Prescribing the Guidelines and Procedures for the Issuance and Accounting of BIR Strip Stamps for Tobacco Products

April 4, 1991 REVENUE MEMORANDUM ORDER NO. 12-91 SUBJECT : Prescribing the Guidelines and Procedures for the Issuance and Accounting of BIR Strip Stamps for Tobacco Products TO : All Internal Revenue Officers, Employees and Others Concerned In view of the provisions of Revenue Regulations No. 5-90 dated June 1, 1990, resuming the use of internal revenue strip stamps in lieu of paper strip sealers and requiring the purchase, affixture and cancellation of internal revenue strip stamps affixed on original containers of tobacco products, the following guidelines and procedures for the issuance and accounting of such stamps are hereby prescribed for the guidance of all concerned: 1. Issuance of BIR strip stamps for tobacco products : 1.1 Manufacturers of tobacco products desiring to purchase BIR strip stamps shall submit to the Chief, Tobacco Tax Division, their requisitions on BIR Form No. 31.12. 1.2 The Chief, Tobacco Tax Division shall verify the exact quantity and the appropriateness of the strip stamps requisitioned. If found in order, he shall issue an authority to purchase internal revenue strip stamps addressed to the Chief, Accountable Forms Division. 1.3 The Chief, Accountable Forms Division shall prepare a letter addressed to the manufacturer concerned requesting him to pay to the BIR Cashier the amount equivalent to the printing cost of the stamps requisitioned. 1.4 The manufacturer or his duly authorized representative shall pay thru the BIR Disbursement Accounting Division to the BIR Cashier and shall return the official receipt to the Accountable Forms Division for notations and control. 1.5 The Accountable Forms Division shall prepare the corresponding Gate Pass indicating therein, among others, the serial number and the date of the official receipt. 1.6 The Chief, Accountable Forms Division shall approve and authorize the issuance of the strip stamps indicated in the Gate Pass to the manufacturer or his duly authorized representative. 2. Costs of Strip Stamps . - The prevailing printing costs of strip stamps for tobacco products as shown below, shall be followed: Item Cost Per Piece a. cigarette strip stamps (49 gsm) P0.0170907 b. cigarette strip stamps (60 gsm) 0.0325303 c. strip stamps for cigars (NPO series) 0.03 d. strip stamps for chewing tobacco (CBSPP series) 0.0703681 f. strip stamps for smoking tobacco (NPO series) 0.013 The above unit costs are subject to change from time to time, depending on the rates that the authorized printer/s will charge the Bureau of Internal Revenue in the future. cdt 3. Accounting of internal revenue strip stamps for tobacco products . - Strip stamps for cigars and cigarettes shall continue to be accounted for at the unit cost of acquisition in the vault ledgers of the Accountable Forms Division and in the books of accounts of the Disbursement Accounting Division. Accounting of the strip stamps for chewing and smoking tobacco shall continue to be done by the Revenue Accounting Division at face value. 4. Proceeds from the sale of BIR strip stamps for tobacco products . - Proceeds from the sale of strip stamps for tobacco products, shall be treated as miscellaneous income of the Bureau. 5. Repealing clause . - The provisions of Revenue Memorandum Order No. 19-86 and other revenue memorandum orders and circulars inconsistent herewith, are hereby repealed or amended accordingly. 6. Effectivity . - This order shall take effect immediately. (SGD.) JOSE U. ONG Commissioner of Internal Revenue