Providing Procedure and Rules in the Issuance and Accomplishment of Auxiliary Invoices Covering Forest Products

October 21, 1976 REVENUE MEMORANDUM CIRCULAR NO. 37-76 SUBJECT : Providing Procedure and Rules in the Issuance and Accomplishment of Auxiliary Invoices covering Forest Products TO : All Internal Revenue Officers and others concerned For the information and guidance of all concerned, there are quoted hereunder pertinent provisions of Revenue Regulations No. 3-72 dated April 17, 1972, otherwise known as the Internal Revenue Forest Products Regulations. xxx xxx xxx "Section 3. Numbering and marking of logs . For purposes of identification, pieces of timber shall, after felling and bucking, and before yarding, be marked permanently by the licensees with their private marks and shall also be serially numbered and listed on an auxiliary invoice. This requirement, however, shall not apply to sawn lumber, ties, manufactured timber and small poles having a length of not more than 1 meters and an average diameter of not more than 15 centimeters. A new series of numbers shall not be used or commenced oftener than once in a fiscal year. Said private marks and numbers shall be indicated in the proper columns of the auxiliary invoice (BIR Form No. 14.04 for timber and BIR Form No. 14.05 for firewood and other minor forest products). xxx xxx xxx Section 12. (a) Payment of charges on products cut under license . Upon felling and bucking the timber and before yarding the logs, the licensee or his authorized agent/agents who shall be provided with a special power attorney, shall list such forest products on blank forms of auxiliary invoice (BIR Form No. 14.04); likewise, holders of minor forest products licenses issued by the Bureau of Forestry, after cutting such products from the areas, shall list such products on blank forms of auxiliary invoices (BIR Form No. 14.05) which may be secured from the offices of the local Collection Agents. Said auxiliary invoices when completed shall be sworn to before the Collection Agent concerned by the licensee or his agent/agents aforementioned. These auxiliary invoices shall be accountable forms, printed in quintuplicate, serially numbered and bound in book form. Cost of printing shall be paid by the licensees. After they are duly sworn to before the Collection Agents concerned, the said Collection Agents shall compare the barrios, sitios and municipalities shown thereon with those described in the copy of the license furnished by the Bureau of Forestry. The forest charges may be collected from the licensee by issuing the duplicate copy of the Official Receipt to the licensees. The auxiliary invoices shall be distributed as follows: Original copy To be forwarded by the Collection Agent to the Commissioner of Internal Revenue Duplicate copy To be the permanent file copy of the licensee Triplicate copy To be retained by the Collection Agent as his copy Quadruplicate copy To be forwarded to the District Forester Quintuplicate copy To be retained by the licensee which shall be given to the purchaser, together with the sales invoice or guia of forest product issued, in case the forest products are sold" xxx xxx xxx In order to have a uniform procedure in requisitioning, handling and accomplishing these auxiliary invoices and to implement further the provisions of said revenue regulations with respect to the proper use of these accountable forms, the following procedure and rules are hereby promulgated. 1. Revenue Collection Agents in municipalities where there are concession areas covered by licenses issued by the Bureau of Forest Development shall, on the monthly basis or as the need therefor may arise, requisition and secure the aforesaid auxiliary invoices, from the Revenue District Officer having jurisdiction over them. All Revenue District Officers are required to requisition from the Chief of the Accountable Forms Division their supply of auxiliary invoices in a form printed for the purpose. The requisitions shall be entered in a permanent record, known as the Vault Ledger, in the said Division, indicating the name of the requisitioning Revenue District Officer, the consecutive serial numbers of the auxiliary invoices issued and the date of issuance. 2. For the purpose of control and supervision, the Revenue District Officer concerned shall also keep a permanent record containing the name and station town of the requisitioning Collection Agent, consecutive serial numbers of the auxiliary invoices issued and date of issuance. The Revenue Collection Agent shall submit within ten (10) days after the end of each month to the Revenue District Officer from where the auxiliary invoices were received an accounting of these invoices, including the names of the licensees to whom these were issued. The Revenue District Officer should not issue or replenish the auxiliary invoice stock of the Revenue Collection Agent if the latter fails to render an accounting of the used and unused invoices within the period herein prescribed. 3. In cases where the forestry concessionaire has more than one logging area situated in more than one municipality, the auxiliary invoices shall be secured from the Revenue Collection Agent of the respective municipalities who shall follow the procedure embodied in the next paragraph. Only auxiliary invoices secured and registered in one municipality shall be used by the licensee to cover forest products cut or gathered from the area situated within the same municipality. In no case shall any auxiliary invoice secured and registered in one municipality be used to cover forest products cut or gathered from another municipality. 4. All auxiliary invoices shall be accomplished in five copies, to be signed by the licensee or by the duly authorized agent, and sworn to before the Revenue Collection Agent concerned. The said Revenue Collection Agent shall follow the procedure embodied in the second paragraph of section 12(a), Revenue Regulations No. 3-72. 5. Any licensee who ships or removes logs, whether in the round or squared form, or manufactured, and other minor products, covered by auxiliary invoices not secured from and registered in the Office of the Revenue Collection Agent of the municipality where the concession area from which the aforesaid forest products were cut and gathered is situated, shall be considered transporting without auxiliary invoice and shall be subject to the corresponding surcharge and other administrative penalties provided for under existing laws, rules and regulations. 6. Should the forestry license of a concessionaire be duly cancelled by the authorities concerned, either at his/its request or otherwise, any and all unused auxiliary invoices shall be returned to the Office of the Collection Agent that issued the same for which, he shall be issued the corresponding typewritten receipt indicating the name, address and concession area of the said concessionaire, serial numbers of unused auxiliary invoices and the date when the same were returned. This circular shall become effective from date of approval. All internal revenue officers and others concerned are enjoined to enforce the provisions of this Circular and give it as wide a publicity as possible. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3