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The Bureau of Customs has issued its procedures for the implementation of the value-added tax exemption for imports of export-oriented enterprises
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Under memo 210-2025, enterprises are responsible for securing their DTI-EMB certification and furnishing a copy to BOC
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The assigned customs officer will verify the authenticity and validity of the submitted DTI-EMB certification and ensure that the imported goods are consistent with the nature of the EOE’s export activity
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BOC’s Management Information Systems and Technology Group has created an additional procedural code 061 in its system that can be used by EOEs whose importations are qualified for VAT exemptions
The Bureau of Customs (BOC) has issued its procedures for the implementation of the value-added tax (VAT) exemption for imports of export-oriented enterprises (EOEs).
The guidelines under Customs Memorandum Circular (CMC) No. 210-2025 implements provisions of Bureau of Internal Revenue (BIR) Revenue Regulations (RR) No. 10-2025 and Joint Administrative Order (JAO) No. 002-2025.
The JAO provides the guidelines for implementing sections of Republic Act No. 12066 (Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy or CREATE MORE) 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 – signed by BOC, BIR, Department of Finance (DOF) , and Department of Trade and Industry-Export Marketing Bureau (DTI-EMB) – 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.
READ: Exporters may avail of zero VAT via DTI certification
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.
Under CMC No. 210-2025, EOE is responsible for securing the DTI-EMB certification and furnishing a copy to BOC.
For data integrity and authenticity, the DTI-EMB will also transmit an official copy of each issued EOE certification to BOC through mutually agreed secure electronic channels or other officially designated means of communication, ensuring that no alteration or duplication occurs prior to receipt by BOC.
The assigned customs officer will verify the authenticity and validity of the submitted DTI-EMB certification and ensure that the imported goods are consistent with the nature of the EOE’s export activity.
BOC, through the Export Coordination Division, will maintain a database of EOEs with an issued certificate based on the DTI-EMB master list.
BOC’s Management Information Systems and Technology Group has created an additional procedural code 061 in its system that can be used by EOEs whose importations are qualified for VAT exemptions.
A procedural code refers to specific numerical or alphanumeric codes used by BOC to classify import/export shipments, declaration types, valuation methods, or specific locations within its system.
CMC 210-2025 noted that BOC’s Post-Clearance Audit Group will retain the authority to conduct post-clearance audit and verification to ensure compliance with the provisions of RR No. 10-2025 and JAO No. 002-2025.
Non-compliance, including the failure to meet the 70% export sales threshold for the taxable year, may result in the imposition of duties and taxes, including penalties and surcharges, the CMC added.
The issuance of the CMC follows Assessment and Operations Coordinating Group (AOCG) Memo No. 188-2025 issued last September that states that EOE certificates issued by DTI-EMB is enough proof of entitlement to VAT exemption for imports by export enterprises.
An EOE should not be treated as a registered export enterprise, thus a tax exemption endorsement from the DOF or a Certificate of Authority to Import from other government agencies is no longer required for the importation of EOEs.
The issuance of AOCG Memo No. 188-2025 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: DTI-EMB certificate enough proof for export firms’ VAT exemption: BOC
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 BIR 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.
JAO 002-2025 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
