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REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVENUE
Quezon City
March 5, 2014

REVENUE MEMORANDUM ORDER NO. 14-2014


SUBJECT : Guidelines and Procedures for the Processing and Issuance of An Electronic Authority
To Release Imported Goods (eATRIG) for Excise Tax Purposes

TO : All Assistant Commissioners, Regional Directors, Revenue District Officers and Others
Concerned

I. OBJECTIVES
This Order is being issued to:
1. Implement the use of an electronic system called the eATRIG system, thru the linkage with
the Philippine National Single Window (NSW) System led by the Bureau of Customs (BOC);

2. Provide revised procedures on the filing of applications, processing thereof and issuance
centrally in the National Office of this Bureau of all eATRIGs for Excise Tax purposes with
the least manual intervention and personal representation of the importer or his/her
authorized broker-representative;

3. Prescribe reporting requirements for the effective control and monitoring of all processed
applications and issued eATRIGs; and

4. Delineate the duties and responsibilities of various revenue offices and personnel in charge
under the eATRIG system.

II. POLICIES AND GUIDELINES
1. Every application for eATRIG (Annex A) shall be done on-line thru NSW System. However,
hard copy of the duly notarized application form shall still be submitted by the importer or
authorized broker-representative to the BIR and no approved eATRIG shall be electronically
transmitted to BOC until such submission has been complied with;

2. Each importation shall be covered by a separate application for eATRIG. In cases where the
importation involves articles of the same kind but are covered by two or more Bills of Lading
issued to the same importer under the same vessel, the consolidated application may be
accepted and processed.

However, with respect to the importation of automobiles defined under Republic Act No.
9224, one (1) ATRIG shall be issued for each unit of automobile with Suggested Retail Price
(SRP) of over two million one hundred thousand pesos (P2,100,000.00); Provided that in
cases of importation having a single Bill of Lading (BL) but consisting of several automobiles
which includes vehicles with SRP of P2,100,000.00 or over, one (1) ATRIG shall be issued
for each vehicle listed in the BL regardless of its SRP; Provided, finally, that pending
enhancement of the Philippine National Single Window System on ATRIG, a separate
notarized application for ATRIG shall be filed and signed by the importer or his/her duly
authorized representative, with the prescribed documentary stamp affixed thereon, for each
and every unit of automobile;
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3. All applications for eATRIG for Excise Tax purposes, filed thru the NSW System, shall be
processed centrally in the National Office of this Bureau, more particularly at the Excise LT
Regulatory Division (ELTRD). Accordingly, the Chief of ELTRD shall be the designated
approving officer of the eATRIG;

4. An application for ATRIG for Value-Added Tax purposes shall continue to be filed in duplicate
with the Revenue District Office (RDO) having jurisdiction over the port of entry pending
issuance of a separate implementing Revenue Memorandum Order in relation thereto;

5. The eATRIG shall be issued for all importations of articles subject to excise tax, including the
raw materials in the production thereof, as well as the machineries, equipment, apparatus
or any mechanical contrivances especially used for its assembly/production;

6. No application shall be processed if the importer-applicant and/or broker-representative
is/are not duly registered taxpayer(s) with the BIR. In cases where the intended importation
consists of excisable articles, raw materials, machineries, equipment, apparatus or any
mechanical contrivances especially used for the production of excisable articles, the
application for eATRIG shall likewise not be processed if the importer-applicant does not
have a separate Permit to Operate as Importer of Excisable Articles;

7. If the importer-applicant is an individual registered taxpayer, no application shall be
processed unless he/she presents photocopy of his/her latest Annual Income Tax Return
(BIR Form No. 1700/1701), together with the Audited Financial Statements duly stamped
Received by the concerned BIR office/AAB, if applicable, which must be duly certified as
true copy by the Revenue District Officer where he/she is registered. Said documents shall
be used in the evaluation of the financial capacity to import of the individual importer-
applicant;

8. The eATRIG shall be processed, approved and issued not later than the next working day
following actual receipt of the application with complete documents/requirements and
provided there is no legal/factual issue on the taxability of the imported article;

9. An application for eATRIG with legal issues on the taxability or exemption of the imported
articles shall be referred to the Law Division, National Office, for appropriate resolution. Any
request for a ruling on an article involving factual issues requiring laboratory
comment/evaluation/recommendation for purposes of identification and/or classification
shall be referred to BIR Laboratory Section, ELTRD, National Office prior to referral to the
Law Division. In case the request for a ruling affecting the application for eATRIG is directly
filed by the taxpayer with the Law Division in the National Office, the same shall nevertheless
be referred to the BIR Laboratory Section prior to the formulation and issuance of the
appropriate ruling;

For issues not requiring legal resolution, but needing laboratory evaluation, samples of the
imported goods requiring laboratory analysis shall be referred to the BIR Laboratory Section,
ELTRD, National Office, for appropriate action;

10. Prior ocular verification/inspection of the imported goods shall be conducted, if deemed
necessary, or if it is for facilitation purposes, request instead the Regional or the Revenue
District Office having jurisdiction over the Port of Entry to conduct the same.

Proper coordination with the authorized representatives of the BOC shall always be
maintained if there is a need to secure a sample of imported article for purposes of laboratory
analysis;

11. Any application for eATRIG that has remained pending for at least one (1) month due to the
failure of the importer-applicant and/or broker-representative to submit the necessary
supporting documentary requirements shall be tagged as Rejected; and
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12. The Regional Offices/Revenue District Offices having jurisdiction over the Port of Entry where
the NSW system has been installed shall render assistance at all times to any concerned
applicant-importer or his/her duly authorized broker-representative relative to his/her
application for eATRIG.

III. PROCEDURES
A. EXCISE LT REGULATORY DIVISION (ELTRD)

A.1 RECEIVING OFFICER shall:

1. Access the NSW system to acknowledge receipt of application for eATRIG and its
supporting documents; and

2. Determine the appropriate Section of the ELTRD that will process the application based on
the product description and forward the same to the Processing Officer thereof.

A.2 PROCESSING OFFICER shall:

1. Log on to the eATRIG thru the NSW system to verify if there is a pending application for
eATRIG for Excise Tax purposes for processing;

2. Receive the application for eATRIG for Excise Tax purposes from the Receiving Officer and
check completeness of the following supporting documents:

A. ALCOHOL PRODUCTS

1. Bill of Lading
2. Packing List
3. Commercial Invoice
4. Import Entry and Internal Revenue Declaration
5. Sworn Statement indicating the Net Retail Price (NRP) per bottle (alcohol
product in bottle)
6. Photocopy of Commercial Labels (alcohol product in bottle)
7. Certificate of Analysis and/or Material Specification Data Sheet (MSDS) (alcohol
product in bulk)

B. AUTOMOBILE

B.1 FOR RESALE

1. Bill of Lading
2. Packing List
3. Commercial Invoice
4. Import Entry and Internal Revenue Declaration (Proforma)
5. Updated Importers Sworn Statement
6. List of Chassis No./Vehicle Identification No. (VIN)

B.2 FOR PERSONAL USE

B.2.1 Brand New Automobile

1. Bill of Lading
2. Packing List
3. Commercial Invoice
4. Import Entry and Internal Revenue Declaration
5. Chassis No./Vehicle Identification No. (VIN)
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6. BOC Car Evaluation System Computation of Duties and Taxes
7. Photocopy of Latest Income Tax Return, together with Audited Financial
Statements, if applicable
8. Joint Undertaking (Importer and Broker)
9. Memo of the Customs Intelligence and Investigation Service

B.2.2 Returning Residents

1. Informal Import and Declaration Entry
2. Chassis No./Vehicle Identification No. (VIN)
3. BOC Car Evaluation System Computation of Duties and Taxes
4. Passport
5. Certification from the Bureau of Import Services
6. Certificate of Title/Ownership
7. Export Certificate
8. DOF Indorsement
9. Photo/Picture of the Vehicle

B.2.3 Local Purchase/Voluntary Payment

1. Informal Import and Declaration Entry
2. Chassis No./Vehicle Identification No. (VIN)
3. BOC Car Evaluation System Computation of Duties and Taxes
4. Photocopy of Latest Income Tax Return, together with Audited Financial
Statements, if applicable
5. Certificate of Registration and Official Receipts issued by the Land
Transportation Office (LTO)
6. Stencil of Chassis No. and Engine No.
7. Deed of Absolute Sale
8. Photo/Picture of the Vehicle

C. MINERAL PRODUCTS

1. Bill of Lading
2. Packing List
3. Commercial Invoice
4. Import Entry and Internal Revenue Declaration - (Proforma)
5. Tax and Duty Declaration Valuation Computation Computation of Duties and
Taxes
6. Material Safety Data Sheet
7. Product Information Sheet
8. DOE Permit or Certificate of Compliance for Coal Importation
9. In case of salt, certification that the imported salt is extracted from sea water
duly authenticated by the Philippine Embassy at the country of origin to qualify
exemption from excise tax

D. NON-ESSENTIAL GOODS

1. Bill of Lading
2. Packing List
3. Commercial Invoice
4. Import Entry and Internal Revenue Declaration

E. PETROLEUM PRODUCTS

1. Bill of Lading
2. Packing List
3. Commercial Invoice
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4. Import Entry and Internal Revenue Declaration
5. Material Safety Data Sheet (MSDS)
6. Certificate of Analysis
7. Certificate of Quantity
8. Certificate of Quality
9. Others (DOF/DOE Indorsement, CAAP Certification, Court Ruling, BIR Ruling,
Presidential Decree, etc.)

F. TOBACCO PRODUCTS

1. Bill of Lading
2. Packing List
3. Commercial Invoice
4. Import Entry and Internal Revenue Declaration
5. Permit to Import
6. Proof of Payment of Advance Excise Tax, if applicable
7. Tobacco Inspection Fee Payment, if applicable

G. OTHER PRODUCTS COVERED BY OTHER SPECIAL LAW OR
INTERNATIONAL AGREEMENT (OSLA)

1. Bill of Lading
2. Packing List
3. Commercial Invoice
4. Import Entry and Internal Revenue Declaration
5. Copy of applicable Special Law or International Agreement Document

3. Conduct initial verification:

a. Check whether or not a previous application for eATRIG covering the same shipment
under the same Bill of Lading/Airway Bill had been filed by the importer or his/her
duly authorized representative-broker;

b. Check in the Registration System of the Integrated Tax System of the BIR or its
enhancements whether or not the importer and the broker are registered with the
BIR or their respective Tax Identification Numbers and their addresses are correct;
and

c. Check whether or not the importer has a duly issued Permit to Operate as Importer
of Excisable Articles for those engaged in said business.

4. Reject the application for eATRIG if, based on the initial verification, the subject application
does not satisfy any of the criteria enumerated in the preceding paragraph. However, if the
said criteria are satisfied, verify the correctness of all information about the shipment
reflected in the application:

a. Check whether or not all pertinent shipment information (e.g. description of the article,
volume, volume, value, etc.) contained in each respective supporting documents are
reconciled; and

b. Determine if there is still a need for the submission of additional documents (e.g.,
notarized Affidavit of Undertaking, Permit/Certification/Indorsement from other
government agencies, etc.) to validate certain information on the application for eATRIG.

5. Proceed with the processing of the application for eATRIG:

a. Check the completeness of supporting documents;

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b. Check the existence of applicable BIR Rulings on the taxability or exemption of articles
listed on the application;

c. Hold in abeyance the processing of the application, in cases where there are doubts on
the representations made by the importer on its application, and require the following,
whichever is applicable:

i. Samples of the imported goods to be taken directly and personally from the
shipment by the processing Revenue Officer and/or BIR laboratory
representatives for BIR laboratory analysis;

ii. Additional literatures/brochures/product data containing product description of
imported goods; and

iii. Certification from appropriate regulatory government offices authenticating the
representations made by the importer/applicant.

d. Validate excisability of product based on product information/literature, in case the
articles require no laboratory analysis;

e. Refer to the Law and Legislative Division in the National Office when the application for
eATRIG requires legal resolution; and

f. Refer to the BIR Laboratory Section samples of imported goods requiring laboratory
analysis in order to determine their correct classification for taxation purposes.

6. If the requirements are satisfactorily complied with, compute the corresponding excise tax
due on the imported excisable product;

7. Forward the application form, together with the supporting documents and computation
sheet, if applicable, to the Reviewing Officer (Section Chief) for review and further
processing; and

8. For purposes of uniformity in the use of product codes, the following codes for each product
description shall be strictly observed:

PRODUCT CODES


DESCRIPTION
ALCO Alcoholic Products

AUTO Automobiles

MIN Mineral Products

NEG Non-Essential Goods & Other Articles

OIL Petroleum Products

TOBACCO Tobacco Products

OSLA Other Products Covered Under Special
Laws or International Agreements

A.3 The REVIEWING OFFICER shall:

1. Log-on to the eATRIG thru the NSW system and review the processed eATRIG
according to the prescribed procedures;

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2. If found in order, generate the eATRIG form (Annex B) with all the necessary
information filled-up in the spaces provided therein and attach the computation sheet;
and

3. In case of discrepancy, return the same to the Processing Officer for compliance
requirements.

However, should the application conforms to the prescribed requirements, forward the
docket, together with the generated eATRIG, to the Approving Officer for further review
and approval thereof.

A.4 APPROVING OFFICER shall:

1. Log on to the eATRIG thru the NSW system and verify whether there is a pending
processed eATRIG for review and approval;

2. If the processed eATRIG has been found in order, approve/authorize the transmission
of eATRIG to the BOC. Otherwise, return the docket to the Processing Officer with an
indication thereon of appropriate actions still to be undertaken; and

3. Take the necessary actions in cases where the BOC shall return the previously approved
eATRIG for any discrepancy.

A.5. ADMINISTRATIVE OFFICER shall:
1. Generate and download in spread sheet format (i.e., MS Office Excel) immediately after
the end of each month a detailed summary of all eATRIGs issued for the month using
the format in Annex C hereof. The said summary shall be maintained and updated
together with a back-up copy thereof; and
2. Transmit on a monthly basis a soft copy of the detailed summary of all eATRIGs issued
for the month to the Audit Information, Tax Exemption and Incentives Division (AITEID)
and the LT Performance Monitoring and Programs Division (LTPMPD).

B. BIR LABORATORY SECTION shall:

1. Receive the sample of imported goods or take samples directly from the shipment in
coordination with the representatives from the BOC and the importer/broker;

2. Conduct laboratory testing of samples to determine the correct classification of imported
articles for excise tax purposes;

3. Evaluate product literature, in case the articles are not subjected to laboratory analysis;
and

4. Issue appropriate certification to be used as basis in the processing of eATRIG.

C. LAW AND LEGISLATIVE DIVISION shall:

1. Receive from ELTRD the application for eATRIG requiring legal resolution;

2. Prepare resolution on the application in question and transmit the same to the ELTRD
within twenty four (24) hours from receipt thereof, if possible; and

3. Return the application, together with the legal opinion, to ELTRD for processing of
appropriate eATRIG.

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D. AUDIT INFORMATION, TAX EXEMPTION AND INCENTIVES DIVISION shall:

1. Receive the soft copy of the detailed summary of all eATRIGs issued for the month; and
2. Provide any information derived from the detailed summary of eATRIGs as may be
requested by other offices.

E. LT PERFORMANCE MONITORING AND PROGRAMS DIVISION shall:

1. Receive the soft copy of the detailed summary of all eATRIGs issued for the month; and

2. Provide any information derived from the detailed summary of eATRIGs as may be
requested by other LT offices.

F. REGIONAL OFFICE/REVENUE DISTRICT OFFICE HAVING JURISDICTION OVER THE
PORT OF ENTRY shall:

1. Coordinate with the ELTRD, in appropriate cases, for purposes of rendering assistance
to the applicant-importer or his/her duly authorized broker-representative; and

2. In coordination with the ELTRD, conduct an ocular verification/inspection of the imported
excisable articles prior to its release from the Port of Entry falling under its territorial
jurisdiction.
IV. REPEALING CLAUSE
All revenue issuances inconsistent herewith are hereby repealed and amended
accordingly.

V. PENALTY CLAUSE

Strict compliance is enjoined. Any violation of the provisions of this Order shall be
subject to administrative disciplinary action and shall be dealt with accordingly.

VI. EFFECTIVITY

This Order shall take effect immediately.




(Original Signed)
KIM S. JACINTO-HENARES
Commissioner of Internal Revenue







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