Claim what’s yours: Duty and tax refund

Claim what’s yours: Duty and tax refund
Claims for refund implemented with the Bureau of Internal Revenue (BIR) are a dime a dozen due to the fact all incomes individuals and entities are taxpayers required to sign in with the BIR. But no longer all taxpayers are importers, accordingly, only some taxpayers are required to register with the Bureau of Customs (BOC). Have you ever wondered what it’s like to apply for money back of obligations and taxes on importation from the BOC? What are the requirements for an importer to say a obligation and tax refund from the BOC?

Duty and tax refund on importation with the BOC can simplest be allowed under certain situations. Section three of the Customs Modernization and Tariff Act (CMTA), or Republic Act No. 10863, as carried out by way of the lately issued Customs Administrative Order (CAO) No. 04-2019, presents that a duty and tax refund is only allowed while: it’s miles due to an error inside the evaluation or items assertion; there are extra obligations and taxes paid due to a trade in customs technique; there are appear clerical mistakes made at the invoice or access; or there are errors in the distribution of expenses on invoices now not related to query of regulation.

Said refund software is initiated by means of submitting a written application with the BOC and paying a processing charge that tiers from P700 to P5,000 consistent with application primarily based on the amount being claimed. Compared to the 2-yr prescriptive duration for tax refunds with the BIR, the BOC best allows a 12-month tax refund period from the time the duties and taxes on importation are paid.

In submitting an software for duty and tax refund, the equal must be followed through import documents including import entry (unmarried administrative file), bill of lading/airway invoice, business bill, packing listing, and such other documentary proof to prove such claim for refund.

Once the software for refund has been submitted, the identical shall be assigned to a customs officer who will test the completeness of the helping files and the veracity of the claim. The officer is likewise mandated with the aid of law to put up an examination file in regards to any truth located that indicates any discrepancy, and then make the corresponding adjustment on items announcement. Further, based totally on assertion of money owed submitted by the BOC Collection Districts, the BOC will confirm whether the claimant has extremely good obligations with the bureau; these must be settled through the importer before the claim for refund may be acted upon.