Administrative Determination 15-05 (AD 15-05) (March 26, 2015) repeals a temporary procedure established by AD 14015 for the release of imported property and an alternate procedure for completing and submitting the complementary declaration pursuant to AD 14-20.
The rules under AD 15-05 are effective for importers that do not have a tax bond in place—non-bonded importers:
The purpose of AD 15-05 is to reinstate a procedure established under Circular Letter 14-06 regarding the declaration and payment of use tax on imported property by non-bonded importers.
Because the alternate procedure previously established under AD 14-15 and 14-20 has now been repealed, non-bonded importers will not be able to arrange for the automatic release of any taxable items imported into Puerto Rico.
Instead, pursuant to the terms of Circular Letter 14-06, non-bonded importers will have to select the bills of lading to be reported during their preparation of the declaration of imports. As such, a copy of the commercial invoice (or alternatively, a purchase order) must be uploaded to the PICO system. The system will then generate a receipt of payment and authorization that will allow the importer to take possession of the imported property.
A declaration of imports will be required for:
The declaration of imports will need be completed and filed electronically no later than the 10th day after the month following the imports.
Notably, a bond will not be required under AD 15-05. The bond is simply a mechanism that will facilitate deferral of the date for paying the sales and use tax until the 10th day of the following month after receiving the merchandise.
Payments of the sales and use tax must be made electronically through the PICO system through an ACH debit or credit. Bonded importers may use the bond to defer payment until required.
For more information, contact a tax professional with KPMG in Puerto Rico:
Rolando Lopez | +1 (787) 622-5330 | firstname.lastname@example.org
Carlos Molina | +1 (787) 622-5311 | email@example.com
© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.