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ICMe Memo ^o. 2.2. .2192, ! ~* MAXA^ONG ADUANA, MATATAG NA EKONOAAIYA

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To ALL DISTRICT COLLECTORS

ALL SUB. PORT COLLECTORS
,,, I' 8001/1691s
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ALL CONCERNED

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FROM
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A IDirector,
S IN M. Legal0^ILLOS-"APA^,
Service

S U 81 ECT IMP TATIONS OF VARIOUS CAPITAL EQUIPMENT

OF EXISTING BOARD OF INVESTMENTS (BOl)
REGISTERED BUSINESS ENTERPRISE

DATE 02 AUGUST 202,

The Department of Finance (DoF) issued a letter from Aritonette C, Tionko,

Undersecretary* Revenue Operations Group (attached hereto as Annex A) in relation
to the importations of various capital equipment of existing Board of Investments
(BOl)-registered business enterprise.

In the said letter, Usec. noriko indicated that on I I June 2021 , a letter from the
Commissioner was received by the FIRB Secretariat seeking guidanco on whether
importations of various capital equipment of existing BOl-registered business
enterprises may be released using as basis CMO No. 07-2020 (Interim Procedure on
Provisional Goods Dedaration) pending the finalization of the CREATE IRR, wherein
under the said CMO, a posting of the required bond equal to the amount of taxes
and/or duties due is needed for the provisional release of imported goods but which
bond will be released upon submission of the proof of exemption (of the duties)
information within 45 days from said release of imported goods.

Notably, it was mentioned that the proof of exemption that these BOl-registered
entities should submit to the Bureau pertains to the Certificate of Authority to Import
(CAI) that the BOl shall issue upon effectivity of the CREATE IRR, which bridges the
gap from the repeal of E. 0. No. 85, series of 2019 and the transitory provisions under
the CREATE A6t PIOvidirig, to wit:

RULE 18, Section 5.1, on. Income related tax incentives. - All
re is tored 'business ente 'ses that will continue to avail of their
exist in tax incentives subject to Sections I, 2 and 3 of this Rule,
Ina continue to en'b the du exem tion until the e jintion of tile
CAI/A. dinission En or' until the e iration of the transito eriod

A Madernized Grid Cadib!e CUSI^Its Admini^, offon Thai ts furlong the World^ Best
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 MASTER COPY
RCMG Memo No. ^.^ , 21. -0 2, ,! I , 2. .

under Sechon 311 of 11'1e Code Provided, that the VAT exemption
on importation and VAT zero-rating on local nurchases shall only
a to cods and services of and exdusive used in the
istered o' or adj ' wilt'I the concorned IPA' Provided
further that, transactions jamg under Section I 06 (A)(2)(a)(3), (4),
and (5) and Section 108 (B)(I) and (5) of the Code, as amended,
shall be subjcot to lite twelve percent (, 2%) VAT pursuant to
Revenue Regulations No. 09-202, . Provided finally, that excess
input taxes aiributable to zero-rated sales by VAT-registered RBEs.
may at the RBE's option, be refunded or applied for a tax credit,
subject to the guidelines provided under Revenue Regulation No
13-2018, as amended,

After the e>(piration of the transitory period under Section 31 I of the

Code and without prejudice to Rule 3, Section 3, all applicable taxes
shall apply.

Further, Usec, Tionko stated that considering, however, that the CREATE IRR
has already been issued, the BOl can proceed with the issuance of the CAI on subject
capital equipment importations of existing BOl-registered enterprises whose
entitlement of the duty exemption thereon has been extended until the expiration of
the transitory period under Section 311 of the Code, further suggesting that the Bureau
require tile submission of the CAI by the importers under the circumstances,
Therefore, the Bureau shall require the submission of the CAI by the importers
as a requirement for the release of importations of various capital equipment of
existing BOl-registered business enterprises.

For your information and strict compliance.

A Modernized Grid Credib!e Customs Admim^, runon 7,101 is furlong the World's Best
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 11/16 Mono No. 2.2 - 24)2-' I - 3
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* 11T OF ^,^

Q- ^ Republic of the Philippines R'S ~

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DEPARTMENT OF FINANCE o^.
Roxas Boulevard Comet Panlo Ocarnpo, Sr. Street ~ ~ ~'
\*,,,,,*./ Manila 1004

23 June 2021
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HON. REY LEONARDO B. GUERRERO

Commissioner
Bureau of Customs ^^
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Port Area, Manila

boc. ocom customs. ov. h
^..,^il

Dear Commissioner Guerrero:

I^I^^ 800,922^^I
I^^.^r,

This refers to your letter dated 25 May 2021 which was received by the FIRB
Secretariat on 11 June 2021 seeking guidance on whether importations of various
capital equipment of existing BOl-registered business enterprises may be released
using as basis CMO No. 07-2020 (!riterim Procedure on Provisional Goods
Declaration) pending the finalzation of the CREATE IRR.
We understand that the BOl sought the 80C Commissioner's help in releasing subject
imported capital equipment pursuant to the rules permitting provisional release o
imported goods upon posting of the required bond equal to the amount of taxes and/or
duties due thereon but which bond will be released upon submission of the proof of
exemption (of the duties) information within 45 days from said release of imported
goods. The proof of exemption that these BOl-registered entities should submit to the
80C pertains to the Certificate of Authority to Import (CAI) that BOl shall issue upon
effectivity of the CREATE IRR which bridges the gap from the repeal of E0 85, series
of 2019 and the transitory provision under the CREATE Act providing, to wit:
RULE , 8, SECTION 5. Non-income related tax incentives. - All re istered business
enter rises that will continue to avail of their existin tax incentives subject to Sections
I, 2 and 3 of this Rule, ina continue to en'o the du exem tion untillhe ex iration
of the CAI/Admission Ent or until the ex iration of the transito eriod under Section
311 of the Code Provided, that the VAT exem tion on jin on ation and zero-ra ing
on local urchases shall on I a I to o0ds and services directl and exclusiveI used
in the re istered roect or activi of the ex rt ente rises dunn the eriod of
re istration of the said r is tored ro'ect or activi with the concerned IPA. Provided
further that, transactions falling under Section 106(A)(2)(a)(3), (4), and (5) and Section
108(B)(I) and (5) of the Code, as amended, shall be subject to the twelve percent
(12%) VAT pursuant to Revenue Regulations No. 09-2021. Provided finally, that
excess input taxes atin but able to zero-rated sales by VAT-registered RBEs, may at
the RBE's option, be refunded or applied for a tax credit, subject to the guidelines
provided under Revenue Regulation No. 13-2018, as amended.
After the expiration of the transitory period under Section 311 of the Code and without
prejudice to Rule 3, Section 3, all applicable taxes shall apply.
aJ OF'
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 RC"6 Memo No. 02 - a. ,^C) 3, ^, I- I MASTE COPY

Considering, however, that the CREATE IRR has already been issued, I we believe
that the 801 can proceed with issuance of the CAI on subject capital equipment
importations of existing BOl-registered enterprises whose entitlement of the duty
exemption thereon has been extended until the expiration of the transitory period
under Section 31 I of the Code.

Accordingly, we suggest that the BOC require the submission of the CAI by the
importers under the circumstances as they can already secure the same from the BOl
upon effectivity of the IRR.

For your guidance. Thank you.

Very truly yours,

I'/,""""'
ANTONETTE C. TIONKO
Undersecretary
Revenue Operations Group
,
-, ~ 29

, , DEPARTMENr OF FINANCE
a. ,ume allh. Phlnpp!"..

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I copy of the CREATE IRR is accessible at

https:/Iwww. officialgazette. gov. ph/downloads12021/05may1202106,8-1RR-RA-8424-RRD. pdf
Page 2 of 2
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BUREAU OF CUST .
I, ,!;" MR+<ABAGONG ADUANA, MATATAG NA EKONOMIYA
PRC'E5SIO\*LIS'.\ I*. CowllAei. In

I'MG Memo No. .g. .a '^,@2.1 I, 5'

MEMORANDUM

Any. vENER S. BAQuiRAN

.
FOR
Deputy Commissioner

,1 16 7171
Revenue Collectio Monitoring Group

FROM . ATrY. YASSER MAIL A. ABBAS, CESE

Director 111

Imports and Ass sinent Service ^

SUBiECF IMPORTATIONS OF VARIOUS CAPITAL EQUIPMENT OF
EXISTING BOARD OF INVESTMENTS (Boo REGISTERED
BUSINESS ENTERPRISE

DATE July 12,2021

Respectfully forwarded the herein letter dated June 23,2021. from Antonette
C. Tionko, Undersecretary, Revenue Operations Group, Department of Finance, for
Your appropriate action.

A Modernized ond Crechble Customs Adminislrotion flint is Among the World's BeSI
SoulliHe, bar, Sub 3 Purl Areu, "kiri, !a 1099
8577-4537.85?7- ' 935 I *.,". cu, jams. 99*.=h I bcceates@0:, 10.15. go, .pH