Amending Section 2 of Revenue Regulations No. 13-77

April 21, 1978 REVENUE REGULATIONS NO. 05-78 SUBJECT : Amending Section 2 of Revenue Regulations No. 1 3-77, otherwise known as Petroleum Pro ducts Regulations, to implement Section 134 of the National Internal Revenue Co de of 19 77, as amended by Presidential Decree No. 13 59, exempting from specific tax petr oleum products sold to an international carrier for its use or consumption outside of the Philippines, provided that the country of said carrier exempts from tax petroleum products sold to Philippine carriers TO : All Internal Revenue Officers and Others Concerned SECTION 1. Pursuant to the provisions of Section 326 of the National Internal Revenue Code of 1977, Section 2 of Revenue Regulations No. 13-77, otherwise known as Petroleum Products Regulations, is hereby amended to read as follows: "SEC. 2. Petroleum products subject to specific tax . The specific tax imposed by the National Internal Revenue Code shall be collected on petroleum products covered by these regulations which have been manufactured or produced in the Philippines for domestic sale or consumption and those which have been imported irrespective of where to be sold or consumed, but not to petroleum products manufactured or produced in the Philippines which shall be removed for exportation in accordance with Section 31 of these regulations. "However, petroleum products sold to an international carrier for its use or consumption outside of the Philippines shall not be subject to specific tax, provided that the country of said carrier exempts from tax petroleum products sold to Philippine carriers. For the purpose of this paragraph, an international carrier may be allowed to purchase tax-free petroleum products from any domestic oil company only upon submission to the Commissioner of Internal Revenue of duly authenticated documents issued by duly authorized officials of the country of said carrier attesting to the fact that said country grants similar tax exemption on petroleum products sold to Philippine carriers. Local oil companies shall be held liable for the payment of specific tax on petroleum products sold tax-free to an international carrier in violation of Section 134 of the National Internal Revenue Code of 1977 and for non-compliance with the requirement herein prescribed. "The specific tax shall attach to the petroleum products as soon as they are in existence as such." SECTION 2. Effectivity . The foregoing amendment to Section 2, Revenue Regulations No. 13-77, shall take effect on the date hereof. CESAR VIRATA Secretary of Finance Recommended by: EFREN I. PLANA Acting Commissioner of Internal Revenue TAN: P4519-F2828-A-8