES AND MONITORING PROCEDURES OF THE CONCERNED IPA, IN COORDINATION WITH THE BOC, SHALL BE OBSERVED . 1 February 2023 onwards THE SUBJECT GOODS CAN BE RELEASED THROUGH A PROVISIONAL GOODS DECLARATION, SUBJECT TO THE BOC'S EXISTING RULES AND REGULATIONS. KINDLY NOTE THAT THE TEI SHALL NOT BE REQUIRED WHILE THE NEW IMPORTATIONS ASSETS REMAIN STATIONED OR SITUATED WITHIN THE ECONOMIC ZONE AND/OR FREEPORT ZONE. THE TEI SHALL ONLY BE SECURED WHEN THE RELATED IMPORTED ASSET WILL BE MOVED OUT OF THE ECONOMIC ZONE AND/OR FREEPORT ZONE. HOWEVER, FOR ASSETS THAT WILL NOT BE IMMEDIATELY MOVED OUT OF THE ECONOMIC ZONE AND/OR FREEPORT ZONE, THE RELATED TEI CAN ALREADY BE SECURED IN ADVANCE, SO THAT THE EVENTUAL MOVEMENT WILL BE SEAMLESS. In essence, all imported goods of the covered RBEs that were granted exemptions covering import VAT and/or customs duties THAT ARE INTENDED TO BE MOVED OUT OF THE ECONOMIC ZONES AND/OR FREEPORT ZONES OR ARE CURRENTLY OUTSIDE THE ECONOMIC ZONES AND/OR FREEPORT ZONES will all be covered by a duly processed TEI, statement of settlement of duties and taxes, and duly processed consumption entry. HEITAD HOWEVER, IN CASE THERE IS AN URGENT NEED TO MOVE ASSETS OUT OF THE ECONOMIC ZONES AND/OR FREEPORT ZONES DURING THE PENDENCY OF THE TEI APPLICATION, THE COVERED RBES MAY, AFTER THE LAPSE OF THE BOND-FREE TRANSITION PERIOD FOR EXISTING ASSETS OR STARTING 01 FEBRUARY 2023 FOR NEW ASSETS, LODGE WITH THE BOC A PGD AND SECURE A SPECIFIC BOND THEREON, FOR PURPOSES OF MOVING THE GOODS OR ASSETS OUT OF THE ECONOMIC ZONES AND/OR FREEPORT ZONES, SUBJECT TO THE PROVISIONS OF CUSTOMS ADMINISTRATIVE ORDER NO. 02-2021 AND OTHER RELATED ISSUANCES OF THE BOC. EFFECTIVELY, THE TEI SHALL NO LONGER BE REQUIRED FOR VAT-EXEMPT AND/OR DUTY EXEMPT IMPORTATIONS THAT ARE OR WILL BE PERMANENTLY STATIONED WITHIN, OR THAT WILL BE FULLY UTILIZED OR CONSUMED WITHIN THE ECONOMIC ZONES AND/OR FREEPORT ZONES. THE TEI SHALL ONLY BE SECURED FOR VAT-EXEMPT AND/OR DUTY EXEMPT IMPORTATIONS THAT WILL BE MOVED OUT OF OR ARE CURRENTLY OUTSIDE THE ECONOMIC ZONES AND/OR FREEPORT ZONES. FOR ALL IMPORTED ASSETS 2 THAT WILL ENTER THE ECONOMIC ZONES AND/OR FREEPORT ZONES COMING FROM THE PORT OF ENTRY, THE EXISTING CONTROL MEASURES, PROCESS FLOWS, AND MONITORING PROCEDURES OF THE CONCERNED IPA, THE BOC, AND OTHER CONCERNED REGULATORY AGENCIES SHALL BE UTILIZED. HOWEVER, THE RELATED IMPORT PERMITS, ADMISSION PERMITS, OR ANY OTHER EQUIVALENT DOCUMENTS ISSUED BY THE CONCERNED IPA MUST INDICATE AN ANNOTATION THAT THE TEI SHALL BE SECURED IN THE EVENT THAT THE IMPORTED ASSETS WILL BE MOVED OUT OF THE ECONOMIC ZONES AND/OR FREEPORT ZONES. THE REQUIRED ANNOTATION SHALL BE APPLIED PROSPECTIVELY. ALL EXISTING ASSETS AS OF 31 JANUARY 2023, COVERED BY A BLANKET TEI THAT HAS BEEN ISSUED PRIOR TO THE RELEASE OF THIS ADMINISTRATIVE ORDER, WILL BE ALLOWED TO BE MOVED OUT OF OR SHALL REMAIN OUTSIDE THE ECONOMIC ZONES AND/OR FREEPORT ZONES WITHOUT THE NEED FOR A NEW TEI. aDSIHc ALL IMPORTATIONS THAT ARE STILL WITHIN THE CUSTODY OF THE BOC UPON THE EFFECTIVITY OF THIS ADMINISTRATIVE ORDER MAY AVAIL OF THE PROCEDURES PRESCRIBED HEREIN. THE CONCERNED IPA AND THE BOC UNIT HAVING CONTROL OF THE FORMER'S ECONOMIC ZONES AND/OR FREEPORT ZONES ARE ENJOINED TO EXERCISE A HIGH DEGREE OF DILIGENCE IN CHECKING AND MONITORING THE NUMBER OF GOODS AND EQUIPMENT TAKEN OUT OF THE ECONOMIC ZONES AND/OR FREEPORT ZONES AND INTO THE CUSTOMS TERRITORY. GOODS AND EQUIPMENT TAKEN OUT OF THE ECONOMIC ZONES AND/OR FREEPORT ZONES THAT ARE NOT COVERED BY A TEI OR PGD SHALL BE IMPOSED THE NECESSARY TAXES, FEES, AND PENALTIES, AS APPLICABLE. THE CONCERNED IPA SHALL REGULARLY PROVIDE THE CORRESPONDING BOC UNIT HAVING CONTROL OF THE ECONOMIC ZONE AND/OR FREEPORT ZONE, COPY FURNISHING THE FIRB SECRETARIAT, A LIST CONTAINING THE RBE NAMES, A DESCRIPTION OF THE GOODS AND EQUIPMENT TAKEN OUT OF THE ECONOMIC ZONES AND/OR FREEPORT ZONES, AND THE DATE OF MOVEMENT THEREOF. THE SAID BOC UNIT SHALL COUNTER CHECK THE GOODS AND EQUIPMENT ACTUALLY TAKEN OUT OF THE SAID ZONES FROM THE AFOREMENTIONED LIST. IN CASE OF ANY INCONSISTENCIES, THE CORRESPONDING BOC UNIT SHALL NOTIFY BOTH THE CONCERNED IPA AND THE FIRB SECRETARIAT OF THE DISCREPANCIES AND SHALL PROVIDE THE FIRB, THROUGH THE FIRB SECRETARIAT, AN EXPLANATION OF THE SAID INCONSISTENCIES AND/OR DISCREPANCIES. For purposes of determining the bondable amount, the amount of customs duties and/or VAT shall be based on the net book value of imported assets that have availed of the corresponding exemption on customs duties and/or VAT. If the net book value is zero, the valuation methods under Section H will take precedence. ATICcS With regard to the movement of locally purchased capital equipment and other assets that were subjected to VAT zero-rating, the IPA-issued VAT zero-rating certificate should suffice as proof of its VAT incentive, in accordance with existing BIR rules and regulations. However, the sale, transfer, donation, and disposal of locally purchased assets shall be governed by Section H of this Administrative Order." 4. Section J of FIRB AO No. 001-2023 is hereby amended to read as follows: "J. Allowable ratio of WFH arrangements for covered RBEs from 1 January to 31 January 2023 Beginning 1 January 2023, only covered RBEs that have successfully registered with the BOI on or before 31 January 2023, as evidenced by the BOI-COR or the BOI Official Receipt representing the applicable fee, shall be allowed TO IMPLEMENT UP TO 100% WFH ARRANGEMENTS . IT-BPM RBES THAT DID NOT TRANSFER THEIR REGISTRATION TO BOI PURSUANT TO FIRB RESOLUTION NOS. 26-2022 AND 33-2022 SHALL NOT BE ALLOWED TO IMPLEMENT ANY WFH ARRANGEMENTS WITHOUT THEIR FISCAL AND NON-FISCAL INCENTIVES BEING ADVERSELY AFFECTED. " Repealing clause . All existing rules or guidelines or parts thereof which are inconsistent with the provisions of this AO are hereby amended accordingly. These amended guidelines were closely coordinated and concurred with the BOC, the DOF-RO, the BOI, and the concerned IPA's representatives. For strict compliance. (SGD.) JUVY C. DANOFRATA Assistant Secretary of Finance and Head of the Fiscal Incentives Review Board (FIRB) Secretariat ANNEX A Process Flow for Existing Goods (Covering Importations as of 31 January 2023) and for New Goods (To be Imported Starting 1 February 2023), as Amended Step Action In-charge Submitted to Documentary support Estimated duration of processing (in working days) Link per FIRB website Register with the BOI 1 The Information Technology and Business Process Management (IT-BPM) RBE shall file the "Request to Register with BOI Form" (see Attachment 1) For PEZA, this shall be sent to [emailprotected] Covered RBE Concerned IPA Request to Register with BOI Form Refer to Attachment 1 Not applicable (Day 0/zero) Attachment 1 2 The Concerned IPA shall review the submission and endorse to the Board of Investments (BOI)-Infrastructure and Services Industries Service the request using the prescribed template entitled: IPA List of Endorsed RBEs (see Attachments 2.1 and 2.2). The concerned IPA shall also provide the following documents: a. Scanned copy of the covered RBE's original Certificate of Registration (COR) with the Terms and Conditions or Agreement issued by the concerned IPA; and b. Scanned copy of the "Request to Register with BOI Form" duly accomplished by the covered RBE. The endorsement will be done through email, furnishing a copy to the covered RBE. Concerned IPA BOI-Infrastructure and Services Industries Service IPA List of Endorsed RBEs Refer to Attachments 2.1 and 2.2 Days 1 to 7 (seven working days) Attachment 2.1 Attachment 2.2 3 Once the covered RBE receives the email endorsement from the concerned IPA, the former shall pay a fee of P2,250.00. The BOI-Infrastructure and Services Industries Service will issue the COR upon payment. The Official Receipt representing the P2,250.00 filing fee shall be treated as proof of registration, pending the issuance of the BOI-COR. The date indicated in the Official Receipt shall also be the effective date of registration with the BOI. After this step, please proceed to Step 6 while waiting for the issuance of the BOI-COR. Covered RBE and BOI BOI-Infrastructure and Services Industries Service Refer to Attachment 3 for a sample of the BOI-COR Refer to Attachment 4 for the sample Official Receipt issued Day 8 (1 working day) Attachment 3 Attachment 4 4 Upon issuance of the BOI Certificate of Registration, the covered RBE shall furnish a copy of the same to the concerned IPA for annotation in the concerned IPA's Certificate of Registration. The BOI Certificate of Registration must be sent to the designated email address of the concerned IPA. For PEZA, this shall be sent to [emailprotected] while for the other concerned IPAs, please reach out to your concerned IPA focal. You may receive correspondences from the BOI, via [emailprotected], should they have additional queries or concerns regarding the issuance of their COR. Covered RBE and BOI Concerned IPA Not applicable Days 9 to 11 (three working days) Not applicable Bond-free transitory period (1 January 2023-31 March 2023 OR AS MAY BE EXTENDED BY THE FIRB) 5 In order to provide sufficient time for the covered RBEs to secure the related TEI for their existing capital equipment and other assets, a transition period is hereby provided. From 1 January 2023 until 31 March 2023, OR THE BOND-FREE PERIOD, AS MAY BE FURTHER EXTENDED BY THE FIRB , the covered RBEs shall be authorized to move the related capital equipment and other assets outside the economic zones and/or freeport zones through a provisional goods declaration, as supported by a notarized undertaking that the related TEI will be secured, in lieu of posting any type of bond and during the pendency of the TEI. However, from 1 February 2023 until THE END OF THE BOND-FREE TRANSITION PERIOD , only covered RBEs registered with the BOI, as evidenced by the related BOI-COR or the corresponding Official Receipt representing the payment of the applicable fee, will be authorized to move their existing capital equipment and other assets FROM the economic zones and/or freeport zones through a provisional goods declaration, as supported by a notarized undertaking that the related TEI will be secured, in lieu of posting any type of bond and during the pendency of the TEI. During the transition period, the covered RBEs shall secure the related TEI covering their existing capital equipment and other assets that were imported on or before 31 January 2023 AND ARE INTENDED TO BE MOVED OUT OF OR ARE CURRENTLY OUTSIDE THE ECONOMIC ZONES AND/OR FREEPORT ZONES . Covered RBE Not applicable Notarized undertaking Refer to Attachment 15 for a sample of the undertaking to be notarized Not applicable Attachment 15 Securing the TEI from the DOF-RO. 6 In preparation for securing the TEI through the DOF-RO, the covered RBE shall request a staging bill of lading (BL) or dummy BL from the BOC. The BOC shall require the following in order to issue the staging BL or dummy BL for all imported goods as of 31 January 2023 THAT ARE INTENDED TO BE MOVED OUT OF OR ARE CURRENTLY OUTSIDE THE ECONOMIC ZONES AND/OR FREEPORT ZONES : A. Transit Single Administrative Document (TSAD) number B. Project ID (please secure this from your concerned IPA) or the unique IPA registration number (should be separately identifiable per project per company) C. Enterprise name (company-level name) D. Registered Activity E. TIN F. IPA G. Item description H. Brand (optional/if available) I. Count/units/quantity J. A copy of the TSAD. If this is no longer available, the related admission permit or import permit can also be provided as an alternative. As the TEI is secured on a per-project basis, the staging BL or dummy BL shall also be secured per project. The output would be a system-generated BL or dummy BL. For the spreadsheet template to be used, please refer to Attachment 5. Locally purchased equipment and other assets shall not be listed in Attachment 5. If the locally purchased goods were subjected to VAT zero-rating, the IPA-issued VAT Zero-rating Certificate should suffice in accordance with existing BIR rules and regulations. Finally, these guidelines shall not cover all goods that have been imported and were imposed with the related import VAT and/or customs duties and shall not be required to secure the TEI. Covered RBE and the BOC (Office of the Deputy Collector for Operations) BOC SATELLITE OFFICES BOC (Office of the Deputy Collector for Operations) Inventory List to be submitted to BOC Refer to Attachment 5. Refer to Attachment 6 for the sample staging BL/dummy BL that will be issued. Days 8 to 10 (three working days upon submission of complete documents). Attachment 5 Attachment 6 7 As the TEI shall be secured on a per-project basis, the covered RBE shall send an inventory list per project TO THE CONCERNED IPA COVERING all imported capital equipment and other assets THAT ARE INTENDED TO BE MOVED OUT OF OR ARE CURRENTLY OUTSIDE THE ECONOMIC ZONES AND/OR FREEPORT ZONES . The inventory list must include the following: A. TSAD number B. Project ID (please secure this from your concerned IPA) or the unique IPA registration number (should be separately identifiable per project per Company) C. Enterprise name (company-level name) D. Registered Activity E. TIN F. IPA G. Item description H. Brand (optional/if available) I. Count/units/quantity J. A copy of the related Transit Single Administrative Document (TSAD). If this is no longer available, the related admission permit or import permit can also be provided as an alternative K. Item description L. Brand (optional/if available) M. Count/units/quantity Unlike the inventory list submitted to the BOC in Step 6, this list must be limited to the projects registered with the concerned IPA. Hence, a covered RBE with projects registered among multiple IPAs must also provide an inventory list for each IPA. The inventory list submitted to the BOC in Step 6 must ideally match the inventory list endorsed by the concerned IPA to the DOF-RO. In cases of discrepancies, the inventory list endorsed by the concerned IPA will take precedence. For the spreadsheet template to be used, please refer to Attachment 7. The spreadsheet should also state that the personnel accomplishing the same shall be an authorized representative of the Company. Covered RBE Concerned IPA Inventory List to be submitted to the concerned IPA Refer to Attachment 7 Days 8 to 10 (three working days upon submission of complete documents). Attachment 7 8 The concerned IPA receives the inventory list from the covered RBE, and the concerned IPA validates the inventory list using existing reports and monitoring systems. Once validated, the concerned IPA shall provide an endorsement of the inventory list per project to the BOI, furnishing a copy to the covered RBE upon send-out. The endorsement shall be documented through email using a designated email address nominated by the concerned IPA. For PEZA, separate emails shall be used by their respective Zone Offices for this purpose. Please reach out to your respective IPAs or Zone focal for the email addresses to be used by your concerned IPAs. The concerned IPA shall send the endorsement to the BOI through email, at [emailprotected]. Concerned IPA Covered RBE and BOI Not applicable Days 11 to 13 (three working days) Not applicable 9 Once the covered RBE receives the email endorsement from the concerned IPA, the former will proceed with filing the request for Tax Exemption through the DOF-RO. The request for Tax Exemption shall be filed WITH the DOF-RO. THE INITIAL REGISTRATION CAN BE DONE THROUGH THE Tax Exemption System hosted online . The registration procedures can be accessed through its published manual. Given the unique situation of the covered RBEs, a special list of requirements shall be submitted to the DOF-RO, viz. : A. The BOI-COR. If the BOI-COR is not yet available, the Official Receipt issued by the BOI, representing the payment for the registration, shall be accepted B. Endorsement of the concerned IPA (under Step 8) C. Completely filled-out DOF-RO Form No. 91 D. Staging BL or dummy BL issued by the BOC (under Step 6) E. Commercial Invoice or packing list (if available) F. Certificate of Authority to Import, or equivalent, and the Admission Entry issued by the concerned IPA. If the latter is not available, the TSAD or the admission permit/import permit, can be accepted as alternatives G. Notarized Affidavit of End-Use/Ownership H. Authorization Letter (if filing as an authorized representative) I. Other documents as may be determined by the DOF-RO. In cases where there are other documents not part of items A to H but are deemed necessary by the DOF-RO, the TSAD or the admission permit/import permit may be considered alternatives, subject to the assessment of the DOF-RO. For reference documents, please refer to the following attachment guide: Item C Attachment 8 Item D Attachment 6 Item G Attachment 9 Item H Attachment 10 Covered RBE DOF-RO For reference documents, please refer to the following attachment guide: Item C Attachment 8 Item D Attachment 6 Item G Attachment 9 Item H Attachment 10 Day 14 Attachment 8 Attachment 6 Attachment 9 Attachment 10 10 Upon the affirmative assessment of the DOF-RO of the import VAT and/or customs duty exemption of the subject capital equipment and other assets, the DOF-RO shall endorse the TEI to the Concerned BOC Office. A copy of the TEI shall also be provided to the covered RBE through email. As evidence of the exemption of the capital equipment and other assets, the covered RBE may provide its employees with a copy of the duly processed consumption entry and the SSDT, in case requested by the BOC, especially when these assets are being moved to and from the economic zones or freeport zone. The DOF-RO endorsement shall be received from [emailprotected], for the covered RBE's guidance. DOF-RO BOC Refer to Attachments 11 and 12 for a sample duly processed consumption entry and a sample SSDT, respectively. Days 15 to 17 (three working days, per Mabuhay Lane, upon complete submission of documents) Attachment 11 Attachment 12 Securing a bond covering existing imported goods as of 31 January 2023 11 If the covered RBE deems that it cannot secure a TEI for its existing goods during the BOND-FREE TRANSITION PERIOD , the covered RBE shall SECURE A BOND COVERING existing capital equipment and other assets as of 31 January 2023 THAT ARE INTENDED TO BE MOVED OUT OF OR ARE CURRENTLY OUTSIDE THE ECONOMIC ZONES AND/OR FREEPORT ZONES . However, if the covered RBE expects to secure the Tax Exemption Indorsement (TEI) from the DOF-RO on or before 31 March 2023, OR BEFORE THE END OF THE BOND-FREE TRANSITION PERIOD, AS MAY BE EXTENDED BY THE FIRB , this step can be dispensed with. This will allow the covered RBE to continue moving their existing capital equipment and other assets duly covered by the subject surety bond to and from the economic zone and/or freeport zone while securing their TEI. LOCALLY PURCHASED CAPITAL EQUIPMENT AND OTHER ASSETS SHALL NOT FORM PART OF THE BONDED ASSETS. IF THE LOCALLY PURCHASED GOODS WERE SUBJECTED TO VAT ZERO-RATING, THE IPA-ISSUED VAT ZERO-RATING CERTIFICATE SHOULD SUFFICE AS EVIDENCE OF THE VAT INCENTIVE, IN ACCORDANCE WITH EXISTING BIR RULES AND REGULATIONS. ALL GOODS THAT HAVE BEEN IMPORTED AND WERE IMPOSED WITH THE RELATED IMPORT VAT AND/OR CUSTOMS DUTIES SHALL NOT BE COVERED BY THESE GUIDELINES AND SHALL NOT BE REQUIRED TO SECURE THE TEI. Covered RBE Surety company CONCERNED BOC OFFICE Confirmation of the surety bond, as sent by the surety company. THE SUBJECT BOND SHALL ALSO BE ENDORSED TO THE BOC, FOR APPROVAL. THE BOC'S BOND APPROVAL SHALL BE WITHIN AN HOUR UPON SUBMISSION OF COMPLETE DOCUMENTS. To ensure enough time, we recommend the filing of the surety bond at least 10 working days before the end of the transitory period, or on or before 17 March 2023, AS MAY BE AFFECTED BY FURTHER EXTENSIONS MADE BY THE FIRB . ATTACHMENT 16 12 [THIS STEP IS DELETED] 13 [THIS STEP IS DELETED] Process flows for new goods (to be imported starting 1 February 2023) 1 FOR NEW CAPITAL EQUIPMENT AND OTHER ASSETS, THE TEI ISSUED BY THE DOF-RO SHALL ONLY BE SECURED FOR ASSETS THAT ARE INTENDED TO BE MOVED OUT OF OR ARE CURRENTLY OUTSIDE THE ECONOMIC ZONES AND/OR FREEPORT ZONES. Prior to the release of the goods FROM THE ECONOMIC ZONES AND/OR FREEPORT ZONES, THE COVERED RBE SHALL FILE A REQUEST FOR TAX EXEMPTION INDORSEMENT FROM THE DOF-RO . The registration procedures OF THE DOF-RO can be accessed through its published manual. The following list of requirements shall be submitted to the DOF-RO: A. The BOI-COR. If the BOI-COR is not yet available, the Official Receipt issued by the BOI, representing the payment for the registration, shall be accepted B. Completely filled-out DOF-RO Form No. 91 C. Signed and dated Import BL/Air Waybill D. Commercial Invoice (packing list, if applicable) E. Certificate of Authority to Import, or equivalent, and the Admission Entry issued by the concerned IPA. If the latter is not available, the TSAD or the import permit/admission permit can be accepted as alternatives F. Notarized Affidavit of End-Use/Ownership G. BOI Certificate of Non-Local Availability, AS APPLICABLE, BASED ON EXISTING ISSUANCES H. Authorization Letter (if filing as an authorized representative) I. Other documents that may be required to support compliance with conditions or requirements of the law ( e.g. , permit to import for regulated items) FOR VAT-EXEMPT AND/OR DUTY EXEMPT IMPORTATIONS THAT ARE OR WILL BE PERMANENTLY STATIONED WITHIN THE ECONOMIC ZONE AND/OR FREEPORT ZONE AND/OR THOSE THAT WILL BE FULLY UTILIZED OR CONSUMED WITHIN THE ECONOMIC ZONE AND/OR FREEPORT ZONE, THESE ASSETS SHALL NO LONGER REQUIRE THE TEI. HOWEVER, THE RELATED IMPORT PERMITS, ADMISSION PERMITS, OR ANY OTHER EQUIVALENT DOCUMENTS ISSUED BY THE CONCERNED IPA MUST INDICATE AN ANNOTATION THAT IF THE ASSETS WILL BE MOVED OUT OF THE ECONOMIC ZONES AND/OR FREEPORT ZONES, THE TEI SHALL BE SECURED. THIS REQUIRED ANNOTATION SHALL BE REQUIRED PROSPECTIVELY, UPON THE ISSUANCE OF THIS ADMINISTRATIVE ORDER. For reference documents, please refer to the following attachment guide: Item C Attachment 13 Item D Attachment 14 Item F Attachment 9 Item H Attachment 10 Covered RBE DOF-RO For reference documents, please refer to the following attachment guide: Item C Attachment 13 Item D Attachment 14 Item F Attachment 9 Item H Attachment 10 Day 0 Attachment 13 Attachment 14 Attachment 9 Attachment 10 2 Upon the affirmative assessment of the DOF-RO of the import VAT and/or customs duty exemption of the subject capital equipment and other assets, the DOF-RO shall endorse the TEI to the Concerned BOC Office. A copy of the TEI shall also be provided to the covered RBE through email. Once received by the Concerned BOC Office, the covered RBE shall then file a consumption entry with the BOC Office and shall undergo regular processing with the same. Upon the affirmative assessment of the Concerned BOC Office, the covered RBE shall receive a duly processed consumption entry and the SSDT. As evidence of the exemption of the subject capital equipment and other assets, the covered RBE may provide its employees with a copy of the duly processed consumption entry and the SSDT, in case requested by the BOC, especially when these assets are being moved to and from the economic zones and/or freeport zones. The DOF-RO endorsement shall be received from [emailprotected], for the covered RBE's guidance. Covered RBE, DOF-RO, and BOC BOC Refer to Attachments 11 and 12 for a sample duly processed consumption entry and a sample Statement of Settlement of Duties and Taxes (SSDT), respectively. Day 1 to Day 3 (three working days, per Mabuhay Lane, upon complete submission of documents) Attachment 11 Attachment 12 3 IN CASE THE TEI IS YET TO BE SECURED, BUT THE RELATED CAPITAL EQUIPMENT AND OTHER ASSETS ARE URGENTLY NEEDED TO BE MOVED OUTSIDE THE ECONOMIC ZONES AND/OR FREEPORT ZONES, RELEASE MAY BE ALLOWED THROUGH THE FILING OF A PGD, PROVIDED THAT AN APPLICATION FOR THE TEI HAS ALREADY BEEN FILED AT THE TIME OF LODGEMENT. KINDLY NOTE THAT ONE OF THE REQUIREMENTS IN SECURING THE PGD IS A SPECIFIC AND SUFFICIENT SECURITY OR BOND. FOR OTHER REQUIREMENTS AND PROCEDURES IN SECURING THE PGD, PLEASE REFER TO CUSTOMS ADMINISTRATIVE NO. 02-2021 AND OTHER RELATED ISSUANCES OF THE BOC. COVERED RBE BOC REFER TO ATTACHMENT 16 FOR A SAMPLE PGD ATTACHMENT 16 Footnotes 1. This will apply in cases where goods imported as of 1 February 2023 are inadvertently released without the TEI. 2. All imported assets pertain to importations that are permanently stationed or will be fully consumed within the economic zone and/or freeport zone and imported assets that will be moved out of the economic zone and/or freeport zone.