RR No. 10-2021: Amends pertinent provisions of Section 10 under RR No. 20-2018 relative to the outright exemption granted to the exportation of Sweetened Beverages products

Summary

RR No. 10-2021 amends Section 10 of RR No. 20-2018 on exporting Sweetened Beverages products: excise tax is paid on every removal, after which the manufacturer may claim a credit, refund or product replenishment.

Key points

1. Tax on removal and claim options. Excise tax is due from the manufacturer on every removal of Sweetened Beverages products for export. After paying, the manufacturer may claim an excise tax credit or refund under Sections 204 and 229 of the NIRC, or a product replenishment under Sec. 6 of RR No. 3-2008 dated January 22, 2008.
2. Permit and shipping rules. A permit per shipment must be secured from the BIR Office where the manufacturer is registered before removal. The products must go directly to the international vessel or carrier and be shipped to the foreign destination without returning to the Philippines.
3. Proof of exportation. Proof is submitted within thirty (30) days from the actual date of exportation, with a one-time extension of up to 30 days for meritorious reasons on written request. Documents include the Export Entry Declaration, Commercial Invoice, Packing list, Bill of Lading, Cargo Manifest if applicable, inward bank remittance in foreign currency, and proof of arrival at the foreign port.
4. Label and failure to prove export. Each label on the primary container must print ‘EXPORTED FROM THE PHILIPPINES’. Failure to submit proof in time is treated as non-exportation, so the applicable tax and penalties apply, and no later export permits are issued until that assessed tax is paid.

Who is affected

• Manufacturers of Sweetened Beverages products intended for export

Deadlines and effectivity

• Proof of exportation: within thirty (30) days from actual exportation
• One-time extension: maximum 30 days

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