BIR Expands Coverage of Non-Issuance of “Authority to Release Imported Goods”

On 13 June 2023, the Bureau of Internal Revenue (“BIR”) released Revenue Memorandum Circular No. 68-2023, further clarifying imported goods that will no longer require the issuance of “Authority to Release Imported Goods” (“ATRIG”) prior to the release of such imported goods by the Bureau of Customs (“BOC”).

Previously, the BIR issued Revenue Memorandum Circular (“RMC”) No. 112-2021, which required that an ATRIG be secured before the release of imported feed, feed ingredients, and fertilizers until its taxability is resolved and clear policies and procedures for the issuance of certifications from the concerned regulatory government agencies are in place.

The requirement that an ATRIG is necessary prior to the release of imported feed, feed ingredients, and fertilizers caused delays and losses to be incurred by importers. In response to this, the BIR issued RMC No. 68-2023, which now provides that the ATRIG shall no longer be secured from the BIR for feed, feed ingredients and fertilizers. This move is also in compliance with the directive of Republic Act No. 11032, otherwise known as the “Ease of Doing Business and Efficient Government Service Delivery Act of 2018” to government offices and agencies for the adoption of simplified procedures and effective practices to expedite transactions in government.

The BIR declared that although the issuance of an ATRIG shall no longer be necessary, importers of feed, feed ingredients, and fertilizers must present a certificate from the Bureau of Animal Industry, the Fertilizer and Pesticides Authority, or the concerned regulatory government agency to the BOC in order to effect the release of the imported goods. The certifying government agencies shall then be responsible for conducting their own validation of the declared goods and submitting the list of importers who have secured the required certification to the BIR for tax audit purposes.