New Guidelines for Handling Seized Goods by Philippines Tax Bureau

Sep.02.2024
New Guidelines for Handling Seized Goods by Philippines Tax Bureau
The Philippine Bureau of Internal Revenue (BIR) issued new guidelines on handling confiscated goods to strengthen enforcement efforts.

According to Business Mirror's report on September 2, the Philippines' Bureau of Internal Revenue (BIR) has released a new guideline on the handling of confiscated goods.


BIR Commissioner Romeo D. Lumagui Jr. issued Revenue Memorandum Order No. 33-2024 last Friday (August 30) to enhance enforcement efforts on items such as tobacco, e-cigarettes, perfumes, and sweetened beverages, all of which are locally produced or imported goods subject to consumption taxes, leading to crowded storage locations.


Lumague stated that the Bureau of Internal Revenue issued the memorandum in order to provide a unified guide and procedure for the disposal of confiscated/seized items in accordance with Revenue Regulation 14-2024.


The National Tax Bureau pointed out that non-essential items such as perfume, jewelry, yachts and other entertainment or sports boats, manufactured oil and other fuels, cars, and mineral products will be disposed of through public auctions or negotiated/private sales. The proceeds from all public auctions will be deposited into the confiscation fund, after deducting taxes, storage fees, and other obligations, to facilitate the National Tax Bureau's disposal procedures and enhance its investigative and enforcement capabilities.


If non-essential items remain unsold after two public auctions, they can be sold through negotiated or private sales with prior approval from the Minister of Finance (DOF).


For private property, the above requirements may be waived in order to negotiate or privately sell confiscated/seized items.


Furthermore, products harmful to public health, such as tobacco and vaping products, alcoholic beverages, and sugary drinks, as well as machinery and equipment used in their production, items produced in violation of the Tax Code, and dyes used for counterfeit, printing, or manufacturing of tax stamps and labels will be destroyed.


Confiscated items that are to be destroyed must be destroyed within 20 days of being confiscated.


The confiscation/seizure of all other items in violation of tax laws and raw materials used for the production of goods to be destroyed will be decided by the Director of the National Tax Administration based on the recommendations of the Disposal Committee. The Disposal Committee must ensure that all disposal methods comply with all environmental laws, regulations, and rules.


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