BASIC CONCEPT:

Excise Tax is a tax on the production, sale or consumption of

a commodity in a country.

APPLICABILITY:

On goods manufactured or produced in the Philippines for

domestic sale or consumption or for any other disposition;
and On goods imported.

TYPES OF EXCISE TAX:

Specific Tax – refers to the excise tax imposed which is

based on weight or volume capacity or any other physical
unit of measurement
 
Ad Valorem Tax – refers to the excise tax which is based on
selling price or other specified value of the goods/articles
MANNER OF COMPUTATION: 

Specific Tax = No. of Units/other measurements x Specific

Tax Rate

Ad Valorem Tax = No. of Units/other measurements x Selling

Price of any specific value per unit x Ad Valorem Tax Rate
 
 MAJOR CLASSIFICATION OF EXCISABLE ARTICLES AND
RELATED CODAL SECTION:

1. Alcohol Products (Sections 141-143)

a. Distilled Spirits (Section 141)
b. Wines (Section 142)
c. Fermented Liquors (Section 143)

2. Tobacco Products (Sections 144-146)

a. Tobacco Products (Section 144)

b. Cigars & Cigarettes (Section 145)
c. Inspection Fee (Section 146)

 
 MAJOR CLASSIFICATION OF EXCISABLE ARTICLES AND
RELATED CODAL SECTION:

3. Petroleum Products (Section 148)

4. Miscellaneous Articles (Section 149-150)

a. Automobiles (Section 149)

b. Non-essential Goods (Section 150) 
c. Non-essential Service (Section 150-A) - RA 10963 [TRAIN
Law))
d. Sweetened Beverages (Section 150-B)-(RA 10963 [TRAIN
Law])

5. Mineral Products (Sections 151)

 
PERSONS LIABLE TO EXCISE TAX:

In General:

a. On Domestic or Local Articles

 
 
*Manufacturer
*Producer
*Owner or person having possession of articles
removed from the place of production without the
payment of the tax

b. On Imported Articles
 
 
*Importer
*Owner
*Person who is found in possession of articles which
are exempt from excise taxes other than those
legally entitled to exemption
 
TIME OF PAYMENT:

In General
 
 
*On domestic products
 
Before removal from the place of production

*On imported products

 
Before release from the customs' custody
TARIFF CONVERSION FACTORS
 
I. WEIGHT

1. 1 Kg = 1,000 Gm
2. 1 Metric Ton = 1,000 Kgs
3. 1 Pound (lb) = 0.4536 Kg
= 16 Ounces

II. Measurement

1. 1 Meter = 3.28 Feet(ft)

= 1,000 Millimeters
= 100 Centimeters (cm)
2. 1 Foot = 12 Inches
3. 1 Yard = 3 Ft
4. 1 Inch = 2.54 CM
= 25.4 MM
5. 1 Kilometer = 1,000 Mtrs
6. 1 Mile = 1.6 KM
TARIFF CONVERSION FACTORS
 
III. Quantity

1. 1 gross = 144 pcs

2. 1 dozen = 12 PCS
3. 1 Pair = 2 Pcs

IV. VOLUME

1. 1 Liter = 1,000 millimeters

= 1,000 cu. Cm (cc)
= 100 centiliters
= 10 deciliters (dl)
2. 1 hectoliter = 100 Liters
3. 1 Barrel = 159 Liters
4. 1 cu. Mtr (cbm) = 35.31445 cu. ft
= 1,000 Liters
5. 1 cu. ft = 1,728 cu. Inches
6. 1 cu yard = 27 cu. ft
TARIFF CONVERSION FACTORS
 
V. TWENTY FOOTER EQUIVALENT UNIT (TEU)

1. 1 TEU = 1 X 20 VAN
2. 2 TEU’S = 1 X 40 VAN

VI. REVENUE TON (RT) PER CMO 41-2015:

(FOR ASSESSMENT PURPOSES BY SEA ONLY

1. If only weight is given & there is no volume

1 RT = 1 MT

2. If weight & volume are both given;

1 RT = Total MT vs. T CBM

whichever is higher
TARIFF CONVERSION FACTORS
 
VII. CHARGEABLE WEIGHT (CW)
(For Air shipments Only)

CW = Actual Gross Weight (AGW) or Volume Weight (VW)

WHICHEVER is Higher

VW Per IATA CARGO TARIFF

1. VW = L x W x H (in)
kgs
366 in3 / kg

2. VW = L x W x H (cm)
kgs
6,000 cm3 / kg

3. VW = L x W x H (mtr)

0.006 cbm / kg
kgs