New Regulations Of The Philippine Internal Revenue Bureau: Confiscated Items Such As E-cigarettes Must Be Destroyed Within 20 Days, And Non-essential Items Will Be Auctioned Publicly

New regulations of the Philippine Internal Revenue Bureau: Confiscated items such as e-cigarettes must be destroyed within 20 days, and non-essential items will be auctioned publicly

The Bureau of Internal Revenue (BIR) of the Philippines has issued new guidelines requiring illegal tobacco and e-cigarette products to be destroyed within 20 days of seizure to strengthen enforcement and disposal procedures.

According to Business Mirror on September 2, the Bureau of Internal Revenue (BIR) of the Philippines has issued new guidelines on the disposal of confiscated goods.

BIR Director Romeo D. Lumagui Jr. issued Revenue Memorandum Order (RMO) No. 33-2024 last Friday (August 30) to enhance enforcement against items such as tobacco, e-cigarettes, perfumes, sweetened beverages, etc., which are locally produced or imported and subject to excise tax, resulting in crowded storage locations.

Lumagui said the BIR issued the RMO to adopt and implement uniform guidelines and procedures for the "disposal of confiscated/seized items" in accordance with Revenue Regulation 14-2024.

The BIR noted that non-essential items such as perfumes, jewelry, yachts and other recreational or sporting vessels, manufactured oils and other fuels, automobiles and mineral products will be disposed of through public auctions or negotiated/private sales. All proceeds from public auctions, after deduction of taxes, storage costs and other obligations, will be deposited into the Forfeiture Fund to facilitate the BIR's disposal process and enhance its investigative and enforcement capabilities.

Non-essential items that remain unsold after two public auctions may be sold through negotiated or private sales with the prior approval of the Secretary of the Department of Finance (DOF).

For private property, the above requirements may be waived to allow for the negotiated or private sale of seized/imprisoned items.

In addition, commodities that are injurious to public health such as tobacco and vaping products, alcoholic products and sweetened beverages, as well as machinery and equipment used in their production, all articles produced in violation of the Internal Revenue Code and dyes used to impersonate, print or create internal tax stamps and labels will be destroyed.

Items seized/imprisoned for destruction shall be destroyed at least 20 days after seizure.

All other confiscated/seized items in violation of tax laws and raw materials used to produce items to be destroyed will be determined by the Commissioner of Internal Revenue based on the recommendation of the Disposal Committee, which shall ensure that all disposal methods comply with all environmental laws, regulations and rules.