2018.05 -Olo MEMORANDUM TO FROM SUBJECT DATE GkSter copy REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF CUSTOMS MANILA 1099 South Harbor, Cate Par Aras, Mani ALL DISTRICT AND SUBPORT COLLECTORS ALL CHIEFS, FORMAL ENTRY DIVISION ALL FORMAL ENTRY DIVISION PERSONNEL ALL OTHERS CONCERNED A IES A. DY BUCO. Deputy Commissioners Assessment and Operations Coordinating Group Guidelines on Excise Tax Rates, Schedules and Tariff Headings of Commodities Covered by TRAIN Law. May 8, 2018 4 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. Page 1 of 12018.05 -Dile pr Ez. MASTER COPY- ‘Jen. 1, 2018) AUTOMOBILE ‘Automobile ‘Note: Hyorid cars shall be taxed hal the TARIFF COMMISSION CLASSIFICATION DESCRIPTION PRIOR TO THE LAW ee UNDER THE TRAIN LAW. See a IWAN RC Leon (Wow schedule undor TRAIN Law) |Up to P600 Thousand (MSPIISP) 29% ofthe MSPISP Up to P00 Thousand (MSPISP) (effective ‘49% (based on MSPISP) Heacing 87.02, Heading 87.03 12,000 + 20% of value in ox 600,000 (based on MSP: lover P600 Thousand to PA.1 Millon ‘Mere than P60 Thoussne to Pr (effective Jan. 1,201 410% (based on MSPIISP) Heading 87.02, Heading 87.03 112,000 + 40% of value in excess of P11 lover 1.1 Millon to P2.1 Milion eee More than P1 Mion to 4 Nation (fective sen. 1, 2018) 20% (based on MSPIISP) Heacing 87.02, Heading 87.03 112,000 + 40% of value in excess of P11 over Mion Millon (based on MSPIISP) ‘More than 4 Millon (effective Jan. 1, 2018) {50% (based on MSPIISP) Heading 87.02, Heading 87.03 OTHER PRODUCTS DESCRIPTION PRIOR TO THE LAW UNDER THE TRAIN LAW TARIFF COMMISSION CLASSIFICATION BASED ON AVAILABLE INFORMATION Metalic and Nor-Metallc Minerals 2% based on dutable value 4% based on dutable value Heading 25.01 to 25.30 except 25.23, Hescing 26.01 028.17 *Note- Cement materials but not the finished product is excisable such as “Limestone for cement manufature Shale Clay -Sillea sand for cement.201%..05- O16 p-3 Kite MASTER Copy Incigonous ois, locally extracted hydrocarbon gas, minerals ols 3% based on the {6% based on the Intemational far value 2710.19.90 - mineral ols 2705.00.00 hyérocarbon gas "indigenous offs” cannot be classified based on description alone; need Information on the complete chemical Jcompostion and process of manufacture '3803.00.00 for perfumes anc toliet waters Non-essentel goods (e, perfumes, tlet waters, pleasure yachts jewels) 20% based on dutsbe value a TOBACCO PRODUCTS DESCRIPTION PRIOR TO THE LAW UNDER THE TRAIN LAW. TAREF COMMRDSION CLASSITICATION BASED ON AVAILABLE INFORMATION 2. Twisted by hend or reduced into ® condtion to be consumed in any manner 2.13 per net kg (Year 2018) 2.13 per net ko (Year 2022) Jotner than the ordinary mode of drying and curing etre Cannot be classified based on product description; Need information on the ‘specific tobacco products covered by these product categories |v. Prepared or pantally prepared with or without the use of any machine or instruments or without being pressed or sweetened 2.08 per net ka Jc. Fine-cut shorts or reuse, scrans, clipping, cuttings, stems and swespings of 2401.20.10; tobacco FADS peretly 2401.30.90, 2.50 per net kg (Year 2022) “PREZ par nati (Wear 20 Jc. Chewing PLT5 pernethg 2403.99.50,2018. DB- O16 p-4 wEkicn COPY TOBACCO, UNSUITABLE IN ANY MANNER Cigars {Ad Valorem Tax of 20% based on the net ‘etal price par cigar, ‘and Specie Tax of P5.85 per cigar 2402.10.00; 2402.90.10 Cigarettes Packed by HandMachine (20 slicks por pack) 90.00 per pack 2402.20.10; 2402.20.20; 2402.20.90; 2402 90.20 FERMENTED LIQUOR DESCRIPTION PRIOR TO THE LAW UNDER THE TRAIN LAW ‘TARIFF COMMISSION CLASSIFICATION BASED ON AVAILABLE INFORMATION [a INP per iter is P50.60 or ass 23.50 per gaug Hoading 22.03 - bears; ter more than PS0.60 23.50 per gauge iter 2206.00.10 - cider or per, Jb. IF NRP per iter th 50 per gauge iter Hie ona ee 2206.00.47 and 2206.00.49 - shandy: Jc. Brewed and sold in small establishments such as pubs, restaurants, ete 32.76 per gauge fer 2208.00.81 and 2206.00.98 other fermented beverages or mutes ‘SPARKLING WINES Je. NRP up to 600 per bottle of 760 mi 282.47 per gauge iter -unchanged- 2204.10.00 Je. NRP is more than PS00 per bottle of 760 mi 916.20 per gauge iter STILL WINES2018. 05-0 p-5 Witten COPY 2208.22. le. With an alcoholic content of 14% or ess 36.10 per Iter gauge 2206.10.10: 90.10 - unchanged- =a b. St wine with an alcaho! content af mote than 14% up to 25% Fotiied wines 2208.2, jth an aloohol content of more than 25% shall be considered ae Distiled Sprit ema perinecaaice 220023 2205.90.20 2204.24.14; 220822.13; 2.20% ad valorem based on NRP, and : Distilled Spirit veteran baoer on -unchanged- 208 20 fem 28.% SWEETENED BEVERAGES DESCRIPTION PRIOR TO THE LAW UNDER THE TRAIN LAW ‘TARIFF COMMISSION CLASSIFICATION BASED ON AVAILABLE INFORMATION [s. Beverages using caloric and non caloric sweeteners Zero Excise tax 6.00 per iter Heading 2202.10.10, 2202.10.90, 2202.91.00. 2202.98.40, 2202.90.50,AD ite COPY 208.05-bile p.e ae 2202.99.90 EXCEPT 2202.99.10 and 2202.99.20; Heading 2008.11.00, 2008.12.00 2009.19.00, 2008.21.00, 2009.29.00, 2009.31.00, 2009.38.00, 2009.87.00, 2009.49.00, 2009.60.00, 2000.61.00 2009.69.00, 2008.71.00, 2009.79.00, Zoro Excise tox 12.00 per iter b. Beverages using high fructose com syrup 2108.00.55, 2108.00.64, 2016.90.65 - powdered concer simple dilaton wit water (powdered 1606.10.00 - cocos ponder with sweeting matter 1806.20 90 and 1808.60.90 chocolate ponder (applicable only to sweetened beverage) LUBRICANT PRODUCTS ‘TARIFF COMMISSION CALSSIFICATION pen ee [BASED ON AVAILABLE INORMATION DESCRIPTION ~anlecd tacne ot someon coed ws asopurnateerenerko erent) | PRODPO ML Ce orKa or Lubricant Ot ana Grasses lbricants possessing & jcosity then ol2018.05 -Ole pF wReien COPY Processed Gas |. Lightest by-product of refined crude cil ane laeneareted from the verious process unt ike crude asters. Hyérodesullurizer & platforms. Composed of pressurized gases like hydrogen, methane, ethane, propane, & lbutane, and use for refinery fuel P.0.50 pern 8.00 pernetL 2706.00.00 Heading 27.11 JPoratin Wax & Potroistum |iertroieum jel) | waxes - any wax obtained from the [petraloum, inelocing paratin wax, Imicrocrystaline was and petroleum jely Petrolaium -fammable, eemicalid mitue of hydrocarbons, having @ meting point usually ranging from a ite below to 2 few degrees labove 37 °C 3.50 per Ka net weight 8.00 per Kg/net weight easing 27:12 JReguler & Unieaded Premium Regular gasoline has a minimum of 81 BOTLTT DOTLIE BOTA ‘2710.42.22 ;2710.12.23 derived from feedstocks, vacuum, botioms, tar and piches roctlar st RON while Premium gasoine has @ P 4.95 periter sm of 5 RON He 2710.12.27 2710.12.28 ; 2710.12.28 lo hydrocarbon quid obtained kerosene aio Zoro excise tax 3.00 perltor 270.1923 |. Kerosene type fuel used for powering jet ae 2740.12.81 2710.12.39 ; 2710.18.81; laviation Gas floral P 367 perlter 4.00 per te Bene - Refers to any (uel used in desel engines en) Diese ue it Ihe most common is a specific fracion Zero excise tax 2.50 per iter 2710.19.71 ;2710.19.72 2710.18.78 distate of petroleum |- Naptha - refers to a numberof diferent ltammable iquis mtures of hycrocaraon: 8 eee sisutation product ftom petroleum or coal tar em 202 Naptha, regular gasoline 8 othe [poling in a certain range f [simiar products of csttation —_|- Gasoline -volatlo muro Pass petmet P7oobet hee Bd 27109400; 2710.98.00 hydrocarbon generally conta 10; 2709.0020 ; 2709.00.00 lamounis of addtves sullble ean 27 oe spark ignition internal combustion engine 2710.18.90 2710.20.00 | Black cold residue obisined mainly by Petroleum Coke Jeracking and carbinizing of petroleum poets Heating 27.04; Heading 27.08 : Heading 27.08 Heading 27.13,20/8-05-olb pF a MASTER COPY LPG except those intanded for rocarbon gases used 2s a 112.00 ; 271 |mouve power land in some cases cyed eee Zero excise tax P 1.00 per tterkg 14.90; 2741.48.00" sats Poseoerata Paco omnta arses sg: arisan et a ay : ne ant ro Ligeia a a areieeoarare7 {Romero soins Vera hag 02 ena Lastrbaprrinoyaiaounte : ste e eu lrg eri eye Ptopent >on ‘risen oe ena Sie Leet Pas ohooh ie too Denatured Alcohol tobe used for |. Stherwise unfit for humen consumption, 0.05 per ter 8.00 porter 2207.20.11 ; 2207.20.18