RMC No. 85-2019: Circularizes the full text of Joint Circular No. 001-2019 of the DOF, BIR and BOC entitled “Prescribing the Implementing Guidelines of the Fuel Marking Program pursuant to Republic Act No. 10963 (TRAIN Law)”

Key points

1. Collection of fees. The BIR and BOC collect the Fuel Marking Fees at the same time as internal revenue taxes on petroleum products. The BIR collects for locally refined or manufactured petroleum, and the BOC collects for imported petroleum products.
2. Field testing and searches. The BIR supervises field testing in refineries and attached depots, gasoline stations and other retail outlets, and the BOC supervises it in other areas such as vessels, depots, warehouses and tank trucks. The nearest BIR or BOC Officer may stop and search a vessel or vehicle, or enter and search a facility, on reasonable cause, verified information or probable cause of unmarked, adulterated or diluted fuel.
3. Marking of fuel. The BIR ensures locally made gasoline, diesel and kerosene are marked with the Official Fuel Marker before removal from the refinery, and the BOC ensures imported products are marked before release from Customs custody or removal from tax-paid storage. Only products for domestic consumption with proof of tax payment are marked, only by specialists authorized by the Fuel Marking Provider (FMP).
4. Marking process. Marking is done in the presence of oil company or depot representatives, who request it at least two (2) calendar days before manual marking or at least eight (8) hours before automated injection. The FMP issues a Certificate of Marking in duplicate, and marked fuel cannot be stored or commingled with unmarked fuel.
5. Presumptions and penalties. Fuel found without the official marker or below the required level in the domestic market is presumed withdrawn or imported to evade taxes and duties. Excise taxes with penalties are assessed, without prejudice to confiscation, forfeiture and criminal action, and a confirmatory test by the FMP laboratory produces certificates that are conclusive evidence before any court.
6. Stocktaking and testing. Upon effectivity, stocktaking is conducted on all tax-paid gasoline, diesel and kerosene in depots and terminals. Six (6) months after the roll-out of the Program, all petroleum products in the domestic market, including those in storage tanks, depots and terminals, are tested for compliance.

Who is affected

• Refiners, manufacturers and importers of petroleum products
• Oil companies, depots and transporters
• Fuel Marking Provider

Deadlines and effectivity

• Marking request at least two (2) calendar days before manual marking
• Marking request at least eight (8) hours before automated injection
• Testing of all petroleum products six (6) months after roll-out of the Program