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The Bureau of Customs has issued a circular involving goods sold locally by registered business enterprises
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Under Customs Memorandum Circular (CMC) No. 113-2025, BOC will allow release of such goods upon presentation of Bureau of Internal Revenue Form No. 0605
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Sales of goods and services to domestic market enterprises or non-RBEs are considered “local sales,” outside the mandate of BOC but under the jurisdiction of BIR
The Bureau of Customs (BOC) has issued a circular involving goods sold locally by registered business enterprises (RBEs).
Under Customs Memorandum Circular (CMC) No. 113-2025 dated June 2, BOC will allow release of such goods upon the presentation of Bureau of Internal Revenue (BIR) Form No. 0605.
The circular implements BIR Revenue Regulations (RR) No. 9-2025, which in turn implements Section 295(D) of the National Internal Revenue Code of 1997 (Tax Code), as amended by Section 18 of Republic Act (RA) No. 12066 (Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy or CREATE MORE), particularly on the treatment of local sales of goods and/or services by RBEs.
CMC No. 113-2025 noted that in relation to RR No. 9-2025, Finance Secretary Ralph Recto, in a letter dated April 15, clarified that sales of goods and services to domestic market enterprises or non-RBEs are considered “local sales,” which is outside the mandate of BOC and under the jurisdiction of BIR.
Recto said RR No. 9-2025 clarified that the location of the transactions and the RBEs, whether inside the economic zone, freeport, or customs territory are no longer the determining factors in the taxability for local sales of RBEs for VAT purposes.
Aside from BIR Form No. 0605, CMC 113-2025 said “BOC Officers handling the release of the goods subject of local sale shall, collect the appropriate duties, applicable taxes other than VAT, and other fees and/or charges on the imported raw materials sold or as component of the finished product, whose collection were suspended at the time of importation by the RBE.”
Section 105 of RA 10863 or the Customs Modernization and Tariff Act, states that imported goods will be “subject to the import duty rates under the applicable tariff heading that are effective at the date of importation or upon withdrawal from the warehouse for consumption.”
“In case of withdrawal from free zones for introduction to the customs territory, the duty rate at the time of withdrawal shall be applicable on the goods originally admitted, whether withdrawn in its original or advanced form,” it added.
With this, RBEs “shall make an appropriate goods declaration for such raw materials and pay the corresponding duties, applicable taxes except VAT, and other fees and/or charges thereon, with attached BIR Form No. 0605,” CMC 113-2025 said. – Roumina Pablo
