BIR exempts feeds, fertilizers from ATRIG

Importers of finished feeds and fertilizers as well as ingredients for feed manufacturing are no longer required to secure clearance from the Bureau of Internal Revenue (BIR), the tax agency announced. Based on Revenue Memorandum Circular (RMC) No. 68-2023, Authority to Release Imported Goods (ATRIG) from the BIR is no longer required for the release of feed, feed ingredients, and fertilizers from the custody of the Bureau of Customs. The RMC, dated June 13, 2023, and signed by BIR Commissioner Romeo D. Lumagui Jr., stated that the exemption was “Due to the clamors from the importers that the required ATRIG for the release of these imported goods… causes delays and losses on their part.” The BIR memorandum further said that this is also in compliance “with the mandate under Republic Act No. 11032, otherwise known as the “Ease of Doing Business and Efficient Government Service Delivery Act of 2018.” The RMC, however, clarified that the exemption is only valid until “clear policies and procedures on the insurance of certifications” are in place. Under the BIR rules, the importation of perishable agricultural products, which are also exempted from value-added tax (VAT), shall not be required to secure ATRIG. However, the BIR said that importers are still required to secure clearance from the Bureau of Animal Industry, Fertilizer and Pesticides Authority, or other concerned regulatory agencies, which are competent to certify the goods being imported. “It shall be the responsibility of the certifying government agencies to conduct their own validation of the declared goods to be released from the BOC and to submit to the BIR the list of importers that secured the said certification for tax audit purposes,” the tax bureau said. The release of imported goods from customs custody is authorized by the BIR through an ATRIG, which is issued to the Customs commissioner. This authorization is granted upon payment of applicable taxes or proof of exemption, as appropriate. BIR-Customs Joint Memorandum Circular No. 1-2002, released in September 2002 and circulated through BIR RMC No. 48-2002, contains a list of imported products that are exempt from VAT and no longer require an ATRIG. Recently, the BIR amended RMC 48-2002 through RMC 11-2021.