BIR issued RMC No. 78-2023 Prescribing the Administrative Requirements for Importers and Manufacturers of Raw Materials, Apparatus or Mechanical Contrivances, and Equipment Specially Used for the Manufacture of Heated Tobacco Products and Vapor Products.

Importers or manufacturers of raw materials, apparatus or mechanical contrivances, and equipment specially used for the manufacture of HTPs and Vapor Products are required to comply with the following requirements: 

  1. Application for a Permit to Operate as an importer or manufacturer of raw materials, apparatus or mechanical contrivances, and equipment specially used for the manufacture of HTPs and Vapor Products. – Applicant shall file his/her application in writing and addressed to the Commissioner of Internal Revenue, Attention: Chief, Excise LT Regulatory Division (ELTRD), together with the following basic supporting documents:
     

    1. BIR Certificate of Registration (BIR Form No. 2303) including Payment Form (BIR Form No. 0605) evidencing payment of registration fee; 
    2. Copy of latest Income Tax Return duly filed with and received by the BIR, if applicable; and  
    3. Location map, and plat and plan of the Production Plant/Warehouse, if applicable. 
    4. Specifications (model/serial number) of the apparatus or mechanical contrivance, and equipment, if locally manufactured.

  2. Application with the ELTRD for eATRIG for every importation. – The application shall be done using the Philippine National Single Window System (https://nsw.gov.ph/). The basic documentary requirements include the following:

    1. Bill of lading 
    2. Packing list 
    3. Commercial Invoice 
    4. Import Entry and Internal Revenue Declaration (IEIRD) 

Revenue Memorandum Order No. 14-2014 prescribes the procedures and guidelines for the processing and issuance of eATRIG for excise tax purposes. 

The raw materials specially used for the manufacture of HTPs and vapor products shall include, but not limited to: propylene glycol, vegetable glycerin, organic sweetener, artificial flavoring, and nicotine. 

On the other hand, the devices specially used for the manufacture of HTPs and vapor products shall refer to, or compromise, any device or combination of devices designed or used to deliver the desired purpose, function, or effect of HTPs and vapor products. These devices or combinations thereof include but are not limited to, a mechanical or electronic heating element (or atomizer), circuit, cartridge (or reservoir or pod), tank, mod, cartridge, or mouthpiece. 

Failure to comply with the foregoing requirements shall be subject to the corresponding penalties provided for under Section 254 and Section 265-B of the 1997 NIRC, as amended. 

This Circular shall take effect immediately.