RR No. 7-2014: Prescribes the affixture of Internal Revenue Stamps on imported and locally manufactured cigarettes and the use of the Internal Revenue Stamp Integrated System (IRSIS) for the ordering, distribution and monitoring thereof

Key points

1. IRSIS enrollment. Importers and local manufacturers file a letter of intent with the Chief, Excise LT Field Operations Division, with a notarized Board Resolution (juridical entities) or a Special Power of Attorney (sole proprietors) naming authorized representatives. Enrollment is then done through the IRSIS icon on the BIR website, and approval comes by email.
2. Ordering and excise tax payment. Orders are placed only through the IRSIS stamp ordering module, and approved orders cannot be cancelled or changed. The excise tax on the stamps ordered must be paid first through eFPS, or by manual filing of BIR Form No. 2200-T through Authorized Agent Banks when eFPS is unavailable.
3. Price and release of stamps. The price is P 0.13 per piece, paid to APO after order approval and before release. Stamps are released to authorized representatives within fifteen (15) calendar days from the scheduled release date, and unclaimed stamps may incur reasonable storage fees.
4. Spoiled stamps and exports. Spoiled or bad order stamps must be surrendered to the BIR within set periods, and replacement is barred in the listed cases, such as failure to surrender or unaccounted stamps. For export cigarettes, stamps of the destination country may be used if that country requires them and the listed certification and documents are submitted; the price is then P 0.03 per piece.
5. Affixture, surveillance and prohibitions. The stamp is affixed on the upper portion of the immediate container so that it seals the opening, on a first-in-first-out basis. The BIR may conduct on-the-spot surveillance with mobile verification devices, and possessing, selling or re-using previously affixed stamps is prohibited and makes the persons involved jointly and severally liable for the excise tax.
6. Transitory dates. All locally manufactured packs must carry the new stamps no later than October 1, 2014. Imported cigarettes need the new stamps effective January 1, 2015, and all cigarettes made in or imported into the Philippines must carry them effective February 1, 2015.

Who is affected

• Importers of cigarettes
• Local manufacturers of cigarettes
• Manufacturer-exporters of cigarettes

Deadlines and effectivity

• Locally manufactured packs: no later than October 1, 2014
• Imported cigarettes: effective January 1, 2015
• All cigarettes: effective February 1, 2015
• Inventory report: within 15 calendar days after effectivity