Guidelines on Excise Tax Rates, Schedules and Tariff Headings of Commodities Covered by TRAIN Law
The Customs Memorandum dated May 8, 2018, outlines updated guidelines on excise tax rates and tariff headings for various commodities under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, as stipulated by Republic Act No. 10963. This memorandum mandates a review of the attached guidelines for proper examination and appraisal of commodities subject to these taxes. Key changes include revised excise tax rates for automobiles, tobacco products, fermented liquors, sweetened beverages, lubricants, and other items, with specific rates detailed for different categories and price thresholds. The memorandum supersedes prior directives and aims for immediate compliance among customs personnel and relevant stakeholders.
Quick Answers
- What is Guidelines on Excise Tax Rates, Schedules and Tariff Headings of Commodities Covered by TRAIN Law about?
- The Customs Memorandum dated May 8, 2018, outlines updated guidelines on excise tax rates and tariff headings for various commodities under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, as stipulated by Republic Act No. 10963. This memorandum mandates a review of the attached guidelines for proper examination and appraisal of commodities subject to these taxes. Key changes include revised excise tax rates for automobiles, tobacco products, fermented liquors, sweetened beverages, lubricants, and other items, with specific rates detailed for different categories and price thresholds. The memorandum supersedes prior directives and aims for immediate compliance among customs personnel and relevant stakeholders.
- What type of law is Customs Memorandum?
- Guidelines on Excise Tax Rates, Schedules and Tariff Headings of Commodities Covered by TRAIN Law (Customs Memorandum) is a Philippine Other Rules and Procedures enacted by the Congress of the Philippines.
- When was Guidelines on Excise Tax Rates, Schedules and Tariff Headings of Commodities Covered by TRAIN Law enacted?
- Guidelines on Excise Tax Rates, Schedules and Tariff Headings of Commodities Covered by TRAIN Law (Customs Memorandum) was enacted on May 8, 2018.
- What is the citation for Guidelines on Excise Tax Rates, Schedules and Tariff Headings of Commodities Covered by TRAIN Law?
- Guidelines on Excise Tax Rates, Schedules and Tariff Headings of Commodities Covered by TRAIN Law, Customs Memorandum, May 8, 2018 (Philippines)
Law Information
- Reference Number
- Customs Memorandum
- Date Enacted
- Category
- Other Rules and Procedures
- Subcategory
- Bureau of Customs
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
May 8, 2018
CUSTOMS MEMORANDUM
| TO | : | All District and Sub-Port Collectors |
| All Chiefs, Formal Entry Division | ||
| and Formal Entry Division Personnel | ||
| All Others Concerned | ||
| SUBJECT | : | Guidelines on Excise Tax Rates, Schedules and Tariff Headings of Commodities Covered by TRAIN Law |
1. Pursuant to Republic Act No. 10963, otherwise known as the "Tax Reform for Acceleration and Inclusion (TRAIN) Law," you are hereby directed to review the attached guidelines upon examination and appraisal of the commodities covered by the said law.
2. Attached herewith are the correct rates, schedules and tariff headings for your references.
3. This memorandum supersedes all preceding memoranda providing the same directives and information.
4. For your reference and immediate compliance. CAIHTE
(SGD.) ATTY. EDWARD JAMES A. DY BUCO
Deputy Commissioner
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AUTOMOBILE |
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DESCRIPTION |
PRIOR TO THE LAW |
AutomobileTRAIN Law) |
UNDER THE TRAIN LAW |
TARIFF COMMISSION CLASSIFICATION BASED ON AVAILABLE INFORMATION |
|
Up to P600 Thousand (MSP/ISP) |
2% of the MSP/ISP |
Up to P600 Thousand (MSP/ISP) (effective Jan. 1, 2018) |
4% (based on MSP/ISP) |
Heading 87.02, Heading 87.03 |
|
Over P600 Thousand to P1.1 Million |
P12,000+20% of value in excess of P600,000 (based on MSP/ISP) |
More than P600 Thousand to Php1 Million (effective Jan. 1, 2018) |
10% (based on MSP/ISP) |
Heading 87.02, Heading 87.03 |
|
Over P1.1 Million to P2.1 Million |
P112,000+40% of value in excess of P1.1 Million (based on MSP/ISP) |
More than P1 Million to 4 Million (effective Jan. 1, 2018) |
20% (based on MSP/ISP) |
Heading 87.02, Heading 87.03 |
|
Over P2.1 Million |
P112,000+40% of value in excess of P1.1 Million (based on MSP/ISP) |
More than 4 Million (effective Jan. 1, 2018) |
50% (based on MSP/ISP) |
Heading 87.02, Heading 87.03 |
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OTHER PRODUCTS |
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DESCRIPTION |
PRIOR TO THE LAW |
UNDER THE TRAIN LAW |
TARIFF COMMISSION CLASSIFICATION BASED ON AVAILABLE INFORMATION |
|
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Metallic and Non-Metallic Minerals |
2% based on dutiable value |
4% based on dutiable value |
Heading 25.01 to 25.30 except 25.23 Heading 26.01 to 26.17 *Note — Cement materials but not the finished product is excisable such as — Limestone for cement manufacture — Shale Clay — Silica sand for cement. |
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Indigenous oils, locally extracted hydrocarbon gas, minerals oils |
3% based on the international fair value |
6% based on the international fair value |
2710.19.90 — mineral oils 2705.00.00 — hydrocarbon gas -"Indigenous oils" cannot be classified based on description alone; need information on the complete chemical composition and process of manufacture |
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|
Non-essential goods (e.g. perfumes, toilet waters, pleasure yachts jewelries) |
20% based on dutiable value |
20% based on dutiable value (note: remain unchanged) |
3303.00.00 for perfumes and toilet waters; 8903.99.00 for pleasure yachts; heading 71.13-71.17 for jewelries |
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TOBACCO PRODUCTS |
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DESCRIPTION |
PRIOR TO THE LAW |
UNDER THE TRAIN LAW |
TARIFF COMMISSION CLASSIFICATION BASED ON AVAILABLE INFORMATION |
|
|
a. Twisted by hand or reduced into a condition to be consumed in any manner other than the ordinary mode of drying and curing |
P2.05 per net kg |
P2.13 per net kg (Year 2018) |
-Cannot be classified based on product description; Need information on the specific tobacco products covered by these product categories |
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b. Prepared or partially prepared with or without the use of any machine or instruments or without being pressed or sweetened |
P2.05 per net kg |
P2.13 per net kg (Year 2018) |
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c. Fine-cut shorts or refuse, scraps, clipping, cuttings, stems and sweepings of tobacco |
P2.05 per net kg |
P2.13 per net kg (Year 2018) |
2401.30.10; |
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d. Chewing |
P1.75 per net kg |
P1.82 per net kg (Year 2018) |
2403.99.50 |
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TOBACCO, UNSUITABLE IN ANY MANNER |
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Cigar |
Ad Valorem Tax of 20% based on the net retail price per cigar, and Specific Tax of P5.85 per cigar |
P6.08 per Cigar (Year 2018) |
2402.10.00; 2402.90.10 |
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Cigarettes Packed by Hand/Machine (20 sticks per pack) |
P30.00 per pack |
P32.50 per pack (January 1-June 30, 2018) |
2402.20.10; 2402.20.20; |
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FERMENTED LIQUOR |
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DESCRIPTION |
PRIOR TO THE LAW |
UNDER THE TRAIN LAW |
TARIFF COMMISSION CLASSIFICATION BASED ON AVAILABLE INFORMATION |
|
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a. If NRP per liter is P50.60 or less |
P23.50 per gauge liter |
-unchanged- |
Heading 22.03 — beers; |
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b. If NRP per liter is more than P50.60 |
P23.50 per gauge liter |
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c. Brewed and sold in small establishments such as pubs, restaurants, etc. |
P32.76 per gauge liter |
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SPARKLING WINES |
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a. NRP up to 500 per bottle of 750 ml |
P292.47 per gauge liter |
-unchanged- |
2204.10.00 |
|
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a. NRP is more than P500 per bottle of 750 ml |
P818.90 per gauge liter |
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STILL WINES |
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a. With an alcoholic content of 14% or less |
P35.10 per liter gauge |
-unchanged- |
2204.21.11; 2204.22.11; |
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b. Still wine with an alcohol content of more than 14% up to 25% Fortified wines with an alcohol content of more than 25% shall be considered as Distilled Spirit |
P70.20% per liter gauge |
2204.21.13; 2204.21.14; |
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Distilled Spirit |
a. 20% ad valorem based on NRP, and b. P21.64 based on PL |
-unchanged- |
2204.21.14; 2204.22.13; |
|
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SWEETENED BEVERAGES |
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|
DESCRIPTION |
PRIOR TO THE LAW |
UNDER THE TRAIN LAW |
TARIFF COMMISSION CLASSIFICATION BASED ON AVAILABLE INFORMATION |
|
|
a. Beverages using caloric and non- caloric sweeteners |
Zero Excise tax |
P6.00 per liter |
Heading 2202.10.10, 2202.10.90,EXCEPT 2202.99.10 and2202.99.20; Heading 2009.11.00, 2009.12.00,(applicable only to sweetened beverage) |
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b. Beverages using high fructose corn syrup |
Zero Excise tax |
P12.00 per liter |
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LUBRICANT PRODUCTS |
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DESCRIPTION |
PRIOR TO LAW |
UNDER THE TRAIN LAW |
TARIFF COMMISSION CLASSIFICATION BASED ON AVAILABLE INFORMATION |
|
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Lubricant Oil and Greases |
-Lubricating Oils — selected fractions of refined petroleum or other oils (with or without additives) used to lessen friction between moving surfaces Greases — semisolid lubricants possessing a higher initial viscosity than oil |
P 4.50 per net L (for oil) or Kg (for grease) |
P 8.00 per net L (for oil) or Kg (for grease) |
2710.19.41; 2710.19.42; 2710.19.43; |
|
Processed Gas |
-Lightest by-product of refined crude oil and generated from the various process unit like crude distillers. Hydrodesulfurizer & platforms. Composed of pressurized gases like hydrogen, methane, ethane, propane, & butane, and use for refinery fuel |
P 0.50 per net liter |
P 8.00 per net L |
2705.00.00; |
|
Paraffin Wax & Petrolatum (petroleum jelly) |
-Waxes — any wax obtained from the petroleum, including paraffin wax, microcrystalline wax and petroleum jelly |
P 3.50 per Kg/net weight |
P 8.00 per Kg/net weight |
Heading 27.12 |
|
Regular & Unleaded Premium Gasoline Oil |
-Regular gasoline has a minimum of 91 RON while Premium gasoline has a minimum of 95 RON |
P 4.35 per liter |
P 7.00 per liter |
2710.12.11; 2710.12.12; 2710.12.13; 2710.12.21; 2710.12.22; 2710.12.23; 2710.12.24; 2710.12.25; 2710.12.26; 2710.12.27; 2710.12.28; 2710.12.29 |
|
Kerosene |
-A combustible hydrocarbon liquid obtained from fractional distillation of petroleum |
Zero excise tax |
P 3.00 per liter |
2710.19.23 |
|
Aviation Gas |
-Kerosene type fuel used for powering jet and turbo-prop engine aircraft |
P 3.67 per liter |
P 4.00 per liter |
2710.12.31; 2710.12.39; 2710.19.81; |
|
Diesel fuel oil |
-Refers to any fuel used in diesel engines and the most common is a specific fraction distillate of petroleum |
Zero excise tax |
P 2.50 per liter |
2710.19.71; 2710.19.72; 2710.19.79 |
|
Naptha, regular gasoline & other similar products of distillation |
-Naptha — refers to a number of different flammable liquid mixtures of hydrocarbon; a distillation product from petroleum or coal tar boiling in a certain range |
P 4.35 per liter |
P 7.00 per liter |
2710.12.40; 2710.12.50; 2710.12.60; |
|
Petroleum Coke |
- Black solid residue obtained mainly by cracking and carbonizing of petroleum derived from feedstocks, vacuum, bottoms, tar and pitches |
|
P 2.50 per Kg |
Heading 27.04; Heading 27.06; |
|
LPG except those intended for motive power |
-Mixture of hydrocarbon gases used as a fuel in heating appliance and vehicles |
Zero excise tax |
P 1.00 per liter/kg |
2711.11.00; 2711.12.00; 2711.13.00; |
|
Asphalts |
-Sticky, black and highly viscous liquid or semi-solid liquid that is present in most crudes, petroleum and in some natural deposits |
P 0.56 per net kg |
P 8.00 per net kg |
2714.10.00; 2714.90.00; 2715.00.10; |
|
Bunker Fuel Oil |
-Type of liquid fuel which is fractionally distilled from crude oil |
Zero excise tax |
P 2.50 per liter |
2710.19.90; 2710.19.79 |
|
Coal |
-A combustible black mineral substance form by the partial decay of plant matter under the influence of moisture, increased pressure and temperature |
P 1.00 per MT |
P 50.00 per MT |
Heading 2701; Heading 27.02; Heading 27.03; Heading 27.04; Heading 27.05; Heading 27.06 |
|
Denatured Alcohol to be used for motive power |
-An ethanol, which has been rendered toxic or otherwise unfit for human consumption, and in some cases dyed |
P 0.05 per liter |
P 8.00 per liter |
2207.20.11; 2207.20.19 |
Cite This Law
Guidelines on Excise Tax Rates, Schedules and Tariff Headings of Commodities Covered by TRAIN Law, Customs Memorandum, May 8, 2018 (Philippines)
Guidelines on Excise Tax Rates, Schedules and Tariff Headings of Commodities Covered by TRAIN Law, Customs Memorandum (Phil. 2018)
Related Laws
- Tax Reform for Acceleration and Inclusion (TRAIN) LawPrimer on Republic Act No. 10963 • Other Rules and Procedures
- Transitory Guidelines Relative to the Implementation of Republic Act No. 10963, Otherwise Known as the Tax Reform for Acceleration and Inclusion (TRAIN) Specifically Sections 148, 149, 150-B and 151 Thereof, Governing Excise Tax on Petroleum Products, Automobiles, and Sweetened Beverages, Pending the Issuance of the Implementing Rules and RegulationsRevenue Operations Memorandum No. 2018-01-03 • Jan 8, 2018 • Other Rules and Procedures
- Rules and Regulations Implementing the Imposition of Excise Tax on Non-Essential Services Introduced by Republic Act No. 10963Revenue Regulations No. 02-19 • Feb 20, 2019 • Other Rules and Procedures
- Guidelines on the Assignment and Re-Assignment of Revenue Officers Involved in Excise Tax Functions to Establishments Where Articles Subject to Excise Tax are Produced or KeptRevenue Memorandum Order No. 026-17 • Jun 14, 2017 • Other Rules and Procedures
- Guidelines in the Imposition of Fines for Breach of Tariff RatesInsurance Circular Letter No. 2018-67 • Dec 28, 2018 • Other Rules and Procedures
- Circularizing Copy of Republic Act No. 10963 and President Duterte's VETO Message to the TRAIN ActRevenue Memorandum Circular No. 104-17 • Dec 28, 2017 • Other Rules and Procedures
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