RR No. 07-2002: Rationalizes the issuance of permits by the Bureau of Internal Revenue to establisments subject to Excise Tax

Key points

1. Who must revalidate. All taxpayers engaged in manufacture, production and importation of articles subject to Excise Tax, including dealers of leaf tobacco and manufacturers of cigarette and tipping papers, must surrender their original permits.
2. Permits covered. These are the permit to operate as a manufacturer, producer, trader and/or importer; the permit to operate and maintain a bonded storage facility/warehouse; the permit on changes to the designated place of production and/or storage facilities; and other permits that cover continuing transactions and set no definite expiration date.
3. Application. The application with the original permit goes to the offices specified in the Regulations on or before July 31, 2002. For permits on changes of production or storage place, a revised or updated plat and plan is attached.
4. Outcome. Revalidation is done by issuing a new permit after the prescribed evaluation. A notice of revocation is issued to taxpayers whose applications are denied.
5. Missing original permit. A person who cannot present the original permit must re-apply for registration with the specified offices on or before the surrender deadline.
6. Failure to apply. A covered taxpayer who does not apply for revalidation by the deadline is considered operating without a valid permit. Appropriate penalties under existing laws, rules and regulations apply.

Who is affected

• Manufacturers, producers and importers of articles subject to Excise Tax
• Dealers of leaf tobacco
• Manufacturers of cigarette and tipping papers

Deadlines and effectivity

• Revalidation application and surrender of original permit: on or before July 31, 2002