RMC No. 24-2012: Clarifies the issue on the maintenance and submission of Official Register Books on tax-paid petroleum products stored on formerly bonded storage facilities

Key points

1. Earlier requirement. Earlier issuances and permits required certain storage facilities and terminals to keep ORBs and regularly submit transcript sheets to the BIR. This included blending facilities for lubricating oils and greases owned and operated by oil companies.
2. Source of the confusion. RA No. 8424 imposed Excise Tax on the major raw materials for lubricating oils and grease, so the finished products are no longer subject to Excise Tax. RR No. 8-2006 introduced the Product Replenishment scheme, which unbonded formerly bonded facilities. These seemed to create the impression that ORBs were no longer required.
3. Requirement remains. No revoking issuance has been issued, so the administrative requirements stay in effect. Taxes on stored products may already be paid or subject to P 0.00 rate, but taxes on all products stored and handled in the facilities must still be properly paid.
4. Directive. Concerned oil companies are strictly enjoined to maintain ORBs and submit the transcript sheets. Revenue officials and employees monitoring these facilities must require submission of the ORBs and transcript sheets for the preceding three (3) years.

Who is affected

• Concerned oil companies
• Revenue officials and employees monitoring the facilities

Deadlines and effectivity

• ORBs and transcript sheets for the preceding three (3) years