REVENUE MEMORANDUM ORDER NO. 19-2017 issued on August 18, 2017 updates
the guidelines and procedures on the disposal of unserviceable properties.
A Disposal Committee in the National Office and the Regional Offices shall be
established with the following officials as members:
National Disposal Committee:
Chairman – Head Revenue Executive Assistant,
Members – Chief, Property Division (PropD)
Chief, General Services Division (GSD)
Chief, Automotive and Equipment Maintenance
Regional Disposal Committee:
Chairman – Assistant Regional Director
Members – Chief, Administrative and Human Resource
Management Division (AHRMD)
Chief, Property and Supplies Section, AHRMD
The Secretariat shall be created by the committee consisting of personnel from the
PropD and/or the GSD or the AHRMD of the Regional Office, as the case may be, to
handle all the Committees’ technical and administrative matters, including the
safekeeping and filing of committee documents and records.
The Accountable officials and employees/Chief, PropD and the Chief, AHRMD,
Regional Office, as the case may be, in possession of unserviceable property shall submit
to the Disposal Committee concerned the Inventory and Inspection Report of
Unserviceable Property, as appropriate, to evidence the surrendered property.
Property shall be considered disposable if any or all of the following conditions are
a. Property which can no longer be repaired or reconditioned;
b. Property whose maintenance cost/costs of repair outweighs the benefits and
services that will be derived from its continued use;
c. Property that has become obsolete or outmoded because of change in
d. Serviceable property that has been rendered unnecessary due to change in the
BIR’s functions or mandate;
e. Unused supplies and materials that have become dangerous to use because
the storage or use of which is determined to be hazardous.
The members of the Disposal Committee, as a group or individually, shall
invariably conduct an inspection of the property to be disposed to obtain first hand
observation of the physical and operational condition of the property, their marketability
or ability to attract prospective buyers.
The Disposal Committee shall compute for the appraised value of the property
considering obsolescence, market demand, physical condition and result of previous
biddings of similar property. Pertinent Commission on Audit rules and regulations as
embodied in Appendix A of the Order shall be used for this purpose.
The appraiser shall gather the Current Market Value, Prices from second hand
rebuilders and reconditioners, Acquisition Cost, Replacement Cost New and Currency
exchange rates price information to aid them in their appraisal computations.
The Disposal Committee shall recommend to the Assistant Commissioner,
Administrative Service/Regional Director the proper mode of disposal, which can be any
of the following modes, as appropriate and deemed most advantageous to the
a. Public Bidding (either Sealed public bidding or Viva Voce [Living Voice])
b. Sale thru negotiation
c. Transfer to other government agencies
d. Condemnation or Destruction
f. Donation of property
The auditor concerned or his representative shall be invited at all times to witness
the proceedings of the opening of the bids and actual disposal of the property.