Prescribing the Policies, Guidelines, and Procedures in the Implementation of the Memorandum of Agreement, Dated March 7, 1983 between the Philippine Airlines (PAL) and the Bureau of Internal Revenue (BIR)

March 29, 1983 REVENUE MEMORANDUM ORDER NO. 11-83 SUBJECT : Prescribing the Policies, Guidelines, and Procedures in the Implementation of the Memorandum of Agreement, Dated March 7, 1983 between the Philippine Airlines (PAL) and the Bureau of Internal Revenue (BIR) TO : The Service Chiefs, Personnel and Administrative Service, and Financial and Management Service; Regional Directors; Division Chiefs of the General Services Division, Accountable Forms Division, Property Division, Accounting Division, Budget Division, and All Others Concerned I. OBJECTIVE: This Order is issued to implement the above Memorandum of Agreement between the Philippine Air Lines (PAL) and the Bureau of Internal Revenue (BIR) with the primary objective of attaining a fast, reliable, efficient and yet inexpensive means of document transmittal from the Bureau Field Offices to the National Office and vice-versa. II. SCOPE: This Order also prescribes the policies, guidelines and procedures governing the implementation of the first module of the Revenue Input Preparation Systems." (RIPS) III. POLICY: To carry out the above objective, the following policies shall be observed by all concerned: 1. Effective March 7, 1983, PAL shall ensure the carriage of BIR shipments to and from the National and Field Offices and the BIR to pay PAL on the basis of the accumulated weekly shipments for both incoming and outgoing shipments. 2. Shipments payable to PAL shall be based only on authorized cargoes by any of the BIR officials previously designated in the Agreement. 3. Prescribed documents are BIR Form 1010 (Shipment Order) and BIR Form 30.07 (Acknowledgment Receipt) and should be accomplished by the authorized BIR designated units distributed as follows: a) BIR Form 1010 (Shipment Order) To be prepared in quadruplicate. Original To be presented to PAL for attachment to the charge invoice/bill. Duplicate file copy of PAL Triplicate Recipient of the shipment Quadruplicate copy for the signing official/sender unit. b) BIR Form 30.07 (Acknowledgment Receipt) to be prepared in triplicate Original to be acknowledged by the consignee and to be returned to the sender unit. Duplicate file copy of the consignee. Triplicate file copy of the sender unit. 4. The acceptance from and delivery to BIR offices for cargo matters shall always be covered by an airwaybill, a copy of which should be furnished the Chief of the General Services Division, Property Division, or Accountable Forms Division for outbound cargo from the National Office and the sender Region or District Office. 5. All transactions for outbound cargo emanating from the National Office shall be charged to the National Office account with PAL while shipments from Regional Offices are chargeable to the respective Regional Office Accounts, and collectible by PAL from said offices. The basis of payment will be the original copy of the PAL charge invoice and airwaybill supported by the duly signed Form 1010. 6. The Chiefs of Property, General Services and Accountable Division at the National Office and the Chief of the Administrative Branch in the Regional Offices or the designated authorized representative shall determine the urgency or degree of importance of shipments as follows: Express Cargo shipments lifted on a first-available space basis which enjoys priority over those accepted as general cargo. RUSH very urgent shipments, limited to only five (5) kilograms. It arrives at the destination within twenty four (24) hours. General Cargo shipment are lifted on a subject-to-availability of space basis. V-Cargo shipments under the classification of valuable cargo. Express Baggage accompanied baggage in excess of what is allowed to a passenger free of charge. 7. Cargo weighing for every shipment are to be conducted by BIR AND PAL authorized cargo agent (PAL ACA) where offices are available for PAL Freight Section in the Airport Cargo Office where there are no ACA office. Weighing should be conducted in the presence of an authorized BIR representative who will authenticate registered weight by affixing such weight figures in BIR form 1010. 8. All BIR offices concerned should indicate the customers code number assigned to them in all their credit requests and/or communications with PAL. IV. PROCEDURE: A. ACCOUNTABLE FORMS DIVISION this division is authorized to commit shipments consisting of Revenue Tax Receipts, Revenue Official Receipts, Confirmation Receipts, Documentary Stamps, Cigarette and Liquor Strip Stamps and other classified accountable forms. 1. Prepare for shipment accountable forms being requisitioned as indicated in General Form No. 45 (Requisition and Issue Voucher) cd 2. Determine if the shipment is to be accompanied or not. 3. Accomplish BIR Form 8.06 (Invoice Receipt), Form 1010, Form 30.07 and Form 001 if shipment is to be accompanied by a BIR representative. 4. Send thru the accompanying BIR personnel copies of Form 8.06 and Form 30.07 or thru the Mail, if shipment is unaccompanied. 5. For unaccompanied shipment, inform the consignee thru radio or telegram the nature of the shipment, Airway bill number and request for confirmation of receipt by radio or telegram. 6. Forward all acknowledged copy of Form 30.07 to the General Services Division. B. PROPERTY DIVISION this division is authorized to send thru PAL forms of TAX returns and Reports under its custody including computer processed tax returns and other documents to the Field Offices. 1. Sort, classify, pack and label all shipping matters according to destination and degree of urgency. 2. Accomplish BIR Form 1010 and Form 30.07 per destination and degree of urgency. 3. Send the original and duplicate copies of Form 30.07 to the consignee. 4. Monitor all shipments to assure the efficient and fast arrival thereof at their respective destinations. 5. Forward acknowledged Form 30.07 to the General Services Division. C. GENERAL SERVICES DIVISION 1. Handling of Outbound Cargo The General Services Division shall perform the following: a) Exercise discretionary powers to determine if the cargo merits conveyance thru the facilities of PAL. b) Sort, classify, pack and label all cargoes clearly according to destination and degree of shipment urgency. c) Prepare BIR Form 1010 and BIR Form 30.07 per destination and degree of shipping urgency. d) Forward the original and duplicate copies of Form 30.07 to the consignee. e) Monitor the arrival of all shipments at their respective points of destination and expedite the return of the acknowledged original copy of Form 30.07. f) Consolidate all airwaybill, original copy of BIR Form 1010 and Form 30.07 prior to preparation of voucher and check. 2. Handling of Incoming Cargo The following procedures shall be observed: a) Demand for the presentation of the copy of BIR Form 1010 and airwaybill. In case BIR Form 30.07 is not handcarried by the PAL ACA, locate for the form inside the shipment. b) Verify the completeness of the shipment paying particular attention to the quantity and condition of the packages and the contents thereof. Any damage or pilferage on the shipment shall be listed and reported to the sending regional office and the PAL ACA. c) Acknowledge the original Form 30.07 and transmit it to the sending unit. d) Sort, classify and deliver all documents received to the respective office destination in the National Office. D. Other Organizational Units in the National Office Documents bound for the Field Offices weighing at least five hundred grams and which would be more expensive to be mailed shall be coursed thru the General Services Division. The following procedures shall be followed by the other organizational units: casia 1. Sort and classify shipping matters in a single package according to destination. To illustrate Documents intended for Legal, Assessment, Specific Tax and Administrative Branches of the Regional Offices shall be placed in separate envelopes. All envelopes intended for a regional office shall be packed in one parcel addressed to the Chief, Administrative Branch. 2. Indicate in each package the degree of shipping urgency. 3. Prepare indorsement letter indicating the number of packages, destination and degree of shipping urgency. 4. Deliver the packages together with the indorsement letter to the General Services Division, Receiving Section. E. ACCOUNTING DIVISION the following procedures shall be followed in the processing of claims for payment to PAL: 1. Receive from the General Services Division the following documents: a) Vouchers b) Airwaybill c) Original Copy of BIR Form 1010. d) Original Copy of BIR Form 30.07 e) Charge Invoice 2. Verify if the airwaybill, BIR Forms 1010 and 30.07 refer to a common shipment. 3. Examine and verify the authenticity of the signatures appearing in BIR Forms 1010 and 30.07. 4. Determine the accuracy of the money claims of PAL by checking the weight/volume of the shipment and degree of shipping urgency against the applicable rates. 5. Official Receipt should be required for all payments. F. REGIONAL OFFICES The Administrative Branch of the Regional Office shall handle all incoming and outgoing shipments including the requisitioning of all forms from the National Office. 1. Handling of Outbound Cargo The Administrative Branch shall perform the following: a) Sort, classify, pack and label all cargoes clearly according to destination and degree of shipping urgency. b) Accomplish BIR Form 1010 and 30.07. c) Effect transfer to shipment to airport within 24 hours. 2. Handling of Incoming Cargo with regards to the Incoming Cargo the following procedures shall be followed: a) Require the presentation of BIR Form 1010 and 30.07. b) Check the condition of the package and verify completeness of the contents. Any damage or pilferage on the shipment shall be listed and reported to the sending office and the PAL ACA. c) Acknowledge BIR Form 30.07 if shipment is in order and transmit the original copy to the sending unit. cd i d) Deliver all shipments to their final destination in the Regional Office. 3. Payment of Bills PAL thru its provincial branches shall send all the airwaybills with corresponding Form 1010 attached to the Administrative Branch of the Regional Offices. a) Form 30.07 shall be consolidated with the Airwaybills and BIR Forms 1010 prior to voucher preparation. b) The Administrative Branch shall transmit to the Regional Accountants' Office the consolidated Forms 1010 and 30.07, Airwaybill, Voucher, and Charge Invoice. c) The Regional Accountant shall determine the accuracy of the money claims of PAL by considering the weight of the shipment, degree of shipping urgency and the applicable rates prior to check signing by the Director or Asst. Director. V. MONITORING To determine the efficiency of the system and the costs involved, the following units are mandated to perform the following: 1. The different instrumentalities of the BIR as well as the PAL stations/offices concerned shall see to it that the airwaybill and BIR Form 1010 are properly accomplished including prompt transmittal to Domestic Revenue Accounting Division, Vernida, Makati in order that its monthly summary report to include flight details on a per shipment basis copy could be made, of which shall be furnished the Information Systems Development (ISDS), Office of the Commissioner. 2. The Revenue Computer Center shall accomplish on a monthly basis a report containing details on the: a) Volume of documents received per Region, and b) Time-duration of shipment 3. The Budget Division shall monitor charges in the utilization patterns of the organizational units. Any unusual increase or decrease of expenses as compared with the previous years, shall be summarized monthly, a copy of which shall be forwarded to the ISDS. 4. The Accountable Forms, Property and General Services Divisions shall monitor the compliance of Regional Officer with regards to prompt transmission of BIR Form 30.07. A summary of Form 1010 whose corresponding Form 30.07 have been received after three (3) weeks should be furnished the ISDS. cd i VI. REPEALING CLAUSE: All issuance, orders or portion thereof which are inconsistent with this memorandum order are hereby amended or revoked. VII. EFFECTIVITY: This order shall take effect immediately. (SGD.) RUBEN B. ANCHETA Acting Commissioner