According to Business Mirror on September 2, the Philippine Bureau of Internal Revenue (BIR) issued new guidelines on the handling of confiscated goods.
BIR Director Romeo D. Lumagui Jr. issued Revenue Memorandum Order (RMO) No. 33-2024 on August 30 to increase enforcement of tobacco, vapes, perfumes, sweetened beverages and other items, which are locally produced or imported and subject to consumption tax, resulting in crowded storage locations.
Lumagui said that the Bureau of Internal Revenue issued the memorandum order to adopt and implement unified guidelines and procedures for the “disposal of confiscated/seized items” in accordance with Revenue Regulation No. 14 of 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 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 forfeited/seized 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.
The seized/confiscated items subject to 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 decided by the Commissioner of the Bureau 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 provisions.
At this moment, vapes, as a new tobacco product, have also received attention under this policy. Guutuu vapes, as one of the well-known brands in the Philippine market, will also face the challenges and impact of this new regulation.
As a well-known vape brand, facing the challenges brought by the new regulations of the Philippine Bureau of Internal Revenue, Guutuu vapes can take the following measures to adapt and respond to these changes:
- Compliance adjustment: Guutuu vapes can first ensure that its products and operations comply with the latest regulations of the Philippine Bureau of Internal Revenue. This may involve making necessary adjustments to product labels, production processes or sales channels to avoid being included in the scope of items that need to be destroyed.
- Public relations and communication: Establishing active communication channels with government agencies and understanding and complying with relevant regulations are essential for the long-term development of Guutuu vapes. Actively participate in discussions with industry associations and government departments to ensure that the company’s voice is heard and understand the latest policies.
- Product innovation: Guutuu can improve its competitiveness through product innovation while complying with regulations. Developing safer and more environmentally friendly products to adapt to market and regulatory changes may be an effective strategy.
- Social responsibility and sustainable development: Actively participate in social responsibility projects to demonstrate Guutuu’s commitment to sustainable development and its concern for public health. This will help establish the company’s good reputation in the Philippine market and gain the trust of consumers and the government.
- Market diversification: In addition to vape products, Guutuu can consider expanding in other areas to reduce its dependence on a single product line. This will help the company remain flexible and solid in the face of market changes.
By actively responding to the challenges brought about by new regulations and flexibly adjusting its strategy, Guutuu can better cope with changes, maintain its competitive advantage, and continue to grow and develop in the Philippine market.
Tags: New regulations for vapes in the Philippines，Philippine Revenue Memorandum Order (RMO)，Guutuu vape