Tax Alert No. 28 [Revenue Regulations (RR) No. 6-2020 dated 16 March 2020 and Revenue Memorandum Order (RMO) No. 10-2020 dated 30 March 2020]

Implementing the Tax Exemption Provision of Republic Act (RA) No. 11469, Otherwise Known as the “Bayanihan To Heal As One Act”, by Exempting from Authority to Release Imported Goods (ATRIG) Requirements the Items Imported under Section 4(o) of RA No. 11469 

The Secretary of Finance has issued RR No. 6-2020 dated 27 March 2020, imposing regulations to implement the tax exemption provision under Section 4(o) of RA No. 11469. These regulations only apply during the three (3)-month effectivity of RA No. 11469, unless extended or withdrawn.

In this regard, the Commissioner of Internal Revenue has issued RMO No. 10-2020 to prescribe the policies and guidelines in relation to the ATRIG requirements of all goods imported under Section 4(o) of RA No. 11469.

The importation of the following shall be exempt from value-added tax, excise tax and other fees and shall be released from the Bureau of Custom (BOC) without need of an ATRIG:

1. Critical or needed healthcare equipment or supplies intended to combat the COVID-19 public health emergency including but not limited to:
   • personal protective equipment (i.e., gloves, gowns, masks, goggles, face shields, surgical equipment and supplies);
   • laboratory equipment and its reagents;
   • medical equipment and devices;
   • surgical equipment and supplies;
   • medical supplies, tools, and consumables [i.e., alcohol, sanitizers, tissue thermometers, hand soap, detergent, sodium hydrochloride, cleaning materials, povidone iodine, common medicines (e.g., paracetamol tablet and suspension mefenamic acid, vitamins tablet and suspension, hyoscine tablet and suspension, oral rehydration solution and cetirizine table and suspension);
   • COVID-19 testing kits; and
   • other supplies or equipment as may be determined by the Department of Health and other relevant government agencies.
     
2. Materials needed to make health equipment and supplies deemed as critical or needed to address the current public health emergency, provided that the importing manufacturer is included in the Master List of the Department of Trade and Industry and other incentive granting bodies.
   

Although ATRIG shall not be necessary for the release of the aforementioned goods and articles from the BOC, post investigation/audit shall be conducted by the BOC on importers who made the importations without any ATRIG.

Donations of these imported articles to or for the use of the National Government or any non-profit entity created by any of its agencies, or any of its political subdivision are exempt from donor's tax and subject to the ordinary rules of deductibility.

You may access the full version of these issuances through the BIR website.