RMC No. 21-2021: Circularizes Joint Circular No. 001-2021 which prescribes the Implementing Guidelines for Field Testing Under the Fuel Marking Program pursuant to RA No. 10963 (Tax Reform for Acceleration and Inclusion [TRAIN] Law)

Key points

1. Field Inspection Unit. The Field Inspection Unit (FIU) is the joint BOC and BIR special task force that performs Field Testing. It is deputized under Sections 15 and 171 of the NIRC and Section 214 of the CMTA for search, seizure and arrest, and Paragraph 1 of Section 3.2 of DOF-BIR-BOC JC No.1-2019 is deleted.
2. Conduct of Field Testing. A Field Testing Plan is sent to the FIU by 8:00AM of the testing day, and a Mission Order authorizes testing. Testing covers places where fuel is transported, sold or stored, and the owner or representative fills out the Field Testing Information Form and gives the listed documents.
3. Sampling. The Service Provider, witnessed by the owner or representative and the FIU, collects 500 ml samples of gasoline, kerosene and/or diesel from underground or storage tanks, pumps of single-product source tanks after fueling a vehicle, or all compartments of tank trucks, vessels or barges.
4. Non-compliant fuel. Fuel without the Official Fuel Marker, or with less than the required level, is subject to duties, taxes, fines and penalties, and may be confiscated and forfeited. The FIU impounds it on site pending payment, and corrective measures under Section 8 of the Joint Circular follow payment, at the owner’s cost.
5. Product testing and penalties. The Service Provider samples and tests marked fuel at refineries, terminals, depots and similar facilities at the fuel owner’s cost, issuing a Certificate of Product Testing. Offenses are also punishable under Section 265-A of the NIRC, as amended.
6. Reports and quarantine rules. The Service Provider submits monthly reports electronically to DOF, BIR and BOC, and BOC and BIR maintain a dashboard of locations tested and their pass or fail results. During community quarantine, the IATF-EID Omnibus Guidelines and protocols are observed.

Who is affected

• Fuel owners and their representatives
• Fuel Marking Service Provider
• Field Inspection Unit officers of the BOC and BIR

Deadlines and effectivity

• Field Testing Plan sent to FIU no later than 8:00AM of the testing day
• Service Provider reports monthly or as frequent as necessary