ON CERTAIN GOODS
PROVISIONS REGULATING BUSINESS
DEALING IN ARTICLES SUBJECT TO EXCISE TAX
152. Extent of Supervision Over Establishments Producing Taxable
- The Bureau of Internal Revenue has authority to supervise
where articles subject to excise tax are made or kept. The Secretary of
Finance shall prescribe rules and regulations as to the mode in which
process of production shall be conducted insofar as may be necessary to
secure a sanitary output and to safeguard the revenue.
153. Records to be Kept by Manufacturers; Assessment Based Thereon.- Manufacturers of articles subject to excise tax shall keep such
as required by rules and regulations recommended by the Commissioner
approved by the Secretary of Finance, and such records, whether of raw
materials received into the factory or of articles produced therein,
be deemed public and official documents for all purposes.cralaw
The records of raw materials
kept by such manufacturers may be used as evidence by which to
the amount of excise taxes due from them, and whenever the amounts of
material received into any factory exceeds the amount of manufactured
partially manufactured products on hand and lawfully removed from the
plus waste removed or destroyed, and a reasonable allowance for
loss in manufacture, the Commissioner may assess and collect the tax
on the products which should have been produced from the excess.cralaw
The excise tax due on
the products as determined and assessed in accordance with this Section
shall be payable upon demand or within the period specified therein.
154. Premises Subject to Approval by Commissioner.
- No person shall engage in business as a manufacturer of or dealer in
articles subject to excise tax unless the premises upon which the
is to conducted shall have been approved by the Commissioner.
155. Manufacturers to Provide Themselves with Counting or Metering
to Determine Production. -
Manufacturers of cigarettes, alcoholic products, oil products and other
articles subject to excise tax that can be similarly measured shall
themselves with such necessary number of suitable counting or metering
devices to determine as accurately as possible the volume, quantity or
number of the articles produced by them under rules and regulations
by the Secretary of Finance, upon recommendation of the Commissioner.cralaw
This requirement shall
be complied with before commencement of operations.
156. Labels and Form of Packages.
- All articles of domestic manufacture subject to excise tax and all
tobacco shall be put up and prepared by the manufacturer or producer,
removed for sale or consumption, in such packages only and bearing such
marks or brand as shall be prescribed in the rules and regulations
by the Secretary of Finance; and goods of similar character imported
the Philippines shall likewise be packed and marked in such a manner as
may be required.cralaw
157. Removal of Articles After the Payment of Tax. - When
the tax has been paid on articles or products subject to excise tax,
same shall not thereafter be stored or permitted to remain in the
distillery warehouse, bonded warehouse, or other factory or place where
produced. However, upon prior permit from the Commissioner, oil
and/or companies may store or deposit tax-paid petroleum products and
the same with its own manufactured products not yet subjected to excise
tax. Imported petroleum products may be allowed to be withdrawn from
custody without the prepayment of excise tax, which products may be
with the tax-paid or bonded products of the importer himself after
a prior permit from the Commissioner: Provided, That
shall be taxed and accounted for on a "first-in, first-out"
158. Storage of Goods in Internal-Revenue Bonded Warehouses.
- An internal-revenue bonded warehouse may be maintained in any port of
entry for the storing of imported or manufactured goods which are
to excise tax. The taxes on such goods shall be payable only upon
from such warehouse and a reasonable charge shall be made for their
therein. The Commissioner, may, in his discretion, exact a bond to
the payment of the tax on any goods so stored.
159. Proof of Exportation; Exporter's Bond.
- Exporters of goods that would be subject to excise tax, if sold or
for consumption in the Philippines, shall submit proof of exportation
to the Commissioner and, when the same is deemed necessary, shall be
to give a bond prior to the removal of the goods for shipment,
upon the exportation of the same in good faith.
160. Manufacturers' and Importers' Bond.
- Manufacturers and importers of articles subject to excise tax shall
a bond subject to the following conditions:
(A) Initial Bond.
- In case of initial bond, the amount shall be equal to One Hundred
pesos (P100,000): Provided, That if after six (6) months of
the amount of initial bond is less than the amount of the total excise
tax paid during the period, the amount of the bond shall be adjusted to
twice the tax actually paid for the period.cralaw
(B) Bond for the
Succeeding Years of Operation.
- The bonds for the succeeding years of operation shall be based on the
actual total excise tax paid during the period the year immediately
the year of operation.cralaw
Such bond shall be conditioned
upon faithful compliance, during the time such business is followed,
laws and rules and regulations relating to such business and for the
of all fines and penalties imposed by this Code.cralaw
161. Records to be Kept by Wholesale Dealers.
- Wholesale dealers shall keep records of their purchases and sales or
deliveries of articles subject to excise tax, in such form as shall be
prescribed in the rules and regulations by the Secretary of Finance.
records and the entire stock of goods subject to tax shall be subject
all times to inspection of internal revenue officers.
162. Records to be Kept by Dealers in Leaf Tobacco.
- Dealers in leaf tobacco shall keep records of the products sold or
by them to other persons in such manner as may be prescribed in the
and regulations by the Secretary of Finance, such records to be at all
times subject to inspection of internal revenue officers.
163. Preservation of Invoices and Stamps. -
All dealers whosoever shall preserve, for the period prescribed in
235, all official invoices received by them from other dealers or from
manufacturers, together with the fractional parts of stamps affixed
if any, and upon demand, shall deliver or transmit the same to any
164. Information to be Given by Manufacturers, Importers,
and Wholesalers of any Apparatus or Mechanical Contrivance Specially
the Manufacture of Articles Subject to Excise Tax and Importers,
Manufacturers or Sellers of Cigarette Paper in Bobbins, Cigarette
Paper or Cigarette Filter Tips. -
Manufacturers, indentors, wholesalers and importers of any apparatus or
mechanical contrivance specially for the manufacture of articles
to tax shall, before any such apparatus or mechanical contrivance is
from the place of manufacture or from the customs house, give written
to the Commissioner as to the nature and capacity of the same, the time
when it is to be removed, and the place for which it is destined, as
as the name of the person by whom it is to be used; and such apparatus
or mechanical contrivance shall not be set up nor dismantled or
without a permit in writing from the Commissioner.cralaw
A written permit from
the Commissioner for importing, manufacturing or selling of cigarette
in bobbins or rolls, cigarette tipping paper or cigarette filter tips
required before any person shall engage in the importation, manufacture
or sale of the said articles. No permit to sell said articles shall be
granted unless the name and address of the prospective buyer is first
to the Commissioner and approved by him. Records, showing the stock of
the said articles and the disposal thereof by sale of persons with
respective addresses as approved by the Commissioner, shall be kept by
the seller, and records, showing stock of said articles and consumption
thereof, shall be kept by the buyer, subject to inspection by internal
165. Establishment of Distillery Warehouse. -
Every distiller, when so required by the Commissioner, shall provide at
his own expense a warehouse, and shall be situated in and constitute a
part of his distillery premises and to be used only for the storage of
distilled spirits of his own manufacture until the tax thereon shall
been paid; but no dwelling house shall be used for such purpose. Such
when approved by the Commissioner, is declared to be a bonded
and shall be known as a distillery warehouse.
166. Custody of Distillery or Distillery Warehouse. -
Every distillery or distillery warehouse shall be in the joint custody
of the revenue inspector, if one is assigned thereto, and of the
thereof. It shall be kept securely locked, and shall at no time be
or opened or remain unlocked or opened unless in the presence of such
inspector or other person who may be designated to act for him as
167. Limitation on Quantity of Spirits Removed from Warehouse.
spirits shall be removed from any distillery, distillery warehouse, or
bonded warehouse in quantities of less than fifteen (15) gauge liters
any one time, except bottled goods, which may be removed by the case of
not less than twelve (12) bottles.
168. Denaturing Within Premises. - For
purposes of this Title, the process of denaturing alcohol shall be
only within the distillery premises where the alcohol to be denatured
produced in accordance with formulas duly approved by the Bureau of
Revenue and only in the presence of duly designated representatives of
169. Recovery of Alcohol for Use in Arts and Industries. -
Manufacturers employing processes in which denatured alcohol used in
and industries is expressed or evaporated from the articles
may, under rules and regulations to be prescribed by the Secretary of
upon recommendation of the Commissioner, be permitted to recover the
so used and restore it again to a condition suitable solely for use in
170. Requirements Governing Rectification and Compounding of Liquors.
engaged in the rectification or compounding of liquors shall, as to the
mode of conducting their business and supervision over the same, be
to all the requirements of law applicable to distilleries: Provided,
That where a rectifier makes use of spirits upon which the excise tax
been paid, no further tax shall be collected on any rectified spirits
exclusively therefrom: Provided, further, That compounders in
manufacture of any intoxicating beverage whatever, shall not be allowed
to make use of spirits upon which the excise tax has not been
171. Authority of Internal Revenue Officer in Searching for Taxable
Any internal revenue officer may, in the discharge of his official
enter any house, building or place where articles subject to tax under
this Title are produced or kept, or are believed by him upon reasonable
grounds to be produced or kept, so far as may be necessary to examine,
discover or seize the same.
He may also stop and
search any vehicle or other means of transportation when upon
grounds he believes that the same carries any article on which the
tax has not been paid.
172. Detention of Package Containing Taxable Articles. -
Any revenue officer may detain any package containing or supposed to
articles subject to excise tax when he has good reason to believe that
the lawful tax has not been paid or that the package has been or is
removed in violation of law, and every such package shall be held by
officer in a safe place until it shall be determined whether the
so detained is liable by law to be proceeded against for forfeiture;
such summary detention shall not continue in any case longer than seven
(7) days without due process of law or intervention of the officer to
such detention is to be reported.