RMO No. 6-2021 — Prescribes the revised guidelines on the assignment and re-assignment of Revenue Officers involved in Excise Tax functions to establishments where articles subject to Excise Tax are made or kept based on Republic Act Nos. 10963, 11346 and 11467 Digest | Full Text

REPUBLIC OF THE PHILIPPINES BU RHAU ffiALHEvtsNUE DEPARTMENT OF FINANCE tNl TllF BUREAU OF INTERNAL REVENUE '\IL x- \UJZ -D g REC b n"o S r*GT. lv1!l December 28,2420 SUBJECT Al REvENUE MEMoRAMDuM oRDER No. O - 20 TO Revised Guidelines on the Assignment and Re-assignment of Revenue Officers Involved in Excise Tax Functions to Establish- ments Where Afticles Subject to Excise Tax are Made or Kept Based on Republic Act (RA) Nos. 10963, 1f346 and 11467. AII Revenue Officials, Employees and Others Concerned I. BACKGROUND Section 16 of the National Internal Revenue Code of 1997, as amended provides that the Commissioner shall employ, assign, or reassign internal revenue officers involved in excise tax functions, as often as the exigencies of the revenue service may require, to establishments or places where afticles subject to excise tax are produced or kept. Provided, Yhat an internal revenue officer assigned to any such establishment shall in no case stay in his assignment for more than two (2) years, subject to rules and regulations to be prescribed by the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue". II. OBJECTIVES This Order amends the previously issued guidelines under RMO No. 26-20L7 dated June L4, 20L7 due to the implementation of Republic Act (RA) Nos. 10963, IL346 and L1467 expanding the coverage of Excisable Industry such as Sweetened Beverage, Cosmetics, Heated Tobacco and Vapor Products. Thus, rezoning and reassignment is necessary to ensure the following: a. Equitable deployment of Revenue Officers On Premise (ROOPs) based on their individual performance and expertise; b. Optimum distribution of ROOPs to establishments, particularly those whose operators require effective superuision and strict monitoring which are crucial to the Bureau's efficient collection of excise taxes; and c. Establi''shment of data Our" tnrorgh internal and external stakeholder's coordination for related excisable products information. Such expansion resulted to an increase in the number of excise taxpayers and its production plants, warehouses and/or depots requiring supervision and monitoring by a limited number of internal revenue officers involved in excise tax functions. 7

ITI. DEFINITION OF TERMS REVENUE oFFrcER oN-pREMrsE (Roop) assigned to monitor and superuise the business - 1. shail refer to a Revenue officer operations of an establishment/s engaged in the manufacture/importation/export of excisable products where he/she is assigned' For purposes of this Order, ROOPs shall refer to botir those assigned in Zones as well as Excise Tax Areas (EXTAs). - - 2. ZoNEs shall refel t9 areas covering Revenue Region No. 4 san Fernando, Pampanga, Revenue Region No. 5 - caroocan, Revenue Region No. 6 - Manila, Revenue Region No. 7A- Quezon city, Revenue Region No. 78 - ealt NCR, Revenue Region No. - - - 8A Makati city, Revenue Region No. gB south NCR, Revenue Region uo. gn - caBaMiRo, Revenue Region No. 98 LaeueMar and Revenue Region ilo. 10-Legaspi City, which are under the oimfmmedoinaitteorjuinrigsdaicntiodnsoupf eErxvciissiengLTeFxiceilsdaOblpeereasttiaobnlsisDhmivlesniotns purposes (ELTFOD) for registered and located within these areas. The coverage of the zones has been - expanded as provided below due to the splitting of Revenle Regions No. Makati City and the increase in number 7 - euezon City and Revenue Region No. 8 taxpayers due to the TMIN Law and R.A. Nos. 11346 and 11467: of excisable ZONE NO. AREAS C9VERED I Yaii II l Quezon CiW l Gloocan, fqai III ry I Manila, Mandaluvong, San Juan, V I Parafraque, Makati. tao VI WI VIII | !-aguna 2 - Sta. Rosa & other nearb H l Laguna 3 - Qlamba, San pedro, X qatangas I - SMNlaaaslvcuaagr,,bBLqipla.aia,lnTa, Tavuabv &nao,nBthgearaunoeaarnbv aie;i-------__l - ---_l XI Eatangas 2 - Balangas HI 3 KII Ealangas 4 - Sto. Tomas, Tanauan XIV EU|aCAN I )0/ Pam Tarlac, Nueva Eciia )0/I Bataan, Subic Special Economic Zone, Clark Special Economic Zone other areas in Zambales }O/II 3' ZoNE-IN-CHARGE (zrc) - shall refer to a Revenue officer designated as a supervisor I of all RooPs assigned at excisable establishments located within zone. 4' - flERooecxrvaceptrenusdurEpewoTRistehAesignxiootAnhfReNmsEoeoAsn.asi4rteo(tEaroisn).1fgf0ATawhsnehjdiccoshuvsaephrreaearlgvluiersneidonfeegfrrtnetthoexecEaijsuXraerTibasAlsdesiciaentrisoeRtnaaebsvoliesffohnElmulxoecewisnRset:esTgairoexngsAirsoetualitesodifdfeiacneodsf HIIH FAII OF iN rH RNAILR EVE fTIUE THJdJrb!.tV,Jqt' ._r,[tIN !# ll 2LT8;iul ;il *ffi uD JJ3-V,r R ECORDS MGT. D I sto N

EXTA NO. AREAS COVERED I 3RR l-Calasiao, Pangasinan, RR 2-CorOil II III Tuguegarao, Cagayan and Zambales Areas Large Taxpayers ru Mining companies V RR 11 - Iloilo Citv, RR 12 - Bacolod Citv RR 13 - cebu ciw, RR t+ - rastern visavas Reglotr RR 16 - cagavan de oro cifv RR 17 - Butuan city - RR 15 - Zamboanga CiW RR tB Korona - 5, EXCISE TAX AREA /(EltrA) OFFICES shall refer to extension/satellite offices of ELTFOD outside of Revenue Regions 4 to 10 tasked to monitor and superuise excisable establishments located within Excise Tax Areas. The EXTA Offices are operationally under the jurisdiction of ELTFOD but administratively under the jurisdiction of Revenue Regional Offices. As such, they are required to comply with the administrative requirements of the Revenue Region having jurisdiction over them. - 6. EXTA HEAD shall refer to a Revenue Officer designated as a head to monitor and supervise the overall operation of the covered excise tax areas under its jurisdiction. - 7. AREA SUPERVISOR shall refer to a Revenue Officer designated as a Supervisor of all ROOPs assigned at excisable establishments located withinl specific region/province under the jurisdiction of an EXTA. 8. EEMTEP is the acronym for '.Establishment Engaged in the Manufacture/Impoftation/Export of Excisable Products". For ease anJ bievity, the word "Establishment" may be used in lieu thereof for purposes of this Memorandum Order. ry. POTICIES AND GUIDELINES 1. There shall be assignment/re-assignment of ROOPs in EEMIEp every two (2) years thru a Revenue Travel Assignment Order/Revenue Special Order lnfeOi4SO) lsiJeO by the Commissioner based on criteria set under this Revenue Memorandum Order (nfufOj; 2. The following criteria shall be considered in assigning/reassigning ROOps to establishments: a. Individual Performance commitment and Review (IPCR) rating for the last two (2) semesters; b, Industry Exposure; c. Involvement in Projects; and d. Other factors which shall include repoft of discrepancyfinding which Resulting into assessment and or collection.. 3. For purposes of optimizing ROOP distribution, establishments shall be classified according to type of taxpayers (whether manufacturer, impofter, trader/dealer, etc.) and then prioritized and ranked according to the following: a. Amount of annual excise tax payments based on removals for the last three (3) years; and tl. b. Average growth rate on exci last three (3) years. for r{Uts m N

4. Establishments engaged in the manufacture of excisable products shall have a monitoring ROOP assigned therein as priority taxpayers for monitoring purposes over those establishments engaged in the impoftation, trading and/or stoiage of tax paid excisable articles. Provided, however, that in the case of eltablishments Sngaged in the impoftation, trading and/or storage of tax may be concurrently assigned therea! paid excisable articles in a given loie, Roop man ufacturing establishments; in addition to his/her asiignments in the 5. No ROOP shall be reassigned back to his last two (2) consecutive assignments in Zones except in meritorious cases. In the case of EXTAs, however, a ROOp may Oe allowed to be re-assigned to an establishment engaged in the manufacture of excisable products where he/she was previously assigned prior to his present place of assignment, only when deemed necessary; 6. As a general rule, the re-assignment of ROOPs and ZICs deployed in Zones I to XVII shall be limited to establishments located within the areas of Zones I to XVII. Likewise, reassignment of ROOPs and Area located within the juridiction of Supervisors of EXTA shall be limited to establishments a particular EXTA. providee however, that when the exigencies of the revenue service so require, ROOP, Area Supervisor assigned in Zones I to XVII maybe deployed to EXTA or vise-versa; - 7' All newly hired Revenue officers Excise (Ros-E) shall undergo training and familiarization of excise tax functions for every ixcisable industry Taxpayers Field Operations Division/Excise Large Taxpayers at Ine Excise Large Regulatory Division (ELTFOD/ELTRD) within six (6) months prior to assilnment'oi being dlpoyea as Roop; 8. In the case of special projects undeftaken by the BIR in a pafticular industry which require sustained or.prolonged training and familiarization both on the part of the pilot establishment/s and the RooPs/s assigned thereat, the Commissioner may allow assignment of RoOPs for more than two (2) years upon recommendation of the Aisistant commissioner of Internal Revenue (ACIR);Large Taxpayers seruice (LTS); 9. Io ensure smooth transition, the ZIC or Area Superuisor, as the case maybe, shall oversee the turn-over of official records and other ielevant files anddocuments of BIR offices within the EEMIEp premises by the outgoing to incoming Roop/s; 10' Conduct of spot checking of RooPs in their respective place of assignment shall be done regularly to monitor their attendance of spot checking shall be considered and physical presence in the fremises. The results in the re-assignment of Roops; and 11' There shall be a regular review of the list of EEMIEPs to be subjected to assignment of RooP/s, as well as the number to be assigned thereat. If after that additional RooP/s is/are necessary or if an establishment review, it was dEtermined requires close monitoring, ROoPs may be transferred to ensure that collection of taxes is monitored. 12' Hiring of personnel shall be undertaken by Resource Management Group thru personnel Division to complement the need for monitoring of establisiments. V. PROCEDURES IFTNTERTUAL REVET{UE The following procedures shall be obserued: lOi05 fi.lnt' JAH 21,2$il _Y \:/ )y [) RECORDS MGT. lvtsrorl{

A. The SECTION CHIEF CONCERNED/EXTA HEAD sha[: 1. Prepare the list of excisable establishments engaged in the manufacture/importation of excisable products under their jurisdiction, classified and ranked based on the criteria provided for under Item IV of this Order; 2. Determine the number of ROOPs to be assigned in each establishment engaged in the manufacture/impoftation of excisable products taking into consideration the size /area of establishment and operations; and 3. Submit the list to the Chief, ELTFOD. B. The CHIEF, ELTFOD shall: 1. Review and evaluate the lists submitted by the concerned Section Chiefs; Heads, 2. Taking into consideration the lists submitted by the Section Chiefs or EXTA of prepare matrix identiffing EEMIEPs with proposed ROOPs to be assigned; 3. Cause the preparation the corresponding Revenue Travel Assignment Order/Revenue Special Order (RTAO/RSO); and - 4. Submit the RTAOs/RSOs to the Head Revenue Executive Assistant (HREA Excise Group) for review and consideration. C. HREA - Excise Group shall: 2.1. Review the RTAO/RSO and the rnatrix to ensure fairness and imparLiality; and - Recommend RTAO/RSO to ACIR LTS D. The ACIR - LTS shail: 1. Review, recommend and submit RTAO/RSO for approval/disapproval to the Office of the Commissioner. vI. REPEALING CTAUSE All revenue issuances or poftions thereof inconsistent herewith are hereby repealed or amended accordingly. WI. EFFECTIVIW This Order shall take effect immediately. D-6 &rr n FIN I EHN AL RE:,Vb r{UE CAESAR R. DULAY UI t 039 Tz Commissioner of Internal Revenue ?: i)'-f/ C!, 6 TH 21 1 I vawtr ft [) "K*'{,,{r#' R ECORrDS MGT. D uts ro N