Procedure to be Followed in Cases Where Tax-Paid Cinematographic Film is Exported and Subsequently Returned to the Philippines

April 29, 1976 REVENUE MEMORANDUM CIRCULAR NO. 20-76 SUBJECT : Procedure to be Followed in Cases Where Tax-Paid Cinematographic Film is Exported and Subsequently Returned to the Philippines TO : All internal revenue Officers, Movie Producers and/or Exporters of Films and others Concerned It has been observed that this Office has difficulty in determining whether films exported abroad are actually tax-paid and therefore could be returned to the Philippines without the payment of the specific tax upon release from the Bureau of Customs. The mere presentation of official receipt purportedly evidencing payment of specific tax on the film returned to the Philippines does not absolutely guarantee that the receipt corresponds to the print of the film on which the specific tax had been paid. To forestall, therefore, the exportation of prints of films the specific tax on which had not been paid and which will be returned to the Philippines, the following requirements must be complied with: For exportation of prints of the films the specific tax on which had been paid and which were released from the place of production prior to the effectivity of Memorandum Circular No. 2-76 dated February 12, 1976, it is required that before actual exportation, the exporter should first file with the Bureau of Internal Revenue a request for a permit to export, stating the title, number of prints of the films, and the corresponding length and width in linear meters thereof. The request should be accompanied with a xerox copy of the official receipt of payment of the specific tax on the print of the film to be exported. After appropriate determination, Withdrawal Certificates shall be issued by this Office to be attached to the containers of the film before exportation which shall remain attached to the same containers upon its return to the Philippines. Those prints of films removed after February 12, 1976 and will be exported shall also be covered by the requirement of securing a permit from this Office. Failure to comply with this Circular shall subject the films to the payment of the specific tax before release from the Bureau of Customs and to the administrative penalty provided for under Section 352 of the Tax Code, as amended. This Circular shall take effect one month after approval. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3