Reiteration and Clarification on the Requirement of Issuance of Withdrawal Certificate for Every Removal of Petroleum or Petroleum Products

June 9, 2014 REVENUE MEMORANDUM CIRCULAR NO. 050-14 SUBJECT : Reiteration and Clarification on the Requirement of Issuance of Withdrawal Certificate for Every Removal of Petroleum or Petroleum Products TO : All Internal Revenue Officers and Others Concerned This Circular is hereby issued in order to reiterate and clarify the preparation and issuance of a Withdrawal Certificate (WC) for every removal of products from the refinery, depot, or any storage facility for purposes of monitoring the movement of petroleum products and consequently ensuring that correct excise taxes have been paid. As already enunciated in Revenue Regulations (RR) No. 13-77 , manufacturers of petroleum or petroleum products are required to prepare an official WC for every removal of products from the refinery, irrespective of destination, indicating therein the name and address of the consignee, the date of removal, quantity and description of every product removed. However, such requirement has been expanded to, likewise, cover importers of finished petroleum products. Accordingly, every transfer/shipment of petroleum or petroleum products whether from the refinery or storage facility shall be accompanied by a WC. The WC shall at all times accompany each and every removal of petroleum or petroleum products regardless of the mode of conveyance. It shall be attached to the bill of lading if the products are shipped through a conveyance not owned or operated by the consignor/manufacturer. For petroleum or petroleum products removed and transported through the use of tankers or marine vessel, one WC shall be prepared and issued indicating therein the manufacturer/importer, full name and address of consignee, place of final destination, carrier/truck number, date withdrawn, due date of payment, exact description of the product, volume and amount of excise tax paid, whether imported or locally manufactured. The taxpayer must indicate whether the product is bonded, tax exempt or tax paid on the space provided under "Remarks". If the product is imported, the OR No., amount and date of payment must be indicated. If payment is made through a Product Replenishment Debit Memo (PRDM) pursuant to the Product Replenishment Scheme under RR 3-2008 , the PRDM No. with the corresponding date and amount must be indicated. And if the petroleum product is being removed from a storage facility, the tank number shall be indicated in the WC. All WCs shall be supported by Sales Invoice, Delivery Invoice and/or internal transfer documents, if the removal is destined to the depot or storage facility owned or operated by the manufacturer/consignor. In case of transfer from one depot to another, a WC must be issued for each and every removal. AICDSa Any petroleum or petroleum product found to be unaccompanied by an official WC shall be considered illegally removed and subject to confiscation or forfeiture regardless whether the same is tax-paid or not. All WCs must be certified by the Revenue Officer on Premise (ROOP) as to the correctness of the entries in the said WC. All revenue officials concerned are requested to give this Circular as wide a publicity as possible. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue