The Bureau of Internal Revenue (BIR) has recently issued Revenue Regulations 10-2021 to amend certain provisions of Section 10 of Revenue Regulations 20-2018. Under RR 10-2021, the removal of sweetened beverage products intended for export shall be subject to the payment of excise tax by the manufacturer due on every removal thereof from the place of production. After payment of tax, the taxpayer at its option may:
a. File a claim for excise tax credit/refund; or
b. Avail of a claim for product replenishment scheme.
Under Section 6 of RR 3-2008, availment of claims under the product replenishment scheme shall be subject to the following terms and conditions:
a. A permit shall be per shipment secured from the BIR Office where the manufacturer is registered or required to be registered as an excise taxpayer before the product is removed from the place of production
b. Products removed from the place of production shall be directly transported, loaded aboard the international shipping vessel or carrier, and shipped directly to the foreign country of destination without returning to the Philippines
c. Proof of exportation shall be submitted within 30 days from the date of actual exportation. However, the concerned BIR Office may grant a one-time extension of a maximum of 30 days upon written request of the taxpayer-exporter
d. A printed label of “EXPORTED FROM THE PHILIPPINES” should be attached/affixed on the primary container in a recognizable and readable manner
Failure to submit proof of exportation within the prescribed period shall be construed as non-exportation of articles and the same shall be subjected to corresponding applicable tax, inclusive of penalties. Subsequent issuance of export permits shall not be allowed unless the assessed applicable tax due on such unliquidated exports, including the applicable penalties, have been paid.
Please be guided accordingly.
P&A Grant Thornton
Certified Public Accountants