Prescribing the Guidelines for Effective Implementation of Revenue Administrative Order No. 1-74, dated April 25, 1974, in relation to the Memorandum of Agreement, dated April 22, 1974, the Subject Matter of which is the Efficient and Expedient Collection of the 2% Carriers and 2½% Income Taxes due from International Carriers

May 27, 1974 REVENUE MEMORANDUM ORDER NO. 24-A-74 SUBJECT : Prescribing the Guidelines for Effective Implementation of Revenue Administrative Order No. 1-74, dated April 25, 1974, in relation to the Memorandum of Agreement, dated April 22, 1974, the Subject Matter of which is the Efficient and Expedient Collection of the 2% Carriers and 2% Income Taxes due from International Carriers TO : All Internal Revenue Officers, Employees and Others Concerned In order to achieve maximum results and uniformity in the implementation of Revenue Administrative Order No. 1-74, in relation to the Memorandum of Agreement between the Bureau of Internal Revenue and the Bureau of Customs, the following guidelines are hereby promulgated for the information and guidance of all concerned. I. Registration All international carriers, their agent, representative, charterer, shipper or broker shall first register with the International Carriers Committee of this Bureau in order to qualify as an applicant for the issuance of an International Carriers Release Certificate, thus: a. Form Application for Registration, ICC Form No. 1 (Annex A hereof) with required enclosures. b. Manner Filed directly with the Committee or through its field clearing units. c. Time Within 30 days from effectivity of this Order. II. Data Bank Based on data to be supplied by the following, the Data Processing Center shall prepare, maintain, and furnish the Committee, updated information regarding the international carrier industry, to wit: a. A registry of taxpayers embodied in paragraph I hereof to be supplied by the International Carriers Committee. b. A quarterly abstract of collection of 2% carriers and 2% income taxes to be supplied by the Statistical Division. c. A list as of December 31, 1973, and monthly thereafter, of all contested, protested, litigated and delinquent tax cases involving international carriers and their agents to be supplied by the Revenue Operations Head (Legal), Revenue Operations Head (Collection) and all Regional Directors of the Bureau. III. Field Clearing Units a. For the convenience of taxpayers and to maintain coordination with the Bureau of Customs, the Chairman, International Carriers Committee shall establish Field Clearing Units at the Manila South Harbor and the Manila International Airport and assign appropriate field personnel, as duty officers, in such manner and duration as the exigencies of the service may require. b. The Chairman of the Committee shall likewise establish and maintain, under his supervision and control, clearing units outside the Greater Manila area and designate, subject to the Approval of the Commissioner of Internal Revenue, the internal revenue officer/s to act as duty officers. IV. International Carriers Release Certificate a. For the release of international carriers, the Chairman, and by his authority, the operations staff of the Committee at Head Office and Clearing Units, shall, upon written application (ICC Form No. 2, Annex B hereof) and evaluation, issue release clearance under ICC Form No. 3 (Annex C). b. With respect to shipping lines who are members of the Association of International Shipping Lines, Inc., and on-line carriers, the agent, representative, charterer, shipper or broker thereof may, upon application and evaluation, be issued general release clearance under ICC Form No. 4 (Annex D) subject to the terms and conditions thereof. V. Guaranty In no case shall international carriers be issued release clearance unless a Guaranty is executed by its representative, agents charterer, shipper or broker, under ICC Form No. 5 (Annex E), acceptable to the Committee. VI. Evaluation, Control and Disposition of Tax Records As provided for in Section II (3) of Revenue Administrative Order No. 1-74, dated April 25, 1974 which vests exclusive jurisdiction to the International Carriers Committee in the verification of the internal revenue tax cases of all international carriers, their agents, representatives, shippers, charterers, or brokers, all Regional Directors, Chiefs of Divisions and others concerned are hereby directed to forward to the said Committee all the tax records, dockets and returns of said taxpayers for their evaluation and disposition. VII. Penal Clause All release certificates, general or otherwise, shall be revoked and cancelled by the Commissioner of Internal Revenue if the terms and conditions thereof are violated. VIII. Effectivity The provisions of this Revenue Memorandum Order are effective immediately and all those concerned are hereby enjoined to follow strictly the provisions thereof. MISAEL P. VERA Commissioner of Internal Revenue TAN 1601-593-5 ICC Form No. 1 Republic of the Philippines Department of Finance BUREAU OF INTERNAL REVENUE Manila Application for Registration of International Carriers, General Agents, Charterer or Shipper File No. _________ Date ____________ The Commissioner of Internal Revenue Manila Attn: International Carriers Committee Sir: In compliance with the Memorandum of Agreement between the Bureau of Internal Revenue and the Bureau of Customs, implemented under Revenue Administrative Order No. 1-74 and Revenue Memorandum Order No.________, we have the honor to apply for registration as agent, representative, charterer, shipper or broker of our foreign principal. I INTERNATIONAL CARRIER: ______________________________ ______________________________ Name of Carrier Address (Foreign) Nature of Business __________________ Tax Account No. ___________________ Data of Registrations: __SEC__ __BC__ BIR_ Date Registered _______ _______ ______ Registration No. _______ _______ ______ PTR No.________________, dated ______________ place ______________ ________________, dated ______________ place ______________ Status (conference/regular or non-conference) _________________________________ II REGISTERING AGENT/REPRESENTATIVE/BRANCH OFFICE: ______________________________ ______________________________ (Name) (Address) Nature of Business __________________ Tax Account No. ___________________ Data of Registrations: __SEC__ __BC__ BIR_ Date Registered _______ _______ ______ Registration No. _______ _______ ______ PTR No.________________, dated ______________ place ______________ ________________, dated ______________ place ______________ Very truly yours, ______________________ (Name of Applicant) Company ______________ Position _______________ Encls.: 1. Art. of Incorporation or Partnership 2. Bureau of Commerce Registry papers 3. SEC Registry papers 4. Income Tax Returns (2) years 5. Record of examination (Letter of Confirmation) APPLICATION FOR B.I.R. INTERNATIONAL CARRIERS RELEASE CERTIFICATE FILE NO. ________ B.I.R. I.C.R.C. NO. _____ REPUBLIC OF THE PHILIPPINES) CITY OF MANILA ) S.S. I, ________________ with Taxpayer Account No. _____________, Filipino, of legal age, single/married, with postal address at ________________________________, and presently connected with ________________________ as ___________________ and with business address at ______________________________ after having been duly sworn to in accordance with law, hereby depose and say: 1. That ___________________ with Tax Account No. ____________ is a corporation/company duly organized and existing under and by virtue of the laws of the Philippines with Office located at _______________________________. 2. That ________________ is duly registered with Securities and Exchange Commission under SEC registry No. __________. 3. That our Firm Name, Business Trade Name or style has been duly registered in the Bureau of Commerce on ___________ under registry No. __________ and on the Bureau of Internal Revenue on ______________ under BIR Registry No. _______. 4. That _______________________ is provided with Privilege Tax Receipt No. __________ for 19 _____ under schedule No. __________ issued at ___________ on __________________. 5. That the Carrier (International) is owned by _____________________ with Business address at __________________ registered under Registry No. ______ of _______________ Nationality. 6. That the carrier will arrive or has arrived on _____________ and will be docked/landed at ________________ to stay for _____________ days/months with last port of call at ________________________ and will depart for foreign destination on _____________________. 7. That the total passage/freight revenue from out-bound cargoes and/or passage is $U.S. ____________ or the equivalent of P ______, Philippine currency. 8. That all internal revenue tax due from the said passage/freight revenue were paid under OR No. ______, dated ________ issued at _________ in the total amount of P __________ as 2% Carriers tax and _____________ as 2 income tax or total of P____________. 9. That the said internal revenue taxes are guaranteed under guarantee No. ___________ dated _____________ by ___________ of ___________ copy of said guarantee is hereto attached for ready reference. 10. That the said International Carrier Release Certificate shall be presented to the Bureau of Customs in order to secure the departure clearance of the said carrier from its last port of call in the Philippines. 11. That this affidavit is being submitted for and in behalf of the said Manager for due consideration, in order to secure an international carrier release certificate as required in the Memo of Agreement between the CIR and CC, dated ________________ implementing pertinent provisions of Presidential Decree No. 69, dated September 27, 1972. ____________________ Applicant SUBSCRIBED AND SWORN TO before me this ______ day of __________ affiant exhibited to me his Residence Certificate No. A- _________ dated _______, issued at ______________ and B- ________________ dated ____________, issued at _____________ and TAN _____________. ______________________ Notary Public Until December 31, 19___ ___________________ : Affix 30 Documentary : : and Science Stamps : : ___________________ : Authorized Representative _________________ Application filed by ______________________ Address : _____________________________ Signature : ____________________________ Doc. No. __________ Page No. __________ Book No. _________ Series of __________ INTERNATIONAL CARRIERS RELEASE CERTIFICATE NO. ______ ___________________ (Date) The Commissioner of Customs Manila Sir: I have the honor to inform you that the application of ______________________ of ________________, Husbanding/Shipping Agent for _________________________ of (Name of Carrier) ___________________ for release of _______________________________ has been (Name of Vessel/Aircraft No.) evaluated by this Office in accordance with our Memorandum Agreement, dated ____________. Accordingly, for internal revenue tax purposes, this Office interposes no objection to the issuance by your good office of such clearance as shall enable the said vessel or aircraft to depart for destination outside the Philippines. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 By: ________________ Affix Doc. Stamp P0.30 Science Stamp P0.30 Subject to the payment of a certification fee of P0.50 in accordance with Executive Order No. 32, S. of 1963 O.R. NO. ______ dated _____________ ICC Form No. 4 ____________________ (Date) International Carriers General Release Certificate BIR ICGRC No. _____ KNOW ALL MEN BY THESE PRESENTS: This certifies that carriers owned/chartered by ___________________________ ____________________________________________________________________, (Shipping Co./Airline (Address) Nationality) being a member of the Conference (Association) listed in the Memorandum of Agreement between the Bureau of Internal Revenue and the Bureau of Customs, may be cleared for departure from Philippine waters and airspace without presenting proof of payment of the 2% carriers and 2% income taxes or the International Carriers Release Certificate. This certification is valid for three months from this date until and unless cancelled and revoked. Date of expiry: _____________, 19___ MISAEL P. VERA Commissioner of Internal Revenue TAN 1601-593-5 By: TOMAS C. TOLEDO Chairman International Carriers Committee Affix 30 Documentary and 30 Science Tax Subject to Certification Fee. ICC Form No. 5 GUARANTY The Commissioner of Internal Revenue Manila Sir: As representative/agent/charterer/shipper/broker for _______________________ (Name of owner of Vessel/Aircraft) __________________________________________________ with business address at (address) (Nationality) _______________, please be informed that I/we do hereby declare and I/we assume the tax liability of my/our said principal and bind myself/ourselves under obligation to pay such internal revenue taxes, surcharges and interest as may be found to be due from them within thirty (30) days from departure of the carrier concerned (for trampers or casual carriers) or within the prescribed period (for members of the Association of International Shipping Lines, Inc. and on-line carriers). Furthermore, I/we hereby agree to post performance bond in the amount acceptable to the Bureau of Internal Revenue and I/we also hereby agree to any extension of the term of the validity of the International Carriers Release Certificate No. _________ for which this guaranty is given. Very truly yours , TAN (Address) By: ____________________ (President/Manager) ACKNOWLEDGMENT REPUBLIC OF THE PHILIPPINES) CITY/MUNICIPALITY ) S.S. At the municipality/city of ___________ on this _________ day of ___________, 19____ personally appeared before me Messrs. ________________ of ___________ known to me as the same person who executed the foregoing instrument of GUARANTY and acknowledged that the same is his/her free act and deed. The Residence Certificates of the party/parties to the instrument were exhibited to me, the same being Residence Certificates: cdt No. A- ________________ issued at __________ on ________ No. A- ________________ issued at __________ on ________ Notary Public/Internal Revenue Officer Doc. Stamp P0.30 Science Stamp P0.30