The Bureau of Customs (BOC) has added two new codes to its electronic-to-mobile (e2m) system that are designated for importations of the Civil Aviation Authority of the Philippines (CAAP) and exempt from duty and value-added tax (VAT).
The new procedural codes are specified in Customs Memorandum Circular (CMC) No. 77-2015—signed on July 13 by Customs Commissioner Alberto Lina—and apply to the importations of CAAP, a government-owned and controlled corporation that implements policies for civil aviation to assure safe, economic, and efficient air travel.
CAAP shipments are exempt from duty and VAT requirements as mandated by Republic Act (R.A.) No. 9497, or the Civil Aviation Authority Act of 2008.
Under Section 16 of R.A. No. 9497, “the importation of equipment, machineries, spare parts, accessories and other materials including supplies and services used solely and exclusively in the operations of the Authority not obtainable locally shall be exempt from all direct and indirect taxes, wharfage fees and other charges and restrictions, the existence of pertinent laws to the contrary notwithstanding.”
Assigned by BOC’s Management Information System and Technology Group, the additional codes are L12 (RA 9497, Civil Aviation Act, Duty and VAT Exempt) and L13 (RA 9497, Civil Aviation Act, Duty and VAT Exempt, Shipside).
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