RMO No. 16-2023: Prescribes supplemental guidelines and procedures on the implementation of RMO No. 40-2022

Key points

1. Covert surveillance. BIR STRIKE Group personnel may conduct it under a Mission Order signed by the DCIR-OG, ACIR-LTS or concerned Regional Director. They observe operations, identify suppliers and buyers, may do test-buys, and report within twenty-four (24) hours. A Memorandum Report then recommends enforcement action if reasonable grounds exist, and the Mission Order for enforcement is prepared within forty-eight (48) hours.
2. Overt surveillance and service of the Mission Order. Overt surveillance also needs a Mission Order and relies on surprise. Mission Orders are issued in quadruplicate and served personally, or by substituted service only if the subject is not at the specified place, proven by an Affidavit of Service. A Checklist of Documentary Requirements is presented with it, to be submitted within two (2) days.
3. Inventory and seizure. The inventory count is attended by the Strike Team, a photographer or videographer, and the subject or representative, and the subject’s absence does not invalidate it. Illicit items are seized and covered by an Apprehension Slip (BIR Form No. 0423), with a copy given to the subject.
4. Demand, collection and assessment. A Demand to Comply is issued within seven (7) days from receipt of the last Apprehension Slip. If the subject does not comply or disagrees, a Collection Letter follows within five (5) days. No Preliminary Assessment Notice is issued where excise due has not been paid under Section 228, and an unsettled amount leads to a Final Assessment Notice and Formal Letter of Demand.
5. Evidence, settlement and legal action. A final Memorandum Report is prepared within seven (7) days from the last Apprehension Slip, and evidence is turned over to the storage facility under a Certificate of Acceptance. Compromise offers must come from the subject and follow Section 204. Results go to the Prosecution Division for LTS or the Legal Division of the Revenue Region, and remaining apprehended items are destroyed or disposed of at the CIR’s discretion.

Who is affected

• BIR STRIKE Group and Strike Teams
• Persons subject to surveillance and enforcement for unlicensed or unregistered excisable articles

Deadlines and effectivity

• Surveillance report within twenty-four (24) hours after completion
• Mission Order for enforcement within forty-eight (48) hours from the Memorandum Report
• Demand to Comply within seven (7) days from the last Apprehension Slip
• Collection Letter within five (5) days