Summary: The Philippine Bureau of Internal Revenue (BIR) said importers of raw materials for vaping products will be required to obtain a special permit before their goods can be released, citing the need for stronger oversight of a rapidly emerging secto
The Philippine Bureau of Internal Revenue (BIR) said it will require importers of raw materials for e-cigarette products to obtain a special permit before their shipments can be released, saying it is necessary to impose order on an industry with many emerging players.BIR Commissioner Romeo Lumagui Jr. said: “For e-cigarette products, we will require them to apply for authorization to import raw materials. We are considering ways to regulate this because there are now too many e-cigarette products. The production of e-cigarette products is a ‘backyard industry,’ so we are looking for ways to regulate it.”In its latest revenue memorandum circular, the Philippine BIR announced that, effective immediately, importers or manufacturers of raw materials and equipment used to manufacture heated tobacco products and electronic vapor products must apply for approval to import such goods.The notice stated: “Raw materials specifically used for the production of heated tobacco products and electronic vapor products include, but are not limited to: propylene glycol, vegetable glycerin, organic sweeteners, artificial flavorings, and nicotine.”Equipment used to manufacture these products also includes, but is not limited to, mechanical or electric heating elements/atomizers, circuits, reservoirs, pods, tanks, mods, and mouthpieces.In addition to securing release of imported goods, importers and manufacturers must also apply for a permit to operate. The BIR commissioner said they are working to address undercollection of excise taxes, mainly due to illicit tobacco.“Our goal is to minimize this 20% gap. Within a year, we can cut more than half of it… Ultimately, I want to ensure that this gap is fully addressed,” he said.
