Forms and Documentation, Procedure in Filing Drawback

Drawback?
Drawback -refers to the customs process that allows for a partial refund or tax credit for duties and taxes paid on raw materials, imported into the Philippines that are to be further processed or manufactured and then exported as finished product.

Duty Drawback

Duty drawback - is a refund of customs duty paid on imported goods that are exported overseas

The Criteria for drawback

1. Exportation of qualifying goods must occur within one year after the importation of the raw materials, proof of export is required 2. The claim for drawback must be filed within 6 months of the date of export
3. Claims may include the cost of packing, covering, putting up, marking, labeling in whole or in part

The General Rule in Duty Drawback

1.The claimant may recover up to 99 % of the duty paid for goods entered into the Philippines and exported out of the Philippine customs territory 2. The claim must be filed within o1 year after the importation of materials used 3. Claim of refund or tax credit shall be filed within 6 months from the date of exportation 4. Claim for drawback shall be filed with the drawback unit under the Commissioners office of the Bureau of Customs or through the Collectors Office of the Port of Manila or in other ports of entry with the collectors concerned which must be duly acknowledge and recorder thereafter

Drawback Allowance (Customs Memorandum Order No.14-72) Prescribing the rules and regulations governing Drawback under sec 106 b of TCCP

Drawback of duty shall be allowed as prescribed under sec 106 b of TCCP or articles manufactured or produced in the Philippines wholly or in part with the use of imported materials including the packing, covering, putting up, marking or labeling subject to the Following Conditions
1. The actual use of imported materials in the production or manufacture use of the articles

exported with their quantity, value and amount of duties paid thereon has been established 2. The duties refunded or credited shall not exceed 99 % of duties paid on the imported materials used 3. There are no available locally produced or manufactured competitive substitutes for the imported materials used at the time of importation as certified by the National Economic Development authority (NEDA) 4. The exportation shall be made within one 1 year after the importation of the materials used and claim for refund or tax credit shall be filed within 1 year from the date of exportation 5. When 2 or more products result from the use of the same imported materials an appointment shall be made on an equitable basis

Filing, Processing and Supervision Fee

For every application of drawback there shall be paid to and collected by the Bureau of Customs as filing, processing and supervision fees the sum of P500.00 which amount may be increased or decrease by secretary of finance upon the recommendation of the commissioner of customs

Documentary requirements in Filing drawback

1. Sworn statement as certified by the national economic and development authority (NEDA) 2. Formula of manufacture duly approved by the national institute of science and technology (NIST) 3. Dully accomplished and certified copy of the export entry 4. Bill of Lading (export) 5. Export Commercial Invoice 6. Lading Certificate 7. Abstract of Records 8. Certificate of Exportation 9. Certificate of Delivery of Imported Materials 10. Certificate of Manufacture and Delivery; Manufactured or partly manufactured articles

Time of Filing
Claims for drawback shall be filed per import entry together with all the supporting forma and documents required at the port of importation within 1 year after the date of exportation. Claim filed but were not perfected by reason of non compliance with any of the requirements shall after one year from the date of filing be treated as abandoned and no further extension will be granted

Procedure in Processing Drawback Claims

A. At the Port of Manila A drawback committee is created who shall adjudicate and resolve the propriety and legality of drawback claims In other ports of entry- processing of drawback claims shall be directly under the authority, supervision and control of the collector concerned who shall process and adjudicate such claim in accordance with the records and facilities of his office and thereafter shall transmit all records of the claim to the commissioner of customs with his recommendation in accordance with law within the period prescribed b. Upon the receipt of a claim for drawback the collector of customs of the port shall refer the entry number involved to the chief cash division for verification and certification of payment and notify The claimant about the documents that he has to secure and submit if any shall be required C. When the drawback claim shall have been completed by the filing of all the forms and documents required under this rule the same shall immediately be entered in the general record book with this claim number before anything else shall be done the collector if he believes that the claim is valid shall recommend to the commissioner the granting of a partial tax credit equivalent to 75 % of the total claim due D. It shall be placed in the agenda for deliberation of the committee on the joint weekly meeting and if found in order shall forthwith issue a resolution signed by the executive member members of the committee Resolution shall be presented to the collector of customs for appropriate action and together with his recommendation shall be transmitted directly to the Budget Department of the Commissioners office

E. the budget department Shall: Review and compute the amount of study refundable Certify as to the amount of refundable BIR taxes Prepare the journal voucher Transmit the same to the commissioner of customs for final approval

F. Upon approval of claim by the General auditing office The case shall be returned to the committee who shall prepare the letter of advice to the claimant and compute, record and/or annotate in the general record book for all drawback claims
G. Collector of Customs -process and transmit to the budget department , commissioners office, drawback claims filed with their respective ports within 40 days after receipt of properly accomplished claims together with all forms and documents required.

Authority to Sign Documents

Power of attorney shall be required from person signing the documents for drawback claims where such person is not the president, vice president, treasurer or secretary of the corporation Documents as follows abstract of records certificate of delivery certificate of manufacture sworn statement of manufacturer, producer, supplemental sworn statement, schedule and supplemental schedule sworn statement of owners endorsement of exporters on bills of lading and notices or exportation authorization by manufacturer, producer, exporter or agent to pay the drawback to another person Protest and Appeal

Sample Drawback Form