All Philippine importers of automobiles released by the Bureau of Customs (BOC) without an accompanying Authority to Release Imported Goods (ATRIGs) from the Bureau of Internal Revenue (BIR) now have until the end of this month to apply for such authority to prevent their vehicles from being impounded.
These vehicles may still be issued ATRIGs until April 30, 2016, according to Revenue Regulation (RR) No. 04-2016 dated April 5. RR 04-2016 amends Section VI of RR 02-2016 dated March 4, which orders a deadline of March 31.
Consequently, RR 04-2016 said all imported automobiles released after April 30 without ATRIGs can be seized under Section 172 263 and 268(C) of the National Internal Revenue Code (NIRC), as amended.
BIR earlier said “a significant number of motor vehicles were released without the required ATRIG which can be seized by the BIR under existing rules.”
However, the agency is giving importers time to secure their ATRIGs before imposing penalties “for practical considerations and for lack of logistical provisions at the BIR, and in order to regularize their documents, imported automobiles that were released from customs custody.”
Issued by BIR and addressed to the commissioner of its sister agency, BOC, an ATRIG allows the release of imported goods from customs custody once applicable taxes are paid or proof of exemption from these payments is shown.
To secure an ATRIG, the importer needs to apply for one with the BIR’s Excise LT Regulatory Division (ELTRD), and to pay the excise and value added taxes.
Taxes are computed based on the rates provided in Section 4 of RR No. 25-032. In turn, these rates are based on the manufacturer’s or importer’s selling price at the time of importation as defined under Section 5, including 50% surcharge and 20% interest reckoned from the date of final import entry and internal revenue declaration.
Section 172 of the NIRC also provides that any revenue officer who believes that the excise tax has not been paid may detain the package containing taxable articles “until it shall be determined whether the property so detained is liable by law to be proceeded against for forfeiture.”
However, the section further states that “such summary detention shall not continue in any case longer than seven days without due process of law or intervention of the officer to whom such detention is to be reported.”
The ATRIG will be issued to cover all importations of articles subject to excise tax (whether exempt or taxable), including the raw materials for their production, as well as the machinery, equipment, apparatus, or any mechanical contrivances used in assembly or production.
It will also be handed out for all importations of articles exempt from VAT, except those articles specifically identified and enumerated in the circular issued jointly by BIR and BOC, as circulated by RMC 48-2002.
The ATRIG should be issued prior to the release of the excisable product from the customhouse. Revenue Memorandum Order No. 35-2002 dated October 28, 2002 details the policies, guidelines and procedures in the processing of ATRIGs.
In particular, for imported automobiles, RR 25-2003 dated September 16, 2003 mandates that, whether for sale or otherwise, all of these vehicles must not be released without payment of the ad valorem tax.
Furthermore, under a BOC and BIR joint order published on May 1, 2004, a certificate of payment will be issued only when an ATRIG for the vehicle is presented.
If the articles covered by an application for an ATRIG have been released from customs custody before the authority is issued, no ATRIG will be issued just to complete the documentation of the importation for BOC purposes, RR 02-2016 points out.
Moreover, BIR issued Revenue Memorandum Order (RMO) No. 12-2016, which provides for the manual issuance of ATRIG under RR 02-2016. BIR said this is “to allow importers, buyers and/or possessors of automobiles for which no ATRIGs have been secured to rectify their omissions and to regularize their documents.”
A Manual ATRIG Form (BIR Form No. 1918) in triplicate copy shall be prepared and issued and signed by the Commissioner of Internal Revenue after verification that all requirements have been fully complied with.
The current “one ATRIG-one automobile” policy that aims to ensure that the importation of automobiles is fully accounted for should prevail, BIR added.
“ATRIGs that have been issued pursuant to this RMO may be subject to post audit or review by any Office authorized by the Commissioner of Internal Revenue,” BIR noted. – Roumina Pablo
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