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Export-oriented enterprise certificates issued by the Department of Trade and Industry-Export Marketing Bureau is proof of entitlement to value-added tax exemption for imports by export enterprises
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EOEs should not be treated as registered export enterprises and do not need a tax exemption endorsement from other government agencies, according to Bureau of Customs Assessment and Operations Coordinating Group Memo No. 188-2025
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DTI-EMB director Bianca Pearl Sykimte had requested a written order after receiving reports EMB certificates were not being honored by ports in Davao and Cebu
Export-oriented enterprise (EOE) certificates issued by the Department of Trade and Industry-Export Marketing Bureau (DTI-EMB) is enough proof of entitlement to value-added tax (VAT) exemption for imports by export enterprises, said the Bureau of Customs (BOC).
An EOE should not be treated as a registered export enterprise, thus a tax exemption endorsement from the Department of Finance (DOF) or a Certificate of Authority to Import from other government agencies is no longer required for the importation of EOEs, according to Assessment and Operations Coordinating Group (AOCG) Memo No. 188-2025. The memo, dated September 15 and recently published online, was signed by Customs deputy commissioner Agaton Teodoro Uvero.
The issuance of the memo follows the request of DTI-EMB director Bianca Pearl Sykimte for BOC to issue a policy directive to all ports to recognize the EOE certificates issued by her office.
READ: Exporters may avail of zero VAT via DTI certification
In a letter to DOF-Revenue Operations Group director Euvimil Nina Asuncion dated August 29, Sykimte cited receiving reports from four EOEs that their certificates were not being honored by the ports in Davao and Cebu.
This is despite a Bureau of Internal Revenue tax advisory dated June 11, 2025 that stipulated the EOE certificate shall suffice as an EOE’s proof of entitlement for VAT exempt importation upon its presentation to BOC.
“This resulted in the said EOEs paying VAT for their importations, which has already reached millions of pesos. The said companies have expressed concerns that they may no longer be able to refund said amount given the inadequacies in the Law’s implementation,” Sykimte said, referring to Republic Act No. 12066 (Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy or CREATE MORE).
The DTI-EMB certificate is pursuant to CREATE MORE, which provides for the VAT zero-rating of sales of goods to and sale of services performed by EOEs, and VAT exemption of importation of goods by EOEs, provided that the export sales of EOS are at least 70% of total annual production for the preceding taxable year, and that such goods and services are directly attributable to the export activity of the EOE.
Last April, BOC, DOF, DTI, and EMB issued Joint Administrative Order (JAO) No. 002-2025, which provides the guidelines for implementing sections of the CREATE MORE Act relating to the certification of EOEs with export sales of at least 70% of the total annual production of the preceding taxable year.
Under the JAO, the certification to be issued by DTI-EMB shall be a requirement in the availment of the VAT zero-rating on local purchases or VAT exemption on importation. For this purpose, the EOE should furnish a copy of the DTI-EMB certification to its local supplier prior to the transaction, and submit the same to the BOC in case of importation.
The JAO noted that the EOE Certificate issued by DTI-EMB is distinct from the VAT-zero rating certification being issued by investment promotion agencies on the sale to registered business enterprises, which is covered under Title XIII of the Tax Code. – Roumina Pablo
