REVENUE MEMORANDUM CIRCULAR NO. 94-2020 issued on September 4, 2020 circularizes Joint Memorandum Order No. 1-2020 prescribing the implementing guidelines for the collection and disbursement of Fuel Marking Fees pursuant to DOF-DBM-COA Permanent Committee Joint Circular 001.2018.
Pursuant to Section 148 of the National Internal Revenue Code (NIRC), as amended, the BIR shall collect the Fuel Marking Fees (FMF) at the same time as the internal revenue taxes on petroleum product subject to Fuel Marking are collected. ln all instance, the FMF for locally refined or manufactured petroleum products and the internal revenue taxes must be paid by the refiner prior to the marking activities. Hence pre-payment is authorized.
For this purpose, the filer or declarant (Refiner/Manufacturer) shall use the Fuel Marking Fee Form (BIR Form No. 0623) for payment of the FMF. The form shall capture the Value-Added Tax (VAT) component as reference for the fuel company/owner in recording the VAT upon payment of the FMF.
In the instance that the balance of FMF, as reflected in the FMFF, is not enough to cover the volume of fuel to be marked, additional deposit shall be made prior to Fuel Marking. To ensure sufficiency of balance of FMF, the Refiners/Manufacturers shall make a forecast of its removal of finished petroleum products and provide sufficient deposit corresponding to the amount of future removals for not less than 3-5 calendar days.
A volume percentage allowance shall be added to the Declared Volume of the petroleum product to be marked in consideration of the biofuel requirements of Republic Act No. 9367. Thus, the FMF shall be computed as follows:
a. For Gasoline:
FMF = Declared Volume x 110% x Php 0.06884 (VAT inclusive)
b. For Diesel:
FMF = Declared Volume x 102% x Php 0.06884 (VAT inclusive)
c. For Kerosene:
FMF = Declared Volume x Php 0.06884 (VAT inclusive)
The Bureau of Customs and BIR shall commence the collection of the FMF on all manufactured, refined or imported petroleum products withdrawn and/or logged beginning September 4, 2020.
The Fuel Marking Fee shall be characterized as non-revenue collection, recorded as trust receipts and credited to the Fuel Marking Trust Account to be maintained by the Bureau of Treasury (BTr) pursuant to the DOF-DBM-COA Joint Circular No. 001.2018.
The Bureau of Customs shall be responsible for payment of the amount due to the Fuel Marking Provider for Marking Services rendered based on the contract price in the amount of six thousand, eight hundred eight-four hundred thousandths centavos per liter (P0.06884 per liter) for the second through the fifth year of the Fuel Marking Program. The payment to the Fuel Marking Provider for Marking Services rendered shall be sourced from the said Trust Receipt created.
If the billing is for Marking Services under the jurisdiction of the BIR, the following documents shall be submitted:
a. Journal Entry Voucher issued by the BIR taking up FMF collected which is due for transfer to the Fuel Marking Trust Account;
b. Journal Entry Vouchers issued by the BTr taking up the fund transfer from the General Fund (BIR) to Fuel Marking Trust Fund (BOC);
c. BIR Validation Report and Indorsement for payment of the billing statements based on the actual fuel marking activity conducted with the jurisdiction of the BIR. The details of the billing statement shall be reflected in said validation report; and
d. Delivery Receipt signed by the BIR.