Policies, Guidelines and Procedures for Accredited Agent Bank (AAB) Conversion from NPCS to LBDE/EDT

March 11, 1999 REVENUE MEMORANDUM ORDER NO. 32-99 TO : All Revenue Officials and Employees and Others Concerned SUBJECT : Policies, Guidelines and Procedures for Accredited Agent Bank (AAB) Conversion from NPCS to LBDE/EDT I. OBJECTIVES This order is issued to: A. Set policies and establish procedures for the conversion of AABs from New Payment Control System (NPCS) to Limited Bank Data Entry/Electronic Data Transmission (LBDE/EDT) data processing; B. Enable the Bureau to successfully convert non-Metro Manila AABs from NPCS to LBDES/EDT on scheduled rollout date; and C. Identify and assess the AABs who were not able to convert to LBDE/EDT. II. POLICIES A. For AABs unable to shift from NPCS to LBDE/EDT on scheduled rollout date A.1. AAB branches who were unable to shift from NPCS to LBDE/EDT shall be temporarily suspended from accepting tax payments in behalf of the Bureau. They shall be given a grace period of one month from rollout date to resolve their readiness problems and comply with EDT requirements. If AAB branch is still unable to meet the requirements, the Bureau may opt to disaccredit the concerned AAB branch. B. For AABs able to convert to LBDE without EDT capability B.1. AAB branches who were able to convert to LBDE but without EDT capability shall be allowed to transmit payment data through diskettes as an interim procedure only on an exception basis. They shall notify the Bureau through Collection Programs Division (CPD) in writing of such request at least two weeks before the rollout date. They shall be given a grace period of one month from rollout date to resolve their readiness problems and comply with EDT requirements, in coordination with CPD and their designated Revenue Data Center (RDC). If AAB branch is still unable to meet the requirements, the Bureau may opt to suspend or disaccredit the concerned AAB branch. B.2. AAB branches shall be allowed to use the clustering concept of LBDE/EDT payment transmission wherein all collection data can be forwarded to RDC using a single bank branch with EDT Capability. AABs which opted to use this concept in transmitting payment data shall notify the Bureau through their respective RDC in writing at least one week before the rollout date. III. PROCEDURES A. The Computer Operations and Network Engineering (CONE), RDC shall: 1. One week after the rollout, prepare a summary report (Annex A - Summary Report of LBDE Conversion) containing the number of AABs who did/did not convert to LBDE/EDT and submit to CPD and Information Planning and Quality Service - Rollout Assistance Unit (IPQS-RAU); 2. Identify particular bank branch who did not convert to LBDE and those who uses the diskette mode of transmission; 3. Prepare a summary report (Annex B - List of Non-LBDE/EDT Compliant Banks) containing the list of banks who did not convert to LBDE/EDT and submit to CPD and IPQS-RAU; 4. Perform test transmission to verify EDT readiness of bank branches who were not able to convert to LBDE/EDT and those who were able to convert to LBDE but uses the diskette mode of transmission upon rollout; and 5. One month after rollout date, submit final report to CPD updating the status of bank branches. B. The Collection Programs Division (CPD), Collection Service shall: 1. Receive from the RDC-CONE the Summary Report of LBDE Conversion and List of Non-LBDE/EDT Compliant Banks; 2. Advise bank branches who still do not meet LBDE/EDT requirements, in writing, of the consequence of suspension or disaccreditation from accepting tax payments in behalf of the Bureau. Determine the reason for bank branch's non-compliance to LBDE/EDT requirements from Head Office. Suspension or disaccreditation of AABs shall be subject to the review and recommendation of the Bank Accreditation Committee (BAC); 3. Advise bank branches, who are continuously unable to convert to LBDE/EDT, in writing through its head office of its suspension from accepting tax payments; 4. Require banks, requesting for an extension of the period to comply with LBDE/EDT requirement, to submit a formal request stating their present EDT readiness status and justification with specific facts and reasons why they are not EDT ready inspite of the previous BIR communications sent to them on this matter. The extension if granted will be strictly on a meritorious basis, subject to the review and recommendation of the BAC; 5. Inform concerned RDO, RDC, Revenue Accounting Division (RAD) and Office of the Deputy Commissioner - Operations Group thru Collection Service of any suspension or disaccreditation of AAB branch; 6. Advise bank branches who are still not LBDE/EDT ready, through its Head Office of its suspension or disaccreditation from accepting tax payments in behalf of the Bureau; and 7. Submit monthly consolidated report of LBDE Converted AABs and Non-LBDE/EDT Compliant AABs to the Office of the Deputy Commissioner - Operations Group thru Collection Service. IV. REPEALING CLAUSE All other issuances and/or portions thereof inconsistent herewith are hereby repealed and amended accordingly. cdlex V. EFFECTIVITY This Order takes effect immediately. (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue ANNEX A Summary Report of LBDE Conversion ANNEX B List of Non-LBDE/EDT Compliant Banks