Publications


Tax Digest
Volume 10,
Series 60
Embassies, International Organizations Exempt from getting ATRIG

In general, Authority to Release Imported Goods (ATRIG) from the BIR is necessary prior to the release of imported goods from customs territory, specially automobiles. Possessing any imported goods without the ATRIG is a violation of the Tax Code, subject to penalties, seizure of item or even imprisonment. In the BIR issuance of 2016, importers, who were able to release the imported automobiles, without ATRIGs, was given until April 30, 2016 to secure the ATRIGs after paying only the tax due and surcharges and interest.

In the legality of the application of an effective International Agreements and reciprocity, this new regulation stated that recognized international organizations and foreign embassies in the Philippines are exempted from all taxes including the applications of securing an ATRIG. However, the said exempt entity should first seek an exemption ruling from the International Tax Affairs Division (ITAD) of BIR as an evidence for tax exemption prior to the release of imported automobiles from customs custody. Furthermore, the exempt entities should submit an annual report of all importation to Excise LT Regulatory Division (ELTRD) of BIR on or before the 5th day of January of the following year. The contents of the annual report to be submitted are enshrined in this amending regulation.

Finally, subsequent sale of automobile to non-exempt persons including its sale or resale into customs territory of automobiles intended for exclusive use within the freeport zone, the purchases shall be liable for the excise tax due on such importation, which computation will be covered by other existing revenue regulation issuances.

Revenue Regulations No. 4-2017
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