Article 114p. 114

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

require the removal of stores from the vessel, aircraft, or

trains for storage elsewhere during its stay in the customs

territory only when the Bureau considers it necessary.

Vessels,

aircrafts,

or

trains

which

depart

for

an

ultimate foreign destination shall be entitled to take on

board, exempted from duties and taxes, the following:

(1) Stores in such quantities as the Bureau deems

reasonable

with

due

regard

to

the number of the

passengers and the crew, to the length of the voyage or

flight, and to any quantity of such stores already on board;

and

(2)

Stores

necessary

for

the

operation

and

maintenance

of

a

vessel,

aircraft,

or

train,

in

such

quantities as are deemed reasonable for operation and

maintenance during the voyage or flight, after due regard

of the quantity of such stores already on board.

Replenishment of stores that are exempted from

duties and taxes shall be allowed for vessels, aircrafts, or

trains which have arrived in the customs territory, and

which need to replenish their stores for the journey to

their final destination in the customs territory, subject to

the same conditions provided in this Chapter.

SECTION 821. Goods Declaration for Stores. — When

a declaration concerning stores on board vessels arriving

in the customs territory is required by the Bureau, the

information required shall be kept to the minimum and

as may be necessary for customs control.

The quantities of stores which are supplied to vessels

during

its

stay

in

the

customs

territory

should

be

recorded on the required goods declaration concerning

stores.

The Bureau shall not require the presentation of a

separate declaration of remaining stores on board a

vessel, an aircraft or a train. No separate declaration

concerning stores should be required upon departure of

vessels from the customs territory. When a declaration is

required concerning stores taken on board the vessels or

aircrafts upon departure from the customs territory, the

information required shall be kept to the minimum as

may be necessary for customs control.

When a vessel, aircraft, or train arrives in the customs

territory, stores on board shall:

(a) Be cleared for consumption or placed under

another customs procedure, subject to compliance with

the conditions and formalities applicable in each case; or

(b) Subject to prior authorization by the Bureau, be

transferred respectively to another vessel, aircraft, or train

assigned to an international route.

TITLE IX Duty Drawback and Refund

CHAPTER 1 Duty Drawback

SECTION 900. Basis of Duty Drawback. — (A) On

Fuel Used for Propulsion of Vessels. — On all fuel

imported into the Philippines used for propulsion of

vessels engaged in trade with foreign countries, or in the

coastwise trade, a refund or tax credit shall be allowed not

exceeding ninety-nine percent (99%) of the duty imposed

by law upon such fuel, which shall be paid or credited

under such rules and regulations as may be prescribed by

the Commissioner with the approval of the Secretary of

Finance.

(B)

On

Petroleum

Oils

and

Oils Obtained from

Bituminous

Minerals,

Crude,

Eventually

Used

for

Generation of Electric Power and for the Manufacture of

City Gas. — On petroleum oils and oils obtained from

bituminous materials, crude oil imported by non-electric

utilities, sold directly or indirectly, in the same form or

after processing, to electric utilities for the generation of

electric power and for the manufacture of city gas, a

refund or tax credit shall be allowed not exceeding fifty

percent (50%) of the duty imposed by law upon such oils,

which shall be paid or credited under such rules and

regulations as may be prescribed by the Commissioner

with the approval of the Secretary of Finance.

(C) On Goods Made from Imported Materials. — Upon

exportation of goods manufactured or produced in the

Philippines, including the packing, covering, putting up,

marking or labeling thereof either in whole or in part of

the imported materials for which duties have been paid, a

refund or tax credit shall be allowed for the duties paid on

the imported materials so used including the packing,

covering, putting up, marking or labeling thereof, subject

to the following conditions:

(1) The actual use of the imported materials in the

production or manufacture of the goods exported with

their quantity, value, and amount of duties paid thereon,

should be established satisfactorily;

(2) The duties refunded or credited shall not exceed

one

hundred

percent

(100%) of duties paid on the

imported materials used;

(3) There is no determination by the NEDA of the

requirement

for

certification

on

nonavailability

of

locally-produced

or

manufactured

competitive

substitutes for the imported materials used at the time of

importation;

(4) The exportation shall be made within one (1) year

after the importation of materials used and claim of

refund or tax credit shall be filed within six (6) months

from the date of exportation; and

(5) When two or more products result from the use of

the same imported materials, an apportionment shall be

made on its equitable basis.

SECTION 901. Payment of Drawbacks. — Eligible

claims for refund or tax credit shall be paid or granted by

the Bureau to claimants within sixty (60) days after

receipt of properly accomplished claims: Provided , That a

registered

enterprise

under

Republic

Act

No.

5186 ,

otherwise known as the " Investment Incentives Act ", or

Republic Act No. 6135 , otherwise known as the " Export

Incentives Act of 1970 ", which has previously enjoyed tax

credits based on customs duties paid on imported raw

materials

and

supplies,

shall

not

be

entitled

to

a

drawback under this section with respect to the same

importation subsequently processed and reexported.

The

Secretary

of

Finance

may,

upon

the

recommendation of the Commissioner, promulgate rules

and regulations allowing partial payments of drawbacks

pursuant to this section.

SECTION 902. Prescription of Drawback Claim. — A

claim and application for a drawback shall prescribe if it is

not filed within one (1) year from the date of importation

in case of Section 900, paragraphs (A) and (B) and within

one (1) year from the date of exportation in the case of

Section 900, paragraph (C), subject to such rules and

regulations as may be issued by the Commissioner, upon

approval of the Secretary of Finance.

CHAPTER 2 Refund and Abatement

SECTION 903. Refund of Duties and Taxes. — Refund

shall be granted where it is established that duties and

taxes have been overcharged as a result of an error in the

assessment or goods declaration.

Where permission is given by the Bureau for goods

originally declared for a customs procedure with payment

of duties and taxes to be placed under another customs

procedure, a refund shall be made of any duties and taxes

charged in excess of the amount due under the new

procedure, subject to such regulation issued for the

purpose.

A refund shall not be granted if the amount of duties

and taxes involved is less than five thousand pesos

(P5,000.00): Provided , That the Secretary of Finance, in

consultation with the Commissioner, may adjust the

minimum

amount specified in this Act, taking into

account the CPI as published by the PSA.

© Compiled by RGL

114 of 201