RMO No. 38-2003: Prescribes the uniform guidelines and procedures in the processing of various permits for Excise Tax purposes

Summary

RMO No. 38-2003 prescribes uniform guidelines and procedures for processing various permits for Excise Tax purposes.

Key points

1. Where to file applications. Applications for Permit (BIR Form No. 1940) of Large Taxpayers Service taxpayers and branches, and of non-large taxpayers with head office or principal place of business in Revenue Region Nos. 4, 5, 6, 7, 8 and 9, are filed with the Large Taxpayers Assistance Division (LTAD) II at the BIR National Office. Transactions affecting branches go to the EXTAs with jurisdiction over those branches. Non-large taxpayers in other regions file with the Head, EXTA of their Revenue Region.
2. Filing through the RDO. If the place of business is far from the EXTA Office, the taxpayer may file with the Revenue District Office having jurisdiction over the principal place of business. The RDO sends the application and supporting documents to the EXTA within 24 hours from receipt.
3. Plants, warehouses and bonds. Permits to operate a manufacturing plant, or to sell or import excisable articles requiring a warehouse, and amendments to approved plat and plan, are not approved until all regulatory requirements are met. These include equipment installation, determination of maximum production capacity, calibration of storage tanks, test-runs and final inspection. Surety bonds are not required from the applicant until all regulatory requirements are met before issuance, and no continuing or transactional permit is released unless the required surety bond is posted, updated, upgraded or renewed.
4. Transactions already consummated. Applications for permits, other than permits to operate as an excise taxpayer and other continuing permits, covering transactions already consummated are no longer processed, and penalties and sanctions apply. For continuing transactions begun without permits, the issuing Office may still issue the permit, effective on the date of actual issuance or approval and subject to applicable penalties.
5. Renewals and export permits. Renewal applications are denied if conditions in the previous permit were not met. For export permits, the officer checks whether proofs of exportation were submitted within the 30-day period of the previous permit. If not, excise tax and penalties are assessed and collected, and proof of payment of the deficiency is required before a later export permit is processed.
6. Post-review. All permits issued under the Order may be post-reviewed or evaluated at any time by offices authorized by the Commissioner or the Deputy Commissioner for Operations.

Who is affected

• Large Taxpayers Service taxpayers and their branches
• Non-large taxpayers applying for excise permits

Deadlines and effectivity

• RDO transmits applications to the EXTA within 24 hours from receipt
• Proofs of exportation within the 30-day period of the previous permit

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