President Ferdinand R. Marcos, Jr. on his administration’s policy in right sizing bureaucracy, and on the recommendation of Sec. Benjamin Diokno ordered the abolishment of the DOF (Inter-Agency Tax Credit and Duty Drawback Center) OSS Center) and transfers the mandate to the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC), to assure the orderly and expeditious processing of tax credits and duty drawbacks under various laws.
Executive Secretary Lucas Bersamin signed the Administrative Order No. 4, last 20 February 2023 and it states that Under Section 2. Transfer of Functions. Subject to existing laws, rules, and regulations, the functions of the OSS Center of processing and issuing TCC’s and duty drawbacks are hereby transferred to the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC), respectively.
Within 90 working days upon the order’s authority, the Finance Secretary “shall fully implement the abolition, including the disposition and transfer of the OSS Center’s functions, personnel and assets as may be necessary.” as per the Malacañang. Sec. Diokno endorsed to the President that this will result in institutional strengthening, to promote economy, efficiency, and effectiveness in the delivery of public services.”
This benefits exporters registered with the Board of Investments (BOI) as they are commonly issued tax credit certificates on their importations. With these certificates, they get tax refunds, by way of offsetting the tax credits against other taxes due. Thus, in effect, having their raw materials duties and taxes free; making their products more competitive in the global market. JVL