Airlines with Congressional franchise need not obtain BIR import clearance

MANILA, Philippines - Airline firms which have been granted Congressional franchise to operate air transport services may be exempted from obtaining an importers clearance certificate (ICC) from the Bureau of Internal Revenue.

The Department of Finance issued Department Order 28-2015 which exempts airlines from complying with certain accreditation requirements covering specific importation of aircraft, equipment, machinery and spare parts, on the basis of overriding and paramount public policy, public safety and public necessity considerations.

Finance Undersecretary for Revenue, Operations and Legar Affairs Group Carlo Carag said these carriers, however, are still required  to submit documentary requirements imposed by the Bureau of Customs (BOC) for accreditation and must maintain compliant with other existing regulations.

Department Order 12-2014 issued in February 2014 stipulates a two-tiered accreditation process for importers and customs brokers which must obtain  an ICC or a broker’s clearance certificate from the BIR before securing accreditation with the BOC.

Carag said airlines seeking exemption must secure a certification from the Civil Aviation of the Philippines on the necessity of the importation in view of pubic safety.

He noted that the Customs commissioner shall only grant the exemption upon compliance with the rules.  The BOC shall thereafter submit monthly reports  on every importation allowed.

The BIR has eased the accreditation process for importers/brokers by trimming the documentary requirements following complaints from stakeholders. It also required importers and customs brokers to use its electronic filing and payment system.

Under the new guidelines,  applicants no longer need to submit a certified copy of their certificate of registration with the BIR as well as their business registration with the Securities and Exchange Commission.

However, applicants need to submit a certification issued by the concerned revenue district that they have no pending criminal charges,  delinquent account and tax liabilities.