RMC No. 105-2023: Provides clarification and guidance on the affixture of internal revenue stamps on vapor products pursuant to Section 9 of RR No. 18-2021 and Section 4 (H) of RR No. 14-2022

Key points

1. Affixture. All importations and removals from the place of production of vapor products carry the prescribed stamp. It is placed on the top of the immediate, exposed container, overlapping the intended opening so the container cannot be opened without breaking it, and before any cellophane wrapper. The container must have no other opening and must still comply with health warning requirements.
2. Stamps and excise tax. One (1) tax stamp is affixed on every container. Seven (7) container types are prescribed, with excise tax of P52.00 per ml for nicotine salt (for example, P520.00 for 10 ml) and P60.00 per 10 ml for conventional freebase (for example, P180.00 for 30 ml).
3. Price of stamps. Before release from the APO plant, the manufacturer or importer pays APO Production Unit, Inc. P1.00 per stamp for a minimum of 1,650,000 pieces per order, or P2.50 per stamp for a minimum of 165,000 pieces per order.
4. Official Register Book. The taxpayer records the range of Unique Identifier Codes of stamps received and affixed, and submits the transcript sheets to the LTPMPD or concerned Excise Tax Area on or before the eighth (8th) day of the following month.
5. Transitory provisions. On effectivity, manufacturers, importers and distributors submit a signed inventory list within fifteen (15) calendar days, and local manufacturers and importers enroll in the Enhanced IRSIS with stamp orders submitted within fifteen (15) days. Effective June 1, 2024, containers must have only one opening and all vapor products must carry the stamps.
6. Penalties. Violations are penalized under the pertinent provisions of RR No. 18-2021 and RR No. 14-2022.

Who is affected

• Local manufacturers and importers of vapor products
• Distributors of vapor products

Deadlines and effectivity

• Effective immediately
• Inventory list and IRSIS enrollment within fifteen (15) days of effectivity
• From June 1, 2024: single-opening containers and stamps on all vapor products