Limitations on the Tax-Free Privileges of the New Armed Forces of the Philippines Commissary and the Exchange Services (NAPCES) now AFPCES and the Integrated National Police Service Stores System (INPSSS)

October 7, 1987 REVENUE MEMORANDUM CIRCULAR NO. 45-87 SUBJECT : Limitations on the Tax-Free Privileges of the New Armed Forces of the Philippines Commissary and the Exchange Services (NAPCES) now AFPCES and the Integrated National Police Service Stores System (INPSSS) TO : All Internal Revenue Officers and Others Concerned Executive Order Nos. 76 and 93 dated December 2 and 17, 1986, respectively, and Fiscal Incentives Review Board (FIRB) Resolution No. 5-87 dated April 13, 1987, as implemented by Revenue Regulations No. 3-87 dated February 9, 1987, allow and regulate the purchases and sales of tax-free articles by AFPCES and INPSSS, subject to certain conditions imposed therein. casia The articles listed in Annex "A" hereof, which are subject to sales tax, may be purchased and sold tax-free by the abovementioned entities, except vehicles, watercrafts, aircrafts, perfumes, jewelries and precious stones. The term "vehicles" does not include two-wheeler motorcycles with engine displacement of not exceeding two hundred (200) cubic centimeters. AFPCES and INPSSS may purchase and sell such two-wheeler units tax-free under the following conditions: 1. The unit shall be for the personal use of AFPCES and INPSSS members only; 2. The Land Transportation Commission, in the issuance of registration certificates, shall annotate thereon the fact that the unit shall not be for lease or resale to others; and 3. Only one (1) unit per authorized customer, every five (5) years, shall be allowed. The following articles subject to excise tax may be purchased and sold tax-free by AFPCES and INPSSS: a. Tobacco products which includes smoking and chewing tobacco, cigar and cigarettes; b. Alcohol beverages/distilled spirits which includes compounded liquors, wines and fermented liquor; c. Matches; and cd i d. Petroleum products which include diesel, gasoline and lube oil only. All internal revenue officers and others concerned are enjoined to give this Circular the widest publicity possible. BIENVENIDO A. TAN, JR. Commissioner 19 September 1987 ATTY. MELCHOR B. BANARES Assistant Revenue Service Chief (Specific Tax) Bureau of Internal Revenue Quezon City Dear Sir, Attached herewith is the classification scheme presently adopted by AFPCES for all consumer good items. Each category is known as a commodity group and within the group falls all generic items. As provided in the Revenue Regulations No. 3-87 dated February 9, 1987, Sec 16-C, Subject: Limitations, the commodity grouping exclude vehicles, watercraft, aircraft, perfumes, jewelries and precious stones. GEORGE P. AQUINO Col (GSC) PAF Commander & General Manager ANNEX A COMMODITY COMMODITY GROUP 1 GROUP 2 BEVERAGE DAIRY PRODUCTS CHOCOLAIT DRINKS CREAMERS/CREAMS COFFEE/TEA EGGS/MILK JUICE DRINKS ICE CREAM COMMODITY COMMODITY GROUP 3 GROUP 4 PRESERVES POULTRY/FROZEN PRODUCTS SWEET PRESERVES CHICKEN BOTTLED PRESERVES COLD CUTS CANNED PRESERVES HOTDOGS/LONGANIZA EX: MAYONNAISE/PICKLES JAMS/JELLIES SARDINES/SAUSAGES PEAS/GARBANZOS COMMODITY COMMODITY GROUP 5 GROUP 6 RICE/PASTA/SUGAR OIL PRODUCTS NOODLES/INSTANT NOODLES COOKING/EDIBLE OIL CEREALS/FLOUR VEGETABLE/CORN OIL BAKING MIXES COMMODITY COMMODITY GROUP 7 GROUP 8 CONDIMENTS SNACKS SALT/PEPPER/GARLIC COOKIES/BISCUITS VINEGAR/SOY SAUCE CANDIES/CHOCOLATES MUSTARD/CATSUP CURLS/CHIPS COMMODITY COMMODITY GROUP 9 GROUP 10 HOUSEHOLD SUNDRIES PAPER PRODUCTS PETCARE PRODUCTS TABLE NAPKINS DEODORIZER/MOPS FACIAL TISSUE INSECT SPRAY/REPELLANT BATHROOM TISSUE CHRISTMAS DECOR/TREES WAX PAPER/TIN FOILS COMMODITY COMMODITY GROUP 11 GROUP 12 HEALTH/BEAUTY PRODUCTS CLEANING PRODUCTS GENTLEMEN'S TOILETRIES BABY/HAIR OILS FLOOR WAX HAND/BODY LOTION LAUNDRY SOAP/DETERGENT LIQUID/BATH SOAP MURIATIC ACID SANITARY NAPKINS SHOE CLEANING PRODUCTS COSMETICS COMMODITY COMMODITY GROUP 13 GROUP 14 SCHOOL & OFFICE SUPPLIES/ TOBACCO/WINE & SPIRITED EQUIPMENT DRINKS NOTEBOOKS/WRITING PADS TOBACCO/CIGARETTE PENS/PAPERS/BOOKS LIQUOR/WINES FOLDERS/ENVELOPES MIXED DRINKS CALCULATORS/STAPLERS GREETING CARDS/TYPEWRITERS FILING CABINETS XEROXED MACHINES COMMODITY COMMODITY GROUP 15 GROUP 16 OVER THE COUNTER GOODS TOYS & GAMES RAZORS/BLADES TOYS CANDIES AT THE CASHIER'S COUNTER GAMES TOOTHBRUSHES EX: DOLLS, BOARD GAMES MEDICINE AT THE CASHIER'S COUNTER ROBOTS, TOY GUNS SCALE MODEL TOYS STUFF TOYS HOME GAMES COMMODITY COMMODITY GROUP 17(a) GROUP 17(b) (t.v. & video equipt.) (audio equipt.) TELEVISION SETS CASSETTE/CASSETTE DECKS/RADIOS VIDEO RECORDERS HI-FI STEREO SYSTEM/SPEAKERS VIDEO ACCESSORIES AMPLIFIERS & TUNERS/AUDIO RACKS VIDEO CAMERAS WORLD RECEIVERS/CAR RADIOS COMPACT DISC PLAYERS COMMODITY COMMODITY GROUP 17(c) GROUP 18 HOME APPLIANCE TIRE/BATTERIES/ACCESSORIES AND SPARE PARTS REFS/FREEZERS/HUMIDIFIERS TIRES/BATTERIES WASHING/KITCHEN MACHINES BRAKE FLUID/OIL OVENS/BREAD TOASTERS VEHICLES/SPARE PARTS TRANSFORMERS/CONVERTERS AUTO ACCESSORIES PORTABLE GENERATORS/COOLERS AIRCONS/PERSONAL DISHWASHERS VOLTAGE REGULATORS/STABILIZERS COMMODITY COMMODITY GROUP 19 GROUP 20 KITCHENWARES MEDICINE AT THE DRUGSTORE POTS/PANS VITAMINS/MINERALS WOK/PLATES DECONGESTANTS/DEXTROSE PLASTIC PAILS/BASINS MEDICINES & DRUGS TABLEWARE/HOLLOW WARE ABBOCATH/SURGICAL INSTRUMENTS COMMODITY COMMODITY GROUP 21 GROUP 22 POL PRODUCTS HARDWARE & CONSTRUCTION SUPPLIES GASOLINE/DIESEL TOOLS & PAINTS LUBRICANTS LIGHTBULBS/CEMENT MOTOR OILS HARDWARE COMMODITY COMMODITY GROUP 23 GROUP 24 CLOTHING/TEXTILE/LINEN FURNITURES MEN/WOMEN/CHILDREN'S APPAREL TABLES/CHAIRS SHOES/SLIPPERS/SANDALS BEDS/CABINETS TEXTILE/YARNS/THREADS, ETC. FOOD SERVER/TRAYS/TROLLEYS TOWELS/DRAPES/LINEN COMMODITY COMMODITY GROUP 25 GROUP 26 PHOTOS & FILMS CAMERAS & ACCESSORIES PHOTO DEVELOPING MATERIALS CAMERAS & LENSES FILMS/FILTERS FLASH BULBS/TRIPODS PHOTO LAB EQUIPMENT CAMERA FILTERS COMMODITY COMMODITY GROUP 27 GROUP 28 PORCELAIN & GLASSWARE SPORTS & LEISURE EQUIPT CHINA WARES SPORTING GOODS/WEAR GLASS WARES CAMPING EQUIPT/BICYCLES PADDLES/RACKETS BALLS/SHUTTLE COCKS GOLF CLUBS & EQUIPT AIR PISTOLS/RIFLES COMMODITY COMMODITY GROUP 29 GROUP 30 TRAVEL ARTICLES & LEATHER GOODS WATCHES/CLOCKS/BIJOUTERIES LUGGAGES/SUITCASES WATCHES ATTACHE CASES/WALLETS WALL CLOCKS HAND/SHOULDER BAGS COMMODITY COMMODITY GROUP 31 GROUP 32 HOUSE & GARDEN MEN'S/WOMEN'S UNDERGARMENTS GARDEN FURNITURES BRIEFS/UNDERSHORTS/LONG JOHNS GARDEN ARTICLES UNDERSHIRTS/CAMISOLES/SLIPS TOOLS/GRILLS BRASSIERES/PANTIES/GIRDLES BATHROOM EQUIPT SECURITY EQUIPT COMMODITY COMMODITY GROUP 33 GROUP 34 MUSIC EQUIPMENT BEER/SOFTDRINKS GUITARS/PIANOS/ORGANS SOFT DRINKS SYNTHESIZERS/SPEAKERS BEER SING - ALONG SYSTEM COMMODITY GROUP 35 COMPUTER/ACCESSORIES MICROPROCESSORS/PRINTERS DISK DRIVES/HARD DISKS COMPUTER MONITOR/COMPUTERS COMPUTER PERIPHERALS CONTINUOUS FORM PAPER COMPUTER PRINTER RIBBON