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RMC No. 56-2007: Publishes the full text of Department Order No. 23-07 entitled “Mandating the Marking of Imported Kerosene and Fuel Oils Which are Entered Tax and Duty Free to Prevent the Unauthorized Diversion Thereof Into the Domestic Market and for Other Purposes”

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Summary

RMC No. 56-2007 publishes the full text of Department Order No. 23-07 dated July 26, 2007, which mandates the marking of imported kerosene and fuel oils entered tax and duty free, to prevent their diversion into the domestic market.

Key points

  1. What must be marked. All kerosene, including dual purpose kerosene, subject to zero Excise Tax, and all imported diesel oil for which exemption from duties and taxes is claimed, must be marked with the official marking agent designated by the DOF.
  2. Who marks and pays. The owner, consignee or person bringing in the kerosene causes the marking. For diesel oil, the importer, manufacturer or refiner does so. The responsible person bears the marking cost.
  3. Sanctions and presumption. Failure to mark within 15 days from due notice brings sanctions under the Tariff and Customs Code and other laws. Marked diesel oil or zero-excise kerosene found in the domestic market or otherwise subject to duties and taxes is presumed imported or withdrawn to evade payment, unless disproved by valid documents or other evidence.
  4. Pilot implementation. The Bureau of Customs implements marking on a pilot basis at the Subic Bay Free Port and the Clark Special Economic Zone, and at the Port of Batangas for imported kerosene. The BOC reports monthly to the DOF, with the aim of a nationwide program.
  5. Program Implementation Officer. A PIO headed by a DOF Senior Officer, with the Commissioners of Customs and Internal Revenue or their representatives as members, supervises the program. It must start the pilot on or before August 15, 2007, finish it within three (3) months, and submit monthly reports and a nationwide roll-out recommendation.

Who is affected

  • Owners, consignees and importers of exempt kerosene
  • Importers, manufacturers and refiners of exempt diesel oil

Deadlines and effectivity

  • Pilot to start on or before August 15, 2007
  • Pilot test to be completed within three (3) months from commencement
  • Marking to be done within 15 days from due notice

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.