Prescribing Modified Guidelines and Procedures in the Issuance of ATRIG for VAT-Exempt Drugs and Medicines Covered under Sec. 109 (AA) of the NIRC of 1997

March 1, 2022 REVENUE MEMORANDUM ORDER NO. 20-2022 SUBJECT : Prescribing Modified Guidelines and Procedures in the Issuance of Authority to Release Imported Goods (ATRIG) for Value-Added Tax (VAT)-Exempt Drugs and Medicines Covered under Section 109 (AA) of the National Internal Reve nue Code of 1997 (Tax Co de), as Amended by Repu blic Act No. 11 534 TO : All Internal Revenue Officials and Employees Concerned The Bureau has been receiving several complaints on the delays encountered in the release of imported VAT-exempt drugs, medicines and products for COVID-19 treatment brought about by existing policies in the processing of the corresponding ATRIG for the said imported items. While guidelines and procedures have been set under Revenue Memorandum Order (RMO) No. 35-2002 for the issuance of ATRIG on imported goods, the following modifications thereto are being prescribed to be strictly observed by the processing offices to eliminate undue delays in the processing of ATRIG specific to importation of VAT-exempt drugs and medicines prescribed for diabetes, high cholesterol, hypertension, cancer, mental illness, tuberculosis, and kidney diseases covered under Section 109 (AA) of the National Internal Revenue Code of 1997 (Tax Code), as amended by Republic Act No. 11534: Affected Section in RMO No. 35-2002 Policies and Guidelines under RMO No. 35-2002 Modifications Section II (5) The ATRIG shall be processed, approved and issued within one (1) day from the time of the actual receipt of the application, in cases where the application for ATRIG is supported by complete documents and there is no legal/factual issue on the taxability of the imported article. The ATRIG shall be processed, approved and issued within one (1) day from the time of the actual receipt of the application, in cases where the application for ATRIG is supported by complete documents and there is no legal/factual issue on the taxability of the imported article. The BIR will only stamp the application as "received" when documentation is complete with and there is no discrepancy noted. In this regard, the description of drugs/medicines in the application for ATRIG must be exactly the same with the published list by the Food and Drug Administration (FDA) listing. If not, the RDO will not accept the application and the applicant should settle the issue/discrepancy with the FDA. Section IV (2) The approval of ATRIGs processed by the above processing offices shall be made by the following: a. Assistant Commissioner for Large Taxpayers Service For ATRIGs processed by Large Taxpayers Assistance Division II. b. Regional Director For ATRIGs processed by RDOs and EXTAs. The approval of ATRIGs processed by the above processing offices shall be made by the following: a. Assistant Commissioner for Large Taxpayers Service For ATRIGs processed by Large Taxpayers Assistance Division II. b. Regional Director For ATRIGs processed by RDOs and EXTAs that are co-located in their respective Regional Offices. c. Revenue District Officers For RDOs having jurisdiction over the port of entry that are not co-located in the Regional Offices. Section III (A) RELEASING OFFICER 1. Prepare the transmittal letter addressed to BOC covering all approved ATRIGs for the day, for signature by the approving official. 2. Post all the information on the approved ATRIG to the ATRIG Control Card and the ATRIG Registry Book. RELEASING OFFICER 1. Prepare the transmittal letter addressed to BOC covering all approved ATRIGs for the day, for signature by the approving official. 2. Post all the information on the approved ATRIG to the ATRIG Control Card and the ATRIG Registry Book. 3. Upon receipt of the duly approved ATRIG, send the scanned copy thru electronic mail to the following: a. Dedicated email of the office of Revenue Collector of BOC handling the release of the imported items, which may be sufficient for the BOC to process the release of the imported goods; and b. Taxpayer or authorized representative, i.e., brokers, Provided, there is an SPA/Secretary's Certificate authorizing the applicant to process and receive a photocopy of the ATRIG and the official email where the scanned copy of the ATRIG will be sent. 3. Send the transmittal letter, together with all the original copy(ies) of the approved ATRIG thru a designated Revenue Officer, directly to the BOC not later than 12:00 noon of the following day. The original copy of the approved ATRIG shall, in no case, be allowed to be delivered to the BOC thru the importer/applicant or broker/representative. 4. Send the transmittal letter, together with all the original copy(ies) of the approved ATRIG thru a designated Revenue Officer, directly to the BOC on a weekly basis . The original copy of the approved ATRIG shall, in no case, be allowed to be delivered to the BOC thru the importer/applicant or broker/representative. REPEALING CLAUSE All revenue issuances or portions thereof inconsistent herewith are hereby amended, modified or revoked accordingly. EFFECTIVITY This Order shall take effect immediately. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue