DOF OKs inclusion of COVID-19 vaccine imports in express lane for tax processing

MANILA, Philippines – All importations of COVID-19 vaccines will now be included in the “Mabuhay” or express lane of the Department of Finance to allow quick processing of the tax and duty exemptions of these shipments, the department said.
In a statement issued on Thursday, the DOF said Finance Secretary Carlos Dominguez III approved the inclusion of vaccine imports to allow for the expedited processing of the tax and exemptions for vaccine applications.
Under Department Order 29-94, the Mabuhay Lane is tasked to expeditiously process applications for the tax and duty exemption of certain groups of importers, which include export-oriented firms, returning residents (balikbayans) and non-profit, non-stock educational institutions.
COVID-19 vaccine tax exemption applications in the Mabuhay Lane, which is under the DOF’s Revenue Office, will be processed within 24 working hours, the department said.
These tax exemption policies will be incorporated in the inter-agency guidelines on the implementation of a one-stop shop for international donations and government-procured COVID-19 vaccines, the department added.
Dominguez also approved the waiving of filing fees for COVID-19 vaccine applications under the Mabuhay Lane and the use of the Tax Exemption System Online Filing Module in processing the vaccine imports “to further support the government’s rollout of the COVID-19 vaccination program.”
“We add that the Mabuhay Lane currently processes all Relief Consignment under Section 120 in relation to 121 of the Customs Modernization and Tariff Act (CMTA). The Lane is expected to process all COVID-19 vaccines which may qualify as relief consignment,” Finance Undersecretary Antonette Tionko said.
Relief Consignment refers to goods donated to national government agencies and accredited private entities for free distribution to, or for the use of, victims of calamities.
Under Section 121 of the CMTA, relief consignment imported during a state of calamity and intended for the use of calamity victims shall be exempted from the payment of duties and taxes.