RMC No. 94-2020: Circularizes Joint Memorandum Order No. 1-2020 prescribing the implementing guidelines for the collection and disbursement of Fuel Marking Fees pursuant to DOF-DBM-COA Permanent Committee Joint Circular 001.2018, and payment of Fuel Marking Fee using BIR Form No. 0623

Key points

1. Collection and pre-payment. Under Section 148 of the NIRC, the BIR collects the FMF together with the internal revenue taxes on petroleum products subject to marking. For locally refined or manufactured products, the refiner pays the FMF and taxes before the marking, so pre-payment is authorized.
2. Payment form and deposits. The refiner or manufacturer uses the Fuel Marking Fee Form (BIR Form No. 0623), which shows the VAT component for reference. If the balance is not enough for the volume to be marked, an additional deposit is made first. Refiners forecast their removals and deposit enough for not less than 3-5 calendar days of future removals.
3. Computation. A volume allowance covers the biofuel requirements of RA No. 9367. Gasoline is Declared Volume x 110% x Php 0.06884 (VAT inclusive), diesel is Declared Volume x 102% x Php 0.06884, and kerosene is Declared Volume x Php 0.06884.
4. Start of collection. The Bureau of Customs and the BIR begin collecting the FMF on manufactured, refined or imported petroleum products withdrawn or logged beginning September 4, 2020.
5. Handling of the fee. The FMF is non-revenue collection, recorded as trust receipts and credited to the Fuel Marking Trust Account kept by the Bureau of Treasury. The Bureau of Customs pays the Fuel Marking Provider at P0.06884 per liter from that trust receipt, for the second through the fifth year of the Fuel Marking Program.
6. Billing documents for BIR jurisdiction. These are the BIR Journal Entry Voucher on the FMF collected, the BTr Journal Entry Vouchers on the transfer to the Fuel Marking Trust Fund, and the BIR Validation Report and Indorsement for payment. A Delivery Receipt signed by the BIR is also required.

Who is affected

• Refiners and manufacturers of petroleum products subject to fuel marking
• Importers of petroleum products

Deadlines and effectivity

• Collection starts for products withdrawn and/or logged beginning September 4, 2020
• Deposit sufficient for not less than 3-5 calendar days of future removals