Reorganization of the Specific Tax Office and Statements of Its Functions

December 19, 1984 December 19, 1984 REVENUE ADMINISTRATIVE ORDER NO. 02-84 SUBJECT : Reorganization of the Specific Tax Office and Statements of Its Functions . TO : All Internal Revenue Officers and Others Concerned I. Objectives : This Order is issued: A. To efficiently, effectively and economically direct and supervise all activities relating to the administration, enforcement and collection of specific and other taxes or fees; B. To achieve optimum utilization of personnel and other resources of the Specific Tax Office in the implementation of specific tax laws and regulations through proper delineation of responsibilities among its various operating units; and C. To improve operating systems, procedures and performance standards in specific tax enforcement. II. Policies : To achieve these objectives, the following changes and policies are hereby promulgated: A. The Specific Tax Office shall be composed of the following: 1. The Tobacco Tax Division, created by merging the Manufactured Tobacco Tax and Tobacco Inspection Divisions; 2. Alcohol Tax Division; 3. Oil and Miscellaneous Tax Division, formerly known as the Gasoline and Miscellaneous Tax Division; acd 4. Field Operations Division, a new division; and 5. The BIR Laboratory, formerly the Laboratory and Denaturing Section of the Alcohol Tax Division. B. The present sections of the divisions under the Specific Tax Office are abolished and new sections formed by products or articles subject to specific tax. C. The Tobacco Tax, Alcohol Tax and Oil and Miscellaneous Tax Divisions shall continue to exercise direct supervision over all establishments liable for the payment of specific taxes situated within the area bounded by Apalit, Pampanga in the North and Canlubang, Laguna in the South which includes the National Capital Region. The oil refineries in Bataan and Batangas shall likewise be supervised by the Oil and Miscellaneous Tax Division. D. The Field Operations Division shall be headed by a Chief Revenue Officer III and assisted by two Chief Revenue Officer II's one of whom shall have supervisory jurisdiction over the Luzon area and the other over the Visayas-Mindanao area. The assistant division chiefs shall coordinate the implementation and enforcement of established policies, programs and activities relating to the administration of laws and regulations on specific and other taxes or fees within their respective areas of supervision. E. Six Specific Tax Area Teams (Teams) under the supervision of the Field Operations Division are formed to replace the Specific Tax Branches in the Regional Offices. The following Teams with their corresponding area coverage as denoted by regional jurisdiction shall hold office in the Revenue Regional or District Office designated as station town/city: Specific Tax Station Town/City Area Coverage Area Team (By Region/Province) 1 Dagupan City Revenue Regions 1 & 2 2 San Fernando, Pampanga Revenue Region 3A, including Nueva Ecija and sub-province of Aurora 3 San Pablo City Revenue Regions 4C & 5 4 Bacolod City Revenue Regions 6A & 6B 5 Cebu City Revenue Regions 7 & 8 6 Cagayan de Oro City Revenue Regions 9, 10A, 10B, 11A & 11B Custody of all official documents/records of the defunct branches shall be transferred to the appropriate Team. Equipment requirement of each Team shall be taken from those allotted to the former Branches. F. The staffing requirement of the Teams shall come from the personnel complement of the abolished Specific Tax Branches. Each Team shall be headed by a Chief Revenue Officer II, assisted by an Assistant Chief Revenue Officer II. G. Qualified personnel in excess of the staffing requirement of this reorganization shall be assigned to offices where their services are needed. Excess equipment shall be transferred to the Regional Office concerned. III. Organization : Based on the foregoing reorganization and by authority of Executive Order No. 608, dated August 1, 1980, the Specific Tax Office shall be composed of the following : casia A. Tobacco Tax Division 1. Manufactured Tobacco Section 2. Leaf Tobacco and Other Materials Section 3. Research, Analysis and Administrative Section B. Alcohol Tax Division 1. Compounders, Rectifiers and Repackers Section 2. Brewers and Distillers Section 3. Research, Analysis and Administrative Section C. Oil and Miscellaneous Tax Division 1. Oil Products Section 2. Miscellaneous Articles Section 3. Tax Credit and Refund Section 4. Research, Analysis and Administrative Section D. Field Operations Division 1. Luzon Area a) Specific Tax Area Team 1, Dagupan City b) Specific Tax Area Team 2, San Fernando, Pampanga c) Specific Tax Area Team 3, San Pablo City 2. Visayas-Mindanao Area a) Specific Tax Area Team 4, Bacolod City b) Specific Tax Area Team 5, Cebu City c) Specific Tax Area Team 6, Cagayan de Oro City 3. Research, Analysis and Administrative Section E. BIR Laboratory The new organization chart of the specific tax office is shown in Annex A. IV. Functions : A. The Specific Tax Office 1. Perform staff, advisory and consultative functions relative to specific taxes; 2. Develop and recommend policies and work programs and set up standards, guidelines and procedures relative to specific taxes; 3. Direct and supervise the activities of the divisions under this Office and Teams assigned in field offices; acd 4. Review and evaluate the performance of the divisions under this Office and assigned Teams relating to specific taxes to determine adherence to policies, procedures and standards; 5. Determine where Teams may be assigned and initiate dispersal of personnel, including regional supervisors; 6. Perform counter-checking functions to evaluate the performance of teams and their members; 7. Review papers and supporting documents involving statutory of reglementary permits such as basic permits to engage in business, surety bonds required in connection with the manufacture or importation of articles subject to signature of the Commissioner or Deputy Commissioner as the case may be; 8. Whenever necessary, counter-checks the operations and activities of establishments under its jurisdiction to determine adherence to laws, regulations and policies related to specific tax and inspection fees. 9. Approve permits to release imported goods from customs' custody, disposal of tobacco waste, and such other permits authorized under existing revenue regulations; 10. Recommend necessary tax legislation and regulations on the basis of its operations or experiences to serve as inputs to tax planning and research efforts of the Planning and Policy Service; 11. Coordinate with other government agencies in the formulation of tobacco and other tax policies as may be directed by the Commissioner; and 12. Perform such other related functions as may be assigned. B. Tobacco Tax Division 1. Administer the tobacco tax and tobacco inspection programs of the Bureau; 2. Develop and recommend policies and work programs for an efficient and effective administration of specific taxes and inspection fees on cigars, cigarettes and other manufactured tobacco products and leaf tobacco; 3. Set up standards, techniques, methods and procedures for the effective control of all establishments manufacturing and/or dealing in the articles enumerated above; 4. Process application for permit to operate as manufacturer and/or dealer of articles mentioned above and the raw materials to be used in the manufacture thereof; 5. Process request for authority to release imported leaf tobacco and tobacco products, machineries and equipment and raw materials to be used in the manufacture thereof and supervise the release of the same from custom's custody; 6. Process and recommend approval of bonds filed by taxpayers relative to specific taxes administered by the division; 7. Supervise and control the operations of establishments under the jurisdiction of the division; 8. Conduct stock-taking, spot-checking, investigation and/or surveillance of tobacco establishments under its supervision for specific tax and inspection fees purposes; and 9. Perform such other related functions as may be assigned. B-1. Manufactured Tobacco Section a. Process application for permit to engage in business as manufacturer or importer of tobacco products; b. Process requests for registration of brands and labels for tobacco products; c. Process request for authority to release imported goods, machineries and equipment of manufacturers of tobacco products and supervise the release thereof from customs' custody; d. Verify requisitions for the purchase of revenue strip stamps including the bond covering imported tobacco products and prepare the corresponding Authority to Issue Payment Order (ATIPO); e. Supervise and control the operations of all establishments relative to the payment of specific tax and inspection fees on manufactured tobacco products; f. Supervise the installation/test run and/or dismantling of cigarette making machines and other mechanical contrivances; g. Supervise the disposal of tobacco and cigarette paper wastages and other manufactured tobacco products unfit for human consumption; h. Process application for the cancellation of manufacturer's and importer's bond; and i. Perform such other related functions as may be assigned. B-2. Leaf Tobacco and Other Materials Section a. Process application for a permit to engage in business as wholesale leaf tobacco dealer, manufacturer or importer of cigarette paper in bobbins, filter rods and tipping papers; b. Process application for inspection of and/or permit to transfer leaf tobacco and partially manufactured tobacco conduct the required inspection and prepare the Authority to Issue Payment Order (ATIPO) for the payment of inspection fees; c. Process request for authority to release imported goods and supervise the transfer of imported leaf tobacco and raw materials from customs custody; d. Undertake verification and lifting of official guias covering transfers of leaf tobacco; e. Supervise and control the operation of leaf tobacco dealers, filter and/or tipping paper plants and manufacturers of cigarette paper in bobbins; f. Supervise the delivery and/or transfer of all raw materials for use in the manufacture of tobacco products; g. Process requests for retirement from business of manufacturers of raw materials and/or leaf tobacco dealers; h. Perform such other related functions as may be assigned. B-3. Research, Analysis and Administration Section a. Collate, evaluate and analyze data and information on specific taxes and inspection fees on tobacco; b. Formulate plans and programs for further improvement of assessment and collection operations; c. Prepare statistical tables on trends of collections on specific taxes and inspection fees on tobacco; d. Prepare statements and required periodic reports on specific taxes and inspection fees on tobacco; e. Supervise the administrative support of the division including record keeping, equipment maintenance and supplies and distribution of forms; f. Perform such other related functions as may be assigned. C. Alcohol Tax Division 1. Administer the alcohol tax program of the Bureau; 2. Develop and recommend policies and work programs for taxes on alcohol and alcoholic products; 3. Set up standards, techniques, methods and procedures for the effective control of all establishments manufacturing and/or dealing in alcohol and alcoholic products; 4. Process application for permit to operate as manufacturer and/or dealer of alcohol and alcoholic products; undertake calibration of alcohol tanks and conduct inspection of all installations in the proposed premises of alcohol establishment; 5. Process request for authority to release imported goods of manufacturers, distillers, brewers and/or dealers of alcohol and other alcoholic products and supervise the release thereof from customs' custody; 6. Process and recommend approval of bonds filed by taxpayers relative to specific taxes administered by the division; 7. Supervise and control the operations of establishments under the jurisdiction of the division; 8. Conduct stock-taking, spot-checking, investigation and/or surveillance of alcohol establishments under the jurisdiction of the division for specific tax purposes; 9. Supervise the affixture of internal revenue labels on imported liquors and wines; and 10. Perform such other related functions as may be assigned. C-1. Compounders, Rectifiers and Repackers Section a. Process application for permit to engage in business as compounder, rectifier or repacker of alcohol and other alcoholic products; b. Process request for registration of brands and commercial labels for compounded liquors, wines, fortified wines and other similar alcoholic products; c. Supervise and control the operations of all compounders, rectifiers and repackers of alcoholic products; d. Process application to procure BIR labels for imported liquors, wines and other alcoholic products and/or supervise the affixture of same; e. Process requests for authority to release imported goods of compounders, rectifiers and repackers of alcohol and alcoholic products and supervise the release thereof from customs' custody; f. Prepare authority to purchase internal revenue auxiliary and regular labels for the use of compounders, rectifiers and repackers; and g. Perform such other related functions as may be assigned. C-2. Brewers and Distillers Section a. Process application for a permit to engage in business as brewer and distiller of alcohol (alcohol plants); b. Process application for registration of brands and commercial labels for fermented liquors; aisa dc c. Supervise and control the operations of all breweries and distilleries (alcohol plants); d. Process request for authority to release imported goods of brewers and distillers and supervise the release thereof from customs custody; e. Prepare authority to purchase internal revenue labels for affixture to containers of distilled spirits produced by alcohol plants; and f. Perform such other related functions as may be assigned. C-3. Research, Analysis and Administrative Section a. Collate, evaluate and analyze data and information on specific taxes on alcohol and alcoholic products; b. Formulate plans and programs for further improvement of assessment and collection operations; c. Prepare statistical tables on trends of collection on specific taxes on alcohol and alcoholic products for use in the preparation of collection goals/projections; d. Prepare statements and required periodic reports on specific taxes collected on alcohol and alcoholic products; e. Supervise all administrative support of the division including records keeping equipment maintenance and supplies and the distribution of forms; f. Perform such other related functions as may be assigned. D. Oil and Miscellaneous Tax Division 1. Administer the tax program of the Bureau of oil products and miscellaneous articles subject to specific tax; 2. Develop and recommend policies and work programs for an efficient and effective administration of specific taxes on refined and manufactured mineral oils and miscellaneous article subject to specific tax; 3. Set up standards, techniques, methods and procedures for the effective control of all establishments manufacturing and/or dealing in the article enumerated above; 4. Process application for permit to operate as manufacturer and/or dealer of articles mentioned above and the raw materials to be used in the manufacturer thereof; 5. Process request for authority to release imported oil products and miscellaneous articles and raw materials for the manufacturer thereof and supervise the release of the same from customs' custody; 6. Process and recommend approval of bonds filed by taxpayers relative to specific taxes administered by the division; 7. Supervise and control the operations of establishments under the jurisdiction of the division; 8. Conduct stock-taking, spot-checking, investigation and/or surveillance of establishments manufacturing and/or handling oil products and miscellaneous articles subject to specific tax; 9. Process and evaluate claims for tax credit or tax refund of specific taxes paid on petroleum products and miscellaneous articles; 10. Perform such other related functions as may be assigned. D-1. Oil Products Section a. Process application for permit to engage in business as refiner, manufacturer, importer, blender and/or recycler of oil products or operator of bonded terminals; conduct inspection of all installations; and undertake calibration of tanks for storage of oil and oil products. b. Process request for authority to release imported oil products and raw materials for the manufacture thereof and supervise the release of the same from customs' custody; c. Process and recommend approval of bonds filed relating to specific taxes on oil products; d. Supervise and control the operations of all establishments manufacturing or dealing in oil products; e. Supervise the transfer of oil products and the sale and/or transfer of raw materials; and f. Perform such other related functions as may be assigned. D-2. Miscellaneous Articles Section a. Process application for permit to engage in business as producer, manufacturer, importer, exporter and distributor of miscellaneous articles; b. Process request for authority to release imported miscellaneous articles and raw materials for the manufacturer thereof and supervise the release of the same from customs' custody; c. Supervise and control the operations of all establishments engaged in the production, manufacture, importation, exportation and distribution of miscellaneous articles; d. Supervise the transfer of miscellaneous articles subject to specific tax and the sale of raw materials; e. Supervise the installation/test run and/or dismantling of match making machines and other mechanical contrivances used in the manufacture of matches; and f. Perform such other related functions as may be assigned. D-3. Tax Credit and Refund Section a. Process claims for tax credit and/or tax refund of tax paid stocks involving sales of petroleum products and miscellaneous articles; b. Conduct the necessary investigation, verification and/or processing of claims; c. Prepare and maintain an updated listing of tax exempt entities and names of countries granting reciprocal exemption of Philippine International Carriers; d. Compile the Consolidated statements of request for tax refund and tax credit which are submitted within fifteen (15) days after the end of every quarter by oil companies; and e. Perform such other functions as may be assigned. D-4. Research, Analysis and Administrative Section a. Collate, evaluate and analyze data and information on specific taxes on oil and miscellaneous products; b. Formulate plans and programs for further improvement of assessment and collection operations; c. Prepare statistical tables and trends on collection on specific taxes, on oil and miscellaneous products for use in the preparation of collection goals/projections; d. Prepare statement and required periodic report on specific taxes collected on oil and miscellaneous products; e. Supervise all administrative support of the division including records keeping, equipment maintenance and supplies and the distribution of forms; and f. Perform such other related functions as may be assigned. E. Field Operations Division 1. Administer the specific tax and tobacco inspection programs of the Bureau in the specific tax areas; 2. Develop and recommend policies and work programs for an efficient and effective administration of specific taxes and tobacco inspection fees under jurisdiction of the division; 3. Set-up standards, techniques, methods and procedures for the effective control of all establishments manufacturing and/or handling articles subject to specific taxes and tobacco inspection fees under its jurisdictions. 4. Conduct verification of applications for permit to engage in the business as a manufacturer or dealer or articles subject to specific tax and tobacco inspection fee and application for renewal of permits to engage in the business as wholesale leaf tobacco dealers and their buying agents under the jurisdiction of the division; 5. Supervise the release of imported articles and raw materials; and the affixtures of strip stamps and labels thereon; 6. Undertake a thorough study to determine the operational needs in the specific tax areas and recommend the dispersal and/or transfer of personnel whenever the need arises so that they could contribute their full potential in the effective and efficient collection of specific and other taxes or fees; 7. Collate and compile statistical reports on establishments in the different specific tax areas with respect to raw materials used in the manufacture of articles subject to specific tax; 8. Prepare and submit all other data/information as may be needed by the other divisions concerned in connection with the operations of the different factories, leaf tobacco dealers, distilleries, compounders, rectifiers and/or repackers, and bonded terminals; 9. Conduct stock-taking, spot-checking investigation and/or surveillance of establishments subject to specific taxes and/or tobacco inspection fee purposes; 10. Act upon proper designation by the Revenue Service Chief (Specific Tax) as member of the denaturing committee and assist in the calibration of storage tanks; and 11. Perform such other related functions as may be assigned. Specific Tax Area Teams (of both Luzon Area and Visayas Mindanao Area) shall have the following functions; a. Implement in the area of operation established policies, programs and all activities relating to the administration of all laws and regulations on specific and other taxes and inspection fees; b. Evaluate, review and recommend approval of ocular inspection reports on application for basic or reglementary permit and requisitions for internal revenue labels, strip stamps, withdrawal certificates, transcript sheets and other forms needed; c. Conduct verification of application for permit to engage in the business as a manufacturer or dealer of articles subject to specific tax and tobacco inspection fee and application for renewal of permits to engage in the business as wholesale leaf tobacco dealers and their buying agents under the jurisdiction of the division; d. Supervise the release of imported articles and raw materials; and the affixture of strip stamps and labels thereon; e. Conduct stock-taking, spot-checking, investigation and/or surveillance of establishments subject to specific taxes and/or tobacco inspection fee purposes; f. Conduct tobacco inspection and collect corresponding inspection fees thereon, process application for permit to transfer tobacco and supervise the movement thereof and undertake verification and lifting of official guias; g. Act upon proper designation by the Revenue Service Chief (Specific Tax) as member of the denaturing Committee and assist in the calibration of storage tanks; h. Recommend appropriate actions on verification and investigation reports of fieldmen; i. Gather and collate statistical reports on establishments in the particular area with respect to raw materials such as molasses, alcohol, leaf tobacco, bobbins, strip stamps, internal revenue labels and stock of oil products, etc.; j. Prepare and submit all other data/information as may be required to the Specific Tax Office through the Field Operations Division in connection with the operation of the different factories, leaf tobacco dealers, distilleries and bonded terminals; and k. Perform such other related functions as may be assigned. E-1. Research, Analysis and Administrative Section a. Collate, evaluate and analyze data and information on specific and other taxes on tobacco, alcohol and oil products and other miscellaneous articles subject to specific tax in specific tax areas; b. Formulate plans and programs for further improvement of assessment and collection operations; c. Prepare statistical table on trends on collections on specific and other taxes on tobacco, alcohol, oil products and other miscellaneous articles subject to specific tax in the specific tax areas; d. Prepare statements and required periodic reports on specific and other taxes collected in the specific tax areas; e. Supervise the administrative support of the Division including records keeping, equipment maintenance and supplies and the distribution of forms; and f. Perform such other related functions as may be assigned. F. BIR Laboratory 1. Undertake the physical and chemical analyses for the purpose of identification, classification for tax assessment and/or determination of genuineness of the following: acd a) Articles subject to internal revenue taxes and b) BIR stamps, cigarette strip stamps, internal revenue labels receipts, and other papers or documents; 2. Develop and recommend standards for denaturants and other requirements in the manufacture and classification of products subject to specific tax; 3. Recommend specification requirements for materials to be used in the printing of accountable forms such as stamps, labels, receipts and others, and assist in revisions of laws and regulations that require the application of physics and chemistry; 4. Undertake researches on methods of analyses relative to enforcement of all tax laws and regulations; aisa dc 5. Conduct seminars to fieldmen on the proper use of equipment and techniques of materials inventory of stock-taking; and 6. Perform such other related functions as may be assigned. V. Repealing Clause : This Order supersedes, amends, and/or modifies all orders, memoranda, circulars and all revenue issuances or portions thereof inconsistent with the provisions of this Order. VI. Effectivity : This Order shall take effect immediately. (SGD.) RUBEN B. ANCHETA Acting Commissioner