Procedure Implementing the Provisions of the Petroleum Products Regulations authorizing Replenishment of Tax-Paid Stocks

May 23, 1978 REVENUE MEMORANDUM ORDER NO. 18-78 SUBJECT : Procedure Implementing the Provisions of the Petroleum Products Regulations authorizing Replenishment of Tax-Paid Stocks TO : All Internal Revenue Officers and Others Concerned Section 35 of Revenue Regulations No. 13-77 dated October 10, 1977 provides: cdt "Sec. 35. Replenishment of tax-paid stocks . The Commissioner of Internal Revenue, may, in case of purchases made by tax-exempt agencies, allow their supplier of petroleum products to draw from their tax-paid stocks, and, the quantity of tax-paid products sold may be replenished with a similar kind and quantity of bonded stocks of the supplier. The replenishment herein allowed shall be granted only upon prior permit or authority of the Commissioner of Internal Revenue. The afore-mentioned requirements for tax credit/refund shall be complied with by the claimant." In implementing the above-quoted provisions, the following procedures shall be followed: I. After the sale and delivery of the petroleum products, the supplier shall file a written request for replenishment addressed to the Commissioner of Internal Revenue, Attn.: Gasoline & Miscellaneous Tax Division, attaching thereto the following namely: 1. Copy of Purchase Order 2. Copy of Tax-exemption duly authenticated cdt 3. Copy of delivery receipts and sales invoice duly acknowledged by the purchaser or his authorized representative, and 4. Copy of official receipt evidencing payment of specific tax on the kind and quantity sold to tax-exempt entity and which product is sought to be replenished. As soon as these documents are found and duly established as true and correct the Chief of the Gasoline and Miscellaneous Tax Division shall certify as such and shall prepare an authority for the signature of the Revenue Service Chief (Specific Tax) duly approved by the Commissioner of Internal Revenue authorizing the supplier to withdraw from its refinery or bonded terminal tax-free petroleum products which should be of the same kind and quantity as that purchased by and delivered to the tax-exempt agency, as replenishment. Requests for replenishment shall be filed within two (2) years from the date of purchase by the tax-exempt entity. Authority to replenish tax-paid petroleum products should be consecutively numbered and dated for each oil company to facilitate identification." II. In the case of deliveries to international carriers, the procedure prescribed above as well as the following additional requirements shall be followed: 1. That only international carriers of countries which exempt from tax petroleum products sold to Philippine carriers are entitled to tax-free deliveries of petroleum products. For this purpose an international carrier may be allowed to purchase tax-free petroleum products from any domestic oil company only upon the submission to the Commissioner of Internal Revenue of duly authenticated documents issued by duly authorized officials of the country of said carrier or such documents certified to by the Philippine Ministry of Foreign Affairs attesting to the fact that said country grants similar tax exemption on petroleum products sold to Philippine carriers. 2. That the petroleum products shall not be consumed in the Philippine territory. III. The supplier shall submit a monthly report to the Chief, Gasoline & Miscellaneous Tax Division within eight (8) days from the end of each month, stating the following: 1. Names of tax-exempt agencies to whom petroleum products have been delivered. 2. Kind and quantity of products sold and delivered as well as the purchase price thereof, exclusive of specific tax. 3. Kind and quantity of products withdrawn by supplier as replenishment. 4. Corresponding number and date of authority to replenish. The reports shall be subjected to verification by the Chief, Gasoline & Miscellaneous Tax Division who shall ascertain the kind and quantity of products sold tax-free, the official receipts covering payment of specific tax and the kind and quantity of products withdrawn as replenishment. His findings and recommendations shall be submitted to the Specific Tax Service Chief for appropriate action. Strict compliance with the provisions of this Revenue Memorandum Order is hereby enjoined. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN P4519-F2828-A-8