Custody, Control, and Issuance of Internal Revenue Labels for Alcoholic Products

January 31, 1977 REVENUE MEMORANDUM CIRCULAR NO. 03-77 SUBJECT : Custody, Control, and Issuance of Internal Revenue Labels for Alcoholic Products TO : All Internal Revenue Officers, Employees and others concerned Effective February 3, 1977, the custody, control, and issuance of internal revenue labels (regular and auxiliary) for domestic and imported distilled spirits, compounded liquors, wines, and imitation wines and denatured alcohol are hereby placed under the responsibility of the Accountable Forms Division. In connection therewith, the following procedures and requirements on the requisition, sale and issuance of said labels are hereby promulgated for the guidance of all concerned. I. Kind and Classes of Labels Handled The following kinds and classes of internal revenue labels will be sold at cost to duly authorized label users. 1. Kinds : 1) Regular Labels For secondary containers (cartons, cases, boxes) and to some original containers (drums, kegs, demijohns) not packed in secondary containers. 2) Auxiliary Labels For original containers (bottles, flasks), packed in secondary containers. 2. Classes : The following are the classes of internal revenue labels based on the alcoholic product to which they are being affixed. Class For 1 Compound Taxpaid Liquors 2 Compound Tax-Free Liquors 3 Taxpaid Rectified Alcohol 4 Bonded Rectified Alcohol 5 Taxpaid Distilled Spirits 6 Taxpaid Repacked Distilled Spirits 7 Domestic Wines 8 Taxpaid Repacked Wines 9 Manufactured Denatured Alcohol 10 Repacked Denatured Alcohol 11 Denatured Alcohol For Motive Power 12 Bonded Rectified Alcohol For Export 13 Tax Free Wines 14 Taxpaid Imported Wines 15 Taxpaid Imported Spirits II. Procedures for Purchase of Labels 1. Requisition . Establishments desiring to purchase labels needed by them shall submit a requisition therefor signed by the owner, manager or duly authorized attorney-in-fact and addressed to the Commissioner of Internal Revenue containing, among others, the following: aisa dc (a) Quantity, kind, and class of labels to be purchased; (b) Administrative assessment number of the specific establishment where the labels will be used; (c) Balance in stock of each kind and class of the labels requisitioned certified to as correct by the revenue inspector assigned to the establishment; and (d) Taxpayer Account Number. 2. Where to File . The requisition shall be filed with: (a) The Chief, Alcohol Tax Division if the requisitioning establishment is under the direct supervision of the said Division; or (b) The respective Regional Director exercising direct supervision of the operations of the establishment, who shall forward the requisition to the Commissioner of Internal Revenue, Attention: Chief, Alcohol Tax Division. 3. Action by the ALCOHOL Tax Division . Upon receipt of the requisition, the Chief, Alcohol Tax Division shall cause the verification thereof to determine whether the kind and class of labels requisitioned are appropriate for the business of the requisitioning establishment and if found in order, to issue the corresponding Memorandum Authority to the Chief, Accountable Forms Division for the issuance of the labels requisitioned. The Memorandum Authority shall be released in sufficient copies to be distributed as specified in the succeeding paragraph. 4. Action by the Accountable Forms Division . Upon receipt of the Memorandum Authority and upon payment of the cost as hereinafter provided, the Chief, Accountable Forms Division shall cause the immediate release of the labels specified therein for delivery to the owner, manager, or authorized representative of the requisitioning establishment who shall be required to acknowledge receipt thereof in writing, or for shipment to the corresponding Regional Director stated in the Memorandum. After delivery or shipment, the information indicated at the lower portion of the Memorandum Authority shall be filled by the Chief, Accountable Forms Division, after which the copies shall be distributed as follows: (a) Original & Duplicate To be retained by the Accountable Forms Division. (b) Triplicate To be returned to the Alcohol Tax Division. (c) Quadruplicate To be furnished the requisitioning establishment. (d) Quintuplicate To be furnished the Revenue Regional Director concerned in appropriate cases. III. Manner of Payment of Cost of Labels 1. For Establishments in Revenue Region Nos. 3-B, 4-A, and 4-B, and the Municipalities of San Pedro, Laguna and Apalit, Pampanga, under the direct supervision of the Alcohol Tax Division . Upon receipt of the Memorandum Authority from the Alcohol Tax Division, the Accountable Forms Division shall determine the cost and prepare the Authority to Issue Revenue Tax Receipt (ATIRTR) directing the Receivable Accounts Division to issue Revenue Tax Receipt (RTR). The taxpayer or his duly authorized representative shall then pay the amount due to the bank concerned. After payment, the covering RTR shall be presented to the Accountable Forms Division which shall be the basis for the issuance and release of the labels requisitioned. The fifth copy of the RTR shall be attached to the requisition and shall form part of the documents that will be retained in the Accountable Forms Division for record purposes. 2. For Establishments located in other Regions under the Direct Supervision of Regional Directors . The Regional Director, upon receipt of the requisition., shall refer to the Specific Tax Branch for the computation of the cost of the labels and the issuance of the corresponding ATIRTR directing the Collection Agent in the City or Municipality where the Regional Office is located to issue the RTR. The taxpayer or his duly authorized representative shall then pay the amount due to the bank concerned. After payment, the RTR shall be xeroxed and two (2) copies thereof duly certified shall be attached to the requisition to be forwarded to the Commissioner of Internal Revenue. Upon receipt of the Memorandum Authority and payment as evidenced by the certified xerox copy of the RTR, the Accountable Forms Division shall immediately ship the labels requisitioned by V-Cargo, or the Regional Director may authorize any responsible officer, preferably revenue inspectors, in his region to accompany the labels, for security purposes. IV. Accounting and Crediting of the Income Derived from the Sales of Labels The proceeds from the sales of labels shall be accounted as service and administrative fees. V. Stamping of Assessment or Importer Numbers 1. Internal Revenue Labels not bearing the printed assessment or importer number of the requisitioning establishment, shall be delivered or shipped without such assessment or importer number stamped thereon by the Accountable Forms Division to avoid delay in the release thereof. The responsibility of stamping the required assessment or importer number on the labels is hereby placed with the requisitioning establishment which shall cause such assessment or importer number to be stamped on the space provided therefor on every label before using the same. 2. Internal Revenue Officers assigned in the supervision of operations of the requisitioning establishment or in the affixture of labels to imported alcoholic products should not allow the use of such labels unless properly stamped with the corresponding assessment or importer number as herein required. aisa dc The provision of this Circular shall be effective on February 3, 1977. All those concerned are enjoined to give this Circular as wide a publicity as possible. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3