How to secure BIR Importer Clearance

Certificate (ICC)
TOPICS:BIR ICCEFPSICCImporter Clearsnce CertificateOpen CMS CaseSEC Good
Standing

POSTED BY: AMPALARCA AUGUST 30, 2016

Regulatory Background

You may skip this part and go straight to the next sub-heading. But I encourage you to read it
for additional information.

In order for companies to become importers, they need to be accredited by the Bureau of
Customs (BoC). Previously, getting accreditation is easy and fast. However in 2014, with
the aim to combat smuggling, the following regulatory issuance came about:

No. Agency Issuance Description

Department Requires importers to secure an Importer Clearance
Department Order (DO)
1 of Finance Certificate (ICC) from the Bureau of Internal Revenue
No. 12-2014
(DOF) (BIR) as a pre-requisite for accreditation with the BoC.
To include custom brokers in its coverage the Brokers
Amended Clearance Certificate (BCC)
2 DOF
DO No. 12-2014
 Provides for the requirements and guidelines for the ICC
Revenue Memorandum
and BCC applications. The applications are coursed
3 BIR Order (RMO) No. 10-
through the BIR- Accounts Receivable and Monitoring
2014
Division (ARMD) [later revised in number 7].
Requires PEZA and BOI companies to present certificate
4 BIR RMO No. 33-2014 of registration from respective investment promotion
agencies
5 DOF DO No. 107-2014
Exempts PEZA locators from securing ICC in order to be
Revenue Memorandum accredited by BoC
6 BIR
Circular No. 4-2015
Reduces the documentary requirements for ICC/BCC
applications Requires applicant to secure directly the
annex/compliance certificates from the different BIR
7 BIR RMO No. 1-2015
agencies before filing for the ICC/BCC with the BIR-
ARMD. The memo goes away with certified (photocopy
suffices) BIR CoR and SEC registration and AOI.

What are important items that need to be considered to expedite the ICC application
process?

The 1.5 months timeline is based on the following assumption:

a. that the taxpayer is already using the Electronic Filing and Payment System;
b. is compliant with SEC reportorial requirement; and
c. and has minimal or no open cases with BIR as discussed further below.

Before or simultaneous with preparation or collating of documents needed for ICC

application, the following sub-processes needs to be considered:

1. Application for certificate of good standing with SEC;

2. Closure of Open Case per BIR Case Monitoring System (CMS); and
3. eFPS enrolment with BIR;

The above are discussed as follows:

1. Application for certificate of good standing with SEC

Actually, this is a requirement in the final application with ICC, but I opted to discuss
and emphasize it first because this is needed to be applied to SEC and will take at
least 2 weeks before it can be released after settling all non-compliance with SEC.
Meaning, if a taxpayer has not been submitting all required reports to SEC, it will be
required to submit what has not been submitted and pay the penalties thereof, before
the certificate of good standing can be released.
2. Closure of Open Case per BIR Case Monitoring System (CMS)
The initial application for Certificate Annex A will not prosper if the client has open
cases in the CMS. A taxpayer with a copy of COR may inquire of CMS open cases
with the BIR anytime. For some RDOs they require an application for good standing
before a CMS can be printed. Any open cases should be closed in the system, of if it
takes a long time, a letter should be stamped received by BIR stating how all
remaining open cases were resolved, pending system update.
3. EFPS enrolment with BIR
An importer is required to be registered with eFPS and is using the same for two
months, yes, two long months before it can apply for ICC. During the final
application at ARMD, copies of 2 BIR forms submitted using the eFPS for at least 2
months should be submitted. The following should be noted:
 1. Before a taxpayer can be registered with eFPS, it should have a bank account
that is registered with internet banking or e-banking.
2. When enrolling for e-banking, be sure first that the depository bank is certified
by BIR to use eFPS. (I may not be updated but BDO has no accreditation and
only accommodates their clients through a tie-up with China Bank. The
process through this arrangement may become tedious since BDO branches
are not aware of it.)
3. The enrollment for e-banking and then to eFPS with the bank may require the
following:
1. Board resolution approving the enrollment with e-banking and eFPS
facilities with the bank.
2. Secretarys (or Presidents or Treasurers) certificate use bank
template
3. After enrollment with the bank, enroll with BIR (see process below).

Previously enrolment with BIR should come before enrolment with the bank. But due to the
long time it takes for banks to process enrollment, the BIR requires a taxpayer to be enrolled
first with the bank in order for the taxpayer to avoid facing penalties for not using eFPS after
it was activated by BIR.

What are the processes and the requirements for application for ICC?

There are 6 compliance certificates that need to be secured before the FINAL application for
ICC can be made to ARMD. Including the 3 pre-requisites as discussed above, thus, there are
10 sub-processes for ICC application below:

No. Process Remarks Timeline

Application for certificate of good standing with Simultaneous with BIR
1 2 weeks
SEC processing
Pre-requisite of Annex A;
But should be done
2 Closure of Open Case per BIR CMS 1 week
regularly even without
BIR ICC application
Registration 1
month
Simultaneous with Annex
3 eFPS enrolment with BIR A; But can be ignored by Minimum use 2
those already registered months

Certificate Annex A and Annex A-1 Tax

4 3 weeks
Compliance from RDO
Certificate Annex B from Regional Legal Simultaneous with Annex
5 1 week
Division A
Certificate Annex C from Regional Collection Simultaneous with Annex
6 1 week
Division A
Automatically given after
3 weeks(same as
7 Certificate Annex D from ARMD release of Annex A and
Annex A)
A-1
Certificate Annex E from Audit Information, Tax Simultaneous with Annex
8 3 weeks
Exemptions and Incentives Division (AITIED) A
Certificate Annex F from Miscellaneous Annex A-1 is a pre- 1 week after Annex
9
Operations Monitoring Division (MOMD) requisite A-1 so 1 month
All Annexes are pre-
2 weeks after 1
Importer Clearance Certificate (ICC) [FINAL] from requisite; needs
10 month of Annexes so
ARMD appearance of authorized
1.5 months
officer
How to secure Certificate of good standing from SEC
[Estimated processing time: 2 weeks at least]

1. Preparation of documents (all photocopies):

a. latest audited financial statements (AFS)
b. latest general information sheet (GIS)
(If branch)
c. latest certificate of security deposit
d. SEC License to transact business
(If corporation)
e. SEC certificate
f. Articles of incorporation
g. Photocopy of first page of stock transfer book
2. Submit the above requirements to the monitoring section of SEC and get date
monitoring sheet can be released.
3. Get monitoring sheet.
4. Submit the required documents or pay the required fines and penalties per monitoring
sheet.
5. Claim SEC Certificate of Good Standing.

How to close CMS open cases

[Estimated processing time: 1 week or more depending on RDO or if there are open cases]

1. Prepare the requirements

1. Letter request
2. Copy of COR
3. Authorization letter
2. Submit requirements and get CMS print from BIR collection section by presenting
letter request. Some RDO may ask you to come back after 3 days. Use your moral
suasion to get it within the day or lessen it to 1 or 2 days.
3. IF the printed CMS indicates open case. Draft a letter showing how we have resolved
all the open cases.
4. Attach the BIR received letter to the ICC application.

How to enrol with eFPS

[Estimated processing time: 1 month or more depending on the bank and availability of
signatories]

1. Prepare required documents:

1. Letter of Intent to Enroll
2. Signed and notarized Annex A-1 Application Form for Accreditation of
Importer
3. Copy of COR
4. Copy of BIR 0605
5. Copy of SEC certificate
6. Printed CMS
2. Send the required documents to national office who open eFPS online registration
3. Complete enrolment process and print out enrolment page.
4. Submit enrolment page to BIR for activation.
5. Wait for the activation e-mail from BIR. Print and attach to ICC. Print another copy
since it is a requirement by the authorized agent bank (AAB).
6. Print eFPS filing with payment for at least two months and attach to FINAL
application

How to secure certification Annex A and Annex A-1 Tax Compliance from RDO
[Estimated processing time: 2 to 3 weeks as long as open cases were closed]
 1. Prepare the requirements:
1. Copy of GIS;
2. Request letter;
3. Authorization letter;
4. ID of signatory
5. ID of representative
2. Submit documents to BIR RDO 43A
3. Resolve all comments
4. Secure certificate

How to secure certification Annex B from Regional Legal Division and Annex C from
Regional Collection Division
[Estimated processing time: 1 week, can be done simultaneously with Annex A]

1. Prepare the requirements:

Annex B
a. 2 copies of filled-out and notarized Application Form for Accreditation of Importer;
b. Authorization letter;
c. ID of signatory; and
d. ID of representative.
Annex C
a. Photocopy of BIR Form 2303 COR; and
b. Authorization letter.
2. Submit documents
3. Resolve all comments
4. Secure certificate

How to secure certification Annex D from Accounts Receivable Monitoring Department

(ARMD)[Estimated processing time: automatically given once Annex A and A-1 were
secured so 2 to 3 weeks; simultaneous with Annex A]

1. Prepare the requirements:

1. Photocopy of BIR Form 2303 COR;
2. Authorization letter;
3. ID of signatory; and
4. ID of representative.
2. Submit documents
3. Resolve all comments
4. Secure certificate

How to secure certificate Annex E from Audit Information, Tax Exemptions and
Incentives Division (AITIED)
[Estimated processing time: 3 weeks simultaneous with Annex A]

1. Prepare the requirements:

1. Photocopy of BIR Form 2303 COR;
2. SEC Certificate;
3. Letter request;
4. Authorization letter;
5. ID of signatory;
6. ID of representative; and
7. Copy of submitted summary list of sales and purchases and/or proof of
submission of VAT Relief in the previous 1-3 years.
2. Submit documents
3. Resolve all comments
4. Secure certificate
How to secure certificate Annex F from Miscellaneous Operations Monitoring Division
[Estimated processing time: 1 week after Annex A-1]

1. Prepare the requirements:

1. Photocopy of ICC Application Form;
2. Photocopy of Annex A-1 certificate (see above)
2. Submit documents
3. Resolve all comments
4. Secure the certificate
5.

How to secure FINAL ICC from BIR-ARMD

[Estimated processing time: 2 weeks after submission of all requirements]

1. Prepare the required documents:

1. CTC of latest GIS (get this earlier)
2. latest FS stamped received by SEC and BIR
3. latest income tax return (ITR) submitted to BIR
4. copy of lease contract (notarized)
5. occupancy permit
6. vicinity map
7. copy of latest electric or water or phone bills
8. photographs of the principal place of business
9. notarized affidavit of undertaking to preserved records for 10 years and to
allow access of information by the BIR, BOC and the Department of Finance
10. original copy of profile of the corporation
11. original copy of profile of each of Directors and corporate officers
12. original profile of the employees, representatives or agents dealing with
customs
13. original copy of the designation of representative to sign application
14. CTC of Mayors permit (get this earlier)
2. Attach output from or documents already prepared in the previous processes
1. Certificate of good standing from SEC;
2. Closed CMS case;
3. eFPS filing and payment for two months
4. Annex A-1 Application form for Accreditation of Importer (see eFPS
enrolment)
3. Attach compliance certificate or Annexes
1. Annex A and Annex A-1 of RMO 1-2015
2. Annex B and Annex C of RMO 1-2015
3. Annex D of RMO 1-2015
4. Annex E of RMO 1-2015
5. Annex F of RMO 1-2015
4. Submit the files in [1] to [3] to the BIR National Office Accounts Receivable
Monitoring Division (ARMD) for their review.
5. If the application is okay, ARMD will schedule for appearance.
6. After appearance, ARMD will endorse it for payment.
7. Pay the required fee.
8. Issuance of the BIR-ICC

Final thoughts
The trick is to lay down all the requirements and to study the processes noting which is a pre-
requisite of which process. Also, be mindful of requirements that needs days to
process. Finally, prepare all requirements for signature and get schedule of meeting with the
authorized signatory to sign all the documents at once.