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 Regulations

January 8, 2018

REVENUE OPERATIONS MEMORANDUM NO. 2018-01-03

 

This Memorandum is issued for the purpose of providing 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 Regulations.

All manufacturers and importers of petroleum products and automobiles which are subject to an increase in excise tax rates, as well as sweetened beverages which are covered by excise tax under the TRAIN shall submit Sworn Declarations of Inventory List in accordance with the prescribed format shown in Annex "A" for Petroleum products, Annex "B-1" — Automobiles, and Annex "C-1'' — Sweetened Beverages for as of December 31, 2017 to Excise LT Field Operations Division (ELTFOD) on or before January 15, 2018. This requirement is in addition to the regular filing of Inventory List as of December 31, 2017 on or before January 30, 2018.

Failure to comply with the submission of Inventory List shall be subject to appropriate penalties. In the case of failure to submit the required Inventory List of Products where the excise taxes were paid at the old tax rates and which are stored at the tax-paid storage depot or facilities prior to January 1, 2018, the same shall be subjected to the new excise tax rates.

Within fifteen (15) days from the end of the required period of submission of duly notarized inventory lists, the BIR shall validate the said lists through the conduct of actual stocktaking.

A. Sweetened Beverages

1. All manufacturers and importers of sweetened beverages shall update their Certificate of Registration (BIR Form No. 2302) using BIR Form 1905 to add an excise tax type at the Large Taxpayers Service for large taxpayers and at the Revenue District Office where registered for non-large taxpayers on or before January 31, 2018.

2. For sweetened beverages, local manufacturers shall use downloadable BIR Form No. 2200-S which can be manually filed upon payment of advance deposit and removals of excisable products from the place of production. It is also required to submit the summary list of transaction of Excise Tax Removal Declaration (ETRD), Delivery Receipt/Sales Invoice/Transfer Slips (as supporting attachments to the BIR Form 2200-S) to its designated email address at [email protected]

3. All manufacturers and importers of sweetened beverages are required to:

a) Secure Permit to Operate as Manufacturer/Toll Manufacturer/Importer of Sweetened Beverages whether registered as large taxpayers or non-large taxpayers at ELTRD on or before January 31, 2018.

b) Secure an Authority to Release Imported Goods (ATRIGs) at the Excise LT Regulatory Division (ELTRD) before release of shipment from customs custody. In the meantime that Sweetened beverage is not yet included in the National Single Window System of the Bureau of Customs, a manual form application or ATRIG (Annex "D") shall be used instead until such time that sweetened beverage shall have been included in the NSW.

c) Submit to the ELTRD copy furnished ELTFOD notarized list of existing and new locally manufactured and imported brands subject to excise tax for purposes of registration of said brands on or before January 31, 2018.

d) Requisition the following forms to the ELTFOD to be used in supporting the removal of excisable products: (1) Excise Tax Removal Declaration (ETRD) and (2) Withdrawal Certificates (WC).

B. Petroleum

1. The accounting of inventories of petroleum products as of December 31, 2017 at tax-paid storage depots or facilities shall be liquidated and accounted for on a "First-In First-Out" (FIFO) method of inventory.

2. All Withdrawal Certificates issued covering the removals of petroleum products subject to the old or previous tax rates products shall be prominently stamped with the phrase "STOCKS ON HAND PRIOR TO APPLICABLE DATE OF EFFECTIVITY." The removals of finished goods where the accompanying Withdrawal Certificate/s do not bear such information shall be subject to the new excise tax rates imposed under these Regulations at the time of its actual removal, even if the same were taken from the old or previous inventory.

For your information and immediate compliance.

 

(SGD.) CAESAR R. DULAYCommissioner of Internal Revenue

 

ANNEX A

Certificate of Stock InventoryAs of December 31, 2017

ANNEX B-1

Certificate of Stock Inventory(For Manufacturer/Assembler)

ANNEX B-2

Certificate of Stock Inventory(For Manufacturer/Assembler)

ANNEX B-3

Certificate of Stock Inventory(For Manufacturer/Assembler)

ANNEX C-1

Certificate of Stock Inventory(For SB Manufacturer)

ANNEX C-2

Certificate of Stock Inventory(For SB in Process Account)

ANNEX C-3

Certificate of Stock Inventory(For Finished Goods Accounts)

ANNEX D

Application for Authority to Release Imported Goods (ATRIG)Sweetened Beverages(Excise/Value Added Tax)