HISTORY AND MANDATE

Prior to 1992, the processing of various tax credit and duty drawback was administered by different government agencies such as the Board of Investments, the Bureau of Customs and the Bureau of Internal Revenue. Under this chaotic system, exporters had to contend with varying document requirements and claim filing and evaluation procedures that resulted in longer processing time and many instances, duplicity and inconsistency in policy implementation.

As the government's response to the mounting complaints aired by the private sector over this highly chaotic and inefficient system, the CENTER was created by President Corazon C. Aquino through Administrative Order No. 266 issued on February 7, 1992. Its main objective is to achieve an orderly and expeditious processing of tax credit and duty drawback claims of legitimate exporters by housing under one agency all tax credit and duty drawback programs. It became a permanent unit of the Department of Finance on July 19, 1994 when President Fidel V. Ramos issued Administrative Order No. 138.

The CENTER was formed primarily to served as one of the government's pillars for export promotion and investment generation drive by making the various tax credit and duty drawback incentive programs readily accessible to legitimate exporters.

In accordance with President Gloria Macapagal Arroyo's thrust to continuously improve government service and reduce bureaucratic redtape, the CENTER faithfully adheres to a uniform set of policy initiatives that provides a simplified, consistent and transparent evaluation system achieved under an exacting standard of professional work competence. It instills among its staff the core values of honor, probity, integrity and excellence. Furthermore, the CENTER continuously pursues programs aimed at enhancing overall efficiency by simplifying claim evaluation procedures and reducing documentary requirements. All these in active partnership and consultation with its public constituencies.

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POWERS, DUTIES AND FUNCTIONS

The CENTER has the following powers, duties and functions under Administrative Order No. 266:

a) To promulgate the necessary rules and regulations or guidelines for the effective implementation of AO 266;

b) To accept applications for tax credits and /or duty drawback and finish evaluation thereof within (30) working days from date of acceptance of complete applications;

c.) To process claims for tax credits and duty drawbacks and upon completion, issue appropriate tax credit and duty drawbacks certificates;

d.) To authorize utilization of tax credit certificates through the issuance to tax debit memos in accordance with appropriate guidelines;

e.) To authorize the transfer of tax credit certificates to other parties subject to prescribed guidelines thereon;

f.) To closely coordinate with the concerned government agencies for effective and efficient administration of tax credits and related systems;

g.) To regularly conduct dialogues with private sector with end view of arriving at realistic standard usage rates;

h.) To adopt and/or revise standard usage rates on all raw materials and imports used in exporters motu propio or upon petition by concerned exporters which shall be used for computing special tax credits/duty drawback;

i.) To conduct regular post-audit examinations on tax credit certificates issued using standard rates;

j.) To enforce compliance with tax credit/duty drawback policy and procedural guidelines;

k.) To manage the date processing for the storage and retrieval of date on tax credit/duty drawback scheme applications;

l.) To collect appropriate fees in connection with the processing of applications which maybe expended to enhance its effectiveness and efficiency, including but not limited to granting allowances, overtime pays and other material benefits to its members and staff;

m.) To perform such other functions/duties as may be necessary or incidental in the furtherance of the purpose for which it has been established;

n.) To recruit, hire and train the necessary staff to process and evaluate applications for tax credit/duty drawback; and

o.) To perform such other functions/duties as may be necessary or incidental in the furtherance of the purpose for which it has been established.

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